15-1878. Limitations of article

A. Nothing in this article shall be construed to:

1. Give any designated beneficiary any rights or legal interest with respect to an account unless the designated beneficiary is the account owner.

2. Guarantee that a designated beneficiary will be admitted to an eligible educational institution or be allowed to continue enrollment at or graduate from an eligible educational institution located in this state after admission.

3. Establish state residency for a person merely because the person is a designated beneficiary.

4. Guarantee that amounts saved pursuant to the program will be sufficient to cover the qualified higher education expenses of a designated beneficiary.

B. Nothing in this article establishes any obligation of this state or any agency or instrumentality of this state to guarantee for the benefit of any account owner, contributor to an account or designated beneficiary any of the following:

1. The return of any amounts contributed to an account.

2. The rate of interest or other return on any account.

3. The payment of interest or other return on any account.

4. Tuition rates or the cost of related higher education expenditures.

C. Under rules adopted by the commission, every contract, application, deposit slip or other similar document that may be used in connection with a contribution to an account shall clearly indicate that the account is not insured by this state and neither the principal deposited nor the investment return is guaranteed by this state.