Definitions

As used in sections 3-22h-1 to 3-22h-9, inclusive of the Regulations of Connecticut State Agencies: (1) "501(c)(3) Organization" means an organization described in Section 501(c)(3) of the Internal Revenue Code and exempt from taxation under Section 501(a) of the Internal Revenue Code; (2) "Account" means the account in the Trust established by a Participant and maintained for a Beneficiary; (3) "Account Balance" means the fair market value of an Account as of any specified date; (4) "Account Owner" means the owner of the Account; (5) "Beneficiary" means a Designated Beneficiary; (6) "Cash" shall include, but not be limited to, checks drawn on a banking institution located in the United States in U.S. dollars (other than cashiers' checks, travelers' checks or third-party checks exceeding $10,000), money orders, payroll deduction, and electronic funds transfers. Cash does not include real or personal property; (7) "Contribution" shall have the same meaning as under Section 529 of the Internal Revenue Code; (8) "Depositor" shall have the same meaning as under the Statute; (9) "Designated Beneficiary" shall have the same meaning as under the Statute; (10) "Disability" shall have the same meaning as "being disabled" under Sections 529 and 530 of the Internal Revenue Code; (11) "Distribution" shall have the same meaning as under Section 529 of the Internal Revenue Code; (12) "Earnings" shall have the same meaning as under Section 529 of the Internal Revenue Code; (13) "Eligible Education Institution" shall have the same meaning as under the Statute; (14) "Internal Revenue Code" shall have the same meaning as under the Statute; (15) "Member of the Family" means an individual who is related to the Beneficiary as listed in subparagraphs (a) through (i) of this definition, together with any changes to such list as may be included, from time to time, in the definition of "Member of the Family" pursuant to Section 529 of the Internal Revenue Code or the Treasury regulations (or proposed regulations) thereunder: (a) A son or daughter, or a descendant of either; (b) A stepson or stepdaughter; (c) A brother, sister, stepbrother or stepsister; (d) The father or mother, or an ancestor of either; (e) A stepfather or stepmother; (f) A son or daughter of a brother or sister; (g) A brother or sister of the father or mother; (h) A son-in-law, daughter-in-law, father-in-law, mother-in-law, brother-in-law or sister-in-law; or (i) The spouse of the Designated Beneficiary or the spouse of any individual described in subparagraphs (a) through (i) of this definition. For purposes of determining whether a person is a Member of the Family hereunder, a legally adopted child of an individual shall be treated as the child of such individual by blood, and the terms brother and sister include a brother or sister by the half-blood. (16) "Non-Qualified Withdrawal" means a Distribution from an Account other than (A) a Qualified Withdrawal or (B) a Rollover Distribution; (17) "Participant" means a Person who has entered into a Participation Agreement pursuant to the Statute and sections 3-22h-1 to 3-22h-9, inclusive, of the Regulations of Connecticut State Agencies for the payment of Qualified Higher Education Expenses on behalf of a Beneficiary and includes any Depositor as defined in the Statute; (18) "Participation Agreements" shall have the same meaning as set forth in the Statute; (19) "Person" means any individual, estate, association, unincorporated organization, trust, partnership, limited liability company, corporation, the State of Connecticut or any department thereof, or any political subdivision of the State of Connecticut; (20) "Qualified Higher Education Expenses" shall have the same meaning as set forth in the Statute; (21) "Qualified State Tuition Program" shall have the same meaning as set forth in the Internal Revenue Code; (22) "Qualified Withdrawal" means a Distribution from an Account used exclusively to pay Qualified Higher Education Expenses of the Beneficiary; (23) "Rollover Distribution" means (A) a transfer of funds withdrawn from one Account and deposited to another Account not more than 60 days after the withdrawal of the funds, (B) a transfer of funds from another Qualified State Tuition Program to an Account not more than 60 days after withdrawal of the funds, or (C) a transfer of funds to another Qualified State Tuition Program from an Account not more than 60 days after withdrawal of the funds, in each case to the extent permitted as a rollover distribution as defined in Section 529(c)(3)(C)(i) of the Internal Revenue Code. In each case the transfer shall be made for the benefit of a new Beneficiary who is a Member of the Family of the prior Beneficiary, or, with respect to (B) and (C), for the benefit of the same Beneficiary provided that no other such transfer for the benefit of such Beneficiary has been made within the previous 12 months; (24) "Scholarship" shall have the same meaning as under Sections 529 and 530 of the Internal Revenue Code; (25) "Scholarship Account" means an Account in the Trust established by a Participant that is a Scholarship Sponsor and maintained for the benefit of one or more current or future Beneficiaries; (26) "Scholarship Sponsor" means the State of Connecticut or a local government in this State, or an agency or instrumentality of this State or local government, or a Section 501(c)(3) Organization, in each case who establishes one or more Accounts as part of a scholarship program; (27) "Statute" means sections 3-22f to 3-22o of the Connecticut General Statutes; (28) "Trust" shall have the same meaning as set forth in the Statute; (29) "Trustee" means the Treasurer of the State of Connecticut in her capacity as Trustee of the Program.