30-9-7. Terms and conditions of participation agreements.

Each participation agreement entered into pursuant to this chapter shall include the following terms and conditions:#

1. (1)

   The participation agreement shall not constitute a debt or obligation of the state;#

2. (2)

   Participation in the Georgia ABLE Program does not guarantee that sufficient funds will be available to cover all qualified disability expenses for any designated beneficiary and does not guarantee the receipt or continuation of any product or service for the designated beneficiary;#

3. (3)

   The establishment of an ABLE account in violation of federal law is prohibited;#

4. (4)

   Contributions in excess of the limitations set forth in Section 529A of the Internal Revenue Code are prohibited;#

5. (5)

   The state is a creditor of ABLE accounts as, and to the extent, set forth in Section 529A of the Internal Revenue Code; and#

6. (6)

   Material misrepresentations by a party to the participation agreement, other than the Georgia ABLE Program Corporation, in the application for the participation agreement or in any communication with the Georgia ABLE Program Corporation regarding the Georgia ABLE Program may result in the involuntary liquidation of the ABLE account. If an account is involuntarily liquidated, the designated beneficiary is entitled to a refund, subject to any fees or penalties provided by the participation agreement and the Internal Revenue Code.#

A participation agreement entered into pursuant to this chapter may include terms and conditions specifying:#

1. (1)

   The requirements and applicable restrictions for opening an ABLE account;#

2. (2)

   The eligibility requirements for a party to the participation agreement and the rights of the party;#

3. (3)

   The requirements and applicable restrictions for making contributions to an ABLE account;#

4. (4)

   The requirements and applicable restrictions for directing the investment of the contributions or balance of the ABLE account;#

5. (5)

   The administrative fee and other fees and penalties applicable to an ABLE account;#

6. (6)

   The terms and conditions under which an ABLE account or a participation agreement may be modified, transferred, or terminated; and#

7. (7)

   Any other terms and conditions that the board deems necessary or appropriate, including without limitation those necessary to conform the participation agreement with the requirements of Section 529A of the Internal Revenue Code or other applicable federal laws.#

A participation agreement may be amended throughout its term for purposes that include, but are not limited to, allowing a participant to increase or decrease the level of participation and to change designated beneficiaries and other matters authorized by this Code section and Section 529A of the Internal Revenue Code.#