Program created, Missouri higher education savings program board toadminister, powers and duties--investment of funds.
166.505. 1. There is hereby created the "Missouri Higher EducationDeposit Program". The program shall be administered by the Missouri highereducation savings program board.
2. In order to establish and administer the deposit program, theboard, in addition to its other powers and authority, shall have the powerand authority to:
(1) Develop and implement the Missouri higher education depositprogram and, notwithstanding any provision of sections 166.500 to 166.529to the contrary, the deposit programs and services consistent with thepurposes and objectives of sections 166.500 to 166.529;
(2) Promulgate reasonable rules and regulations and establishpolicies and procedures to implement sections 166.500 to 166.529, to permitthe deposit program to qualify as a qualified state tuition programpursuant to Section 529 of the Internal Revenue Code and to ensure thedeposit program's compliance with all applicable laws;
(3) Develop and implement educational programs and relatedinformational materials for participants, either directly or through acontractual arrangement with a financial institution or other entities fordeposit educational services, and their families, including specialprograms and materials to inform families with children of various agesregarding methods for financing education and training beyond high school;
(4) Enter into an agreement with any financial institution, entity,or business clearinghouse for the operation of the deposit program pursuantto sections 166.500 to 166.529; providing however, that such institution,entity, or clearinghouse shall be a private for-profit or not-for-profitentity and not a government agency. No more than one board member may havea direct interest in such institution, entity, or clearinghouse. Suchinstitution, entity, or clearinghouse shall implement the board's policiesand administer the program for the board and with electing depositoryinstitutions and others;
(5) Enter into participation agreements with participants;
(6) Accept any grants, gifts, legislative appropriations, and othermoneys from the state, any unit of federal, state, or local government orany other person, firm, partnership, or corporation for deposit to theaccount of the deposit program;
(7) Invest the funds received from participants in appropriateinvestment instruments to be held by depository institutions or directlydeposit such funds in depository institutions as provided by the board andelected by the participants;
(8) Make appropriate payments and distributions on behalf ofbeneficiaries pursuant to participation agreements;
(9) Make refunds to participants upon the termination ofparticipation agreements pursuant to the provisions, limitations, andrestrictions set forth in sections 166.500 to 166.529 and the rules adoptedby the board;
(10) Make provision for the payment of costs of administration andoperation of the deposit program;
(11) Effectuate and carry out all the powers granted by sections166.500 to 166.529, and have all other powers necessary to carry out andeffectuate the purposes, objectives, and provisions of sections 166.500 to166.529 pertaining to the deposit program;
(12) Procure insurance, guarantees, or other protections against anyloss in connection with the assets or activities of the deposit program, asthe members in their best judgment deem necessary;
(13) To both adopt and implement various methods of transferringmoney by electronic means to efficiently transfer funds to depositoryinstitutions for deposit, and in addition or in the alternative, to allowfunds to be transferred by agent agreements, assignment, or otherwise,provided such transfer occurs within two business days;
(14) To both adopt and implement methods and policies designed toobtain the maximum insurance of such funds for each participant permittedand provided for by the Federal Deposit Insurance Corporation, or any otherfederal agency insuring deposits, and taking into consideration the law andregulation promulgated by such federal agencies for deposit insurance.
