Miss. Admin. Code tit. 38 | Miss. Admin. Code Title 38 — Treasurer

TREASURY DEPARTMENT TREASURY DEPARTMENT

Part 1 Office of the State Treasurer

Chapter 1 Regulation Number 1

38 Miss. Admin. Code Pt. 1, R. 1.1 Overview Authority of State Treasurer

Section 31-19-5 of the Mississippi Code of 1972 Annotated, as amended, authorizes the State Treasurer to promulgate rules regarding alternative methods of investment of any funds received from the sale of bonds, notes, or certificates of indebtedness heretofore or hereafter sold by the State of Mississippi or any agency or department thereof or by any county, municipality, road district, levee district, development district, utility district, school district, drainage district or other entity authorized by law to issue bonds, notes, or certificates of indebtedness (hereafter “Issuer” or “Issuers), which are not immediately required for disbursement for the purpose for which issued.

History

Source: Miss. Code Ann. § 31-19-5 (Rev. 2007).

38 Miss. Admin. Code Pt. 1, R. 1.2 Purpose

The purpose of this investment policy is to regulate and provide guidelines for entities authorized by law to issue bonds, notes or certificates of indebtedness, regarding alternative methods of investment of funds received from the issuance of bonds, notes, or certificates of indebtedness which are not immediately required for disbursement for the purpose for which issued. This regulation does not apply to the investment of general funds of the above named entities.

History

Source: Miss. Code Ann. § 31-19-5 (Rev. 2007).

38 Miss. Admin. Code Pt. 1, R. 1.3 Permissible Investments

Any funds received from the sale of bonds, notes or certificates of indebtedness heretofore or hereafter sold by an Issuer, which are not immediately required for disbursement for the purpose for which issued (“Bond Funds”), may unless otherwise prohibited by law be invested by the proper authorities in the following investments:

A. Certificates of Deposit or other interest bearing accounts issued by a qualified depository of the State of Mississippi as follows: 1. Qualified Depository of the State of Mississippi. A qualified depository of the State of Mississippi is a financial institution qualified by the State Treasurer as a depository in accordance with Section 27-105-5 of the Mississippi Code Annotated as amended. A list of qualified depositories is available from the State Treasurer. 2. Maturity. The certificate of deposit must mature or be redeemable by the holder on or prior to the date upon which such funds will be required for disbursements. 3. Interest Rate. Interest rates may be negotiated or determined by competitive bids. The interest rate on a certificate of deposit shall bear interest at a rate per annum not less than a simple interest rate numerically equal to the highest of:

a. the discount rate of United State Treasury obligations of comparable maturity as published in the Wall Street Journal on the date of investment; b.the current rate of interest paid on certificates of deposit; or c. the bond equivalent yield paid on United States Treasury obligations of comparable maturity as published in the Wall Street Journal on the date of investment. Provided, however, that the proceeds from the sale of bonds issued pursuant to the joinder of supervisor’s districts of adjacent counties in establishing industrial enterprises as set out in 57-1-131 through 57-1- 145, Mississippi Code of 1972, or Chapter 3 of Title 57, Mississippi Code of 1972, may be invested in certificates of deposit issued by qualified depositories of the State of Mississippi bearing interest at any rate per annum which may be mutually agreed upon, but in no event shall said rate be less than the discount rate on United States Treasury obligations of comparable maturity. 4. Security. Said certificates of deposit shall be secured as otherwise required by applicable law.

B. Direct United States Treasury Obligations guaranteed in full as to principal and interest by the United State of America, limited to the following: 1. U.S. Treasury Bills 2. U.S. Treasury Notes having remaining maturities of no more than eighteen (18) months unless a longer term is provided through compliance with Section 4 below. 3. U.S. Treasury Bonds having remaining maturities of no more than eighteen (18) months unless a longer term is provided through compliance with Section 4 below.

C. United States Government Agency obligations having remaining maturities of no more than eighteen (18) months unless a longer term provided through compliance with Section 4, the principal and interest of which are fully guaranteed by the United States of America or an agency thereof, however, limited to the following: 1. Farm Credit System Financial Assistance Corporation Securities 2. Federal Home Loan Bank 3. Federal National Mortgage Association 4. Student Loan Marketing Association 5. Resolution Trust Corporation

Note 1: All investments in United States Government Agency obligations may not exceed 50% in the aggregate of all Bond Funds invested for 30 days or more. Note 2: In no event shall the remaining maturity of any United State Government Agency obligation exceed 5 years. Note 3: Pools consisting of Federal Home Loan Mortgage Corporation (Freddie Mac) securities and/or Federal National Mortgage Association (Fannie Mae) mortgage

backed securities are not permissible investments; however, such pools may be taken as collateral on deposits.

D. Direct Security Repurchase Agreements and Reverse Direct Agreements of any federal book entry of direct United States Treasury obligations and United States Government Agency obligations guaranteed as to principal and interest; provided, however, the Issuer must make a finding in writing that a Reverse Direct Security Repurchase Agreement is in the Issuer’s best interest. Such finding must be spread upon the official minutes of the Issuer and provided to the State Treasurer. 1. Direct Security Repurchase Agreement. “Direct Security Repurchase Agreement” means an agreement under which the entity buys, holds for a specified time, and then sells back certain securities and obligations. 2. Reverse Direct Securities Repurchase Agreement. “Reverse Direct Securities Repurchase Agreement” means an agreement under which the entity sells and after a specified time buys back certain securities and obligations. 3. Dollar Limitation. At least eighty percent (80%) of the total dollar amount in all repurchase agreements by each Issuer at any one time shall be pursuant to contracts with qualified state depositories. 4. Maturity. The repurchase agreement shall mature or be redeemable prior the time funds will be needed for expenditure but in any event must have a term of 30 days or less.

Funds received from the sale and redemption of bonds, notes, or certificates of indebtedness shall not be invested in securities of, or interest in, any open-end or closed-end management type investment company or investment trust, except that pursuant to 91-13-8, Mississippi Code of 1972, a bank trustee acting in a fiduciary capacity that is authorized to invest in direct obligations of the U.S. of America also may invest such public fund in securities of, or other interests in, an open-end or closed-end management type investment company or investment trust that meets the criteria set out in 91-13-8, Mississippi Code of 1972.

History

Source: Miss. Code Ann. § 31-19-5 (Rev. 2007).

38 Miss. Admin. Code Pt. 1, R. 1.4 Maturities

A. Investments in the form of direct United State Treasury obligations, United States agency obligations, certificates of deposit or repurchase agreements must mature or be redeemable by the holder on or prior to the date upon which funds will be required for disbursement.

B. Except with respect to the investment of the proceeds of refunding bonds and reserves established in connection with the issuance of any bonds, the maturity of investments shall not exceed 18 months from date of purchase, unless the Issuer makes a finding in writing that a longer term investment is in the Issuer’s best interest. Such finding must be spread upon the official minutes of the Issuer and provided to the State Treasurer. Investments in the form or repurchase agreements shall not in any event exceed 30 days from the date of purchase.

C. To avoid interest rate risk exposure, investments should be made with the intent to hold until maturity and not for resale on the market.

History

Source: Miss. Code Ann. § 31-19-5 (Rev. 2007).

38 Miss. Admin. Code Pt. 1, R. 1.5 Purchase and Sale of Securities

Direct United State Treasury obligations and United States Government Agency obligations must be purchased from qualified depositories of the State of Mississippi or registered Mississippi investment brokers who are members in good standing of or eligible for membership in the National Association of Securities Dealers (NASD), or from state and national banks qualified to do business in the State of Mississippi. Certificates of deposits must be purchased from qualified depositories of the State of Mississippi. At least eighty percent (80%) of the total dollar amount of all repurchase agreements entered into by any governmental entity investing funds governed by this regulation must be pursuant to contracts with qualified depositories of the State of Mississippi. Any remaining repurchase agreements may be entered into pursuant to contracts with investment brokers licensed by the State of Mississippi who are members in good standing of the National Association of Securities Dealers (NASD), or from state and national banks qualified to do business in the State of Mississippi.

History

Source: Miss. Code Ann. § 31-19-5 (Rev. 2007).

38 Miss. Admin. Code Pt. 1, R. 1.6 Arbitrage

This regulation is subject to, and in no way effects the applicability of Section 148 and other provisions of the Internal Revenue Code of 1986 and regulations promulgated thereunder relating to the investment of funds derived from the sale of bonds, notes or certificates of indebtedness.

History

Source: Miss. Code Ann. § 31-19-5 (Rev. 2007).

38 Miss. Admin. Code Pt. 1, R. 1.7 Application

This regulation shall not be construed to in any way amend or repeal the specific provisions of any general or local and private laws requiring or permitting the investment of funds received from the sale of bonds, notes or certificates of indebtedness of reserve funds related thereto in specific investments provided for in said laws.

History

Source: Miss. Code Ann. § 31-19-5 (Rev. 2007).

Chapter 2 Regulation 2-Selection Process for International Banking Establishment to Handle Foreign Currency Exchange

38 Miss. Admin. Code Pt. 1, R. 2.1 Purpose

The adoption of rules is necessary for selection of an institution to handle foreign currency acquisition and distribution for the Department of Economic and Community Development. Pursuant to §25-43-7 and §25-43-9 Mississippi Code of 1972, annotated, the Office of the Treasurer submits proposed rules covering the selection process for an international banking establishment to handle foreign currency exchange and distribution for the following reason:

Losses of 20% in currency exchange transactions have occurred in prior years and such transactions have been significant enough to utilize the services of a large international banking institution to manage the acquisition and distribution of foreign currency. The immediate implementation of this management practice will minimize potential losses by making forward purchases of currency or other contracts aimed at cutting significant monetary losses.

History

Source: Miss. Code Ann. § 27-105-33 (i) (Rev. 1995), § 31-19-5 (Rev. 2007).

38 Miss. Admin. Code Pt. 1, R. 2.2 Qualification Requirements for International Banking Institutions

The following criteria are required, as a minimum, for a banking institution to qualify as a foreign financial institution selected to support the foreign currency investment requirements allowed under §27- 105-33(l), Mississippi Code of 1972, annotated:

A. Reported assets of not less than $500,000,000.

B. AAA rating or better.

C. Capability of dealing directly in world currencies.

D. Operate full service branches in all countries in which the State has foreign offices.

E. Capability to transfer and distribute currency on required timely basis.

F. Willingness to handle currency acquisition and distribution at minimal cost.

G. Maintain a branch office in the State of Mississippi or within 500 miles of the State of Mississippi.

History

Source: Miss. Code Ann. § 27-105-33 (i) (Rev. 1995), § 31-19-5 (Rev. 2007).

38 Miss. Admin. Code Pt. 1, R. 2.3 Application Process

All foreign financial institutions qualifying under the above requirements shall indicate to the State Treasurer at 404 Sillers State Office Building, Jackson, MS 39201 such interest in entering into price contracts for the purchase or exchange of foreign currency and other arrangements for the currency exchange in an amount not to exceed $500,000. Upon review of indication of interest from the financial institutions, the State Treasurer shall select such institution and contract for the necessary foreign currency purchase, exchanges or arrangements as required by the Department of Economic and Community Development.

History

Source: Miss. Code Ann. § 27-105-33 (i) (Rev. 1995), § 31-19-5 (Rev. 2007).

