15-62-103. Definitions. As used in this chapter, the following definitions apply:
     (1) "Account" means an individual trust account or savings account established under this chapter.
     (2) "Account owner" means the person designated at the time that an account is opened as having the right to withdraw money from the account before the account is disbursed to or for the benefit of the designated beneficiary.
     (3) "Board" means the board of regents of higher education established by Article X, section 9, subsection (2), of the Montana constitution and 2-15-1505.
     (4) "Committee" means the family education savings program oversight committee established in 20-25-901.
     (5) "Designated beneficiary" means, with respect to an account, the person designated at the time that the account is opened as the person whose higher education expenses are expected to be paid from the account or if this person is replaced in accordance with 15-62-202, the individual replacing the former designated beneficiary.
     (6) "Financial institution" means any bank, commercial bank, national bank, savings bank, savings and loan association, credit union, insurance company, trust company, mutual fund, or other similar entity that is authorized to do business in this state.
     (7) "Higher education institution" means:
     (a) an institution described in the Higher Education Act of 1965, 20 U.S.C. 1141(a) and 1088(a); or
     (b) an area vocational educational school, as defined in section 521(3) of the Carl D. Perkins Vocational Education Act, 20 U.S.C. 2471(3)(C) and (3)(D), that is located in this state.
     (8) "Member of the family" means:
     (a) an ancestor of a person;
     (b) the spouse of a person;
     (c) a lineal descendant, including a legally adopted child, of a person, of a person's spouse, or of a parent of a person; or
     (d) the spouse of any lineal descendant described in subsection (8)(c).
     (9) "Nonqualified withdrawal" means a withdrawal from an account that is not:
     (a) a qualified withdrawal;
     (b) a withdrawal made as the result of the death or disability of the designated beneficiary of an account;
     (c) a withdrawal that is made on the account of a scholarship or the allowance or payment described in section 135(d)(1)(B) or (d)(1)(C) of the Internal Revenue Code, 26 U.S.C. 135(d)(1)(B) or (d)(1)(C), and that is received by the designated beneficiary; or
     (d) a rollover or change of designated beneficiary.
     (10) "Program" means the family education savings program established pursuant to 15-62-201. The program must be structured to permit the long-term accumulation of savings that can be used to finance all or a share of the costs of higher education.
     (11) "Qualified higher education expenses" means tuition and fees required for enrollment or attendance of a designated beneficiary at a higher education institution.
     (12) "Qualified withdrawal" means a withdrawal from an account to pay the qualified higher education expenses of the designated beneficiary of the account.

     History: En. Sec. 3, Ch. 540, L. 1997.