3. The funds shall be invested only in those investments which aprudent person acting in a like capacity and familiar with such matterswould use in the conduct of an enterprise of a like character and with likeaims, as provided in section 105.688, RSMo, as a means to hold funds untilthey are placed in a Missouri depository institution as a deposit. Theboard may delegate to duly appointed representatives of financialinstitutions authority to act in place of the board in the investment andreinvestment of all or part of the moneys and may also delegate to suchrepresentatives the authority to act in place of the board in the holding,purchasing, selling, assigning, transferring, or disposing of any or all ofthe investments in which such moneys shall have been invested, as well asthe proceeds of such investments and such moneys, however, such investmentsshall be limited to certificates of deposit and other deposits in federallyinsured depository institutions. Such representatives shall be registeredas "qualified student deposit advisors on Section 529 plans" with the boardand such board shall, by rule, develop and administer qualification testsfrom time to time to provide representatives the opportunity to qualify forthis program. In exercising or delegating its investment powers andauthority, members of the board shall exercise ordinary business care andprudence under the facts and circumstances prevailing at the time of theaction or decision. No member of the board shall be liable for any actiontaken or omitted with respect to the exercise of, or delegation of, thesepowers and authority if such member shall have discharged the duties of hisor her position in good faith and with that degree of diligence, care, andskill which a prudent person acting in a like capacity and familiar withthese matters would use in the conduct of an enterprise of a like characterand with like aims.
4. No board member or employee of the deposit program shallpersonally receive any gain or profit from any funds or transaction of thedeposit program as a result of his or her membership on the board. Anyboard member, employee, or agent of the deposit program accepting anygratuity or compensation for the purpose of influencing such boardmember's, employee's, or agent's action with respect to choice ofintermediary, including any financial institution, entity, orclearinghouse, for the funds of the deposit program shall thereby forfeitthe office and in addition thereto be subject to the penalties prescribedfor bribery. However, a board member who is regularly employed directly orindirectly by a financial institution may state that institution's interestand absent himself or herself from voting.
5. Depository institutions originating the deposit program shall bethe agent of the board and offer terms for certificates of deposit andother deposits in such program as permitted by the board, subject to auniform interest rate disclosure as defined in federal regulations of theBoard of Governors of the Federal Reserve System, specifically FederalReserve Regulation DD, as amended from time to time. The board shallestablish various deposit opportunities based on amounts deposited andlength of time held that are uniformly available to all depositoryinstitutions that elect to participate in the program, and the variouscategories of fixed or variable rates shall be the only interest ratesavailable under this program. A depository institution that originates thedeposit as agent for the board and participates in the program shallreceive back and continue to hold the certificate of deposit or otherdeposit, provided such depository institution continues to comply withrequirements and regulations prescribed by the board. Such deposit andcertificate of deposit shall be titled in the name of the clearing entityfor the benefit of the participant, and shall be insured as permitted byany agency of the federal government that insures deposits in depositoryinstitutions. Any depository institution or intermediary that fails tocomply with these provisions shall forfeit its right to participate in thisprogram; provided however, the board shall be the sole and exclusive judgeof compliance except as otherwise provided by provisions in Section 529 ofthe Internal Revenue Code and the Internal Revenue Service enforcement ofsuch section.
Program created, Missouri higher education savings program board toadminister, powers and duties--investment of funds.
166.505. 1. There is hereby created the "Missouri Higher EducationDeposit Program". The program shall be administered by the Missouri highereducation savings program board.
