Section 2500.20 Definition of Terms

Section 2500

Section 2500.20  Definition

of Terms

The following definitions shall

apply to this Part:

"Act":

Section 16.5 of the State Treasurer Act [15 ILCS 505] that establishes the

College Savings Pool.

"Account":

An individual investment account established and maintained in the College

Savings Pool.

"Account Owner": Any

person or entity who has opened an account or to whom ownership of an account

has been transferred, as allowed by the Code, and who has authority to withdraw

funds, direct withdrawal of funds, change the designated beneficiary, or

otherwise exercise control over an account in the College Savings Pool.

"Administrative

Fees, Costs, and Expenses":  Any fees, costs, and expenses, including

investment fees and expenses, to cover the costs of administration,

recordkeeping, and investment management, and payments to third parties,

related to

the Pool

.

"Applicant":

Any person who has applied or who is in the process of applying to open an

account in the Pool.

"Code":

The Internal Revenue Code of 1986, as amended (26 USC 1 et seq.).

"College Savings Pool"

or "Pool": The College Savings Pool authorized to be established by

the Treasurer under the Act and operated in accordance with section 529 of the

Code, which may consist of one or more programs.

"College

Savings Program" or "Program":  An Illinois qualified tuition

program established under the Pool and operated in accordance with section 529

of the Code.

"Contributions":

Contributions made to an account by a donor.

"Designated

Beneficiary": Any individual designated as the beneficiary of an account

in the Pool by an account owner.  A designated beneficiary must have a valid

social security number or taxpayer identification number.  In the case of an

account established as part of a scholarship program permitted under section

529 of the Code, the designated beneficiary is any individual receiving

benefits accumulated in the account as a scholarship

gnated as the beneficiary of an account

in the Pool by an account owner.  A designated beneficiary must have a valid

social security number or taxpayer identification number.  In the case of an

account established as part of a scholarship program permitted under section

529 of the Code, the designated beneficiary is any individual receiving

benefits accumulated in the account as a scholarship.

"Donor": Any person

or entity who makes a contribution to an account in the Pool.

"Earnings":  The

aggregate total of all dividends and interest income received by the Pool. The

aggregate total of dividends and interest income shall be reduced by the

aggregate total of administrative fees, costs, and expenses paid out of the

Pool prior to calculating earnings. Earnings shall be determined without regard

to realized or unrealized capital gains and losses incurred by the Pool.

"Eligible Educational

Institutions": Public and private colleges, junior colleges, graduate

schools, and certain vocational institutions that are described in section 1001

of the Higher Education Resource and Student Assistance Chapter of Title 20 of

the United States Code (20 U.S.C. 1001) and that are eligible to participate in

Department of Education student aid programs.

"Investment

Options":  The underlying funds and investment portfolios available to account

owners within a program.

"Investment

Policy ": The Investment Policy Statement adopted by the Treasurer

pursuant to the Act, which sets forth the policies, objectives, and guidelines

that govern the investment of moneys in the programs.

"Investment

Selection":  Refers to the process of choosing the underlying investment

funds, as well as the investment portfolios, by participants.

"Participating Financial

Institution":  Any financial institution lawfully doing business in the

State of Illinois that has executed a participation agreement with the

Treasurer or their agent, for the purposes of promoting a college savings

program in the Pool

election":  Refers to the process of choosing the underlying investment

funds, as well as the investment portfolios, by participants.

"Participating Financial

Institution":  Any financial institution lawfully doing business in the

State of Illinois that has executed a participation agreement with the

Treasurer or their agent, for the purposes of promoting a college savings

program in the Pool.

"Program

Disclosure Statement":  The document distributed to applicants and account

owners describing the program. The Program Disclosure Statement shall include,

without limitation and unless contained in the application for enrollment, the

information required by the Act and otherwise required under applicable federal

and Illinois laws.

"Program Manager": Any

financial institution or entity lawfully doing business in the State of

Illinois selected by the Treasurer to oversee the recordkeeping, custody,

customer service, investment management, and marketing for one or more of the

programs in the College Savings Pool.

"Qualified

Expenses":

Tuition, fees, and the costs of

books, supplies, and equipment required for enrollment or attendance at an

eligible educational institution;

Expenses for special needs

services, in the case of a special needs beneficiary, which are incurred in

connection with such enrollment or attendance;

Certain expenses, to the extent

they qualify as qualified higher education expenses under Section 529 of the

Code,  for the purchase of computer or peripheral equipment or Internet access

and related services, if

that

equipment, software, or services are to be

used primarily by the beneficiary during any of the years the beneficiary is

enrolled at an eligible educational institution, except that,

these

expenses shall not include expenses for computer software designed for sports,

games, or hobbies, unless the software is predominantly educational in nature;

Room and board expenses

incurred while attending an eligible educational institution at least

half-time

rily by the beneficiary during any of the years the beneficiary is

enrolled at an eligible educational institution, except that,

these

expenses shall not include expenses for computer software designed for sports,

games, or hobbies, unless the software is predominantly educational in nature;

Room and board expenses

incurred while attending an eligible educational institution at least

half-time. A student shall be considered to be enrolled at least half-time if

the student is enrolled for at least half the full-time academic workload for

the course of study the student is pursuing, as determined under the standards

of the institution at which the student is enrolled

;

Expenses for fees, books,

supplies, and equipment required for the participation of a designated

beneficiary in an apprenticeship program registered and certified with the

Secretary of Labor under the National Apprenticeship Act (29 U.S.C. 50); and

Amounts paid as principal or

interest on any qualified education loan of the designated beneficiary or a

sibling of the designated beneficiary, as allowed under section 529 of the

Code.

[15 ILCS 505/16.5(a)]

"Third-party Service

Provider" means a subcontractor of the Program Manager for the exclusive

purpose of distributing the Bright Directions advisor-sold plan.

"Treasurer":

The duly elected Treasurer of the State of Illinois or their designee or

designees.