(a) There are created two (2) Tennessee college savings trust funds, the educational investment trust fund and the educational services trust fund. The board, or if designated by the board, the state treasurer shall serve as trustee. These funds shall be held and maintained as separate accounts as provided in subdivisions (a)(1) and (2):

(1) The educational investment trust fund shall consist solely of:

(A) Contributions received by the board from account owners or contributors on behalf of beneficiaries for a particular educational investment trust account or from any other source public or private;

(B) All interest and investment income earned by such fund;

(C) Any monetary gift of any nature made by any individual by testamentary disposition, including, but not limited to, any specific monetary gift or bequeath made by will, trust or other disposition; and

(D) All other receipts of the board from any other source that the board determines appropriate;

(2) The educational services trust fund shall consist solely of:

(A) Payments received by the board from purchasers on behalf of beneficiaries pursuant to educational services plan contracts or from any other source, public or private;

(B) All interest and investment income earned by the fund;

(C) Any monetary gift of any nature made by any individual by testamentary disposition, including, but not limited to, any specific monetary gift or bequeath made by will, trust or other disposition; and

(D) All other receipts of the board from any other source that the board determines appropriate.

(b) The board shall maintain an account for each tuition contract showing the beneficiary of that educational services plan contract. The account shall also show the number of tuition units purchased pursuant to that contract if the contract involves the educational services plan.

(c) The assets of the educational services trust fund shall be preserved, invested and expended solely pursuant to and for the purposes of this part and shall not be loaned or otherwise transferred or used for any other purpose. The assets of the funds shall be expended solely to:

(1) Make payments to, or on behalf of, beneficiaries pursuant to §§ 49-7-807(a) and 49-7-808(a);

(2) Make refunds as provided in § 49-7-811; and

(3) Pay the investment fees and other costs of administering the funds.

(d) The amounts on deposit in the program shall not constitute property of the state. The assets of each of the educational investment trust fund and the educational services trust fund shall be preserved, invested and expended pursuant to and for the purposes set forth in this part, and the trust funds' moneys shall be held in trust for account owners, beneficiaries and purchasers, as applicable. Neither trust fund shall be construed to be a department, institution or agency of the state. Amounts on deposit in such trust funds shall not be commingled with state funds and the state shall have no claim to or against, or interest in, such funds. Any agreement entered into by or any obligation of such trust funds shall not constitute a debt or obligation of the state and the state shall have no obligation to any account owner, purchaser, contributor, beneficiary or any other person on account of such trusts and all amounts obligated to be paid from the trust funds shall be limited to amounts available for such obligation on deposit in such trusts. The amounts on deposit in any trust fund account may only be disbursed at the direction of the purchaser or account owner or otherwise in accordance with § 49-7-808. A trust fund shall continue in existence as long as they hold any contributions or has any obligations and until its existence is terminated by law, and upon termination any unclaimed assets shall return to the state.

(e) All revenues collected by the program shall not revert to the general fund but shall remain in the program and shall be used to fund the program or the Tennessee financial literacy commission, compiled in chapter 6, part 17 of this title.