The following terms have the meanings below unless the context clearly indicates otherwise:

(1) "SCCIP Trust Fund" means the special fund designated as the "South Carolina College Investment Trust Fund" and administered by the Office of State Treasurer.

(2) "Account owner" means a person, corporation, trust, charitable organization or other such entity who contributes to or invests money in an investment trust account under SCCIP established pursuant to this chapter on behalf of a beneficiary and who is listed as the owner of the investment trust account.

(3) "Beneficiary" means a beneficiary of an investment trust agreement who meets the requirements of Section 529 of the Internal Revenue Code of 1986, as amended, or other applicable federal law, as well as any regulations established by the Office of State Treasurer.

(4) "Contributor" means any person, corporation, trust, charitable organization, or other such entity who contributes money or makes a payment to an investment trust account established pursuant to this chapter on behalf of a beneficiary.

(5) "Director" means the head of the South Carolina Tuition Prepayment Program SCCIP and who is appointed and supervised by the State Treasurer.

(6) "Institution of higher learning" means any institution of higher learning which is an eligible education institution as defined in Section 529 of the Internal Revenue Code of 1986, as amended, or any other applicable federal law.

(7) "Tuition" means the quarter, semester, or term charges and all required fees imposed by an institution of higher learning as a condition of enrollment by all students.

(8) "Investment trust account" means an account established by an account owner pursuant to this chapter on behalf of a beneficiary in order to apply distributions from the account toward qualified higher education expenses at eligible educational institutions, as defined in Section 529 of the Internal Revenue Code of 1986, as amended, or other applicable federal law.

(9) "Investment Trust Agreement" means the agreement entered into between the Office of State Treasurer and the account owner establishing an investment trust account.

(10) "State Treasurer" means the South Carolina State Treasurer.

(11) "Qualified higher education expense" means any higher education expense as defined in Section 529 of the Internal Revenue Code of 1986, as amended, or other applicable federal law.

(12) "Qualified withdrawal" means a withdrawal by an account owner or beneficiary for qualified higher education expenses or as otherwise permitted under Section 529 of the Internal Revenue Code of 1986, as amended, without a penalty required by the section.

HISTORY: 2001 Act No. 72, Section 3(A).