{"data":{"id":"us-ky/krs-164a.709","jurisdiction":"us-ky","citation":"KRS 164A.709","heading":"Termination of prepaid tuition contract or account -- Transfer of funds -","body":"- Operations of Commonwealth postsecondary education prepaid tuition trust\nfund and the Tuition Account Program Office to end on June 30, 2030.\n(1) A purchaser may termin ate a prepaid tuition contract at any time upon written\nrequest to the office.\n(2) Upon termination of a prepaid tuition contract at the request of a purchaser, the\noffice shall pay from the fund to the purchaser:\n(a) The value of the prepaid tuition account or, if the contract has not been paid in\nfull, a pro rata amount calculated according to the portion of the plan that had\nbeen paid, if the contract is terminated for the death of the qualified\nbeneficiary or the disability of the qualified beneficiary that, in the opinion of\nthe office, would make attendance by the beneficiary at an eligible educational\ninstitution impossible or unreasonably burdensome;\n(b) The amounts paid on the purchaser's prepaid tuition contract if the contract is\nterminated and a request for refund is made before July 1 of the qualified\nbeneficiary's projected college entrance year. The board may determine a rate\nof interest to accrue for payment on the amount otherwise payable under this\nparagraph;\n(c) For a prepaid tuition accoun t terminated after June 30 of the qualified\nbeneficiary's projected college entrance year and prior to June 27, 2019:\n1. The value of the prepaid tuition account for the 2014 -2015 academic\nyear for accounts with a utilization period end date prior to 2012; or\n2. The value of the prepaid tuition account at the end of the account's\nutilization period plus three percent (3%) per annum for a maximum of\ntwo (2) years thereafter, or the applicable tuition plan value increase,\nwhichever is less, for accounts with a utilization period end date of 2012\nor later; or\n(d) For a prepaid tuition account terminated after June 30 of the qualified\nbeneficiary's projected college entrance year and on or after June 27, 2019, the\nvalue of the prepaid tuition account at the time of termination.\n(3) All refunds paid shall be less any benefits previously paid from the plan and any\nadministrative fees as determined by the board. The office may impose a fee upon\ntermination of the account for administrative costs and deduct the fee f rom the\namount otherwise payable under this section.\n(4) If a qualified beneficiary is awarded a scholarship that covers tuition costs included\nin a prepaid tuition contract, the purchaser may request a refund consisting of the\namount of the value of the p repaid tuition account, not to exceed the amount of the\nscholarship.\n(5) If the purchaser wishes to transfer funds from the prepaid tuition account to the\nKentucky Educational Savings Plan Trust, the purchaser may do so under\nadministrative regulations pro mulgated by the board and the board of directors of\nthe Kentucky Educational Savings Plan Trust under KRS 164A.325. The transfer\namount shall be calculated in the same way a refund is determined in accordance\nwith this section.\n(6) If the purchaser wishes to transfer funds from the prepaid tuition account to another\nqualified tuition program as defined in 26 U.S.C. sec. 529(b)(1), the purchaser may\ndo so under administrative regulations promulgated by the board. The transfer\namount shall be calculated in th e same way a refund is determined in accordance\nwith this section.\n(7) The board may terminate a prepaid tuition contract at any time due to the fraud or\nmisrepresentation of a purchaser or qualified beneficiary with respect to the prepaid\ntuition contract.\n(8) All operations of the Commonwealth postsecondary education prepai d tuition trust\nfund and the Tuition Account Program Office shall end on June 30, 2030. On or\nbefore that date, any remaining prepaid tuition account funds that have not been\nutilized, transferred to another qualified tuition program, or refunded upon the\nrequest of the purchaser shall be refunded to the purchaser in accordance with\nsubsection (2) of this section.","path":["KRS Chapter 164A"],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=48600","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:51:19Z","sha256":"a004fae093f47ba9886f50d520b3e3ef73c370adacfe6649fe25190e22f3748d","source_id":"us-ky","stale":false,"prev":"us-ky/krs-164a.708","next":"us-ky/krs-164a.800"},"notice":"GroundRules: Original legal text. Not legal advice."}