38 Miss. Admin. Code Pt. 1, R. 2.4 Proposed Effective Date

Pursuant to § 25-43-9, Mississippi Code of 1972, Annotated, the State Treasurer intends to adopt Regulation No. 2 as a permanent rule, effective thirty (30) days after filing.

History

Source: Miss. Code Ann. § 27-105-33 (i) (Rev. 1995), § 31-19-5 (Rev. 2007).

Chapter 3 Public Funds Guaranty Pool Rules

38 Miss. Admin. Code Pt. 1, R. 3.1 Purpose

Mississippi Code Ann. Section 27-105-6 creates a public funds guaranty pool as an alternative means for securing public deposits. The purpose of these rules is to establish requirements for admission, participation and administration of the public funds guaranty pool as required by and consistent with Section 27-105-6.

History

Source: Miss. Code Ann. § 27-105-6 (Rev. 2000), § 31-19-5 (Rev. 2007).

38 Miss. Admin. Code Pt. 1, R. 3.2 Board Membership and Operations

A. Initial Board Membership 1. Banking Industry Representatives. Appointment of members in accordance with Section 27-105-6 shall be effective at the time such member is notified by the State Treasurer of such appointment. The Mississippi Bankers Association shall designate the initial terms of the representatives of financial institutions as one (1) year or two (2) year terms. The initial representatives of financial institutions shall serve the term designated by the Mississippi Bankers Association. All subsequent representatives of financial institutions shall serve two (2) year terms unless completing the unexpired term of a member due to a vacancy. All members shall continue to serve until a successor is appointed.

B. Meetings 1. How called. The Board shall meet at the call of the Chairman or upon written request to the Chairman by four (4) members of the Board. Unless circumstances prevent, the Secretary shall notify members of the date, time and location of each meeting at least five (5) calendar days prior to the date of the meeting. Notice of the Board meetings shall be by post, telephone or electronic mail. 2. Quorum. A quorum of the Board shall consist of five (5) members of the Board. Notwithstanding the presence of a quorum, where these rules require certain actions to be taken by a specified number of votes, the action may not be taken unless the requisite number of votes is cast. 3. Presiding Officer. The Chairman shall preside at all meetings of the Board. In the Chairman’s absence, the Vice-Chairman shall preside. 4. Executive Session. In the event that information deemed confidential pursuant to Mississippi Code Ann. Section 25-41-7 (4), is to be discussed by the Board, the Board shall meet in executive session pursuant to Mississippi Code Section 25- 41-7. The presiding officer shall announce to those in attendance that the Board, due to the confidential nature of material to be discussed, will meet in executive session which is closed to the public. The presiding officer shall set and announce a time specific at which point the meeting will again be opened for public attendance. The Board shall not take any official action during executive session. Minutes of executive session shall be maintained in such a manner as to not disclose the nature of confidential information discussed.

C. Records. 1. Where Maintained. All records of the Board shall be maintained by the State Treasurer in accordance with the requirements of applicable state law and rules and regulations to the receipt and maintenance of public records. 2. Confidential Records. Records submitted from any source which are confidential in nature as provided in Mississippi Code Ann. Section 25-41-7 shall be maintained by the State Treasurer in such as a manner as to protect the confidentiality of those records and to prevent the unauthorized dissemination of such information. 3. Access to Records. Persons requesting access to the records of the Board shall submit their request to the State Treasurer who, upon determining that such records are not confidential in nature, shall permit the inspection of such records in accordance with applicable laws, rules and regulations.

D. General Delegation to the Treasurer. The Board, upon the affirmative vote of six (6) members, may delegate such of its duties to the State Treasurer as the Board deems appropriate. In exercising such delegations, the State Treasurer shall be authorized to exercise such powers as are vested in the Board which are necessary to fulfill the delegated duties and responsibilities and may assign any of such duties and responsibilities to his staff as he deems necessary and proper.

E. Votes Required for Board Action. 1. Admission. Pursuant to Mississippi Code Ann. Section 27-105-6, any bank shall be admitted for participation in the public funds guaranty pool if it meets the statutory requirements and the additional criteria adopted by the Board. 2. Increase Collateral Pledge Level. The collateral pledge level of a qualified public funds depository may be increased upon six (6) affirmative votes of the Board. 3. Bank Rating Criteria and Benchmark Levels. The Board, upon the affirmative vote of six (6) members, shall set the initial bank rating criteria and benchmark levels as provided in Section 27-105-6 (6). Any subsequent revision to the bank rating criteria or benchmark levels may be accomplished by the affirmative vote of the six (6) members of the Board. 4. Majority Vote for Other Action. Any action of the Board, other than that requiring a specific affirmative vote, may be accomplished by a majority vote. For purposes of this rule, a majority shall mean the affirmative vote of five (5) members of the Board.

F. Board Officers. 1. Selection. Officers shall be elected by majority vote of the Board. The election of officers shall occur at the first Board meeting held after June 30 of each year. 2. Term. Officers shall serve a one (1) year term to expire upon election of a successor by the Board. 3. Chairman. The Chairman shall preside at meetings of the Board and, together with the Board Secretary, set the agenda for each meeting. The Chairman shall have other duties and powers as may be assigned by the Board by majority vote.

Vice-Chairman. The Vice-Chairman shall preside at meetings in the absence of the Chairman. The Vice-Chairman shall exercise such other duties as may be assigned by majority vote of the Board. 5. Secretary. The Secretary shall keep an accurate record of the proceedings and actions of the Board. Together with the Chairman, the Secretary shall set the agenda for each meeting, notify Board members and the public of meetings and distribute appropriate materials to Board members. The Secretary shall also maintain information on the appointment of members to the Board and their term of office.

G. Miscellaneous 1. Attachment to Treasury Department. The Board, for administrative purposes, is attached to the Mississippi Treasury Department. 2. Vacancies. Should any appointed member of the Board become unable to continue to serve on the Board for whatever reason, the member or his representative shall notify the Board of such inability to serve by submitting a letter of resignation to the Secretary. The Secretary shall notify the appropriate appointing authority of the resignation and request that another representative be appointed to serve the remainder of the member’s term.

History

Source: Miss. Code Ann. § 27-105-6 (Rev. 2000), § 31-19-5 (Rev. 2007).

38 Miss. Admin. Code Pt. 1, R. 3.3 Admission to the Pool

A. Application by Public Depository. 1. Applications for Participation. To be considered for admission to the public funds guaranty pool, Financial Institutions maintaining a deposit-taking facility in this state whose accounts are insured by the Federal Deposit Insurance Corporation shall submit a completed Application Package to the Board. The Application Package shall include a completed application form and required supplemental information and documents. 2. Application Form. The State Treasurer shall prescribe an appropriate form which solicits from applicants the following information: a. the legal name of the financial institution; b. the address of principal offices of the institution; c. the institution’s transit routing number; d. the institution’s FDIC insurance certificate number; e. the institution’s tax identification number; f. the date the institution was chartered; g. the date the institution commenced banking operations in Mississippi; h. a list of the applicants three (3) senior officers, including a resume’ of their experience and qualifications; i. a list of public depositors by account held by the applicant at the end of the preceding calendar quarter; j. for the twelve (12) months preceding the date of application, the average monthly balance of public depositors held for each month;

k. the legal name and address of the principal offices of all trustee custodians proposed to safekeep eligible collateral pledged to the pool; and l. for the eight (8) quarters immediately preceding the date of the application, a schedule of financial information to be taken from the institution’s Report of Condition to the FDIC (call report) as determined by the Board. 3. Supplemental Information and Documents Required. The Application Package shall include the following executed documents: a. copies of the Collateral Security Agreement; and b. copies of the Contingent Liability Agreement. 4. Completion of Application Form. The application form shall be executed by the president or chief executive officer of the applicant and the individual responsible for preparing the application and contain all the prescribed information to be considered complete. The applicant may withdraw the application at any time prior to the Board taking final action on the application.

B. Admission Criteria. 1. Admission Criteria Generally. To be admitted to the public funds guaranty pool, each applicant must meet or exceed and maintain standards established by Miss. Code Ann. Sections 27-105-5 (2) and 27-105-6 (4) and any additional criteria established by the Board pursuant to its authority at Section 27-105-6 (6) in the area of financial standards as set forth below. 2. Evaluation of Financial Standards. a. The Board may consider any one, all, or any combination of the following guidelines for evaluating financial standards. The guidelines include, but are not limited to, benchmark levels as shall be determined by the Board from time to time calculated by the following ratios taken from the schedule submitted by the applicant pursuant to rule 1.03 (1) (b) 13. The ratios shown below are required by MS Code Sections 27-105-5 and 27-105-6. The Capital Adequacy Ratio and two of the three other ratios in the code must be met before the remaining ratios established by the Board are considered. i. Capital Adequacy Ratio: (MS Code 27-105-5) a) Primary Capital to Assets - 6.5% or more

ii. Asset Quality Ratio (MS Code 27-105-6) a) Loans 90+ Days Past Due to Total Loans – less than 2%

iii. Earnings Ratio (MS Code 27-105-6) a) Return on Average Assets (average of most recent 4 quarters)- more than .75% Total Equity Capital Total Assets Total Loans Past Due 90 Days Total Loans

iv. Liquidity Ratio (MS Code 27-105-6) a) Loans to Total Assets - 80% or less

b. The five ratios shown below were established by the Board as criteria for acceptance and continued participation in the pool. The Earnings Ratio and the Liquidity Ratio were taken from the MS Code. The Asset Quality Ratio from the MS Code was expanded to allow further analysis of the applicant’s credit quality. Three out of five of these ratios must be met and maintained for acceptance and continued participation in the pool. i. Asset Quality Ratios a) Loan Loss Allowance to Non-Performing Loans - 100% or more

b) Total Non-Accrual Loans and Loans 90 + Days Past Due to Total Loans - less than 2%

c) Non-Performing Assets to Total Assets - less than 1.5%

ii. Earnings Ratio a) Return on Average Assets (average of most recent 4 quarters)- more than .75%

iii. Liquidity Ratio a) Loans to Total Assets - 80% or less

The Board may consider such other financial information, including interim reports requested by the Board or the State Treasurer, as it deems necessary or appropriate. However an applicant must pass and maintain Net Income (annualized four quarter average) Average Assets Total Loans Total Assets Allowance for Loan Losses Total Loans Past Due 90 Days + Total Non-Accrual Loans Total Non-Accrual Loans + Total Loans Past Due 90 Days Total Loans Total Loans Past Due 90 Days + Total Non-Accrual Loans + Other Real Estate Owned Total Assets Net Income (Annualized four quarter average) Average Assets Total Loans Total Assets

the ratios required in the MS Code plus three of the five ratios described above as established by the Board. 3. Evaluation of Other Factors. The Board may further consider such other information bearing on the applicant’s appropriateness for participation in the pool as in the opinion of the Board may be relevant including, but not limited to, the applicant’s mode of conducting and managing its affairs, the action of its directors, the investment of the applicant’s funds, the safety and prudence of the applicant’s management, and any administrative proceeding or court action initiated against the applicant.

C. Processing of Application. 1. Processing by the State Treasurer. Upon receipt of an Application Package, the State Treasurer shall review the contents of the Application Package to ensure completeness. In the event that an Application Package is found to be incomplete, the State Treasurer shall notify the applicant of the deficiency and provide the applicant with sixty (60) calendar days in which to cure the deficiency. If the deficiency is not cured within this time, the State Treasurer shall return the Application Package to the applicant. Upon determining that an Application Package is complete, the State Treasurer shall notify the Chairman that the application is complete and all qualifications are met. 2. Notice to Applicant. The Secretary of the Board shall notify an applicant in writing of any action taken by the Board or by the Treasurer within ten (10) calendar days of such action.

