(a) The prepaid tuition contract shall be terminated automatically:
  (1) if the board determines that a purchaser has misrepresented residency, age, or other information required by the board in connection with the purchase of a contract; or
  (2) upon failure to pay any amounts due under the prepaid tuition contract prior to the expiration of any applicable grace periods.
(b) At its option, a purchaser may voluntarily terminate a prepaid tuition contract upon submission of a written request, provided the beneficiary is under 18 years of age and has not graduated from high school or attained high school equivalency certification. Termination shall be effective 30 days after receipt of such request by the board. The sum of payments made by the purchaser under the prepaid tuition contract, less a cancellation fee, may be refunded to the purchaser, subject to the limitations set forth in §7.81 of this title (relating to Refunds), or the purchaser may transfer any benefits under such contract to another qualified beneficiary under a prepaid tuition contract.
(c) If the beneficiary is at least 18 years of age, or has graduated from high school or attained high school equivalency certification, either the purchaser or the beneficiary may terminate the prepaid tuition contract.
(d) A prepaid tuition contract terminates automatically on the tenth anniversary of the date the beneficiary is projected to graduate from high school. Time spent as an active duty member of the United States armed services shall toll the ten-year anniversary period.

Source Note: The provisions of this §7.82 adopted to be effective January 8, 1996, 20 TexReg 11124; amended to be effective June 24, 1996, 21 TexReg 5459; amended to be effective November 15, 1996, 21 TexReg 10891; amended to be effective August 27, 2008, 33 TexReg 6957