Tenn. Comp. R. & Regs. 1700-08-01-.10 - PROGRAM TERMINATION

(1) If the Trustees determine that the State's Qualified ABLE Program is, for any reason, financially infeasible, or is not beneficial to the citizens of the State of Tennessee or the State itself, then the Trustees may suspend or terminate the Program immediately. Termination of the Program will result in a termination of all ABLE Accounts and Contracts, and generate a Refund to the Designated Beneficiary, the Designated Beneficiary's Legal Representative or any other Person designated to receive a Refund under the Contract.

(2) Notwithstanding any other provision to the contrary, Refunds and other benefits payable under a Contract shall be deemed to be due and payable only to the extent that moneys are available to the credit of the State's Qualified ABLE Program, and that the State, the Tennessee Department of Treasury, the State Treasurer or the State's Qualified ABLE Program shall not be liable for any amount in excess of such sums.

(3) Should the State's Qualified ABLE Program be terminated by the Trustees and the Program assets prove to be less than would be required to fully pay all obligations of the Program in full, the State Treasurer shall first defray all Program administrative expenses. The State Treasurer shall then reduce payments owed pursuant to a Contract, pro rata, to the degree necessary to bring the total disbursement of the State's Qualified ABLE Program within the amount of the remaining funds.

Notes

Tenn. Comp. R. & Regs. 1700-08-01-.10

Original rule filed October 8, 2015; effective 1/6/2016.

Authority: T.C.A. §§ 71-4-805;71-4-807; 71-4-811 and Chapter 470 of the 2015 Public Acts.