History

Source: Miss. Code Ann. § 27-105-5 (Rev. 2003), § 27-105-6 (Rev. 2000),§ 31-19-5 (Rev. 2007).

38 Miss. Admin. Code Pt. 1, R. 3.4 Determination of Collateral Pledge Level

A. Collateral Pledge Level. A qualified public depository shall pledge eligible collateral having a market value not less than the average daily balance of public deposits held by the qualified public depository multiplied by the qualified public depository’s collateral pledging level. The collateral pledging level for all qualified public depositories shall be calculated quarterly according to the following schedule: 75% of average daily balance of funds on deposit in the aggregate by the State of Mississippi or any agency or department of the state or by any county, municipality or governmental unit in excess of the Federal Deposit Insurance Corporation insurance limits.

B. Minimum Pledged Collateral. Notwithstanding the average daily balance, a qualified public depository shall maintain a minimum of pledged eligible collateral whose market value is not less than one hundred thousand dollars ($100,000).

C. Temporary Increases in Collateral. A qualified public depository which accepts any public deposit that causes its public deposits to exceed its average daily balance by twenty-five percent (25%) shall be required to pledge additional eligible collateral with the Treasurer within two (2) business days of the deposit. The additional eligible

collateral shall be equal to the difference between the actual public deposits and the average daily balance times the applicable collateral pledge level, including any limitations thereto. The additional eligible collateral shall not be required if deposit(s) causing the increase are withdrawn within the two (2) business days and prior to pledging of the additional collateral. Additional pledged collateral shall be included in required collateral and held by the Treasurer until the next regular monthly report is filed.

History

Source: Miss. Code Ann. § 27-105-6 (Rev. 2000), § 31-19-5 (Rev. 2007).

38 Miss. Admin. Code Pt. 1, R. 3.5 Suspension from Pool

A. Notice of Suspension to Qualified Public Depository. The Board may suspend or disqualify any qualified public depository for violation of any of the provisions of the Act or these rules. In the event that the State Treasurer becomes aware that a pool member no longer meets the requirements for continued participation in the pool, the State Treasurer has the authority to require the member financial institution to pledge collateral at a level of 105% of the outstanding balances of public funds on deposit, less the amount insured by the Federal Deposit Insurance Corporation. The qualified public depository shall be notified of the effective date of the suspension within ten (10) business days of the action by the State Treasurer or the Board and not less than thirty (30) days before the effective date.

B. Effect of Suspension. A qualified public depository which is suspended from participation in the pool shall immediately collateralize all existing public funds and deposits secured by the pool at a level of 105% of the outstanding balances of such funds less the amount of funds insured by the Federal Deposit Insurance Corporation.

History

Source: Miss. Code Ann. § 27-105-6 (Rev. 2000), § 31-19-5 (Rev. 2007).

38 Miss. Admin. Code Pt. 1, R. 3.6 Reporting by Qualified Public Depository

A. Quarterly Reports 1. Report Contents. Every qualified public depository shall file with the Treasurer on a quarterly basis reports as required by Section 27-105-6 (7). The report shall be filed at the same time the quarterly Report of Condition is filed with the Federal Deposit Insurance Corporation, but not later than the date that the report is due to be filed with the Federal Deposit Insurance Corporation. 2. Amended Reports. Every qualified public depository shall file with the Treasurer an amended report at any time the Report of Condition filed with the Federal Deposit Insurance Corporation is amended. Such amended report shall be filed at the same time it is filed with the Federal Deposit Insurance Corporation.

B. Change of Name, Address, Charter of the Institution or Ownership

Report Contents. Every qualified public depository shall file with the Treasurer, on a form prescribed by him, a report of any change of name, address, charter or ownership of the institution. 2. When Due. The report shall be filed within three (3) business days of such change.

C. Confidential Information. It shall be the responsibility of each qualified public depository from which information or reports is required to inform the Treasurer of information that is confidential. The Treasurer shall design report forms so that any information which is confidential may be placed on separate sheets; only information which is confidential by State or Federal law may be so designated.

History

Source: Miss. Code Ann. § 27-105-6 (Rev. 2000), § 31-19-5 (Rev. 2007).

38 Miss. Admin. Code Pt. 1, R. 3.7 Reports and Procedures for Trustee Custodians

A. Appointment of Trustee Custodians. Upon being designated as a qualified public depository, the qualified public depository shall appoint one or more trustee custodians for the deposit of eligible collateral by the qualified public depository. The appointment shall be made on a form provided by the Treasurer and shall be delivered to the Treasurer and accepted by him prior to the deposit of any collateral with the trustee custodian.

B. Notification. The Treasurer shall notify the qualified public depository of the acceptance or denial of an appointment of a trustee custodian.

C. Report Contents. Every trustee custodian shall submit a quarterly report to the Treasurer providing a description of eligible collateral securities deposited by the qualified public depository, including the par value of the eligible collateral, as well as other information requested by the Treasurer.

D. When Due. The trustee custodian shall file the report with the Treasurer on a schedule as established by the Treasurer. The report shall include information as of the end of the scheduled quarter.

E. Amended Reports. A trustee custodian shall submit to the Treasurer an amended report at any time that it determines the information on any prior report was incomplete or inaccurate. The amended report shall be filed not later than ten (10) business days after it determines that any prior report was inaccurate or incomplete.

History

Source: Miss. Code Ann. § 27-105-6 (Rev. 2000), § 31-19-5 (Rev. 2007).

38 Miss. Admin. Code Pt. 1, R. 3.8 Withdraw from Collateral Pool Participation

A. Voluntary Withdrawal 1. Voluntary Withdrawal Generally. A qualified public depository may

withdraw from participation in the collateral pool by giving written notice to the State Treasurer, and to all public depositors having deposits at the qualified public depository. The notice shall provide an effective date of withdrawal which shall not be less than one hundred eight (180) calendar days after the date the notice is received by the Treasurer. 2. Contingent Liability of Withdrawing Qualified Public Depository. A qualified public depository shall be contingently liable for any loss to the pool as provided in the contingent liability agreement for a period of six (6) months following the effective date of withdrawal. To assure that an institution can meet its contingent liability, an institution shall continue to maintain pledged collateral in an amount of 105% of the outstanding balances of public funds held less the amount of funds insured by the Federal Deposit Insurance Corporation.

B. Mandatory Withdrawal from Collateral Pool 1. Mandatory Withdrawal Generally. A qualified public depository shall be required to withdraw upon failure to meet the conditions of membership. In order for a depository to be readmitted to the pool, it must continue to submit the reports required in Section 1.06 of the Public Funds Guaranty Pool Rules and meet the conditions of the membership. If a depository is required to withdraw from the pool more than once, the depository must meet the conditions of membership for two consecutive quarters in order to be readmitted to the pool. 2. Contingent Liability of Withdrawing Qualified Public Depository. A qualified public depository shall be contingently liable for any loss to the pool as provided in the contingent liability agreement for a period of twelve (12) months following the effective date of withdrawal. To assure that an institution can meet its contingent liability, an institution shall continue to maintain pledged collateral in an amount of 105% of the outstanding balances of public funds held less the amount of funds insured by the Federal Deposit Insurance Corporation.

History

Source: Miss. Code Ann. § 27-105-6 (Rev. 2000), § 31-19-5 (Rev. 2007).

38 Miss. Admin. Code Pt. 1, R. 3.9 Payment of Losses

A. Priority for Multiple Losses. In the event a default or insolvency occurs to more than one qualified public depository, claims of public depositors shall have priority based on the date of the default or insolvency. Claims arising from a default or insolvency occurring earliest in time shall have priority over claims arising subsequently.

B. Payment. The Treasurer shall establish the priority of claims arising from multiple defaults or insolvencies and pay public depositors based on the priority established.

History

Source: Miss. Code Ann. § 27-105-6 (Rev. 2000), § 31-19-5 (Rev. 2007).

Chapter 4 Investment Policy Statement

38 Miss. Admin. Code Pt. 1, R. 1.1 Rule 1.1

State Investment Policy Statement This Investment Policy Statement (IPS) for the General Fund of State of Mississippi, managed by the Office of the State Treasurer, operates pursuant to Miss. Code Ann. § 27-105-33.

INTRODUCTION AND OVERVIEW

The purpose of this Statement of Investment Policy is to identify and describe the policies and procedures governing the investment activities of the General Fund of the State of Mississippi, managed by the Office of the State Treasurer, operating pursuant to Miss. Code Ann. § 27-105- 33.

The goal of this investment policy is to clearly describe the duties of the Office of the State Treasurer pertaining to the investment of the excess funds of the State General Fund. This policy will set guidelines for the prudent management of the General Fund, describe realistic investment parameters and goals to protect principal, provide guidance to ensure investments conform to all state statutes governing the investment of public funds, and establish expectations for generally acceptable returns at a suitable level of risk that matches the nature of the General Fund.

GOVERNING AUTHORITY

The Office of the State Treasurer Investment Division shall be responsible for developing and reviewing the investment process and objectives of the Office of the State Treasurer within the framework provided by the statutes of the State of Mississippi (Miss. Code Ann. § 27-105-33). The Office of the State Treasurer shall monitor policies, set general strategies, and implement necessary monitoring mechanisms. Investment officers shall endeavor to identify and select authorized investment options that meet the statutory’s criteria and fall within the framework of the investment objectives. DELEGATION OF AUTHORITY AND INVESTMENT RESPONSIBILITIES

a. The State Treasurer of Mississippi, who shall be responsible for all investment transactions, may delegate trading authority to qualified Treasury staff. The titles of the individuals currently authorized to make investments and to order the receipt and delivery of investment securities for this account on behalf of the State include: the State Treasurer of Mississippi, Deputy Treasurer, Chief Investment Officer, and Lead Investment Officer. b. The State Treasurer may engage one or more outside firms to provide advice or to assist with the investment management of the General Fund. Should any firm be hired to provide advice or assistance regarding the management of the General Fund, that firm shall be a registered investment advisor under the Investment Company Act of 1940 and

have extensive experience in the investment management of state and local government funds. c. External investment managers must have the approval of the State Treasurer and the Executive Director of the Department of Finance and Administration (DFA). Investments are limited to those listed as Authorized Investments in the Investment Policy SCOPE OF THE INVESTMENT POLICY

The provisions of this Investment policy apply to all financial assets and funds held in the General Fund for the Office of the State Treasurer.

PRIMARY INVESTMENT OBJECTIVES

The General Fund shall be managed in a manner consistent with the requirements set forth in Statement Nos. 31 and 59 of the Governmental Accounting Standards Board (“GASB”) and to accomplish the following hierarchy of objectives: 1. Preservation of Principal – Safety of principal is the foremost objective of the investment program. Investments shall be undertaken in a manner that seeks to ensure the preservation of capital in the overall portfolio by adhering to all restrictions of the funds established by law and this policy. The objective will be to mitigate interest rate risk and credit risk. The portfolio will be structured so that security maturities provide cash requirements for ongoing operations. Investments will be limited to those listed in the Authorized Investments section of this Investment Policy. 2. Liquidity – The investment portfolio shall remain sufficiently liquid to meet all operating requirements that may be reasonably anticipated. This shall be accomplished by structuring the portfolio so that securities mature concurrent with cash needs to meet anticipated demands. Since all possible cash demands cannot be anticipated, the portfolio should consist largely of securities with active markets. 3. Yield – The investment portfolio shall be managed with the objective of obtaining a market rate of return taking into consideration cash flow requirements of the General Fund.

