§256-5  Program limitations; collegeaccount.  (a)  Nothing in this chapter shall be construed to:

(1)  Give any designated beneficiary any rights orlegal interest with respect to an account;

(2)  Guarantee that a designated beneficiary:

(A)  Will be admitted to an institution ofhigher education; or

(B)  Upon admission to an institution of highereducation, will be permitted to continue to attend or will receive a degreefrom the institution;

(3)  Create state residency for an individual merelybecause the individual is a designated beneficiary; or

(4)  Guarantee that amounts saved pursuant to theprogram will be sufficient to cover the qualified higher education expenses ofa designated beneficiary.

(b)  Nothing in this chapter shall create or beconstrued to create any obligation of the director of finance, the State, orany agency or instrumentality of the State to guarantee for the benefit of anyaccount owner or designated beneficiary with respect to:

(1)  The rate of interest or other return on anyaccount;

(2)  The payment of interest or other return on anyaccount; or

(3)  The repayment of the principal of any account.

The director of finance shall provide by rule thatevery tuition savings agreement, contract, application, deposit slip, or othersimilar document that may be used in connection with a contribution to anaccount clearly indicate that the account is not insured by the State andneither the principal deposited nor the investment return is guaranteed by theState. [L 1999, c 81, pt of §2; am L 2000, c 90, §4]