2. In order to establish and administer the deposit program, theboard, in addition to its other powers and authority, shall have the powerand authority to:
(1) Develop and implement the Missouri higher education depositprogram and, notwithstanding any provision of sections 166.500 to 166.529to the contrary, the deposit programs and services consistent with thepurposes and objectives of sections 166.500 to 166.529;
(2) Promulgate reasonable rules and regulations and establishpolicies and procedures to implement sections 166.500 to 166.529, to permitthe deposit program to qualify as a qualified state tuition programpursuant to Section 529 of the Internal Revenue Code and to ensure thedeposit program's compliance with all applicable laws;
(3) Develop and implement educational programs and relatedinformational materials for participants, either directly or through acontractual arrangement with a financial institution or other entities fordeposit educational services, and their families, including specialprograms and materials to inform families with children of various agesregarding methods for financing education and training beyond high school;
(4) Enter into an agreement with any financial institution, entity,or business clearinghouse for the operation of the deposit program pursuantto sections 166.500 to 166.529; providing however, that such institution,entity, or clearinghouse shall be a private for-profit or not-for-profitentity and not a government agency. No more than one board member may havea direct interest in such institution, entity, or clearinghouse. Suchinstitution, entity, or clearinghouse shall implement the board's policiesand administer the program for the board and with electing depositoryinstitutions and others;
(5) Enter into participation agreements with participants;
(6) Accept any grants, gifts, legislative appropriations, and othermoneys from the state, any unit of federal, state, or local government orany other person, firm, partnership, or corporation for deposit to theaccount of the deposit program;
(7) Invest the funds received from participants in appropriateinvestment instruments to be held by depository institutions or directlydeposit such funds in depository institutions as provided by the board andelected by the participants;
(8) Make appropriate payments and distributions on behalf ofbeneficiaries pursuant to participation agreements;
(9) Make refunds to participants upon the termination ofparticipation agreements pursuant to the provisions, limitations, andrestrictions set forth in sections 166.500 to 166.529 and the rules adoptedby the board;
(10) Make provision for the payment of costs of administration andoperation of the deposit program;
(11) Effectuate and carry out all the powers granted by sections166.500 to 166.529, and have all other powers necessary to carry out andeffectuate the purposes, objectives, and provisions of sections 166.500 to166.529 pertaining to the deposit program;
(12) Procure insurance, guarantees, or other protections against anyloss in connection with the assets or activities of the deposit program, asthe members in their best judgment deem necessary;
(13) To both adopt and implement various methods of transferringmoney by electronic means to efficiently transfer funds to depositoryinstitutions for deposit, and in addition or in the alternative, to allowfunds to be transferred by agent agreements, assignment, or otherwise,provided such transfer occurs within two business days;
(14) To both adopt and implement methods and policies designed toobtain the maximum insurance of such funds for each participant permittedand provided for by the Federal Deposit Insurance Corporation, or any otherfederal agency insuring deposits, and taking into consideration the law andregulation promulgated by such federal agencies for deposit insurance.
3. The funds shall be invested only in those investments which aprudent person acting in a like capacity and familiar with such matterswould use in the conduct of an enterprise of a like character and with likeaims, as provided in section 105.688, RSMo, as a means to hold funds untilthey are placed in a Missouri depository institution as a deposit. Theboard may delegate to duly appointed representatives of financialinstitutions authority to act in place of the board in the investment andreinvestment of all or part of the moneys and may also delegate to suchrepresentatives the authority to act in place of the board in the holding,purchasing, selling, assigning, transferring, or disposing of any or all ofthe investments in which such moneys shall have been invested, as well asthe proceeds of such investments and such moneys, however, such investmentsshall be limited to certificates of deposit and other deposits in federallyinsured depository institutions. Such representatives shall be registeredas "qualified student deposit advisors on Section 529 plans" with the boardand such board shall, by rule, develop and administer qualification testsfrom time to time to provide representatives the opportunity to qualify forthis program. In exercising or delegating its investment powers andauthority, members of the board shall exercise ordinary business care andprudence under the facts and circumstances prevailing at the time of theaction or decision. No member of the board shall be liable for any actiontaken or omitted with respect to the exercise of, or delegation of, thesepowers and authority if such member shall have discharged the duties of hisor her position in good faith and with that degree of diligence, care, andskill which a prudent person acting in a like capacity and familiar withthese matters would use in the conduct of an enterprise of a like characterand with like aims.
4. No board member or employee of the deposit program shallpersonally receive any gain or profit from any funds or transaction of thedeposit program as a result of his or her membership on the board. Anyboard member, employee, or agent of the deposit program accepting anygratuity or compensation for the purpose of influencing such boardmember's, employee's, or agent's action with respect to choice ofintermediary, including any financial institution, entity, orclearinghouse, for the funds of the deposit program shall thereby forfeitthe office and in addition thereto be subject to the penalties prescribedfor bribery. However, a board member who is regularly employed directly orindirectly by a financial institution may state that institution's interestand absent himself or herself from voting.
