* 1256. Program limitations; first home savings account. 1. Nothing in this article shall be construed to:
(a) give any designated beneficiary any rights or legal interest with respect to an account unless the designated beneficiary is the account owner;
(b) guarantee that the account owner or designated beneficiary will be financially qualified to purchase a home;
(c) create state residency for an individual merely because the individual is a designated beneficiary; or
(d) guarantee that amounts saved pursuant to the program will be sufficient to cover the down payment or closing costs pursuant to the purchase of a qualified first home.
2. (a) Nothing in this article shall create or be construed to create any obligation of the comptroller, the state, or any agency or instrumentality of the state to guarantee for the benefit of the account owner or designated beneficiary with respect to:
(i) the rate of interest or other return on any account; and
(ii) the payment of interest or other return on any account.
(b) The comptroller by rule or regulation shall provide that every contract, application, deposit slip or other similar document that may be used in connection with a contribution to an account clearly indicate that the account is not insured by the state and neither the principal deposited nor the investment return is guaranteed by the state.
* NB Effective June 16, 2018
Last modified: February 3, 2019