Trust participation and participation agreements

(a) Beneficiary Eligibility. A Beneficiary may be any individual designated as such in a Participation Agreement. (b) Participant Eligibility. A Participant may be any Person (1) who submits to the Trust a completed Participation Agreement, a Social Security or taxpayer identification number, and an address in the United States, for each of the Participant and the Beneficiary, and (2) who otherwise meets the qualifications set forth in federal law, Connecticut law, and the regulations governing the Trust. A Participant who establishes a Scholarship Account shall provide the valid Social Security numbers or taxpayer identification numbers and addresses in the United States of each Beneficiary of the applicable Scholarship Account prior to or in connection with a request for a distribution. (c) Participation Agreements. To participate in the Trust, a prospective Participant shall submit a completed Participation Agreement with an initial Contribution, a selection of electronic funds transfer or payroll deduction as the method of initial Contribution. The Participation Agreement shall provide that the Participant (and any successor Account Owner) shall retain ownership of payments made under the Program through the opening of an account in the name of the Participant and for the benefit of the Beneficiary designated by such Participant (or the successor Account Owner). Only one Account Owner is permitted per Account, except for Accounts established prior to March 13, 2000 for which certain married Participants elected to hold ownership as joint Participants. Only one Beneficiary is permitted per Account, except that Scholarship Accounts may be established for the benefit of one or more present or future Beneficiaries. One or more Participants may establish Accounts for a single Beneficiary. Any amendment to the Statute or regulations adopted by the Trustee shall automatically amend the Participation Agreement, and any amendments to the operating procedures and policies of the Program shall amend the Participation Agreement no later than thirty (30) days after adoption by the Trustee. Each Participation Agreement shall provide that the Participation Agreement may be canceled upon the terms and conditions set forth in the Participation Agreement, subject to subsection (i) of this section 3-22h-5. (d) Contributions. All Contributions to Accounts shall be in Cash. The maximum amount that may be contributed by a Participant with respect to a Beneficiary may be established by the Trust, from time to time, but in no event shall be more than the maximum amount permitted for the Trust to qualify as a Qualified State Tuition Program. (e) Account Balance Limit on Contributions. Contributions for any Beneficiary shall be rejected and returned to the extent the amount of the contribution would cause the total balance of the account, together with other accounts established under the program for the benefit of the same beneficiary, to exceed the maximum amount established by the trust from time to time (the "Account Balance Limit on Contributions"). In no event shall the account balance limit on contributions be more than the amount permitted under Section 529 of the Internal Revenue Code. (f) Changes to Beneficiary. To the extent such change would not cause the balance in an Account for the new Beneficiary to exceed the Account Balance Limit on Contributions, an Account Owner may change the Beneficiary designated for an Account to any Member of the Family of the current Beneficiary at any time, without penalty, by submitting a completed change of Beneficiary form to the Trust in such form as the Trust may specify from time to time. Any change of Beneficiary by an Account Owner other than as permitted in this subsection shall be a Non-Qualified Withdrawal. (g) Rollover Distributions. To the extent such change would not cause the balance in an Account for the new Beneficiary to exceed the Account Balance Limit on Contributions, an Account Owner may transfer, in a Rollover Distribution, all or part of the Account Balance (1) to an Account, or an account in another Qualified State Tuition Program for another Beneficiary who is a Member of the Family of the current Beneficiary or (2) no more than once in any twelve (12) month period, to an account in another Qualified Higher Education Expenses for the same beneficiary by submitting a completed request for transfer of Account funds in such form as the Trust may specify from time to time. (h) Changes of Account Ownership. An Account Owner may transfer ownership of an Account to another Person eligible to be a Participant under the provisions of the Statute and sections 3-22h-1 to 3-22h-9, inclusive, of the Regulations of Connecticut State Agencies, and upon receipt of a request for change of Account Owner that satisfies the criteria set forth in this subsection, the transferee shall be considered the Account Owner for all purposes related to the Trust, regardless of the source of subsequent Contributions. (1) General Rule. Any such change of Account ownership shall be effective provided that the transfer (A) is irrevocable, (B) transfers all ownership, reversionary rights, and powers of appointments (i.e., power to change Beneficiaries and to direct Distributions from the Account), and (C) is submitted to the Trust on a change of account owner form in such form as the Trust may specify from time to time and completed by the Account Owner (or, in the event of the death of the Account Owner, by the personal representative of his or her estate). If the account is held by joint Participants, each spouse shall execute the transfer of ownership. (2) Designation of Contingent Account Owners. Any Account Owner who is an individual person may designate a contingent Account Owner for the Account, to become the owner of the Account automatically upon the death of such Account Owner. Joint Participants may designate a contingent Account Owner who shall become the Account Owner upon the death of the last surviving joint Participant. Prior to the initial action taken by the contingent Account Owner following the death of the deceased Account Owner(s), the contingent Account Owner shall provide a certified copy of a death certificate sufficiently identifying said deceased Account Owner(s) by name and Social Security number or taxpayer identification number, or such other proof of death as is recognized under applicable law. (i) Cancellation. A Participant may cancel a Participation Agreement at any time by submitting to the Trust a notice to terminate the Participation Agreement in such form as the Trust may specify from time to time. (j) Separate Accounting. The Trust shall provide separate accounting (as provided in Section 529 of the Internal Revenue Code) for each Beneficiary for each Account.