(1) There is created under the jurisdiction and control of the board an advance tuition payment fund. Payments received by the trust from purchasers on behalf of qualified beneficiaries or from any other source, public or private, shall be placed in the fund. The fund may be divided into separate accounts.
(2) Assets of the trust are not considered state money, common cash of the state, revenue for the purposes of sections 26 to 34 of article IX of the state constitution of 1963, or state money for the purposes of 1982 PA 259, MCL 12.61 to 12.64.
(3) Unless otherwise provided by resolution of the board, assets of the trust shall be expended in the following order of priority:
(a) To make payments to state institutions of higher education on behalf of qualified beneficiaries.
(b) To make refunds upon termination of an advance tuition payment contract.
(c) To pay the costs of administration and organization of the trust and the fund.
(4) Except as provided in subsection (5), the board may invest assets of the trust in any instrument, obligation, security, or property considered appropriate by the board and may be pooled for investment purposes with investments of the state, including, but not limited to, state pension funds, on such terms and conditions as are agreeable to the board.
(5) The board shall comply with the divestment from terror act in making investments under this act.
History: 1986, Act 316, Imd. Eff. Dec. 23, 1986 ;-- Am. 2008, Act 239, Imd. Eff. July 17, 2008
Last modified: October 10, 2016