(a) All scholarship funds shall be deposited in special funds or trust funds established for the purpose of depositing all funds, contributions, donations, pledged earnings, interest, income and dividends, except enrollment fees and dues as set forth in § 49-4-103(b)(2), to be used exclusively and solely for scholarships and educational benefits for members found eligible and uses set out in the plan.
(1) The deposits or payments into the special funds or trust funds, and disbursements out of the funds, shall not be subject to levy, attachment or garnishment on account of any debts or liabilities of the corporation or of any member, trustee of member or recipient.
(2) The special fund is to be deposited in and managed by an insured bank or banks having trust powers, as trustees.
(b) The trustees shall be selected or appointed by the corporation and approved by the commissioner.
(c) The commissioner is authorized to adopt regulations respecting such security by the depository that is necessary for the protection of the funds and to assure their availability for the purposes set forth in the plan or plans under which the moneys are received.
(d) Operating capital of the corporation shall not be deemed trust funds. Operating capital shall consist of enrollment fees and annual dues of members. Advancements to the corporation for working capital shall be deemed operating capital repayable from the fees and dues only.
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