Michigan Compiled Laws Act 316 Of 1986 Michigan Education Trust Act (390.1421 - 390.1444)

AN ACT to create the Michigan education trust; to prescribe the powers and duties of the trust and of its board of directors; to provide for advance tuition payment contracts; to establish an advance tuition payment fund and to provide for its administration; to provide for remedies; and to repeal certain acts and parts of acts on specific dates.

History: 1986, Act 316, Imd. Eff. Dec. 23, 1986

Section 390.1421 Short Title.
This act shall be known and may be cited as the “Michigan education trust act”. History: 1986, Act 316, Imd. Eff. Dec. 23, 1986
Section 390.1422 Legislative Finding And Declaration.
The legislature hereby finds and declares the following: (a) It is an essential function of state government to forever encourage schools and the means...
Section 390.1423 Purposes Of Act And Michigan Education Trust.
In light of the findings described in section 2, the legislature declares the purposes of this act and of the Michigan education trust created...
Section 390.1424 Definitions.
As used in this act, except where the context clearly requires otherwise: (a) “Advance tuition payment contract” means a contract entered into by the...
Section 390.1425 Michigan Education Trust; Creation; Exercise Of Powers, Duties, And Functions.
(1) There is created a public body corporate and politic to be known as the Michigan education trust. The trust shall be within the...
Section 390.1426 Advance Tuition Payment Contract Generally.
(1) The trust, on behalf of itself and the state, may contract with a purchaser for the advance payment of tuition by the purchaser...
Section 390.1427 Plan A And Plan B.
(1) At a minimum, the trust shall offer 1 of the 2 types of advance tuition payment contracts set forth in subsections (2) and...
Section 390.1428 Termination Of Advance Tuition Payment Contract; Refund.
(1) An advance tuition payment contract shall authorize a termination of the contract when any 1 of the following occurs: (a) The qualified beneficiary...
Section 390.1429 Advance Tuition Payment Fund; Creation; Placement Of Payments In Fund; Division Of Fund Into Separate Accounts; Assets Of Trust; Priority Of Expenditures; Investments; Compliance With Divestment From Terror Act.
(1) There is created under the jurisdiction and control of the board an advance tuition payment fund. Payments received by the trust from purchasers...
Section 390.1430 Board; Appointment, Qualifications, And Terms Of Members; Vacancy; Deputy; Chairperson; President And Chief Executive Officer Of Trust; Vice-president Of Trust; Compensation; Expenses; Delegation Of Functions And Authority; Quorum; Voting; Meetings; Conducting Business At Public Meeting; Notice; Availability Of Writings To Public.
(1) The board shall consist of the state treasurer, and 8 other members with knowledge, skill, and experience in the academic, business, or financial...
Section 390.1431 Additional Powers Of Board.
In addition to the powers granted by other provisions of this act, the board shall have the powers necessary or convenient to carry out...
Section 390.1432 Accounting Of Trust Generally.
The board shall annually prepare or cause to be prepared an accounting of the trust and shall transmit a copy of the accounting to...
Section 390.1433 Actuarial Soundness Of Trust; Ruling Or Opinion Internal Revenue Service; Answer From Securities And Exchange Commission; Making Status Of Request Known.
(1) The trust shall be administered in a manner reasonably designed to be actuarially sound such that the assets of the trust will be...
Section 390.1434 Enforcement Of Act And Contract.
State institutions of higher education, purchasers, and qualified beneficiaries may enforce this act and any contract entered into pursuant to this act in the...
Section 390.1435 Exemption From Taxation.
The property of the trust and its income and operation shall be exempt from all taxation by this state or any of its political...
Section 390.1436 Contracting Services Necessary For Management And Operation Of Trust; Instituting Programs To Ensure Full Tuition Prepayment Plans; Report To Legislature.
The trust, in its discretion, may contract with others, public or private, for the provision of all or a portion of the services necessary...
Section 390.1437 Preserving, Investing, And Expending Assets Of Trust.
The assets of the trust shall be preserved, invested, and expended solely pursuant to and for the purposes set forth in this act and...
Section 390.1438 Prohibited Promises Or Guarantees.
Nothing in this act or in an advance tuition payment contract entered into pursuant to this act shall be construed as a promise or...
Section 390.1439 Exemption Of Contract From Uniform Securities Act; Sale Or Transfer Of Contract.
An advance tuition payment contract is exempt from the uniform securities act, 1964 PA 265, MCL 451.501 to 451.818, and the uniform securities act...
Section 390.1440 Payments Deductible From Taxable Income.
Pursuant to section 30 of the income tax act of 1967, Act No. 281 of the Public Acts of 1967, being section 206.30 of...
Section 390.1441 Liberal Construction; Powers To Be Broadly Interpreted.
This act shall be construed liberally to effectuate the legislative intent, the purposes of the act, and as complete and independent authority for the...
Section 390.1442 Severability.
If any section, subsection, paragraph, clause, or provision of this act shall be adjudged unconstitutional or ineffective, no other section, subsection, paragraph, clause, or...
Section 390.1443, 390.1444 Repealed. 2004, Act 388, Imd. Eff. Oct. 12, 2004.
Compiler's Notes: The repealed sections pertained to condition to entering contract and conditional repeal of act.

Last modified: October 10, 2016