Rules applicable to contributions

The following rules apply to contributions: 1. Eligibility to contribute. Any person or entity, whether or not the person or entity is a participant, may contribute to an account established for any designated beneficiary. Any contribution to an account shall be deemed to have been made by the participant for that account. 2. Cash contributions. All contributions to accounts shall be made only in cash. For these purposes, "contributions in cash" means contributions in United States dollars made by check, money order, or wire transfer of funds, in accordance with such procedures as may be established by the Bank. 3. Tax-free rollover contributions. Any person or entity making a contribution to an account shall indicate on the appropriate form whether or not the contribution is a tax-free rollover from a Coverdell education savings account, a qualified United States savings bond, or a qualified tuition program. If the contribution is a tax-free rollover, the person or entity making a contribution shall provide the Bank, or the manager on behalf of the Bank, appropriate documentation showing the earnings portion of the contribution, so that the appropriate amount of earnings may be reflected in the account to which the rollover contribution is made. Until appropriate documentation is received, the entire amount of such contribution shall be recorded as earnings in the account. For this purpose, appropriate documentation shall be: a. In the case of a rollover contribution from a Coverdell education savings account, an account statement issued by the financial institution that acted as trustee or custodian of the Coverdell education savings account that shows basis and earnings in the account; b. In the case of a rollover contribution from the redemption of a qualified United States savings bond, an account statement or federal tax form issued by the financial institution that redeemed the bond showing interest from the redemption of the bond; and c. In the case of a rollover contribution from a qualified tuition program, a statement issued by the qualified tuition program making the distribution that shows the earnings portion of the distribution. 4. Maximum contribution amount limitation. No contribution to an account for a designated beneficiary will be permitted if the total value of all accounts for the designated beneficiary under the plan, or the amount of the contribution when added to the total value of all accounts for the designated beneficiary under the plan, exceeds the maximum contribution amount. If the total value of all accounts for the designated beneficiary later falls below the maximum contribution amount, additional contributions to the account of the designated beneficiary will be permitted. Notwithstanding this maximum contribution amount rule, the participant is responsible for projecting the designated beneficiary's qualified higher education expenses and, to avoid income taxes and additional tax penalties on distributions, may need to limit contributions to less than the maximum contribution amount. 5. Minimum contribution amount. Contributions may be made whenever it is convenient, provided that each contribution is made in accordance with the minimum contribution and other requirements as set forth in the plan disclosure statement. 6. Open enrollment. Participation in the plan may begin at any time after the plan start date. 7. Crediting of contributions and investment of contributions. The manager shall credit contributions to an account and invest contributions in units of the portfolios designated by the participant generally as of the business day on which the contributions are received in good order by the manager. 8. Calculation of portfolio unit value for contributions. The portfolio unit value for the portfolio in which contributions to an account are invested shall be the portfolio unit value the day the contribution has been credited to that account.