CHAPTER 7. INDIANA FAMILY COLLEGE SAVINGS PROGRAMS

IC 21-9-7
    Chapter 7. Indiana Family College Savings Programs

IC 21-9-7-1
Powers of board
    Sec. 1. In addition to any other powers granted by this article, theboard has all powers necessary or convenient to carry out andeffectuate the purposes and objectives of this chapter and IC 21-9-8,the purposes and objectives of an education savings program thatmay be established under this article, and the powers delegated byother laws or executive orders, including the following:
        (1) To establish policies and procedures to govern distributionsfrom accounts that are not:
            (A) made on account of the death or disability of an accountbeneficiary;
            (B) made on account of the receipt of a scholarship (orallowance or payment described in Section 135(d)(1)(B) or(C) of the Internal Revenue Code) by the account beneficiaryto the extent the amount of the distribution does not exceedthe amount of the scholarship, allowance, or payment; or
            (C) rollovers.
        (2) To establish penalties for withdrawals of money fromaccounts that are not used exclusively for the qualified highereducation expenses of an account beneficiary unless acircumstance described in subdivision (1) applies.
        (3) To establish policies and procedures regarding the transferof individual accounts and the designation of substitute accountbeneficiaries.
        (4) To establish policies and procedures for withdrawal ofmoney from accounts for, or in reimbursement of, qualifiedhigher education expenses.
        (5) To enter into agreements with account owners, accountbeneficiaries, and contributors, with the agreements naming:
            (A) the account owner; and
            (B) the account beneficiary.
        (6) To establish accounts for account beneficiaries. However:
            (A) the authority shall establish a separate account for eachaccount beneficiary; and
            (B) an individual may be the beneficiary of more than one(1) account.
        (7) To enter into agreements with financial institutions relatingto accounts as well as deposits, withdrawals, penalties,allocation of benefits or incentives, and transfers of accounts,account owners, and account beneficiaries.
        (8) To conform the education savings program to federal taxadvantages or incentives, as the advantages or incentives mayexist periodically, to the extent consistent with the purposes andobjectives of this article.
        (9) To interpret, in rules, policies, guidelines, and procedures,the provisions of this article broadly considering the purposes

and objectives of this article.
As added by P.L.165-1996, SEC.1. Amended by P.L.25-1999, SEC.9;P.L.135-2002, SEC.21.

IC 21-9-7-2
Consideration of money in accounts by state student assistancecommission
    Sec. 2. The amount of money available in an account and theproposed use of money in an account on behalf of an accountbeneficiary may not be considered by the state student assistancecommission under IC 21-12-3, IC 21-12-4, IC 21-12-5, or IC 21-13-2when determining award amounts under a program administered bythe state student assistance commission.
As added by P.L.165-1996, SEC.1. Amended by P.L.135-2002,SEC.22; P.L.2-2007, SEC.250.

IC 21-9-7-3
Account not an asset
    Sec. 3. An account is not an asset for the purposes of IC 6-4.1-2.
As added by P.L.165-1996, SEC.1. Amended by P.L.135-2002,SEC.23.

IC 21-9-7-4
Property of account owner
    Sec. 4. Money deposited in an account by the account owner or acontributor and investment returns on an account are the property ofthe account owner.
As added by P.L.165-1996, SEC.1.

IC 21-9-7-5
Repealed
    (Repealed by P.L.135-2002, SEC.30.)

IC 21-9-7-6
Repealed
    (Repealed by P.L.135-2002, SEC.30.)

IC 21-9-7-7
Use of funds as loan security prohibited
    Sec. 7. Funds held in an account of an education savings programthat may be established under this article may not be used by anaccount owner or account beneficiary as security for a loan.
As added by P.L.25-1999, SEC.12. Amended by P.L.135-2002,SEC.24.

IC 21-9-7-8
Maximum account balance
    Sec. 8. (a) Contributions to an account may not exceed the amountnecessary to provide for the qualified higher education expenses ofthe account beneficiary.    (b) The authority shall adopt rules or emergency rules underIC 4-22-2 to determine the maximum account balance applicable toall accounts of account beneficiaries with the same expected year ofenrollment.
As added by P.L.25-1999, SEC.13. Amended by P.L.135-2002,SEC.25.

IC 21-9-7-9
Authorization to adopt rules to establish a penalty
    Sec. 9. The authority may adopt rules or emergency rules underIC 4-22-2 to establish a penalty for a distribution that is not usedexclusively for the qualified higher education expenses of an accountbeneficiary. However, the authority may not establish a penalty fordistributions described in IC 21-9-7-1(1).
As added by P.L.25-1999, SEC.14. Amended by P.L.135-2002,SEC.26.