Oklahoma § 70-6008 - Termination of advance tuition payment contracts Refunds

§ 70-6008. Termination of advance tuition payment contracts Refunds

A. An advance tuition payment contract shall authorize a

termination of the contract when any one of the following occurs:

1. The qualified beneficiary dies;

2. The qualified beneficiary is not admitted to a state

institution of higher education after making proper application;

3. The qualified beneficiary certifies to the Regents, after

attaining the age of eighteen (18), that such qualified beneficiary

has decided not to attend a state institution of higher education

and requests, in writing, that the advance tuition payment contract

be terminated; or

4. Other circumstances, determined by the Trust and set forth

in the advance tuition payment contract, occur.

B. An advance tuition payment contract shall provide for a

refund pursuant to this section to a person to whom the refund is

payable under the contract upon termination of the contract. If the

qualified beneficiary has a high school diploma or has reached the

age of majority, and attends an institution of higher education, the

Oklahoma Statutes - Title 70. Schools

amount of a refund shall be the lesser of the average tuition cost

of all state institutions of higher education on the date of

termination of the contract, or the face amount of the payment or

payments and any accrued investment income attributable to the

payment or payments, or the lowest tuition cost of all state

institutions of higher education on the date of termination of the

contract depending upon the terms of the contract. The amount of a

refund shall be reduced by an appropriate percentage if the

purchaser entered into an advance tuition payment contract that

provided for a fixed number of credit hours less than the total

number of credit hours required by a state institution of higher

education for the awarding of a bachelor's degree, by the amount

transferred to a community or junior college on behalf of a

qualified beneficiary when the contract is terminated as provided in

Section 6 of this act and by the amount transferred to an

institution of higher education on behalf of a qualified

beneficiary. Termination of a contract and the right to receive a

refund shall not be authorized under the contract if the qualified

beneficiary has completed more than one-half (1/2) of the credit

hours required by the institution of higher education for the

awarding of a bachelor's degree. However, this provision shall not

affect the termination and refund rights of a graduate of a

community or junior college. Pursuant to this subsection and except

as provided by subsection C of this section, the Trust shall make

refund payments in equal installments over four (4) years and not

later than August 15 of the year due.

C. An advance tuition payment shall authorize a person, who is

entitled under the advance tuition payment contract to terminate the

contract, to direct payment of the refund to a community or junior

college located in this state. If directed to make payments

pursuant to this subsection, the Trust shall transfer to the

designated institution an amount equal to the tuition due for the

qualified beneficiary, but the Trust shall not transfer a cumulative

amount greater than the refund to which the person is entitled. If

the refund exceeds the total amount of transfers directed to the

designated institution, the excess shall be returned to the person

to whom the refund is otherwise payable.

Added by Laws 1988, c. 261, § 9, emerg. eff. June 29, 1989.