ETHICS AND CONFLICT OF INTEREST

Authorized investment officers and employees in investment-making roles shall refrain from personal business activity that could (a) conflict, or give the appearance of a conflict or (b) impair their ability to make impartial investment decisions. . Further, no Investment Department staff member involved should use the authority or influence of office or employment to secure anything of value or the promise or offer of anything of value that would create an improper influence upon the public official or employee with respect to that person’s duties. STANDARD OF PRUDENCE

The standard of prudence to be applied by their personnel of the Investment Division is the prudent investor rule as stated from Miss. Code Ann. § 91-9-601, et. seq. 2. The authorized investment officers will conduct themselves in conformance with the Chartered Financial Analyst (CFA) Code of Ethics and Standards of Professional Conduct (Code and Standards), as current at the time of their transactions.

All investment activities within the General Fund shall be conducted with judgment and care, under circumstances currently prevailing that persons of prudence, discretion, and intelligence exercise in the management of their own affairs, not for speculation, but for investment, considering the probable safety of their capital as well as the probable income to be derived. All participants in the General Fund investment activities shall act responsibly as custodians of the public trust. Investment officials shall recognize that the Fund is subject to public review and evaluation. The portfolio shall be designed and managed with a degree of prudence and professionalism that is worthy of the public trust. INTERNAL CONTROLS The Office of the State Treasurer has established a system of internal controls designed to prevent loss of public funds arising from fraud, employee error, misrepresentation by third parties, unanticipated changes in financial markets, or imprudent actions by employees of the Office of the State Treasurer. Controls include: separation of duties, separation of transaction authority from compliance check, minimized number of authorized investment officials, documentation of transaction strategies, and adherence to the established policy and procedures. The Office of the State Treasurer is audited annually by the Office of the State Auditor to test internal controls and compliance to state laws, regulations, contracts, and grant agreements. The State Auditor conducts the audit in accordance with Government Auditing Standards and produces an annual Financial Audit Management Report. AUTHORIZED INVESTMENTS The Investment Department staff is authorized to invest in the asset classes described in Mississippi Code Ann. § 27-105-33, subject to any additional conditions specifically set forth in this Policy:

Certificates of Deposit – Deposits at financial institutions in the State of Mississippi that are Qualified Public Depositories, invested and allocated on a pro rata basis per Miss. Code Ann. §27-105-9, and no depository shall be more than 4% of the depositor’s Mississippi based deposits, unless, in the discretion of the Treasurer, the best interest of the State can be served to increase its earnings and decrease its expenses in the handling of the state funds. 2. United States (U.S.) Treasury Obligations – U.S. Treasury bills, notes, bonds or any other obligations issued by the U.S. Treasury or any other obligation guaranteed as to principal and interest by the U.S
Stable Net Asset Value Government or Treasury Only Money Market Mutual Funds as defined in §27-105-33 (e) 4. U.S. Government Agencies, Instruments and Government Sponsored Enterprises (GSEs) – Bonds, notes, debentures or any other obligations or securities issued by any federal government agency or instrumentality. For example, but not limited to, FNMA, FHLMC, FFCB, FHLB, GNMA, FAMCA, and SBA. 5. Direct Security Repurchase Agreements – Repurchase agreements and reverse repurchase agreements may be transacted with authorized dealers and banks that are rated investment grade by one or more nationally recognized rating agency or are determined by the Treasurer to have adequate capital and liquidity, with maximum exposure per institution determined by the Office of the State Treasurer. Repurchase agreements must be collateralized by U.S. Treasuries or U.S. Government Agencies, Instruments and Government Sponsored Enterprises (GSEs) and must have a market value of at least 102% of the investment. Collateral must be held by a third-party custodian approved by the Treasurer and marked-to-market daily. 6. Bonds issued by Country of Israel – Investments in such instruments shall be denominated in U.S. currency; must be of investment grade as rated by at least one nationally recognized statistical rating organization. 7. Corporate Bonds – Bonds, notes or other obligations issued by entities organized under the laws of the United States or a state thereof which, at the time of purchase, have a long-term rating of at least ‘A+’ by Standard & Poor’s and an equivalent rating by at least one other Nationally Recognized Statistical Rating Organization (NRSRO) provided that the issue is not of a subordinated nature. 8. Taxable Municipal Bonds – Bonds, notes and other obligations of any state or political subdivision thereof, provided that, at the time of purchase, have a long-term rating of at least ‘A+’ by Standard & Poor’s and an equivalent rating by at least one other Nationally Recognized Statistical Rating Organization (NRSRO), and are not of a subordinated nature. 9. Corporate short-term obligations of corporations or of wholly owned subsidiaries of corporations (Commercial Paper), whose short-term obligations are rated A-1 or better by Standard & Poor’s, rated P-1 or better by Moody’s Investment Service, F-1 or better by Fitch Ratings, Ltd; or the equivalent of these ratings if assigned by another U.S. Securities and Exchange Commission designated Nationally Recognized Statistical Rating Organization.

SECURITIES LENDING The Office of the State Treasurer may lend any securities in the General Fund considering first probable safety of capital and then probable income to be derived. The Office may utilize its custodian bank to conduct securities lending activities.

PROHIBITED INVESTMENTS AND TRANSACTIONS

The General Fund is expressly prohibited from the following investments and investment practices (this is not an exclusive list) 1. Derivative Securities such as futures, options, and swaps. 2. Short Sales (selling a specific security before it has been legally purchased). DIVERSIFICATION PARAMETERS

The General Fund portfolio shall be structured to diversify investments to reduce the risk of loss resulting from over concentration of assets in a specific maturity, specific issuer, or a specific type of security. The maximum percentage of the portfolio permitted for each type of security, based on the book value of the portfolio at the time of purchase (unless otherwise specified) is as follows:

U.S. Treasuries 100% maximum U.S. Government Agencies, Instruments and GSEs 100% maximum, each issuer is limited to no more than 40% of the book value of the portfolio Stable Net Asset Value Government or Treasury Only Money Market Mutual Fund Total dollar amount of funds invested in all money market mutual funds at any one time shall not exceed 20% of the total dollar amount of funds invested. The General Fund cannot make up more than 10% of any money market mutual fund Repurchase Agreements 100% maximum, each counterparty is limited to no more than 25% of the book value of the portfolio Bonds issued by country of Israel Not to exceed $20,000,000 at any time Corporate Bonds Not to exceed 30% of the book value of the portfolio, issuer limited to 5% of the book value of the portfolio– Total corporate debt, including commercial paper, not to exceed 30% Taxable Municipal Bonds Not to exceed 10% of the book value of the portfolio, issuer limited to xx% of the book value of the portfolio Commercial Paper Not to exceed 30% of the book value of the portfolio, issuer limited to 5% of the book value of the portfolio – Total corporate debt, including corporate bonds and commercial paper, not to exceed 30% Certificates of Deposit Subject to the limitations set forth in §27-105-33 (a)

MATURITY PARAMETERS

To provide for the safety and liquidity of the General Fund, no investment shall have a maturity date at the time of purchase longer than: U.S. Treasuries Not to exceed 10 years U.S. Government Agencies, Instruments and GSEs Not to exceed 10 years Repurchase Agreements Not to exceed 90 days Bonds issued by country of Israel Not to exceed 3 years Corporate Bonds Not to exceed 5 years Taxable Municipal Bonds Not to exceed 5 years Commercial Paper Not to exceed 270 days Certificates of Deposit Not to exceed 1 year

When referring to mortgage-backed security types, including but not limited to Agency Mortgage-Backed Securities (MBS), Collateralized Mortgage Obligations (CMOs) or Agency Commercial Mortgage-Backed Securities (CMBS), and to those issued by the Small Business Administration (SBA); the maximum maturity will be evaluated as the Weighted Average Life (WAL) not to exceed ten (10) years at time of purchase.

INVESTMENT TRANSACTION PARAMETERS

All investment transactions by Office of the State of Treasurer (including, but not limited to, repurchase agreements, CDs, purchases and sales of U.S. government and agency obligations, and purchases and sales of obligations of corporations) shall be transacted by competitive bidding whenever possible and follow the established Internal Trading Policy guidelines.

Investments longer than 30 days must yield no less than the equivalent bond yield for comparable U.S. Treasury obligations, at time of purchase.

SAFEKEEPING AND CUSTODY

All securities in the General Fund portfolio shall be held in the name of the Office of the State Treasurer and, with the exception of securities lent pursuant to a securities lending policy, shall be free and clear of any lien. Further, all investment transactions will be conducted on a delivery versus payment basis. The custodian shall issue a safekeeping receipt to the State Treasurer listing the specific instrument, rate, maturity, and other pertinent information. On a monthly

basis, the custodian will also provide reports which list all securities held for the General Fund portfolio, the book value of holdings and the market value as of month end.

AUTHORIZED FINANCIAL INSTITUTIONS AND BROKER/DEALER

The Office of the State Treasurer, per the requirements of Miss. Code Ann. § 27-105-5, will annually certify financial institutions as a qualified public funds depository, eligible to hold public deposits such as certificates of deposits for the General Fund. Approved banks must collateralize all public funds at a minimum of 105%, unless approved to participate in the public funds guaranty pool and collateralize per the guidelines established by the Guaranty Pool Board, under the authority of Miss. Code Ann. § 27-105-6.

A list shall be maintained of approved security broker/dealers, which shall be utilized by authorized investment officers. These may include primary, super-regional, and/or regional dealers that qualify under SEC rules. Such security brokers and dealers will be subjected to an appropriate investigation by the staff of the Office of the State Treasurer, including but not limited to, a review of the firm’s financial statements and the background of the sales representative. All broker/dealers who desire to become qualified for investment transactions must supply the following, initially and on a periodic basis upon request to Treasury staff:

Annual audited financial statements (financial strength and capital adequacy of firm or publish statement of condition). 2. Proof of FINRA numbers for broker/dealer and firm. 3. Written acknowledgement of this policy. 4. Services provided by firm, including research services. 5. Signed copy of Treasurer’s trading authority. 6. Other documentation deemed necessary by the Office of the State Treasurer. COLLATERALIZATION

All certificate of deposits held with qualified public depositories must be collateralized at 105% market value of the investment at an approved safekeeping facility or 75% market value of the investment if the public depository is a member of the Guaranty Pool. INVESTMENT PROGRAM REPORTING

The Office of the State Treasurer Investment Division shall maintain accurate, complete, and timely records of all investment activities. An investment report shall be submitted to the State Treasurer summarizing the previous month’s activity. This report shall include a listing of the existing portfolio in terms of investment securities, book value, maturity date, coupon rate, yield, durations, and market value. Compliance monitoring and reporting shall be performed monthly to confirm adherence to the investment policy and state statute independent of the Investment Division.

INVESTMENT POLICY ADOPTION This policy is adopted as of July 3, 2023

David McRae State Treasurer

Part 2 Mississippi Prepaid Affordable College Tuition Program

Chapter 1 Program Description

38 Miss. Admin. Code Pt. 2, R. 1.1 Program Description

The Mississippi Prepaid Affordable College Tuition (MPACT) Program was established as an agency and instrumentality of the State of Mississippi by the 1996 Mississippi Legislature as a Program to assist Mississippians in saving for some of the costs associated with a college education. The purpose of the Program is to encourage and foster higher education in Mississippi and for Mississippians. The Program’s statutory authority and purpose are controlled by Mississippi Code §37-155-1 to 37-155-27 (Rev 2003).

