(1) “Account owner” means an individual, association, corporation, trust, charitable organization, or other such entity that establishes an educational investment trust account pursuant to this part or that is otherwise listed as the owner of an education investment trust account;

(2) “Beneficiary,” for the purposes of the educational investment plan, means an individual designated by the account owner and who meets the requirements of the code. For the purposes of the educational services plan, “beneficiary” means an individual designated under a tuition contract as the individual entitled to apply tuition units purchased under the contract to the payment of that individual's undergraduate, graduate and professional tuition, and other educational costs. For purposes of the educational services plan, the beneficiary or the purchaser shall have been a resident of this state at the time the contract was entered into by the purchaser and the board;

(3) “Board” means the board of trustees of the college savings trust fund program described in this part;

(4) “Code” means § 529 of the Internal Revenue Code of 1986 (26 U.S.C. § 529), as amended and all rules, regulations, notices and interpretations released by the United States treasury, including the internal revenue service;

(5) “Contributor” means one (1) or more individuals, associations, corporations, trusts, charitable organizations, or other such entities that contributes money or makes a payment to an educational investment trust account established pursuant to this part;

(6) “Educational investment plan” means a plan that permits an account owner to establish an educational investment trust account and one (1) or more contributors to make contributions to an educational investment trust account that is intended to be applied to an account beneficiary's qualified higher education expenses;

(7) “Educational investment trust account” means an account that is established by an account owner intended to be applied to an account beneficiary's qualified higher education expenses;

(8) “Educational services plan” means a plan that permits individuals, associations, corporations, trusts or other organized entities to purchase a tuition unit or units under a tuition contract entered into between a purchaser and the board on behalf of a designated beneficiary that entitles the beneficiary to apply such units to the payment of that beneficiary's undergraduate, graduate and professional tuition, and other educational costs;

(9) “Eligible educational institution” shall have the same meaning as set forth in § 529 of the Internal Revenue Code of 1986, and the rules promulgated thereunder, or other applicable federal law;

(10) “Other educational costs” mean such other fees or expenses as may be determined by the board; provided, that the fees or expenses are included in the definition of qualified higher education expenses under the sections of the Internal Revenue Code that are applicable to the program;

(11) “Program” means the college savings trust fund program created in this part. The program may be comprised of two (2) types of qualified tuition plans as defined by the code, including one (1) or more educational investment plan or plans, which may consist of several different investment offerings or one (1) or more educational services plan or plans. Except as otherwise provided, all terms, conditions and limitations shall apply equally to both types of qualified tuition plans;

(12) “Purchaser” means an individual, association, corporation, trust, charitable organization or other such entity that enters into a tuition contract under this part for the purchase of a tuition unit or units on behalf of a beneficiary relative to the educational services plan;

(13) “Qualified higher education expenses” shall have the same meaning as set forth in § 529 of the Internal Revenue Code of 1986, and the rules promulgated thereunder, or other applicable federal law;

(14) “Redemption value” means the cash value of the educational investment trust account attributable to the sum of the principal invested, the interest earned or losses incurred in the principal, less any fees imposed by rule of the board;

(15) “Refund recipient” means the person designated in a tuition contract by the purchaser as the person entitled to terminate the tuition contract and to receive refunds arising out of the contract pursuant to § 49-7-811;

(16) “State institution of higher education” means the colleges, universities, or branches or units of colleges or universities under the control and direction of either the board of trustees of the University of Tennessee or the board of regents of the state university and community college system;

(17) “Trust fund” means the educational investment trust fund or the educational services trust fund established pursuant to § 49-7-812;

(18) “Tuition” means the charges imposed to attend an institution of higher education as an undergraduate, graduate or professional student and all fees required as a condition of enrollment as determined by the board. “Tuition” does not include fees charged to out-of-state residents by institutions of higher education, laboratory fees, room and board or other similar fees and charges;

(19) “Tuition contract” means a contract entered into under this part by the board and a purchaser to provide for the payment of tuition and other educational costs, through either the educational savings plan or the educational services plan;

(20) “Tuition unit” means a unit of the educational services plan purchased under § 49-7-807 on behalf of a beneficiary; and

(21) “Weighted average tuition” means the tuition cost resulting from the following calculation:

(A) Add the products of the annual undergraduate tuition at each Tennessee four-year public university multiplied by that institution's total number of undergraduate full-time equivalent students; and

(B) Divide the gross total of the products from subdivision (21)(A) by the total number of undergraduate full-time equivalent students attending Tennessee's four-year public universities.