{"data":{"id":"us-ky/krs-164a.700","jurisdiction":"us-ky","citation":"KRS 164A.700","heading":"Definitions for KRS 164A.700 to 164A.709.","body":"As used in KRS 164A.700 to 164A.709, unless the context requires otherwise:\n(1) \"Academic year\" means the time period specified by each eligible educational\ninstitution;\n(2) \"Board\" means the board of directors of the Kentucky Higher Education Assistance\nAuthority acting in the capacity of the board of directors of the Commonwealth\npostsecondary education prepaid tuition trust fund;\n(3) \"Eligible educational institution\" means an institution defined in the Internal\nRevenue Code of 1986, as amended, 26 U.S.C. sec. 529(e)(5);\n(4) \"Fund\" means the prepaid tuition payment fund created in KRS 164A.701 and\nknown as the \"Commonwealth Postsecondary Education Prepaid Tuition Trust\nFund\" or \"Kentucky's Affordable Prepaid Tuition\" (KAPT);\n(5) \"Prepaid tuition\" means the amount of tuition estimated by the board for the tuition\nplan under the prepaid tuition contract;\n(6) \"Prepaid tuition academic year conversion\" means the difference between the\namount of prepaid tuition required in the original prepaid tuition contract and the\namount of prepaid tuition required in an amended prepaid tuition contract as the\nresult of the change in the academic year;\n(7) \"Prepaid tuition academic year conversion shortfall\" means the amount by which\nthe prepaid tuition required in an amende d prepaid tuition contract as the result of\nthe change in the academic year exceeds the amount of prepaid tuition required in\nthe original prepaid tuition contract;\n(8) \"Prepaid tuition account\" means the account for a qualified beneficiary as specified\nin the prepaid tuition contract;\n(9) \"Prepaid tuition contract\" means the contract entered into by the board and the\npurchaser for the purchase of prepaid tuition for a qualified beneficiary to attend any\neligible educational institution as provided in KRS 164A.700 to 164A.709;\n(10) \"Prepaid tuition conversion\" means the difference between the value of a prepaid\ntuition account and the tuition at an eligible educational institution;\n(11) \"Prepaid tuition conversion shortfall\" means the amount by which the act ual tuition\ncost at an eligible educational institution exceeds the amount of the value of a\nprepaid tuition account;\n(12) \"Purchaser\" means a person, corporation, association, partnership, or other legal\nentity who enters into a prepaid tuition contract;\n(13) \"Qualified beneficiary\" means a designated beneficiary, as defined in 26 U.S.C. sec.\n529(e)(1), who is:\n(a) A Kentucky resident designated as beneficiary at the time a purchaser enters\ninto a prepaid tuition contract; or\n(b) A nonresident designated at the time a purchaser enters into a prepaid tuition\ncontract who intends to attend an eligible institution in Kentucky; or\n(c) A new beneficiary, in the case of a change of beneficiaries under provisions of\nKRS 164A.707; or\n(d) An individual receiving a scholarship in the case of a prepaid tuition contract\npurchased by a state or local government or agency or instrumentality thereof\nor an organization described in 26 U.S.C. sec. 501(c)(3), and exempt from\nfederal income taxation p ursuant to 26 U.S.C. sec. 501(a) as part of a\nscholarship program offered by the government entity or the organization;\n(14) \"Qualified postsecondary education expenses\" means qualified higher education\nexpenses as defined in 26 U.S.C. sec. 529(e)(3);\n(15) \"Tuition\" means the prevailing tuition and all mandatory fees charged as a condition\nof full -time enrollment in an undergraduate program for an academic year for a\nqualified beneficiary to attend an eligible educational institution;\n(16) \"Tuition Account Program Office\" or \"office\" means the office in the Kentucky\nHigher Education Assistance Authority that is responsible for administering the\nprepaid tuition program and its accounts;\n(17) \"Tuition plan\" means a tuition plan approved by the board and provid ed under a\nprepaid tuition contract;\n(18) \"Utilization period\" means:\n(a) For a prepaid tuition account depleted or terminated prior to June 27, 2019,\nthe period of time in which a prepaid tuition contract is to be used beginning\nwith the projected college  entrance year and continuing for the number of\nprepaid tuition years purchased; or\n(b) For a prepaid tuition account not depleted or terminated as of June 27, 2019,\nthe period of time in which a prepaid tuition contract is to be used beginning\nwith the projected college entrance year and continuing for eight (8) years; and\n(19) \"Value of a prepaid tuition account\" means the amount which the fund is obligated\nto pay for a prepaid tuition contract, when a purchaser has paid it in full, that is\ncalculated by multiplying the plan tuition amount for the academic period by the\nnumber of prepaid tuition years purchased, less any portion previously paid; except,\nunder a tuition plan for private colleges and universities, tuition shall be calculated\nbased on the sam e percentage that University of Kentucky tuition is increased from\nthe year the prepaid tuition contract is purchased to the year of payment.","path":["KRS Chapter 164A"],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=48598","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:51:19Z","sha256":"0d5ba19aaa2232d7f762f7cb7bbde81bfdcb3762dbb194c1610c308394c26574","source_id":"us-ky","stale":false,"prev":"us-ky/krs-164a.630","next":"us-ky/krs-164a.701"},"notice":"GroundRules: Original legal text. Not legal advice."}