The prepaid tuition Program, commonly known as MPACT, is administered by the College Savings Plans division of the Mississippi Treasury Department, under the administrative authority of the State Treasurer and with the guidance of a Board of Directors. Through the MPACT Program, parents, grandparents and other interested parties may purchase prepaid tuit ion Contracts. The MPACT Contract provides for the payment by the MPACT Trust Fund of undergraduate tuition, for a specified number of years or semesters, and for the payment of Mandatory Fees, for a specific number of academic terms, on behalf of a Beneficiary for whom the Contract is purchased.

The cost of an MPACT Contract is based primarily on the average current and projected tuition and Mandatory Fees rates at public senior colleges, universities, junior colleges and community colleges in the State of Mississippi, and on the number of years expected to elapse between the purchase of a Contract and the exercise of the benefits provided in the Contract by the Beneficiary. The Board of Directors established the costs of MPACT Contracts in accordance with actuarial assumptions adopted by the Board at the recommendation of independent actuaries.

Payments by MPACT Contract Purchasers are placed in the MPACT Trust Fund in the State Treasury and are combined and invested by the State Treasurer with the goal of yielding, at a minimum, sufficient income to generate the difference between the prepaid amount and the cost of In-State Tuition and Mandatory Fees at the time of actual enrollment of the Beneficiary. The MPACT Contract Purchaser receives periodic statements reflecting amounts paid into the Trust Fund.

The State of Mississippi also operates another college savings Program, known as the Mississippi Affordable College Savings (MACS) Program. This document is intended to describe and apply to only the MPACT Program. Information on MACS can be obtained by contacting the Office of the State Treasurer.

History

Source: Miss. Code Ann. § 37-155-1 through 37-155-27 (Rev. 2003)

Chapter 2 Location of MPACT Office

38 Miss. Admin. Code Pt. 2, R. 2.1 Location of MPACT Office

MPACT’s physical office is located on the eleventh (11th) floor of the Woolfolk State Office Building, 501 N. West Street, Jackson, Mississippi, 39201. The mailing address for correspondence and applications is MPACT, P.O. Box 120, Jackson, MS 39205-0120. The mailing address for Contract payments is MPACT, P.O. Box 1199, Jackson, MS 39215-1199. Office hours are 8:00 A.M. through 5:00 P.M., Monday through Friday, except for legal state holidays. Persons may obtain forms, publications, and documents by writing to, visiting, or calling the MPACT Office at 601-359-5255 or 1-800-987-4450. Information regarding the MPACT Program is also available on the internet at www.treasury.ms.gov .

History

Source: Miss. Code Ann. § 37-155-9 (Rev. 2003), §37-155-15.

Chapter 3 Program Administration

38 Miss. Admin. Code Pt. 2, R. 3.1 Program Administration

MPACT is administered as part of the Mississippi Treasury Department under the direction of a Board of Directors. The College Savings Plans of Mississippi Board of Directors is composed of nine (9) voting members. Five (5) board members are appointed by the Governor, one from each of the State’s congressional districts. The other four (4) ex-officio board members are the State Treasurer, the Executive Director of the Department of Finance and Administration, the Commissioner of Higher Education, and the Executive Director of the Community and Junior College Board. There are also four (4) legislative advisors to the Board, two (2) appointed by the Lieutenant Governor and two (2) appointed by the Speaker of the House of Representatives.

The Board, in conjunction with a qualified actuarial firm, has constructed the prices of MPACT Contracts and has developed payment schedules for MPACT Contract Purchasers, in accordance with the actuarial assumptions recommended by the Actuary and adopted by the Board.

The fiscal year of the MPACT Program corresponds to the fiscal year of all other state entities, i.e. July 1st through June 30th. Each fiscal year, the Board will evaluate, or cause to be evaluated, the actuarial soundness of the Trust Fund. The Board will prepare a report on an annual basis setting forth an accounting of the Trust Fund and a description of the financial condition of the Trust Fund.

In carrying out Board Policies, it is the intent of the Board that the objectives are; first to protect the fiscal integrity of the trust fund; and, second to be fair and equitable to the purchaser. Whenever possible, procedures adopted should be a combination of these factors which achieve both objectives. Under the provisions of Mississippi Code Ann., §37-155-9(ee), the Board has delegated to the State Treasurer the power to make decisions within the above guidelines on the details of interest, conversion, Administrative Fees, matriculation and refund calculations for the MPACT Program.

History

Source: Miss. Code Ann. § 37-155-7, §37-155-9 (Rev. 2003).

Chapter 4 The Trust Fund

38 Miss. Admin. Code Pt. 2, R. 4.1 The Trust Fund

History

Source: Miss. Code Ann. § 37-155-15.

Chapter 6 Definitions

38 Miss. Admin. Code Pt. 2, R. 6.1 Definitions

In these Rules, Regulat ions and Procedures of the MPACT Program, the following terms shall be defined as follows:

A. “Academic School Year” means three quarters or two semesters of a twelve month school year.

B. “Actuarial Assessment” means an additional Contract amount assessed by the State Treasurer to preserve the actuarial soundness of the Trust Fund. For an unpaid or partially paid lump sum account, this amount will be a percentage of the outstanding balance per month determined by the Actuary. For the reinstatement of a Monthly Payment Plan the Actuarial Assessment is the difference between the present value of the prescribed monthly payments and the present value of the payments actually made by the Purchaser. The Actuarial Assessment for a change in length of a monthly payment Contract is the difference between the present values of the Contract payments of the old and new payment schedules.

C. “Administrative Fees” means those fees, listed in Chapter 12, which are assessed to the MPACT Contract Purchaser upon making application for enrollment in the MPACT Program; upon making changes in the ordinary services provided under the MPACT Program; or upon making changes in MPACT Contract information provided to the State Treasurer. Administrative fees include any other fees designated as administrative by the State Treasurer.

D. “Application” means a request for acceptance into the MPACT Program, made on a form, or a duplicate of the form, prepared by the State Treasurer.

E. “Application Processing Fee” means the processing fee, specified in Rule 12.2A, paid by the MPACT Contract Purchaser upon application for entrance into the MPACT Program.

F. “Cancellation” means voluntary discontinuation of the Purchaser from the MPACT Program and voluntary discontinuation of the Qualified Beneficiary’s right to receive benefits under an MPACT Contract, when requested by the Purchaser, so long as the Purchaser has provided at least thirty (30) days’ written notice to the State Treasurer and has submitted all applicable Administrative Fees. An MPACT Contract may also be Involuntarily Cancelled for any of the following: - The Purchaser fails to make payments pursuant to the Master MPACT and/or the Participation and Payment Schedule; The Purchaser fails to make a Contract payment within forty-five (45) days of the first payment due date following the close of the MPACT Enrollment period during which the MPACT Application was submitted.

G. “Contingent Purchaser” means a person who is named by the Purchaser on the MPACT Application or by subsequent request, who will assume all duties and responsibilities of the Contract Purchaser in the event of the Contract Purchaser’s death. The Contingent Purchaser must meet the same eligibility requirements as the Contract Purchaser.

H. “Contract Purchaser” means any adult person, corporation, trust, charitable organization, or other Entity eligible to purchase an MPACT Contract, and who is obligated to make MPACT Contract payments and Administrative Fee payments in accordance with the MPACT Contract. MPACT Contract payments may be made by someone other than the designated Contract Purchaser.

I. “Current Tuit ion Value” means the weighted average of undergraduate In-state Tuit ion and Mandatory Fees at the four-year Inst itutions of Higher Education for senior college Contracts and it means the weighted average of In-state Tuition and Mandatory Fees at the two-year Inst itutions of Higher Education for community/junior college Contracts.

J. “Disability of the Purchaser” means disability as defined in the applicable rules, regulations, and guidelines of the Social Security Administration.

K. “Disability of the Qualified Beneficiary” means a disability which, based on the findings of a qualified health care professional, and on approval of these findings by the Board, renders the Qualified Beneficiary incapable of participating in higher education. L. “Enrollment Period” means any period designated by the Board during which Applications for enrollment in the MPACT Program will be accepted by the State Treasurer.

M. “Immediate Family” for purposes of these rules means any of the following relations of

the Qualified Beneficiary: brother, legally adopted brother, sister, legally adopted sister, half-brother, step-brother, half-sister, and step-sister. Effective on and after January 1, 2002, first cousins also will qualify as members of the immediate family of the Qualified Beneficiary.

N. “Independent/Private In-state Postsecondary Institution” means any in-state regionally accredited private four or two year college located in Mississippi.

O. “In-State Tuition Rate” means the tuition rate charged to a student who meets the in-state residency requirements established by the Board of Trustees of State Institutions of Higher Learning or the individual school attended by the student.

P. “Institution of Higher Education” means any college or university listed in Chapter 7 and any other college or university in Mississippi which is recognized as an Institution of Higher Education by the Board of Trustees of Institutions of Higher Learning and the Commissioner of Higher Education, whether or not such an Institution is listed in Part 1 Chapter 7.

Q. “IRC § 529" means Section 529 of the Internal Revenue Code of 1986, as amended.

R. “MACS Program" means the Mississippi Affordable College Savings Program.

S. “Mandatory Fees” means those fees required as A CONDITION OF ENROLLMENT for ALL students attending the Postsecondary Institution in which the Qualified Beneficiary is enrolled and to which the Trust Fund payments will be made on behalf of the Qualified Beneficiary. Those fees charged to all students may include, but are not limited to, athletic fees, activity fees, health center fees, etc. Those fees which are unique to a particular student or group of students such as lab fees are not considered to be mandatory. The term “Mandatory Fees”, as used herein, does not include charges for books, supplies, room, or board even if the Postsecondary Institution attended by the Qualified Beneficiary requires all students to pay such charges. Additionally, the term “Mandatory Fees” does not include application entrance fees paid to Postsecondary Institutions when the Qualified Beneficiary applies for enrollment or orientation fees.

T. “Master MPACT Contract” means the legal document which specifies the terms and conditions of the MPACT Program.

U. “MPACT Contract” refers collectively to the MPACT Application, the Master MPACT Contract, and the Participation and Payment Schedule. Additional documents relating to the MPACT Contract, issued or received by the State Treasurer, and pursuant to the various terms and conditions described, will be incorporated into the MPACT Contract.

V. “Official Change Period” means any period so designated by the Board during which the MPACT Contract Purchaser may submit a written request for approval of changes in MPACT Contract terms, conditions, or information. Such changes may include, but are not limited to, changes in the Participation and Payment Schedule; changes in

information provided on the MPACT Application, the Master MPACT Contract, or on other MPACT documents; changes in payment method; and similar types of requests. Changes may be made outside of an Official Change Period only with the approval of the State Treasurer.

W. “Out-of-State Postsecondary Institution” means any Out-of-State regionally accredited private four or two year college or an Out-of-State regionally accredited, state-supported, nonprofit four or two year college or university.

X. “Participation and Payment Schedule” means the document, prepared by the State Treasurer, which defines the frequency, duration, and due date of MPACT Contract Payments, based on information provided by the Purchaser on the MPACT Application.

