North Dakota Administrative Code › Title 12.5 - Bank of North Dakota › Article 12.5-02 - College SAVE › Chapter 12.5-02-01 - College SAVE › Section 12.5-02-01-06 - Operation of the plan

Current through Supplement No. 393, July, 2024
1.
Investment direction.
In general, neither the
				  participant nor the designated beneficiary may directly or indirectly control
				  the investment of contributions or earnings, if any, in an account. An account
				  is initially invested in a portfolio based upon the selections made by the
				  participant on the enrollment form. Once the participant makes such selections,
				  all subsequent contributions to the same account generally will be invested in
				  accordance with those investment selections; provided, however, that a
				  participant may, in accordance with these rules, reallocate assets in an
				  account upon a change in the designated beneficiary and also once per calendar
				  year without changing the designated beneficiary of the account. Upon such
				  reallocation, the participant's account will be invested in portfolios
				  consistent with the new investment selections, and subsequent contributions to
				  the account will be invested in accordance with the new investment selections.
				  A participant who wishes to make different investment selections with respect
				  to a future contribution for the same designated beneficiary may do so at any
				  time. If a participant is awarded a matching grant, the matching grant will be
				  invested according to the portfolio allocation instructions on file for the
				  participant's account. Notwithstanding the foregoing, the Bank has the
				  authority to modify the investment strategy, asset allocation, or the
				  underlying investments with respect to any portfolio or any account held under
				  the plan, at any time, without regard to prior participant selections.
2.
Change in designated beneficiary.
Subject to
				  the limitations set forth below, a participant may transfer an account to a new
				  designated beneficiary. If the new designated beneficiary is a member of the
				  family of the prior designated beneficiary, the transfer will not be treated as
				  a distribution. If the new designated beneficiary is not a member of the family
				  of the prior designated beneficiary, the transfer will be treated where
				  required for tax reporting purposes as a distribution to the participant and a
				  contribution to a new account on behalf of the new designated beneficiary.
				  Under no circumstances may a participant transfer an account to a new
				  designated beneficiary if the source of any contribution made to the account
				  was a UT/UGMA account and the account is still held under a custodianship. If
				  the designated beneficiary for whom the UT/UGMA account was established has
				  become the participant of the account, a change in the designated beneficiary
				  will be permitted. Except as provided by the plan disclosure statement, a
				  matching grant account may not transfer and the matching grant may be forfeited
				  if the new designated beneficiary has received a matching grant, has a matching
				  grant account or is the participant on the account. Notwithstanding the
				  foregoing, the Bank has the authority to suspend processing a designated
				  beneficiary change if it suspects that the participant has submitted the change
				  in the designated beneficiary request primarily to avoid the limitation on the
				  number of changes in investment selection permitted in a calendar year under
				  federal law.
3.
Successor participant.
In accordance with
				  procedures established by the Bank, the participant is entitled to designate a
				  successor participant on the enrollment form, or such other form as may be
				  approved by the Bank, who shall become the new participant and assume all of
				  the rights and responsibilities of the current participant with respect to an
				  account and succeed to all of the current participant's rights, title, and
				  interests in an account, including the right to change the designated
				  beneficiary, upon the death, resignation, or refusal to act of the current
				  participant. The successor participant shall execute such forms as the Bank may
				  require to assume all rights and responsibilities as participant. If the
				  designated beneficiary is at least eighteen years old, the designated
				  beneficiary may be named as the successor participant. A designation executed
				  by a participant prior to the participant's death that is accepted following
				  the participant's death will govern distributions following, but not prior to,
				  the manager's acceptance of the designation. In the event a successor
				  participant is not named on the enrollment form or on another form accepted by
				  the manager, or the named successor participant does not accept the account,
				  the surviving spouse of the participant will become the participant for the
				  account. A participant that is not an individual will be deemed not to have a
				  surviving spouse. In the event there is no surviving spouse and the designated
				  beneficiary is not a minor, the designated beneficiary will become the
				  participant for the account. If the designated beneficiary is a minor, the
				  designated beneficiary's custodial parent will become the participant for the
				  account. If the designated beneficiary has more than one custodial parent, the
				  custodial parent whose birthday is earlier in the calendar year will become the
				  participant for the account. Notwithstanding the foregoing, if the source of
				  any contribution made to the account was a UT/UGMA account, the participant may
				  be removed or replaced, and the designated beneficiary or the successor
				  custodian may become the successor participant, only in accordance with the
				  applicable UT/UGMA laws. In the event there is a dispute relating to who is
				  duly authorized to act with respect to an account, the manager may, in its sole
				  discretion, refuse to accept any contribution to an account or to make any
				  distribution from an account until such dispute is resolved to its
				  satisfaction.
4.
Pledge or assignment.
Neither the participant
				  nor the designated beneficiary may transfer, pledge, or assign any interest
				  such party may have under the plan as collateral or security for a loan,
				  including a loan used to make a contribution, or for any other purpose, other
				  than as specifically provided in these rules.
5.
Transfer of ownership.
To the extent
				  permitted by law, the participant's and the designated beneficiary's interests
				  in an account under the plan are not subject to attachment or alienation by
				  third-party creditors and are not transferable other than by will, by the laws
				  of descent and distribution, or as provided in these rules or section 529 of
				  the Code.
General Authority: NDCC 6-09-38
Law Implemented: NDCC 6-09-38