Termination of rights of beneficiary. A. The Trust, on behalf of itself and the state, may contract with a purchaser for the advance payment of tuition by the purchaser for a qualified beneficiary to attend any of the institutions of higher education to which the qualified beneficiary is admitted, without further fees to the qualified beneficiary. In addition, an advance tuition payment contract shall set forth in a clear, understandable manner all of the following: 1. The amount of the payment or payments required from the purchaser on behalf of the qualified beneficiary; 2. The terms and conditions for making the payment, including, but not limited to, the date or dates upon which the payment, or portions of the payment, shall be due; 3. Provisions for late payment charges and for default; 4. The name and age of the qualified beneficiary under the contract. The purchaser, with the approval of and on conditions determined by the Trust, may subsequently substitute another person for the qualified beneficiary originally named; 5. The number of credit hours covered by the contract, but the credit hours shall not exceed the number of credit hours required for the granting of a bachelor's degree in the applicable degree program at any institution of higher education to which the qualified beneficiary is admitted; 6. The name of the person entitled to terminate the contract, which, as provided by the contract, may be the purchaser, the qualified beneficiary, or a person acting on behalf of the purchaser or qualified beneficiary, or any combination of these persons; 7. The terms and conditions under which the contract may be terminated and the amount of the refund, if any, to which the person terminating the contract, or the purchaser or designated qualified beneficiary if the contract so provides, shall be entitled upon termination; 8. The assumption of a contractual obligation by the Trust to the qualified beneficiary on its own behalf and on behalf of the state to provide for a specified number of credit hours of higher education, not to exceed the number of credit hours required for the granting of a bachelor's degree, at any institution of higher education to which the qualified beneficiary is admitted. The contract shall require that a named beneficiary who is not an Oklahoma resident at the time the beneficiary is enrolled in a state institution of higher education shall pay all applicable nonresident tuition or fees imposed on nonresident students at the university or college at which the beneficiary is enrolled; 9. The eligibility period; 10. That a qualified beneficiary may attend a community junior college in this state before entering another institution of higher education for the purpose of completing a bachelor's degree if the beneficiary so chooses, and that the contract may be terminated pursuant to the provisions of Section 9 of this act after completing the requirements for a degree or certificate at the community junior college in this state or before entering the other institution of higher education; 11. All other rights and obligations of the purchaser and the Trust; and 12. Other terms, conditions, and provisions as the Trust considers in its sole discretion to be necessary or appropriate. B. The Trust shall make any arrangements that are necessary or appropriate with institutions of higher education in order to fulfill its obligations under advance tuition payment contracts. Arrangements may include, but need not be limited to, the payment by the Trust of the then actual in-state tuition cost on behalf of a qualified beneficiary to the institution of higher education. C. An advance tuition payment contract may provide that, if after a number of years specified in the contract the contract has not been terminated or the qualified beneficiary's rights under the contract have not been exercised, the Trust, after making a reasonable effort to locate the purchaser and qualified beneficiary or the agent of either, shall retain the amounts otherwise payable and the rights of the qualified beneficiary, the purchaser or the agent of either shall be considered terminated.
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