Sec. 54.772. TAX EXEMPT STATUS REQUIREMENTS. (a) This section is intended to meet the requirements of Section 529, Internal Revenue Code of 1986. (b) A payment of an amount due to the fund for a prepaid tuition contract must be made in cash or cash equivalent. A person may not make a payment to the fund in excess of the amounts required to be paid under a prepaid tuition contract. (c) The board shall maintain a separate accounting for each beneficiary. (d) The purchaser under a prepaid tuition contract and the beneficiary under the contract may not: (1) control or direct the investment of payments under the contract or any earnings of the fund; or (2) use any interest in the contract as security for a loan or other obligation. (e) The board shall make reports required by the secretary of the United States Treasury.
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