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



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



(2)  Guarantee that a designated beneficiary:



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



(B)  Upon admission to an institution of higher
education, will be permitted to continue to attend or will receive a degree
from the institution;



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



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



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



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



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



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



The director of finance shall provide by rule that
every tuition savings agreement, 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. [L 1999, c 81, pt of §2; am L 2000, c 90, §4]