N.Y. Education Law § 695-b: Definitions

§ 695-b. Definitions. As used in this article, the following terms

shall have the following meanings:

1. "Account" or "family tuition account" shall mean an individual

savings account established in accordance with the provisions of this

article.

2. "Account owner" shall mean a person who enters into a tuition

savings agreement pursuant to the provisions of this article, including

a person who enters into such an agreement as a fiduciary or agent on

behalf of a trust, estate, partnership, association, company or

corporation. The account owner may also be the designated beneficiary of

the account.

3. "Designated beneficiary" shall mean, with respect to an account or

accounts, the individual designated as the individual whose higher

education expenses are expected to be paid from the account or accounts.

4. "Financial organization" shall mean an organization authorized to

do business in the state of New York and (a) which is an authorized

fiduciary to act as a trustee pursuant to the provisions of an act of

congress entitled "Employee Retirement Income Security Act of 1974" as

such provisions may be amended from time to time, or an insurance

company; and (b)(i) is licensed or chartered by the department of

financial services, (ii) is chartered by an agency of the federal

government, (iii) is subject to the jurisdiction and regulation of the

securities and exchange commission of the federal government, or (iv) is

any other entity otherwise authorized to act in this state as a trustee

pursuant to the provisions of an act of congress entitled "Employee

Retirement Income Security Act of 1974" as such provisions may be

amended from time to time.

5. "Eligible educational institution" shall mean (a) any institution

of higher education defined as an eligible educational institution in

section 529(e)(5) of the Internal Revenue Code of 1986, as amended, or

(b) any apprenticeship program described in section 529(c)(8) of the

Internal Revenue Code of 1986, as amended.

6. "Member of family" shall mean a family member as defined in section

529 of the Internal Revenue Code of 1986, as amended.

7. "Program" shall mean the New York state college choice tuition

savings program established pursuant to this article.

8. "Qualified higher education expenses" shall mean any qualified

higher education expense included in section 529 of the Internal Revenue

Code of 1986, as amended.

9. "Qualified withdrawal" shall mean a withdrawal from an account:

a. to pay the qualified higher education expenses of the designated

beneficiary of the account at an eligible educational institution;

b. to pay principal and interest on any qualified education loan as

provided for in section 529(c)(9) of the Internal Revenue Code of 1986,

as amended; and

c. to make a rollover to a Roth Individual Retirement Account as

provided for in section 529(c)(3)(E) of the Internal Revenue Code of

1986, as amended.

10. "Nonqualified withdrawal" shall mean a withdrawal from an account

but shall not mean:

a. a qualified withdrawal;

b. a withdrawal made as the result of the death or disability of the

designated beneficiary of an account; or

c. a withdrawal made on the account of a scholarship.

11. "Corporation" shall mean the New York state higher education

services corporation.

12. "Comptroller" shall mean the comptroller of the state of New York.

13. "Management contract" shall mean the contract executed by the

comptroller and a financial organization selected to act as a depository

and manager of the program.

14. "Tuition savings agreement" shall mean an agreement between the

comptroller or a financial organization and the account owner.

15. "Program manager" shall mean a financial organization selected by

the comptroller to act as a depository and manager of the program.