53B-8a-107 - Program, administrative, and endowment funds -- Investment and payments from funds. - Utah Statutes

53B-8a-107. Program, administrative, and endowment funds -- Investment andpayments from funds.
(1) The plan shall segregate money received by the plan into three funds, the programfund, the administrative fund, and the endowment fund.
(2) Transfers may be made from the program fund to the administrative fund to payoperating costs:
(a) associated with administering the plan and as required under Sections 53B-8a-103through 53B-8a-105; and
(b) as included in the budget approved by the board.
(3) (a) All money paid by account owners in connection with account agreements shallbe deposited as received into separate accounts within the program fund which shall be investedand accounted for separately.
(b) Money accrued by account owners in the program fund may be used for:
(i) payments to any institution of higher education;
(ii) payments to the account owner or beneficiary;
(iii) payments to another 529 plan; or
(iv) other expenditures or transfers made in accordance with the account agreement.
(4) (a) All money received by the plan from the proceeds of gifts and other endowmentsfor the purposes of the plan shall be:
(i) deposited, according to the nature of the donation, as received into the endowmentfund or the administrative fund; and
(ii) invested and accounted for separately.
(b) Any gifts, grants, or donations made by any governmental unit or any person, firm,partnership, or corporation to the plan for deposit to the endowment fund is a grant, gift, ordonation to the state for the accomplishment of a valid public eleemosynary, charitable, andeducational purpose and is not included in the income of the donor for Utah tax purposes.
(c) The endowment fund or the administrative fund may be used to enhance the savingsof low income account owners investing in the plan, for scholarships, or for other college savingsincentive programs as approved by the board.
(d) Transfers may be made from the endowment fund to the administrative fund uponapproval by the board.
(e) Endowment fund earnings not accruing to a beneficiary under an account agreementor not transferred to the administrative fund shall be reinvested in the endowment fund.

Amended by Chapter 6, 2010 General Session