South Carolina § 59-4-40 - Fund established; sources, investment, management, and expenditure of funds; exemption from legal process and unassignability.

§ 59-4-40. Fund established; sources, investment, management, and expenditure of funds; exemption from legal process and unassignability.

(A) The fund is a nonpublic special, revolving fund established and maintained by the State of South Carolina. The fund consists of monies received from contributors, other monies acquired from governmental and private sources, and proceeds from the investments of the fund. The fund may expend funds for the purposes of this chapter only and may not be considered public funds. There must be a separate accounting for each designated beneficiary.

(B) The fund must be invested as directed by the treasurer. However, earnings in the fund or a portion of the fund may not be used as security for a loan. An attempt to use the fund, a contract, or a portion of either as security for a loan is void. The fund may receive amounts transferred from a Uniform Gift to Minors Act, Uniform Transfer to Minors Act, or other account established for the benefit of a minor provided that the beneficiary of such an account is identified as the legal owner of the South Carolina Tuition Prepayment Program contract upon attaining majority age. The fund, contributions to the fund, and the right of a person to a refund of contributions or any other right accrued or accruing to any person under the provisions of this chapter are exempt from attachment, garnishment, levy, and sale under any means or final process issued by any court or bankruptcy proceeding and are unassignable except as specifically otherwise provided in this chapter. The funds may be invested and reinvested in any of the following:

(1) securities authorized pursuant to Article 7, Chapter 9, Title 11;

(2) equity securities of a corporation that is registered on a national securities exchange, as provided in the Securities Exchange Act, 1934, or a successor act, or quoted through the National Association of Securities Dealers Automatic Quotations System, or a similar service; and

(3) securities issued by an investment company registered under the Investment Company Act of 1940, or a successor act.

(C) The custody and management of the fund must be directed by the treasurer and invested in accordance with the written investment policies approved by the treasurer. The earnings from fund investments become a part of the fund and may be expended for the purposes of this chapter only.

HISTORY: 1997 Act No. 155, Part II, SECTION 4A; 2000 Act No. 410, SECTION 2(C); 2001 Act No. 72, SECTION 2.

Editor's Note

2022 Act No. 128, SECTION 5, provides as follows:

"SECTION 5. References to the 'Uniform Gifts to Minors Act' means the 'Uniform Transfers to Minors Act', except as provided in Section 59-4-40."