(a)

(1) A tuition contract may be terminated by the refund recipient under any of the following conditions upon written request of the refund recipient to the board:

(A) The death or permanent disability of the beneficiary;

(B) The beneficiary is eighteen (18) years of age or older and has decided not to attend an institution of higher education;

(C) The beneficiary has completed the requirements for a degree that is less than a bachelor's degree at an institution of higher education and the beneficiary does not plan to pursue further education; or

(D) The beneficiary has completed the bachelor's degree requirements at an institution of higher education.

(2) A tuition contract may also be terminated upon the occurrence of other circumstances determined by the board to be grounds for termination.

(b) The board shall determine the amount of the refund to which the refund recipient is entitled upon a contract termination.

(c) The board shall further determine the method and schedule for payment of refunds upon termination of a tuition contract.

(d) If a beneficiary is the recipient of a scholarship, a waiver of tuition or similar subvention that the board determines cannot be converted into money by the beneficiary, the board shall, upon the request of the refund recipient and upon being furnished information about the scholarship, waiver or similar subvention:

(1)

(A) Refund to the refund recipient an amount equal to the value of the tuition benefits in the beneficiary's account that are not needed to cover tuition or other educational costs on account of the scholarship, waiver or similar subvention and that would have otherwise been paid during that academic term at the institution of higher education where the beneficiary is enrolled. The board may, at its sole option, designate the institution of higher education at which the beneficiary is enrolled as the agent of the board for purposes of refunds pursuant to this subdivision (d)(1)(A);

(B) If the scholarship, waiver of tuition or similar subvention has a duration that extends beyond one (1) academic term, the refund recipient may request a refund in advance of the scholarship payment. The amount of the refund payable to the refund recipient shall equal the value of the tuition benefits in the beneficiary's account that are not needed to cover tuition or other educational costs on account of the scholarship, waiver or similar subvention. The refund provided by this subdivision (d)(1)(B) shall be determined without regard to any time limits on the use of tuition benefits;

(2) Retain the tuition benefits in the beneficiary's account for later use;

(3) Transfer the tuition benefits to another qualified tuition plan or program for the benefit of the beneficiary pursuant to rules and regulations promulgated by the board pursuant to § 49-7-805(16); or

(4) Transfer the tuition benefits to a new beneficiary pursuant to rules or regulations promulgated by the board pursuant to § 49-7-805(16).

(e) If, in any academic term for which tuition benefits under the program have been used to pay all or part of a beneficiary's tuition or other educational costs, the beneficiary withdraws from the institution of higher education at which the beneficiary is enrolled prior to the end of the academic term, a pro rata share of any refund of tuition or other educational costs as a result of the withdrawal equal to that portion of the tuition or costs paid with tuition benefits under the program shall be made to the board, unless the board designates a different procedure. The board shall credit any refund received, less any reasonable charges and fees provided for by the board, to the appropriate account established pursuant to § 49-7-812(b).

(f) If, after a specified period of time, the contract has not been terminated nor the beneficiary's rights exercised, the board may terminate the contract and report the refund amount to the state treasurer pursuant to title 66, chapter 29, part 1. The refund amount shall be determined by the board pursuant to subsection (b). Prior to termination, the board shall make a reasonable effort to contact the purchaser, the beneficiary and any person designated in the contract to act on behalf of the purchaser or the beneficiary.

(g) Unless otherwise provided for in the contract, a tuition contract entered into under this part through the educational savings plan may be terminated by the refund recipient for any reason upon written request of the refund recipient to the board. Termination shall occur no earlier than a maturity period as set by the board after the first contribution is made to the account. The board shall determine the refund amount and the method and schedule for payment of the refund.

(h) Notwithstanding any law to the contrary, the board may promulgate substantive and procedural rules to permit a refund recipient to withdraw part of the balance from an educational investment account established under the educational investment plan without causing termination of the tuition contract and without requiring the refund recipient to establish that the withdrawn amount will be used to pay the tuition or other educational costs of the beneficiary.