Sec. 54.772.  TAX EXEMPT STATUS REQUIREMENTS.  (a)  This section is intended to meet the requirements of Section 529, Internal Revenue Code of 1986.
(b)  A payment of an amount due to the fund for a prepaid tuition contract must be made in cash or cash equivalent.  A person may not make a payment to the fund in excess of the amounts required to be paid under a prepaid tuition contract.
(c)  The board shall maintain a separate accounting for each beneficiary.
(d)  The purchaser under a prepaid tuition contract and the beneficiary under the contract may not:
(1)  control or direct the investment of payments under the contract or any earnings of the fund; or
(2)  use any interest in the contract as security for a loan or other obligation.
(e)  The board shall make reports required by the secretary of the United States Treasury.
Added by Acts 2007, 80th Leg., R.S., Ch. 1281 (H.B. 3900), Sec. 1, eff. June 15, 2007.