[§257-1]  Definitions.  As used in this
chapter:



"Eligible educational institution"
means:



(1)  An institution described in sections 481(a)(1) or
1201(a) of the Higher Education Act of 1965 (20 U.S.C. 1088(a)(1) or 1141(a)),
as such sections are in effect on June 28, 1999; and



(2)  An area vocational education school defined in
subparagraph (C) or (D) of section 521(4) of the Carl D. Perkins Vocational and
Applied Technology Education Act (20 U.S.C. 2471(4)), as such sections are in
effect on June 28, 1999.



"Fiduciary organization" means an
organization that serves as an intermediary between an individual account
holder and the financial institution holding the individual's individual
development account funds.  Fiduciary organizations may include:



(1)  One or more not-for-profit organizations
described in section 501(c)(3) of the Internal Revenue Code and exempt from
taxation under section 501(a) of the Code; or



(2)  State or local government agencies submitting an
application jointly with another organization.



Nothing in this definition shall be construed
as preventing an organization described in paragraph (2) from cooperating with
a financial institution or for-profit community development corporation to
carry out the purposes of this chapter.



The fiduciary organization's responsibilities
may include:



(1)  Marketing participation;



(2)  Soliciting matching contributions;



(3)  Counseling program participants; and



(4)  Conducting required verification and compliance
activities.



"Financial institution" means an
organization authorized to do business pursuant to chapter 412, or under
federal laws relating to financial institutions, and includes a bank, trust
company, savings bank, building and loan association, savings and loan company
or association, and credit union.



"Household" means adults related by
blood, marriage, or adoption, or who are unrelated but have maintained a stable
family relationship together over a period of time, and individuals under
eighteen years of age related to the above adults by marriage, blood, or
adoption, who are living together.  Living together refers to domicile as
evidence by the parties' intent to maintain a home for their family and does
not include a temporary visit.



"Individual development account"
means an optional, interest bearing, subsidized, tax-benefitted account used
exclusively for the purpose of paying the qualified expenditure of an eligible
individual as determined by the fiduciary organization.



"Post-secondary educational expenses"
means:



(1)  Tuition and fees required for the enrollment or
attendance of a student at an eligible educational institution; and



(2)  Fees, books, supplies, and equipment required for
courses of instruction at an eligible educational institution.



"Qualified acquisition costs" means
the costs of acquiring, constructing, or reconstructing a residence and shall
include any usual or reasonable settlement, financing, or other closing costs.



"Qualified business" means any
business that does not contravene any law or public policy.



"Qualified business capitalization
expenses" means qualified expenditures for the capitalization of a
qualified business pursuant to a qualified plan.



"Qualified expenditures" means an
expense as determined by a fiduciary organization, which may include but not be
limited to:



(1)  Costs associated with first homeownership;



(2)  Post-secondary education;



(3)  Vocational training; and



(4)  Small or micro-business capitalization.



"Qualified plan" means a business
plan or a plan to use a business asset purchased, that:



(1)  Is approved by a financial institution, a
micro-enterprise development organization, or a nonprofit loan fund having
demonstrated fiduciary integrity;



(2)  Includes a description of services or goods to be
sold, a marketing plan, and projected financial statements; and



(3)  May require the eligible individual to obtain the
assistance of an experienced entrepreneurial advisor.



"Qualified principal residence" means
a principal residence (within the meaning of section 1034 of the Internal Revenue
Code of 1986), the qualified acquisition costs of which do not exceed one
hundred per cent of the average area purchase price applicable to such
residence (determined in accordance with paragraphs (2) and (3) of section
143(e) of the Code). [ L 1999, c 160, pt of §25]



 



Revision Note



 



  "June 28,
1999" substituted for "the date of the enactment of this
chapter".