(1) Except as otherwise provided in this section, an account owner or a designated beneficiary of any account shall not direct the investment of any contributions to an account or the earnings on an account.
(2) An account owner may select among different investment strategies designed by a program manager in all of the following circumstances to the extent allowed under section 529 of the internal revenue code:
(a) At the time any contribution is made to an account with respect to the amount of that contribution.
(b) Once each calendar year with respect to the accumulated account balance.
(c) When an account owner makes a change in designated beneficiary of an account.
(3) The program may allow board members or employees of the program, or the board members or employees of a contractor hired by the program to perform administrative services, to make contributions to an account.
(4) An interest in an account shall not be used by an account owner or a designated beneficiary as security for a loan. Any pledge of an interest in an account has no force or effect.
History: 2000, Act 161, Imd. Eff. June 16, 2000 ;-- Am. 2001, Act 215, Eff. Jan. 1, 2002 ;-- Am. 2004, Act 387, Imd. Eff. Oct. 12, 2004 ;-- Am. 2007, Act 153, Imd. Eff. Dec. 20, 2007
Last modified: October 10, 2016