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A. Academic School Year – Three (3) quarters or two (2) semesters of a twelve (12) month school year. B. Actuarial Assessment - An additional Contract amount assessed by MPACT to preserve the actuarial soundness of the Trust Fund. C. Administrative Fees - Fees, listed in Chapter 10, which are either build into contract pricing or assessed to the MPACT Contract Purchaser upon application for enrollment in the MPACT Program; upon making changes in the ordinary services provided under the MPACT Program; or upon making changes in MPACT Contract information provided to the State Treasurer. Administrative Fees include any other fees designated as administrative by the State Treasurer. Administrative Fees are nonrefundable and are deducted from Contract payments before calculation of the Redemption Value. D. Application - A request for enrollment in the MPACT Program, made on the official Application form or made by completing the online Application accessible on the MPACT website. E. Application Processing Fee - Fee, specified in Chapter 10.02, paid by the MPACT Contract Purchaser upon Application for enrollment in the MPACT Program. F. Cancellation - Voluntary discontinuation of the Purchaser’s Contract and voluntary discontinuation of the Qualified Beneficiary’s right to receive benefits under an MPACT Contract, when requested by the Purchaser, so long as the Purchaser has provided at least thirty (30) days written notice to the MPACT Program and has submitted all applicable Administrative Fees. An MPACT Contract may also be Involuntarily Cancelled for any of the following: 1. Purchaser fails to make payments pursuant to the Master Contract and/or the Participation and Payment Schedule; Purchaser fails to make a Contract payment within forty-five (45) days of the first Contract payment due date. 2. Contingent Purchaser - Person who is named by the Contract Purchaser on the MPACT Application or subsequent request, who will assume all duties and responsibilities of the Contract Purchaser in the event of the Contract Purchaser’s death. The Contingent Purchaser must meet the same eligibility requirements as the Contract Purchaser. G. Contract Purchaser - Any adult person, corporation, trust, charitable organization or other Entity eligible to purchase an MPACT Contract, and who is obligated to make MPACT Contract payments and Administrative Fee payments in accordance with the MPACT Contract. MPACT Contract payments may be made by someone other than the designated Contract Purchaser. H. Current Tuition Value - Weighted average of undergraduate In-State Tuition and Mandatory Fees at four-year Postsecondary Institutions for university Contracts; and the weighted average of In-State Tuition and Mandatory Fees at two-year Postsecondary Institutions for community college Contracts. I. Disability of the Purchaser - A disability as defined in the applicable rules, regulations, and guidelines of the Social Security Administration. J. Disability of the Qualified Beneficiary - A disability which, based on the findings of a qualified health care professional, and on approval of these findings by the Board, renders the Qualified Beneficiary incapable of participating in postsecondary education. K. Enrollment Period - Any period designated by the Board in which Applications for enrollment in the MPACT Program will be accepted by the State Treasurer. L. Entity - A trust corporation (including an IRC 501(c)(3) organization) or other types of entities with a valid TIN, a custodian under Mississippi Uniform Transfers to Minors Act or similar provisions adopted by another state (“UTMA/UGMA”) with a valid Social Security Number or TIN, or a state or local government agency which meets the federal and state legal requirements governing the MPACT Program. M. Independent/Private In-state Postsecondary Institution - Any in-state regionally accredited private four (4) or two (2) year college located in Mississippi. N. In-state Tuition Rate – The standard undergraduate tuition rate charged to a student who meets the in-state residency requirements established by the Board of Trustees of State Institutions of Higher Learning or the individual school attended by the student. The in- state tuition rate does not include specialty courses of study if the specialty course’s tuition rate exceeds the postsecondary Institution’s standard undergraduate tuition rate. See Rule 9.2. O. IRC § 529 – Section 529 of the Internal Revenue Code of 1986 (As Amended). P. MACS Program - The Mississippi Affordable College Savings Program. Q. Mandatory Fees - Fees required as a condition of enrollment for all students attending the Postsecondary Institution in which the Qualified Beneficiary is enrolled and to which the Trust Fund payments will be made on behalf of the Qualified Beneficiary. Those fees which are unique to a particular student or group of students such as lab fees are not considered to be mandatory. The term “Mandatory Fees,” as used herein, does not include charges for books, supplies, room, or board, even if the Postsecondary Institution attended by the Qualified Beneficiary requires all students to pay such charges. Additionally, the term “Mandatory Fees” does not include application entrance fees paid to Postsecondary Institutions when the Qualified Beneficiary applies for enrollment, or orientation fees. R. Master MPACT Contract - The legal document which specifies the terms and conditions