Section 390.1421 – Short Title.
390.1421 Short title. Sec. 1. This act shall be known and may be cited as the “Michigan education trust act”. History: 1986, Act 316, Imd. Eff. Dec. 23, 1986
Section 390.1422 – Legislative Finding and Declaration.
390.1422 Legislative finding and declaration. Sec. 2. The legislature hereby finds and declares the following: (a) It is an essential function of state government to forever encourage schools and the means of education, as provided in section 1 of article VIII of the state constitution of 1963. (b) It is a responsibility of state government […]
Section 390.1423 – Purposes of Act and Michigan Education Trust.
390.1423 Purposes of act and Michigan education trust. Sec. 3. In light of the findings described in section 2, the legislature declares the purposes of this act and of the Michigan education trust created by this act to be: (a) To encourage education and the means of education. (b) To maintain state institutions of higher […]
Section 390.1424 – Definitions.
390.1424 Definitions. Sec. 4. As used in this act, except where the context clearly requires otherwise: (a) “Advance tuition payment contract” means a contract entered into by the trust and a purchaser pursuant to section 6 to provide for the higher education of a qualified beneficiary. (b) “Board” means the board of directors of the […]
Section 390.1425 – Michigan Education Trust; Creation; Exercise of Powers, Duties, and Functions.
390.1425 Michigan education trust; creation; exercise of powers, duties, and functions. Sec. 5. (1) There is created a public body corporate and politic to be known as the Michigan education trust. The trust shall be within the department of treasury, but shall exercise its prescribed statutory powers, duties, and functions independently of the head of […]
Section 390.1426 – Advance Tuition Payment Contract Generally.
390.1426 Advance tuition payment contract generally. Sec. 6. (1) 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 state institutions of higher education to which the qualified beneficiary is admitted, without further […]
Section 390.1427 – Plan a and Plan B.
390.1427 Plan A and Plan B. Sec. 7. (1) At a minimum, the trust shall offer 1 of the 2 types of advance tuition payment contracts set forth in subsections (2) and (3), to be known as Plan A and Plan B, respectively. (2) Under Plan A: (a) A payment or series of payments shall […]
Section 390.1428 – Termination of Advance Tuition Payment Contract; Refund.
390.1428 Termination of advance tuition payment contract; refund. Sec. 8. (1) An advance tuition payment contract shall authorize a termination of the contract when any 1 of the following occurs: (a) The qualified beneficiary dies. (b) The qualified beneficiary is not admitted to a state institution of higher education after making proper application. (c) The […]
Section 390.1429 – Advance Tuition Payment Fund; Creation; Placement of Payments in Fund; Division of Fund Into Separate Accounts; Assets of Trust; Priority of Expenditures; Investments; Compliance With Divestment From Terror Act.
390.1429 Advance tuition payment fund; creation; placement of payments in fund; division of fund into separate accounts; assets of trust; priority of expenditures; investments; compliance with divestment from terror act. Sec. 9. (1) There is created under the jurisdiction and control of the board an advance tuition payment fund. Payments received by the trust from […]
Section 390.1430 – Board; Appointment, Qualifications, and Terms of Members; Vacancy; Deputy; Chairperson; President and Chief Executive Officer of Trust; Vice-President of Trust; Compensation; Expenses; Delegation of Functions and Authority; Quorum; Voting; Meetings; Conducting Business at Public Meeting; Notice; Availability of Writings to Public.
390.1430 Board; appointment, qualifications, and terms of members; vacancy; deputy; chairperson; president and chief executive officer of trust; vice-president of trust; compensation; expenses; delegation of functions and authority; quorum; voting; meetings; conducting business at public meeting; notice; availability of writings to public. Sec. 10. (1) The board shall consist of the state treasurer, and 8 […]
Section 390.1431 – Additional Powers of Board.
390.1431 Additional powers of board. Sec. 11. In addition to the powers granted by other provisions of this act, the board shall have the powers necessary or convenient to carry out and effectuate the purposes, objectives, and provisions of this act, the purposes and objectives of the trust, and the powers delegated by other laws […]
Section 390.1432 – Accounting of Trust Generally.
390.1432 Accounting of trust generally. Sec. 12. The board shall annually prepare or cause to be prepared an accounting of the trust and shall transmit a copy of the accounting to the governor, the majority leader of the senate, the speaker of the house of representatives, and the respective minority leaders of the senate and […]
Section 390.1433 – Actuarial Soundness of Trust; Ruling or Opinion Internal Revenue Service; Answer From Securities and Exchange Commission; Making Status of Request Known.
390.1433 Actuarial soundness of trust; ruling or opinion internal revenue service; answer from securities and exchange commission; making status of request known. Sec. 13. (1) The trust shall be administered in a manner reasonably designed to be actuarially sound such that the assets of the trust will be sufficient to defray the obligations of the […]
Section 390.1434 – Enforcement of Act and Contract.
390.1434 Enforcement of act and contract. Sec. 14. State institutions of higher education, purchasers, and qualified beneficiaries may enforce this act and any contract entered into pursuant to this act in the circuit court for Ingham county. History: 1986, Act 316, Imd. Eff. Dec. 23, 1986
Section 390.1435 – Exemption From Taxation.
390.1435 Exemption from taxation. Sec. 15. The property of the trust and its income and operation shall be exempt from all taxation by this state or any of its political subdivisions. History: 1986, Act 316, Imd. Eff. Dec. 23, 1986
Section 390.1436 – Contracting Services Necessary for Management and Operation of Trust; Instituting Programs to Ensure Full Tuition Prepayment Plans; Report to Legislature.
390.1436 Contracting services necessary for management and operation of trust; instituting programs to ensure full tuition prepayment plans; report to legislature. Sec. 16. The trust, in its discretion, may contract with others, public or private, for the provision of all or a portion of the services necessary for the management and operation of the trust. […]
Section 390.1437 – Preserving, Investing, and Expending Assets of Trust.
390.1437 Preserving, investing, and expending assets of trust. Sec. 17. The assets of the trust shall be preserved, invested, and expended solely pursuant to and for the purposes set forth in this act and shall not be loaned or otherwise transferred or used by the state for any purpose other than the purposes of this […]
Section 390.1438 – Prohibited Promises or Guarantees.
390.1438 Prohibited promises or guarantees. Sec. 18. Nothing in this act or in an advance tuition payment contract entered into pursuant to this act shall be construed as a promise or guarantee by the trust or the state that a person will be admitted to a state institution of higher education or to a particular […]
Section 390.1439 – Exemption of Contract From Uniform Securities Act; Sale or Transfer of Contract.
390.1439 Exemption of contract from uniform securities act; sale or transfer of contract. Sec. 19. An advance tuition payment contract is exempt from the uniform securities act, 1964 PA 265, MCL 451.501 to 451.818, and the uniform securities act (2002), 2008 PA 551, MCL 451.2101 to 451.2703. An advance tuition payment contract may not be […]
Section 390.1440 – Payments Deductible From Taxable Income.
390.1440 Payments deductible from taxable income. Sec. 20. Pursuant to section 30 of the income tax act of 1967, Act No. 281 of the Public Acts of 1967, being section 206.30 of the Michigan Compiled Laws, the purchaser may deduct from taxable income the following payments made by the purchaser in the tax year: (a) […]