Y. “Postsecondary Institution” means an accredited public educational Associate of Arts or baccalaureate degree-granting postsecondary institution, or a private independent Associate of Arts or baccalaureate degree-granting college or university, or an out-of- state Associate of Arts or baccalaureate degree-granting college or university.

Z. “Projected College Entrance Date” means the Academic School Year following the Qualified Beneficiary’s projected high school graduation and is the earliest date for utilization of MPACT Contract benefits without written approval from the State Treasurer and subject to the provisions of Rule 11.2.1, 11.2.2 and 11.4 herein. The Projected College Entrance Date is calculated by the State Treasurer based on information provided by the Purchaser in the MPACT Application. The State Treasurer will provide the Qualified Beneficiary’s Projected College Entrance Date to the Purchaser.

AA. “Qualified Beneficiary” means an individual who meets all Beneficiary eligibility criteria as specified in Chapter 9 and who is designated by the Purchaser of an MPACT Contract to be the recipient of MPACT Contract benefits. All references to the Contract Beneficiary within these Rules, Regulations and Procedures assume that the Beneficiary meets the Beneficiary eligibility requirements of MPACT, and is, therefore, a Qualified Beneficiary.

BB. “Qualified Tuition Plan” or “QTP” means a college savings plan operated by a state or an instrumentality of a state that qualifies under IRC § 529. QTP’s may also be called “529 Plans”. The Board has established two qualified tuition Programs: The Mississippi Prepaid Affordable College Tuition (MPACT) Program and the Mississippi Affordable College Savings (MACS) Program. CC. “Redemption Value” means the amount of refund which shall include but not be limited to the amount paid in and an additional amount in the nature of interest at a rate that corresponds to the prevailing interest rates for savings accounts provided by banks and savings and loan associations. The Board may impose reasonable charges for such withdrawal or refund. All relevant Administrative Fees, including, but not limited to, Cancellation Fees, Termination Fees and Account Maintenance Fees, will be deducted fro m Contract payments before calculation of the Redemption Value.

DD. “Resident” means a person who has established legal residence in the State of Mississippi, that is, the place where he actually resides with the intention of remaining there indefinitely or of returning there permanently when temporarily absent. A Beneficiary is considered a resident for purposes of tuition regardless of the Beneficiary’s residence on the date of enrollment. However, for Contracts entered into after July 1, 2003, this provision only applies to nonresident Beneficiaries if (a) the original Purchaser was the parent, grandparent or legal guardian of the Beneficiary; or (b) the Beneficiary was a resident of Mississippi at the time the Contract was purchased.

EE. “Rollover” means a non-taxable transfer between QTP’s as allowed under IRC § 529.

FF. “Scholarship”, “Partial Scholarship”, or “Full Scholarship” means grants, gifts, or other financial aid awarded to a Qualified Beneficiary in an amount sufficient to pay a portion or all of the same benefits as are guaranteed under an MPACT Contract. A loan is not considered a scholarship.

GG. “Substitute Beneficiary” means an individual named by the MPACT Contract Purchaser to receive, in place of the originally named Qualified Beneficiary, the benefits guaranteed under the MPACT Contract and who meets the eligibility criteria specified in Rule 9.3.

HH. “Termination” means involuntary discontinuation of the Purchaser from the MPACT Program and involuntary discontinuation of the Qualified Beneficiary’s rights to receive benefits under an MPACT Contract. An MPACT Contract may be Involuntarily Terminated for any of the following reasons: The Purchaser or Beneficiary has made a material misrepresentation of information; The Purchaser or Beneficiary has provided false information to the MPACT Program; The Purchaser has requested or accepted any form of compensation, fee, commission, service charge, or any other form of payment or remuneration for entering into a Contract for the benefit of a nonresident beneficiary; or, such other reasons as the State Treasurer may reasonably impose.

II. “UTMA” or “UGMA” mean the Uniform Transfer to Minors Act or the Uniform Gift to Minors Act.

History

Source: Miss. Code Ann. § 37-155-9 (Rev. 2003).

Chapter 8 Contract Purchaser

38 Miss. Admin. Code Pt. 2, R. 8.1 Eligibility of Contract Purchaser

The Purchaser must be of legal age and capacity to enter into a legal Contract. If the Qualified Beneficiary is a resident of Mississippi as defined in Rule 6.29, the Purchaser need not be a resident. If the Qualified Beneficiary is not a Resident of Mississippi, the Purchaser must be a Resident of the State as defined in Rule 6.1DD. Other determinations may be mandated as set forth in Chapter 20.

History

Source: Miss. Code Ann. § 37-155-9 (Rev. 2003).

38 Miss. Admin. Code Pt. 2, R. 8.2 Non-Acceptance of the Purchaser’s Application

A prospective Contract Purchaser may be denied the right to enter into an MPACT Contract:

A. If the Purchaser does not meet the qualifications set forth in Rule 8.1;

B. If the MPACT Contract violates local, state, or federal laws;

C. If the proposed Beneficiary is not a Qualified Beneficiary in accordance with Chapter 9;

D. If the Board determines that it is advisable to limit the number of MPACT Contracts;

E. If the Contract Purchaser fails to submit the MPACT Application during an official MPACT Enrollment Period;

F. If the Contract Purchaser fails to submit the Application Processing Fee;

G. If the Purchaser has requested or accepted any form of compensation, fee, commission, service charge or any other form of payment or remuneration for entering into a Contract for the benefit of a nonresident Beneficiary;

H. If the Contract Purchaser submits an Application with incomplete information; or

I. Such other reasons as may be determined by the State Treasurer or the Board.

History

Source: Miss. Code Ann. § 37-155-9 (Rev. 2003).

38 Miss. Admin. Code Pt. 2, R. 8.3 Number of Purchasers Per Contract

Only one individual may be named on the MPACT Application and in the MPACT Contract as the MPACT Contract Purchaser. Joint Purchasers are not permitted. However, if a given Application and Contract purchases less than five (5) years of tuition on behalf of a given Qualified Beneficiary, other persons who qualify as Purchasers as defined herein may purchase an additional Contract(s) for the same Qualified Beneficiary, provided that the total number of years of tuition purchased for the Qualified Beneficiary does not exceed five years as defined in Chapter 11. Each year or multiple of years purchased by a different Purchaser for the same Qualified Beneficiary will be treated as a separate Contract. A Purchaser may change, add, or delete the designated Contingent Purchaser on the MPACT Application or after the MPACT Contract is purchased by submitting a request in such form as deemed acceptable by the State Treasurer.

History

Source: Miss. Code Ann. § 37-155-9 (Rev. 2003).

38 Miss. Admin. Code Pt. 2, R. 8.4 Change of MPACT Contract Purchaser and Contingent Purchaser

All requests to transfer ownership of the MPACT Contract to a different Purchaser must be submitted, in writing, to the State Treasurer. The request must contain the signatures of both the current Purchaser and the Purchaser to whom ownership of the Contract is being transferred, unless the Purchaser has died or become disabled and cannot furnish a signature. If the current Purchaser has died or become disabled, proof of death or Disability, in such form as deemed acceptable by the State Treasurer, must accompany the written request for a change in Purchaser in lieu of the current Purchaser’s signature. Any request for a change in Purchaser must also contain the MPACT Contract Number as well as the name, address, social security number, and telephone number of the new Purchaser. The request must also be accompanied by the applicable

Administrative Fee(s) as described in Rule 12.1 and 12.2G. See Rule 9.5 for additional restrictions applicable to UTMA/UGMA accounts.

If the current Purchaser has died, the Contingent Purchaser listed on the Contract will be named Purchaser once proof of death is received in such form deemed acceptable by the State Treasurer and the designated Contingent Purchaser acknowledges that he/she accepts the responsibilities of the original Contract Purchaser. In the event the MPACT Contract does not have a Contingent Purchaser listed, proof of death, in such form as deemed acceptable by the State Treasurer, must accompany the written request for a change in Purchaser in lieu of the current Purchaser’s signature.

If the current Purchaser has died or becomes disabled, and no Contingent Purchaser is named the request for transfer of Contract ownership should be submitted to the State Treasurer within six (6) months of the death or disability. Failure to submit the request within six mo nths may result in Involuntary Termination of the MPACT Contract. The refund provisions of Chapter 15 Rule 15.8 will apply.

History

Source: Miss. Code Ann. § 37-155-9 (Rev. 2003).

38 Miss. Admin. Code Pt. 2, R. 8.5 No Direction of Investments

A Purchaser or Beneficiary of an MPACT Contract may not directly or indirectly direct the investments of their contribution to the Program or any earnings thereon.

History

Source: Miss. Code Ann. § 37-155-9 (Rev. 2003).

38 Miss. Admin. Code Pt. 2, R. 8.6 No Pledging of Interest as a Security

No interest in an MPACT Contract or any portion thereof may be pledged as security for a loan.

History

Source: Miss. Code Ann. § 37-155-9 (Rev. 2003).

Chapter 9 Qualified Beneficiary

38 Miss. Admin. Code Pt. 2, R. 9.1 Beneficiary Eligibility

An individual may be named the Beneficiary of an MPACT Contract if such individual meets all of the following requirements:

A. The individual is (a) a resident of the State of Mississippi as defined in Rule 6.1DD; or (b) a nonresident if the Purchaser is a resident of the State of Mississippi.

B. The individual is eighteen (18) years of age or younger on the first day of the MPACT Enrollment Period in question. C. The individual has been born at the time the Application is submitted.

D. The Beneficiary must not have yet enrolled at a Postsecondary Institution.

A Beneficiary may be a U.S. citizen, a permanent resident alien, or a dependent of a U.S. citizen or of a permanent resident alien.

History

Source: Miss. Code Ann. § 37-155-9 (Rev. 2003).

38 Miss. Admin. Code Pt. 2, R. 9.2 Evidence of Residency

A Contract Purchaser must execute a statement in the MPACT Application that the Beneficiary is a resident of Mississippi or a nonresident if the Purchaser is a Mississippi resident.

Purchasers may be asked to furnish proof of the Beneficiary’s residency. Failure to provide proof of the Beneficiary’s residency may result in automatic Termination of the MPACT Contract and suspension of the Qualified Beneficiary from the MPACT Program.

Submission of any of the following documents, upon request, will be considered as sufficient to establish the residency status of the Qualified Beneficiary:

A. If the Beneficiary is one year old or younger:

A birth certificate indicating that the Qualified Beneficiary was born in Mississippi; or
Any other documentation that the State Treasurer deems appropriate.

B. If the Beneficiary is over the age of one:

A progress report from the Mississippi preschool or Mississippi day care center of the Beneficiary; or
A school report card or transcript from a Mississippi public or private school.

For Purchasers who are in the U.S. Military and are stationed outside of Mississippi, military documents evidencing that Mississippi is their home of record will sat isfy the provisio ns of this section.

History

Source: Miss. Code Ann. § 37-155-9 (Rev. 2003).

38 Miss. Admin. Code Pt. 2, R. 9.3 Beneficiary Substitutions

A. The benefits of an MPACT Contract may be transferred to an Eligible Substitute Beneficiary. To qualify as eligible, the Substitute Beneficiary must meet all of the following requirements:

The individual is (a) a resident of the State of Mississippi as defined in Rule 6.1DD, or (b) a nonresident if the Purchaser is a resident of the State of Mississippi;
The individual is eighteen (18) years of age or younger;
The individual has been born at the time the Application is submitted;
The Substitute Beneficiary must be a member of the Immediate Family of the original

Qualified Beneficiary as defined in Rule 6.1M.

