us-tx/regs
34 Tex. Admin. Code § 7.102 — General Provisions
(a)
Applicability of this subchapter. This subchapter applies to each savings trust agreement.
(b)
Rights of owners and beneficiaries. The rights of an owner or a beneficiary under a savings trust agreement are subject to:
(1) Education Code, Chapter 54, Subchapter G;
(2) this subchapter; and
(3) the terms and conditions of that agreement.
(c)
Composition and content of savings trust agreements.
(1) The savings trust agreement between the board and an owner consists of:
(A) the application for enrollment that the owner submitted to the plan manager that has custody of the owner's savings trust account; and
(B) the master agreement for the savings plan, except when the agreement irreconcilably conflicts with Education Code, Chapter 54, Subchapter G; Internal Revenue Code of 1986, §529, as amended; regulations thereunder; or this subchapter.
(2) The savings trust agreement between the board and an owner is governed by:
(A) the terms of the agreement;
(B) this subchapter;
(C) Education Code, Chapter 54, Subchapter G, and any other applicable law of this state; and
(D) Internal Revenue Code of 1986, §529, as amended, regulations thereunder, and any other applicable federal law.
(3) The savings trust agreement between the board and an owner must contain the information that is required by Education Code, §54.707(c) and §54.709(d).
(d)
Conflicts between Education Code, Chapter 54, Subchapter G, and the Internal Revenue Code of 1986, §529, as amended, or this subchapter and the master agreement. To the extent of irreconcilable conflict, the provisions of Internal Revenue Code of 1986, §529, as amended, and regulations thereunder; Education Code, Chapter 54, Subchapter G; and this subchapter prevail over the master agreement for the savings plan. The agreement is at all times subject to this subchapter. Any amendment to Internal Revenue Code of 1986, §529; Education Code, Chapter 54, Subchapter G; or this subchapter that would apply to the savings plan, a savings trust agreement, or a savings trust account will automatically constitute an amendment to the savings trust agreement.
(e)
Disclosures and promotion of the plan.
(1) Every savings trust agreement, deposit slip, or similar document that is used in connection with a contribution to a savings trust account must clearly indicate that:
(A) the account is not insured by this state; and
(B) neither the principal that is deposited nor the investment return is guaranteed by this state.
(2) The promotional material or other savings plan information that is distributed to an owner or beneficiary shall disclose that:
(A) no money that is invested in the savings plan is insured by this state; and
(B) neither the principal that is deposited nor the investment return is guaranteed by this state.
(3) The promotional material or other savings plan information that is provided to the public, an owner, or a beneficiary must disclose the administrative fees and service charges that are imposed under Education Code, Chapter 54, Subchapter G.
(4) The promotion of or other form of disclosure of information about the savings plan to an owner or a beneficiary must be done in a manner that is consistent with:
(A) Education Code, Chapter 54, Subchapter G; and
(B) Internal Revenue Code of 1986, §529, as amended.
(5) No plan manager, financial institution, or person who acts on behalf of either shall make any representation that is inconsistent with the requirements and limitations of this subchapter, or that is otherwise misleading with respect to any attribute of the savings plan, a savings trust agreement, or a savings trust account.
Source Note: The provisions of this §7.102 adopted to be effective July 14, 2002, 27 TexReg 6044.
Source: official text