SECTION 7.162. Definitions

The following words and terms, when used in this subchapter, shall have the following meanings, unless the context clearly indicates otherwise.

(1) Accredited out-of-state institution of higher education, career school, general academic teaching institution, private or independent institution of higher education, and two-year institution of higher education have the meanings assigned by Education Code, §54.751.

(2) Beneficiary--A beneficiary on whose behalf a purchaser enters into a prepaid tuition contract with the board under Education Code, Chapter 54, Subchapter H or for whom an account owner opens a savings trust account under Education Code, Chapter 54, Subchapter G.

(3) Board--Prepaid Higher Education Tuition Board.

(4) Fund--Texas Save and Match Trust Fund established under Education Code, §54.808.

(5) Match account--An allocation of funds or tuition units from an account, fund, or contract owned and maintained by the board or program entity that has been awarded to a participant on behalf of a designated beneficiary.

(6) Nonprofit scholarship organization--An organization described in Internal Revenue Code of 1986, §501(c)(3), and exempt from taxation under §501(a) of that code that operates a scholarship program that benefits beneficiaries who are residents of this state.

(7) Participant--A purchaser of a prepaid tuition contract or account owner of a savings trust account who has been awarded a match account under the program.

(8) Prepaid tuition contract--A contract entered into under Education Code, Chapter 54, Subchapter H or I. Prepaid tuition contract includes Texas Tuition Promise Fund® contracts or any future higher education prepaid tuition program established by the Texas Prepaid Higher Education Tuition Board under Education Code, Chapter 54, Subchapter H.

(9) Program--Texas Save and Match Program established under Education Code, §54.802.

(10) Program entity--Texas Match the Promise Foundation^SM , a Texas nonprofit corporation, or any future tax-exempt charitable organization established by law to implement the program.

(11) Savings trust account--A savings trust account established under Education Code, Chapter 54, Subchapter G or I. Savings trust account includes accounts in the Texas College Savings Plan® and the LoneStar 529 Plan® or any future higher education savings plan established by the Texas Prepaid Higher Education Tuition Board under Education Code, Chapter 54, Subchapter G.

Source Note: The provisions of this §7.162 adopted to be effective July 1, 2012, 37 TexReg 4599