Section 457-611-1 - DEFINITIONS The following terms, some of which are defined in the Finance Authority of Maine Act, 10 MRSA §961et seq. (the "Act") shall have the following meanings in this rule. All terms that are defined in federal requirements shall have the same meanings herein as in the federal requirements.
A.Account. "Account" means a repository of all contributions identified by a formal record of transactions, in respect to a particular participant and beneficiary, as applicable, established for purposes of the program.B.Advisory Committee. "Advisory committee" means the advisory committee on education savings, formerly known as the advisory committee on college savings.C.Authority. "Authority" means the Finance Authority of Maine, which serves as administrator of the program.D.Beneficiary. "Beneficiary" means any person who: is designated by an application or participation agreement or subsequent change directed by the participant and accepted by the program to benefit from payments for qualified higher education expenses or who, as part of a scholarship program operated by a state or local governmental entity or a 501(c)(3),is the individual receiving such interest as a scholarship.E.[Repealed effective March 2, 2003]F.[Repealed effective February 12, 2018]G.Chief Executive Officer. "Chief executive officer" means the Authority's chief executive officer or any person acting under the delegated authority and supervision of the chief executive officer.H.Contributions. "Contributions" means amounts deposited to an account.I.Early Termination Event. "Early termination event" means any of the following if documented as required by the Authority:1) the death of the beneficiary;2) the disability of the beneficiary within the meaning of Section 72(m)(7) of the Internal Revenue Code;3) a qualified roll over to another qualified tuition program or a qualified ABLE program to the extent permitted under federal requirements;4) an award of an eligible scholarship, to the extent of the amount thereof;5) a claim of an American Opportunity tax credit or a Lifetime Learning tax credit to the extent allowable in conformance with federal requirements; or6) attendance of the beneficiary at the United States Military Academy, the United States Naval Academy, the United States Air Force Academy, the United States Coast Guard Academy, or the United States Merchant Marine Academy, to the extent that the amount of the payment or distribution does not exceed the costs of such advanced education, as defined by Title 10 United States Code § 2005(e)(3), as in effect on the date of enactment of Section 530(d)(4)(B) (iv) of the Internal Revenue Code, attributable to such attendance.J.Eligible Scholarship. "Eligible scholarship" means any allowance or payment described in Section 25 A(g)(2) of the Internal Revenue Code. J-1a.Expected Family Contribution. "Expected family contribution" means the amount that a student and his or her family may be reasonably expected to contribute towards post-secondary education for the academic year for which the student seeks a program scholarship, determined using federal methodology.J-1.[Repealed effective April 7, 2013]K.Federal Requirements. "Federal requirements" means the provisions of the Internal Revenue Code addressing qualified tuition plans, any regulations promulgated or, if so determined by the chief executive officer, proposed thereunder and any rulings or guidance thereunder addressed, or in the opinion of counsel, applicable to the Authority.L.[Repealed effective October 10, 2021]M.Internal Revenue Code. "Internal Revenue Code" means the Internal Revenue Code of 1986, as amended.N.Higher Education Act. "Higher Education Act" means the Higher Education Act of 1965, as in effect on June 7, 2001.O.Institution of Higher Education. "Institution of higher education" or "institution" means an institution which is described in Section 481 of the Higher Education Act, and which is eligible to participate in a program under Title IV of such Act. Such institutions generally are accredited post-secondary educational institutions offering credit toward the attainment of associate, baccalaureate, graduate level or professional degrees or another recognized post-secondary credential. O-1.Maine Accounts. "Maine account" means any account opened by a participant who is a resident of Maine or for a beneficiary who is a resident of Maine.O-2.Maine Administration Fee. "Maine administration fee" means the fee calculated at the annual rate determined by contract between 0% and fifteen hundredths of one percent (.15%) of the average daily net asset value of the amounts invested in the program, received by the Authority.P.[Repealed effective October 10, 2021]Q.Participant. "Participant" means any person who has entered into a participation agreement pursuant to this rule.R.Participation Agreement. "Participation agreement" means an agreement between a participant and the Authority providing for the establishment by the participant of an account and for the administration of each account for the benefit of the participant and of a beneficiary, as applicable.S.Program. "Program" means the Maine Education Savings Program as described in and governed by the Act, the Program Act and this rule.T.Program Act. "Program Act" means 20-A MRSA §11471et seq.U.[Repealed effective March 2, 2003]U-1.Program description. "Program description" means the official offering statement for the program.U-2.[Repealed effective October 10, 2021]V.Qualified Higher Education Expenses. "Qualified higher education expenses" means such expenses defined in Section 529 of the Internal Revenue Code and such expenses that by reference are treated as qualified higher education expenses in Section 529, including without limitation expenses identified in Section 529(c)(7), Section 529(c)(8), and Section 529(c)(9).V-1.Resident. "Resident" means a person who is a resident of the State of Maine for other than educational purposes or a person who is a resident of the State of Maine notwithstanding attendance at an institution of higher education outside of the State of Maine.W.501(c)(3). "501(c)(3)" means an organization described in Section 501(c)(3) and exempt from taxation under Section 501(a) of the Internal Revenue Code.94-457 C.M.R. ch. 611, § 1