Requests for transfer of the MPACT Contract benefits to an eligible Substitute Beneficiary must be in writing. All requests for Beneficiary substitutions should be submitted with documentation evidencing the relat ionship o f the Subst itute Beneficiary to the Purchaser or the original Qualified Beneficiary.

A. In general, transfer of MPACT Contract benefits to a Substitute Beneficiary is limited to transfer to a Qualified Beneficiary whose Projected College Entrance Date is the same date or a later date than the Projected College Entrance Date of the originally named Beneficiary. The benefits of an MPACT Contract may be transferred to an eligible Substitute Beneficiary whose Projected College Entrance Date will occur prior to the Projected College Entrance Date of the originally named Beneficiary in the following cases:

In the event of death of the originally named Qualified Beneficiary;
In the event that the originally named Qualified Beneficiary becomes disabled; or
In the event the originally named Qualified Beneficiary receives a Full or Partial Scholarship, the terms of which cover all or a portion of the same benefits provided under MPACT Contracts.

If the Purchaser contemplates transfer of Contract Benefits to a Substitute Beneficiary who is older than the originally named Qualified Beneficiary and/or whose Projected College Entrance Date will occur prior to the Projected College Entrance Date of the originally named Qualified Beneficiary, written application for special consideration must be made to the State Treasurer. Proof of age, death, or disability, or receipt of Scholarship by the original Qualified Beneficiary should be furnished in such form as required by the State Treasurer at the time the request for substitution of the Qualified Beneficiary is submitted.

If the request for Beneficiary substitution is approved, an additional Actuarial Assessment determined to be necessary to insure the actuarial soundness of the Trust Fund may be assessed. Assessment of this additional amount will be made at the time the request for special consideration is approved. Any additional amounts must be paid before the State Treasurer will make the Beneficiary Subst itution. Once this addit io nal amount is paid, the Contract Purchaser may resume making payments as originally scheduled before the substitution occurred.

If the Contract Purchaser has established a monthly payment plan, and the MPACT Contract benefits are transferred to an eligible Substitute Beneficiary whose college entrance date precedes the final Contract Payment under the monthly payment schedule, the Substitute Beneficiary may not use any MPACT Contract benefits unless the Contract is paid in full. The Purchaser will be required to pay off the monthly payments, in full, and any outstanding Administrative Fees, in order for the Substitute Beneficiary to utilize any MPACT Contract benefits. In the event the Purchaser elects a lump sum payment schedule, the Contract must still

be paid in full, including all additional Actuarial Assessments, and all Administrative Fees, in order for the Substitute Beneficiary to utilize any MPACT Contract benefits.

A non-refundable Administrative Fee, as described in Rule 12.2F, may be assessed for the transfer of MPACT Contract benefits to an eligible Substitute Beneficiary. The Fee must be submitted by the Purchaser at the same time that the written request for substitution of Beneficiary is made.

History

Source: Miss. Code Ann. § 37-155-9 (Rev. 2003).

38 Miss. Admin. Code Pt. 2, R. 9.4 Beneficiary Substitution After Contract Benefits Have Been Utilized by the Original Beneficiary

Once a portion of Contract benefits have been used, Beneficiary substitution may be allowed only if the proposed Substitute Beneficiary meets the requirements for substitution as set out in Rule 9.3, at least fifteen (15) semester hours of tuition benefits remain on the contract, and the Substitute Beneficiary does not already have an MPACT contract. A request for beneficiary substitution must be made prior to graduation of the original beneficiary.

History

Source: Miss. Code Ann. § 37-155-9 (Rev. 2003), § 37-155-21.

38 Miss. Admin. Code Pt. 2, R. 9.5 UTMA or UGMA Accounts

The MPACT Trust Fund may receive amounts transferred from an UGMA, UTMA or other account established for the benefit of a minor. It is the responsibility of the Purchaser to comply with all relevant federal or state laws regarding UTMA or UGMA accounts Purchasers should be mindful of the following UTMA restrictions:

A. The custodian will be required to sign the MPACT Application in the custodian's representative capacity as a custodian;

B. The custodian is not allowed to change the Beneficiary of a Contract (directly or by means of a rollover distribution);

C. The custodian is not allowed to change the Purchaser of a Contract from the custodian to anyone other than a successor custodian without providing MPACT with a court order directing the change;

D. The custodian must complete an UTMA/UGMA form in addition to the MPACT Application;

E. The custodian is required to notify MPACT when the Beneficiary is legally entitled to take control of the account. At that time, the Beneficiary would be able to conduct the same account transactions as non-UTMA Purchasers; and

F. The custodian is allowed to request a refund only in accordance with the UGMA/UTMA rules, which may indicate that any funds withdrawn must be used for the benefit of the Beneficiary.

History

Source: Miss. Code Ann. § 37-155-9 (Rev. 2003).

Chapter 10 Application

38 Miss. Admin. Code Pt. 2, R. 10.1 MPACT Enrollment Period

An MPACT Contract may be purchased during a valid Enrollment Period. The Enrollment Period shall commence and terminate on dates set by the Board.

History

Source: Miss. Code Ann. § 37-155-9 (Rev. 2003).

38 Miss. Admin. Code Pt. 2, R. 10.2 Application

Any individual desiring to enter into an MPACT Contract on behalf of a Qualified Beneficiary must submit a completed Application to the State Treasurer. The Application will be considered incomplete and will not be accepted unless it is accompanied by the Application Processing Fee described in Rule 12.2A. The MPACT Application Form is hereby incorporated by reference.

By completing the Application and submitting the Application Processing Fee, the Purchaser is making application to enter into an MPACT Contract. The MPACT Application will become part of the formal Contract between the MPACT Program, on behalf of the Board, and the Purchaser. After review and acceptance of the Application by the State Treasurer, the Purchaser will be mailed a Participation and Payment Schedule. Both of these documents become part of the formal Contract between MPACT and the Purchaser.

To be complete, an Application must be accompanied by the Application Processing Fee and must contain all of the information that the State Treasurer determines is necessary for proper administration of the enrollment process. The MPACT Contract will be valid at such time as the State Treasurer accepts the Purchaser and Beneficiary into the Program and transmits a Participation and Payment Schedule to the Purchaser.

Rule10.3 Naming the Qualified Beneficiary. Unless specifically exempted by the State Treasurer a Purchaser must name the Qualified Beneficiary in the MPACT Application at the time the Application is submitted. Only one (1) Qualified Beneficiary is allowed per MPACT Contract.

The Purchaser does not have to designate the Postsecondary Institution that the Beneficiary will attend until such time as the Qualified Beneficiary matriculates and in accordance with Rule 11.4. If more than one (1) Purchaser has submitted an Application for the same Beneficiary, the State Treasurer will determine which Application is accepted on behalf of the Qualified Beneficiary.

History

Source: Miss. Code Ann. § 37-155-9 (Rev. 2003).
Source: Miss. Code Ann. § 37-155-9 (Rev. 2003).

Chapter 11 The MPACT Contract

38 Miss. Admin. Code Pt. 2, R. 11.1 General

The MPACT Contract shall consist of the completed Application, the Master MPACT Contract, and the Participation and Payment Schedule. Additional documents, as described in Rule 6.1U, will be incorporated into the MPACT Contract.

History

Source: Miss. Code Ann. § 37-155-9 (Rev. 2003).

38 Miss. Admin. Code Pt. 2, R. 11.2 Contract Benefits

The MPACT Contract guarantees, unless otherwise stated herein, payment by the Trust Fund of In-state Tuition and Mandatory Fees on behalf of the Qualified Beneficiary of the MPACT Contract, to the Postsecondary Institution in which the Qualified Beneficiary matriculates.

The MPACT Contract guarantees the following:

A. Payment of In-state Tuition of not more than five (5) years (defined as 160 semester hours) OR payment of In-state Tuition until award of a baccalaureate degree to the Qualified Beneficiary, whichever comes first; and,

B. Payment of Mandatory Fees for not more than ten (10) registrations on a semester system, fifteen (15) registrations on a quarter system, or the completion of 160 semester hours or the academic equivalent units on a quarter system of other academic term basis, or until award of a baccalaureate degree to the Qualified Beneficiary, whichever comes first.

Any credit hours paid by the Trust Fund on behalf of a Qualified Beneficiary reduce the remaining available credit hours under the MPACT Contract. Even if the credit hours paid by the Trust Fund on behalf of the Beneficiary are not counted by the Beneficiary’s Postsecondary Institution toward a college degree, the credit hours paid by the MPACT Trust Fund will, nevertheless, decrease the remaining number of credit hours available for utilization under the MPACT Contract.

Should the Purchaser cancel the Contract and request a refund subsequent to the payment of any tuition on the behalf of the Beneficiary, but before total usage of the Contract benefits as described above, partial usage will be calculated based on the number of credit hours used and the per credit hour charge originally paid by the Purchaser for purposes of establishing the refund amount due.

The MPACT Contract does not cover fees and costs related to dormitory housing or any other type of housing. The MPACT Contract does not cover meals, books, transportation, supplies, college application or entrance fees, or orientation fees. The Contract also does not cover miscellaneous fees such as health fees, athletic fees, fraternity or sorority fees, or laboratory fees unless these fees qualify as Mandatory Fees as defined in Rule 6.1S. No graduate program, continuing education program, professional degree program, or adult education program is available under the MPACT Contract except as described in Rule 13.2. The MPACT Contract covers only those costs and fees specified herein.

The benefits of an MPACT Contract may not be used unless all Contract payments, Actuarial Assessments, and any outstanding Administrative Fees, have been paid, and the social security number of the Qualified Beneficiary has been provided to the State Treasurer.

38 Miss. Admin. Code Pt. 2, R. 11.2.1 Earliest Availability of Contract Benefits

In general, the earliest a Qualified Beneficiary may receive benefits under an MPACT Contract purchased during any Enrollment Period will be the Summer Term immediately preceding the Projected College Entrance Date of the Qualified Beneficiary as provided in the MPACT Contract, unless the Beneficiary is an accelerated student. In the event that the Beneficiary is an accelerated student, the MPACT Contract may be used, with no penalty or additional Contract cost, within three (3) years in advance of the Projected College Entrance Date of the Qualified Beneficiary. Proof that the Beneficiary is an accelerated student must be provided in such form and detail as required by the State Treasurer.

The MPACT Contract, and any outstanding Actuarial Assessments and Administrative Fees, should be paid in full to advance utilization of the Contract benefits prior to the Beneficiary’s projected College Entrance Date, including utilization of the benefits during the Summer term immediately preceding the Projected College Entrance Date as well as utilization of the benefits by an accelerated Beneficiary.

38 Miss. Admin. Code Pt. 2, R. 11.2.2 Beneficiary’s Projected College Entrance Date

At the time of application, if the Qualified Beneficiary’s Projected College Entrance Date will be later than the Projected College Entrance Date which is supplied by the State Treasurer and which corresponds to the Beneficiary’s current age and/or grade, the MPACT Contract Purchaser must submit a written request to the State Treasurer to change the Projected College Entrance Date to a later year. The written request must be accompanied by sufficient documentation, deemed acceptable by the State Treasurer, substantiating the Purchaser’s request for a change in the Beneficiary’s projected College Entrance Date. Acceptable documentation may include a certified letter from the Beneficiary’s principal or school teacher verifying that the Beneficiary has or will be held back a grade. The Contract Purchaser must also sign a certificat ion form, provided by the State Treasurer, agreeing to pay any additional amounts which may be due on the MPACT Contract as a result of providing invalid information about the Qualified Beneficiary’s Projected College Entrance Date and/or contract payment amounts due. Both the required documentation and the completed and signed certification form must be submitted to the State Treasurer prior to the first payment due date of the MPACT Enrollment Period in which the Qualified Beneficiary is enrolled in the MPACT Program. If the Purchaser fails to provide all documentation within two (2) months of the first day of the MPACT Enrollment Period in question, the State Treasurer may not change the Qualified Beneficiary’s Projected College Entrance Date or the MPACT Contract amount due.