5. Depository institutions originating the deposit program shall bethe agent of the board and offer terms for certificates of deposit andother deposits in such program as permitted by the board, subject to auniform interest rate disclosure as defined in federal regulations of theBoard of Governors of the Federal Reserve System, specifically FederalReserve Regulation DD, as amended from time to time. The board shallestablish various deposit opportunities based on amounts deposited andlength of time held that are uniformly available to all depositoryinstitutions that elect to participate in the program, and the variouscategories of fixed or variable rates shall be the only interest ratesavailable under this program. A depository institution that originates thedeposit as agent for the board and participates in the program shallreceive back and continue to hold the certificate of deposit or otherdeposit, provided such depository institution continues to comply withrequirements and regulations prescribed by the board. Such deposit andcertificate of deposit shall be titled in the name of the clearing entityfor the benefit of the participant, and shall be insured as permitted byany agency of the federal government that insures deposits in depositoryinstitutions. Any depository institution or intermediary that fails tocomply with these provisions shall forfeit its right to participate in thisprogram; provided however, the board shall be the sole and exclusive judgeof compliance except as otherwise provided by provisions in Section 529 ofthe Internal Revenue Code and the Internal Revenue Service enforcement ofsuch section.
Program created, Missouri higher education savings program board toadminister, powers and duties--investment of funds.
166.505. 1. There is hereby created the "Missouri Higher EducationDeposit Program". The program shall be administered by the Missouri highereducation savings program board.
2. In order to establish and administer the deposit program, theboard, in addition to its other powers and authority, shall have the powerand authority to:
(1) Develop and implement the Missouri higher education depositprogram and, notwithstanding any provision of sections 166.500 to 166.529to the contrary, the deposit programs and services consistent with thepurposes and objectives of sections 166.500 to 166.529;
(2) Promulgate reasonable rules and regulations and establishpolicies and procedures to implement sections 166.500 to 166.529, to permitthe deposit program to qualify as a qualified state tuition programpursuant to Section 529 of the Internal Revenue Code and to ensure thedeposit program's compliance with all applicable laws;
(3) Develop and implement educational programs and relatedinformational materials for participants, either directly or through acontractual arrangement with a financial institution or other entities fordeposit educational services, and their families, including specialprograms and materials to inform families with children of various agesregarding methods for financing education and training beyond high school;
(4) Enter into an agreement with any financial institution, entity,or business clearinghouse for the operation of the deposit program pursuantto sections 166.500 to 166.529; providing however, that such institution,entity, or clearinghouse shall be a private for-profit or not-for-profitentity and not a government agency. No more than one board member may havea direct interest in such institution, entity, or clearinghouse. Suchinstitution, entity, or clearinghouse shall implement the board's policiesand administer the program for the board and with electing depositoryinstitutions and others;
(5) Enter into participation agreements with participants;
(6) Accept any grants, gifts, legislative appropriations, and othermoneys from the state, any unit of federal, state, or local government orany other person, firm, partnership, or corporation for deposit to theaccount of the deposit program;
(7) Invest the funds received from participants in appropriateinvestment instruments to be held by depository institutions or directlydeposit such funds in depository institutions as provided by the board andelected by the participants;
(8) Make appropriate payments and distributions on behalf ofbeneficiaries pursuant to participation agreements;
(9) Make refunds to participants upon the termination ofparticipation agreements pursuant to the provisions, limitations, andrestrictions set forth in sections 166.500 to 166.529 and the rules adoptedby the board;
(10) Make provision for the payment of costs of administration andoperation of the deposit program;
(11) Effectuate and carry out all the powers granted by sections166.500 to 166.529, and have all other powers necessary to carry out andeffectuate the purposes, objectives, and provisions of sections 166.500 to166.529 pertaining to the deposit program;
(12) Procure insurance, guarantees, or other protections against anyloss in connection with the assets or activities of the deposit program, asthe members in their best judgment deem necessary;
(13) To both adopt and implement various methods of transferringmoney by electronic means to efficiently transfer funds to depositoryinstitutions for deposit, and in addition or in the alternative, to allowfunds to be transferred by agent agreements, assignment, or otherwise,provided such transfer occurs within two business days;
(14) To both adopt and implement methods and policies designed toobtain the maximum insurance of such funds for each participant permittedand provided for by the Federal Deposit Insurance Corporation, or any otherfederal agency insuring deposits, and taking into consideration the law andregulation promulgated by such federal agencies for deposit insurance.
