11 KAR 17:090. Refunds and transfers.

 

      RELATES TO: KRS 164A.709

      STATUTORY AUTHORITY: KRS 164A.704(1),

(6), 2003 Ky. Acts ch. 156, Part IX, Sec. 46, EO 2003-652

      NECESSITY, FUNCTION, AND CONFORMITY: KRS

164A.704(1) requires the board to promulgate administrative regulations to

implement KRS 164A.700 to 164A.709. KRS 164A.704(6) provides that the board

shall develop requirements, procedures, and guidelines regarding prepaid

tuition contracts. 2003 Ky. Acts ch. 156, Part IX, Section 46, and EO 2003-652

transferred the governance and administration of the Prepaid Tuition Program

from the Department of Treasury to the Kentucky Higher Education Assistance

Authority. KRS 164A.709 authorizes refunds and transfers from a prepaid tuition

contract. This administrative regulation establishes the requirements for

refunds and transfers from a prepaid tuition contract.

 

      Section 1. Refunds. (1) A purchaser shall

make a written request to the office for any refund that may be due to him from

a prepaid tuition contract in accordance with 11 KAR 17:080, Section 1.

      (2) All requested refunds shall be

subject to approval by the office.

      (3) A purchaser shall be notified of the

amount of refund due. Any outstanding administrative fees required by 11 KAR

17:100 shall be deducted from the amount of the refund.

      (4) All refunds shall be paid to the

purchaser by the office from the fund in either a one (1) time lump sum payment

or installment payments. If a refund is paid to the purchaser in installment payments,

interest shall not accrue on the installment payments.

 

      Section 2. Transfers. (1) A prepaid

tuition account may be transferred to another qualified tuition program as

defined in 26 U.S.C. 529 in accordance with this section and applicable

provisions of 26 U.S.C. 529. A purchaser shall make a written request for

transfer of funds from the prepaid tuition account to another qualified tuition

program and submit sufficient documentation, as requested by the office, to

confirm the qualified status of the recipient tuition program.

      (2) Upon transfer of a prepaid tuition

account, the purchaser’s prepaid tuition contract shall be terminated and

considered null and void and the purchaser shall retain no claim or right to

payment of any amount from the fund.

      (3) A transfer shall:

      (a) Consist of all contributions made to

the KAPT account; and

      (b) Not be a portion of contributions

made to the prepaid tuition account. (30 Ky.R. 764; Am. 1196; eff. 12-1-2003.)