N.Y. Mental Hygiene Law § 84.03: Definitions

§ 84.03 Definitions.

As used in this article:

1. The term "financial organization" means an organization authorized

to do business in the state of New York and which: (a) is licensed or

chartered by the department of financial services; (b) is licensed or

chartered by an agency of the federal government; or (c) is subject to

the jurisdiction and regulation of the securities and exchange

commission of the federal government.

2. "Account" or "NY ABLE account" shall mean an individual savings

account established in accordance with the provisions of section 529A of

the Internal Revenue Code.

3. "Account owner" shall mean a person who opens a savings account

pursuant to the provisions of section 529A of the Internal Revenue Code,

as amended, or any regulations promulgated thereunder. The account owner

must also be the designated beneficiary of the account.

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

accounts, any individual who is an "eligible individual" as defined

under paragraph (1) of subsection (e) of section 529A of the Internal

Revenue Code of 1986, as amended, or any regulations promulgated

thereunder and whose qualified expenses are expected to be paid from the

account or accounts.

5. "Qualified expenses" shall mean any qualified disability expense

included in paragraph (5) of subsection (e) of section 529A of the

Internal Revenue Code of 1986, as amended, or any regulations

promulgated thereunder.

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

for other than a qualified expense, or a withdrawal made as the result

of the death or disability of the designated beneficiary of an account.

7. "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.

8. "Savings agreement" shall mean an agreement between the comptroller

or a financial organization and the account owner.

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

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