of the MPACT Program. S. MPACT Contract (Contract) - Refers collectively to the MPACT Application, the Master MPACT Contract, the Rules, Regulations and Procedures, and the Participation and Payment Schedule. Additional documents relating to the MPACT Contract, issued or received by the State Treasurer, and pursuant to the various terms and conditions described, will be incorporated into the MPACT Contract. T. Official Change Period - The first sixty (60) days after the first Contract payment due date. During this period the MPACT Contract Purchaser may submit a written request for approval of changes in MPACT Contract terms, conditions, or information. Such changes may include, but are not limited to, changes in the Participation and Payment Schedule; changes in information provided on the MPACT Application, the Master MPACT Contract, or on other MPACT documents; changes in payment method; and similar types of requests. Changes may be made outside of an Official Change Period only with the approval of the State Treasurer or his/her designee. U. Out-of-State Postsecondary Institution -Any out-of-state regionally accredited private four (4) or two (2) year college, or an out-of-state regionally accredited, state-supported, nonprofit four or two year college. V. Participation and Payment Schedule - The document, prepared by the MPACT Program, which defines the frequency, duration, and due date of MPACT Contract Payments, based on information provided by the Purchaser on the MPACT Application. W. Postsecondary Institution - An accredited public educational associate of arts or baccalaureate degree-granting Postsecondary Institution, or a private independent associate of arts or baccalaureate degree-granting college or university, or an out-of-state associate of arts or baccalaureate degree-granting college or university. X. Projected Enrollment Year - The Academic School Year following the Qualified Beneficiary’s projected high school graduation and is the earliest date for utilization of MPACT Contract benefits without written approval from the State Treasurer, subject to the provisions of Chapters 9.02, 9.03, and 9.05 herein. The Projected Enrollment Year is established based on information provided by the Purchaser on the MPACT Application. Y. Qualified Beneficiary - An individual who meets all Beneficiary eligibility criteria as specified in Chapter 7.00 and who is designated by the Purchaser of an MPACT Contract to be the recipient of MPACT Contract benefits. All references to the Contract Beneficiary within these Rules, Regulations and Procedures assume that the Beneficiary meets the Beneficiary eligibility requirements of MPACT, and is, therefore, a Qualified Beneficiary. Z. Qualified Tuition Plan - A college savings plan operated by a state or an instrumentality of a state that qualifies under IRC § 529. QTP’s may also be called “529 Plans.” The Board has established two qualified programs: the Mississippi Prepaid Affordable College Tuition (MPACT) Program and the Mississippi Affordable College Savings (MACS) Program. AA. Redemption Value - The amount refunded to a Purchaser will include but not be limited to the amount paid in and an additional amount in the nature of interest at a rate that corresponds to the prevailing interest rates for savings accounts provided by banks and savings and loan associations. The Board may impose reasonable charges for such withdrawal or refund. All relevant Administrative Fees, including, but not limited to, Cancellation Fees, Termination Fees and Account Maintenance Fees, will be deducted from Contract payments before calculation of the Redemption Value. BB. Resident - A person who has established legal residence in the State of Mississippi, that is, the place where the person actually resides with the intention of remaining there indefinitely or of returning there permanently when temporarily absent. A Beneficiary is considered a Resident for purposes of Tuition regardless of the Beneficiary’s residence on the date of enrollment in a Postsecondary Institution. This provision only applies to nonresident Beneficiaries if (a) the original Purchaser was the parent, grandparent or legal guardian of the Beneficiary; or (b) the Beneficiary was a resident of Mississippi at the time the Contract was purchased. CC. Rollover - A transfer between QTP’s, as allowed under IRC § 529. DD. Scholarship, Partial Scholarship or Full Scholarship - Grants, gifts, or other financial aid awarded to a Qualified Beneficiary in an amount sufficient to pay a portion or all of the same benefits as are guaranteed under an MPACT Contract. A loan is not considered a scholarship. EE. Termination - Involuntary discontinuation of the Purchaser’s MPACT Contract and involuntary discontinuation of the Qualified Beneficiary’s rights to receive benefits under an MPACT Contract. An MPACT Contract may be Involuntarily Terminated for any of the following reasons: 1. The Purchaser or Beneficiary has made a material misrepresentation of information; 2. The Purchaser or Beneficiary has provided false information to the MPACT Program; 3. The Purchaser has requested or accepted any form of compensation, fee, commission, service charge or any other form of payment or remuneration for entering into a Contract for the benefit of a nonresident Beneficiary; 4. Such other reasons as the State Treasurer may reasonably impose. FF. UTMA or UGMA - The Uniform Transfer to Minors Act or the Uniform Gift to Minors Act.