3. The funds shall be invested only in those investments which aprudent person acting in a like capacity and familiar with such matterswould use in the conduct of an enterprise of a like character and with likeaims, as provided in section 105.688, RSMo, as a means to hold funds untilthey are placed in a Missouri depository institution as a deposit. Theboard may delegate to duly appointed representatives of financialinstitutions authority to act in place of the board in the investment andreinvestment of all or part of the moneys and may also delegate to suchrepresentatives the authority to act in place of the board in the holding,purchasing, selling, assigning, transferring, or disposing of any or all ofthe investments in which such moneys shall have been invested, as well asthe proceeds of such investments and such moneys, however, such investmentsshall be limited to certificates of deposit and other deposits in federallyinsured depository institutions. Such representatives shall be registeredas "qualified student deposit advisors on Section 529 plans" with the boardand such board shall, by rule, develop and administer qualification testsfrom time to time to provide representatives the opportunity to qualify forthis program. In exercising or delegating its investment powers andauthority, members of the board shall exercise ordinary business care andprudence under the facts and circumstances prevailing at the time of theaction or decision. No member of the board shall be liable for any actiontaken or omitted with respect to the exercise of, or delegation of, thesepowers and authority if such member shall have discharged the duties of hisor her position in good faith and with that degree of diligence, care, andskill which a prudent person acting in a like capacity and familiar withthese matters would use in the conduct of an enterprise of a like characterand with like aims.
4. No board member or employee of the deposit program shallpersonally receive any gain or profit from any funds or transaction of thedeposit program as a result of his or her membership on the board. Anyboard member, employee, or agent of the deposit program accepting anygratuity or compensation for the purpose of influencing such boardmember's, employee's, or agent's action with respect to choice ofintermediary, including any financial institution, entity, orclearinghouse, for the funds of the deposit program shall thereby forfeitthe office and in addition thereto be subject to the penalties prescribedfor bribery. However, a board member who is regularly employed directly orindirectly by a financial institution may state that institution's interestand absent himself or herself from voting.
5. Depository institutions originating the deposit program shall bethe agent of the board and offer terms for certificates of deposit andother deposits in such program as permitted by the board, subject to auniform interest rate disclosure as defined in federal regulations of theBoard of Governors of the Federal Reserve System, specifically FederalReserve Regulation DD, as amended from time to time. The board shallestablish various deposit opportunities based on amounts deposited andlength of time held that are uniformly available to all depositoryinstitutions that elect to participate in the program, and the variouscategories of fixed or variable rates shall be the only interest ratesavailable under this program. A depository institution that originates thedeposit as agent for the board and participates in the program shallreceive back and continue to hold the certificate of deposit or otherdeposit, provided such depository institution continues to comply withrequirements and regulations prescribed by the board. Such deposit andcertificate of deposit shall be titled in the name of the clearing entityfor the benefit of the participant, and shall be insured as permitted byany agency of the federal government that insures deposits in depositoryinstitutions. Any depository institution or intermediary that fails tocomply with these provisions shall forfeit its right to participate in thisprogram; provided however, the board shall be the sole and exclusive judgeof compliance except as otherwise provided by provisions in Section 529 ofthe Internal Revenue Code and the Internal Revenue Service enforcement ofsuch section.