Furthermore, when the Qualified Beneficiary begins to use the MPACT Contract benefits, if the Beneficiary enrolls in college in the Projected College Entrance Year which corresponds to the Beneficiary’s age or grade, and not in a later year furnished by the Purchaser when the MPACT Contract was purchased, the Contract Purchaser must pay any Actuarial Assessment required to compensate for the difference in the MPACT Contract Price corresponding to the Projected College Entrance Date furnished by the Purchaser during the MPACT Application process, and the actual date of college entrance when the Beneficiary matriculates.

If the Beneficiary is held back or advances after the MPACT Contract is purchased and an account has been established, there will be no adjustment in the MPACT Contract Payment

Schedule. However, upon a written request with sufficient documentation from the Purchaser, the projected College Entrance Date will be changed to reflect the revised Projected College Entrance Date.

The Purchaser should provide written notice of intention to advance or to delay benefits under the MPACT Contract a minimum of sixty (60) days prior to the new matriculation date of the Qualified Beneficiary. Failure to give notice within sixty (60) days may result in assessment of a fee to the MPACT Contract Purchaser in accordance with Rule 12.2L.

History

Source: Miss. Code Ann. § 37-155-9 (Rev. 2003).

38 Miss. Admin. Code Pt. 2, R. 11.3 Contract Term

In general, benefits under an MPACT Contract may be received for up to a ten (10) year period after the Projected College Entrance Date of the Qualified Beneficiary. If the Beneficiary, however, is an accelerated student, the MPACT Contract benefits may be used for up to ten (10) years after the actual college entrance date of the Qualified Beneficiary who is an accelerated student.

Prior to the expiration of the ten (10) year limit, as long as an MPACT Contract has not been Terminated or Canceled and is not in default, a Purchaser may request an extension of the time allowed to exercise rights under the Contract. The Purchaser must submit a written request at least one hundred and eighty (180) days prior to the expiration of the ten (10) year limit, the Contract must have thirty two (32) semester hours remaining in benefits, and must pay a non- refundable renewal fee equal to 5% of the original Contract price, assessed at the time of request for extension of the Contract term. If the request is granted, an Actuarial Assessment may be assessed to protect the actuarial soundness of the Trust Fund. The Contract extension will be valid for one year from the Contract expiration date.

If an MPACT Contract has not been Canceled or Terminated, and if the Qualified Beneficiary’s rights under the Contract have not been fully exercised within ten (10) years from the Projected College Date of the Qualified Beneficiary, or from the actual college entrance date of an accelerated student, all Contract rights are Terminated, and no refunds are available. The money will revert to the Trust Fund.

History

Source: Miss. Code Ann. § 37-155-9 (Rev. 2003).

38 Miss. Admin. Code Pt. 2, R. 11.4 Notification of Intent to Receive Educational Benefits

At such time as the Qualified Beneficiary intends to begin using the benefits under the MPACT Contract to attend a private or Out-of-State Postsecondary Institution, the Contract Purchaser must submit written notification, including the name of the Postsecondary Institution the Beneficiary will attend, not less than sixty (60) days prior to the projected commencement date for utilization of Contract benefits by the Qualified Beneficiary. Failure to provide at least sixty (60) days advance notice may result in the assessment of a fee in accordance with the provisions of Rule 12.2C as well as a delay in the availability of the MPACT Contract benefits until the academic term immediately following the term in which the projected commencement date for utilization of the MPACT Contract benefits falls.

History

Source: Miss. Code Ann. § 37-155-9 (Rev. 2003).

38 Miss. Admin. Code Pt. 2, R. 11.5 Identification Cards for Qualified Beneficiaries

To receive benefits under the MPACT Program, a Qualified Beneficiary, whose contract is in good standing, will be issued an identification card prior to their scheduled matriculation date. An identification card may not be issued to a Beneficiary unless the MPACT Contract and any outstanding Administrative Fees have been paid in full. An identification card shall also not be issued unless the Qualified Beneficiary submits a valid social security number. The postsecondary institution in which the Qualified Beneficiary has entered should not invoice the MPACT Trust Fund on behalf of the Beneficiary unless the Beneficiary presents a valid identification card to the appropriate person and office at the college or university in which the Qualified Beneficiary has entered or the Beneficiary’s name appears on MPACT’s Eligibility list as provided to the postsecondary inst itution.

History

Source: Miss. Code Ann. § 37-155-9 (Rev. 2003).

38 Miss. Admin. Code Pt. 2, R. 11.6 MPACT Contract Prices

New MPACT Contract prices will be established by the Board for each Enrollment Period. Contract prices will be based on actuarial assumptions recommended by the actuary and adopted by the Board regarding tuition rates and other relevant factors. MPACT Contract prices will not include the Application Processing Fee. The contract price may include a non-refundable Account Maintenance Fee in accordance with Rule 12.2.3.

After a Purchaser has entered into an MPACT Contract, the Contract price will not change, unless otherwise specified herein. Establishment of new prices for future MPACT Enrollment Periods will NOT affect or change the pricing of MPACT Contracts purchased during previous Enrollment Periods.

History

Source: Miss. Code Ann. § 37-155-9 (Rev. 2003).

38 Miss. Admin. Code Pt. 2, R. 11.7 MPACT Contract Payments

MPACT Contract payments are due in full on the dates specified in the MPACT Contract. Contract payments may be made under the following different Participation and Payment Schedules:

A. A lump sum payment due in full on or before the date designated by the State Treasurer.

B. Continuous monthly payments beginning on a date specified by the State Treasurer and continuing on a monthly basis until no later than the summer immediately preceding the Projected College Entrance Date of the Qualified Beneficiary.

C. A down payment (partial lump sum) followed by continuous monthly payments beginning on a date specified by the State Treasurer and continuing on a monthly basis until no later than the summer immediately preceding the Projected College Entrance Date of the Qualified Beneficiary.

D. A series of annual payments beginning on a date specified by the State Treasurer and continuing on an annual basis.

History

Source: Miss. Code Ann. § 37-155-9 (Rev. 2003).

38 Miss. Admin. Code Pt. 2, R. 11.8 Default

Failure to make any payment within thirty (30) days of the due date shall constitute default by the Purchaser and a suspension of the Qualified Beneficiary’s rights under the MPACT Contract. A Purchaser may reinstate his or her good standing provided that all delinquent amounts, including an Actuarial Assessment, and all Administrative Fees, including late payment fees, have been paid.

History

Source: Miss. Code Ann. § 37-155-9 (Rev. 2003).

38 Miss. Admin. Code Pt. 2, R. 11.9 Reinstatement

If within 180 days of default payment is not received, the Contract will be placed in suspended status, unless there is a determination by the Board of an exigent circumstance. To return the account to active status, the Purchaser must either pay the delinquent amounts, including Assessments and Fees, or agree to change the Contract or payment terms (see Rule 11.10 through 11.13) in order to convert the account to some arrangement where they will not be delinquent. The Purchaser may also elect to voluntarily cancel the Contract as described in Chapter 14 and Rule 15.7.

History

Source: Miss. Code Ann. § 37-155-9 (Rev. 2003).

38 Miss. Admin. Code Pt. 2, R. 11.10 MPACT Contract Modifications

All requests by Contract Purchasers for a modification o f the Contract provisio ns must be submitted in writ ing and must be accompanied by any written documentation which the State Treasurer may reasonably request and deem sufficient, along with all applicable Administrative Fees.

History

Source: Miss. Code Ann. § 37-155-9 (Rev. 2003).

38 Miss. Admin. Code Pt. 2, R. 11.11 Changes in Payment Schedule

An MPACT Contract Purchaser may request a change in payment schedule any time during the MPACT Enrollment Period in which the Purchaser enters the MPACT Program and extending through the 10th day of the month in which the first payment is due for monthly Purchasers, or in which the onetime, lump sum payment is due for lump sum Purchasers. A request for a change in payment schedule must be submitted, in writing, to the State Treasurer and must be received by the State Treasurer within the time frame specified herein. A change in payment schedule at any other time, including at the time of a Beneficiary substitution, may require the MPACT Contract Purchaser to cancel their existing MPACT Contract and to purchase a new Contract during a subsequent MPACT Enrollment Period.

Purchasers electing a monthly payment plan may pay off the plan early. In such cases, the Purchaser can obtain a payoff amount by calling 1-800-987-4450.

History

Source: Miss. Code Ann. § 37-155-9 (Rev. 2003).

38 Miss. Admin. Code Pt. 2, R. 11.12 MPACT Contract Payment Methods

Any one of a variety of payment methods is available to an MPACT Contract Purchaser. These may include payment by coupon book, automatic deduction from a bank account (automatic clearinghouse checks), or payroll

deduction. A Purchaser may change payment method after submitting a written request to the State Treasurer.

Automatic payroll deduction may be provided for State employees. Any other employer desiring to establish automatic payroll deduction for MPACT Contract Purchasers may do so as long as the payroll deduction is administered in accordance with specifications provided by the State Treasurer.

Contract Purchasers electing payment by coupon book will be responsible for making all payments on time, even if the Purchaser has not received a coupon book. Similarly, a Purchaser will be responsible for making all payments on time, prior to implementation of payroll deduction or automatic deduction from a checking or savings account. Any Purchaser who delays payment beyond the payment due date, until a coupon book has been issued or until payroll deduction or automatic bank deduction has been implemented, may be assessed late payment fees and an Actuarial Assessment.

History

Source: Miss. Code Ann. § 37-155-9 (Rev. 2003).

38 Miss. Admin. Code Pt. 2, R. 11.13 Contract Modifications Other Than Changes in Payment Schedule

All requests for modification(s) in the MPACT Contract must be made, in writing, to the State Treasurer and must be submitted along with any applicable Administrative Fees and any supporting written documentation required by the State Treasurer. Requests for modifications, may include, but are not limited to, a change in Contract Purchaser or transfer of the Contract benefits to an eligible Substitute Beneficiary.

History

Source: Miss. Code Ann. § 37-155-9 (Rev. 2003).

38 Miss. Admin. Code Pt. 2, R. 11.14 Contract Exclusions

Nothing in these Rules, Regulations and Procedures, in the MPACT Contract, or in the Mississippi Prepaid Affordable College Tuition Program Act shall be construed as a promise or guarantee by the State Treasurer, the Board of Trustees, or employees or consultants of the State Treasurer and/or the Board of Trustees, of any of the following:

A. Admission of the Qualified Beneficiary to a Postsecondary Institution.

B. Admission of the Qualified Beneficiary to a particular Postsecondary Institution.

C. Authorization to the Qualified Beneficiary to continue enrollment at a Postsecondary Inst itution after admissio n. D. Graduation of the Qualified Beneficiary from a Postsecondary Institution.

No continuing education course, graduate program, first professional program, or adult education program is available under the MPACT Program except as described under Rule 13.2.

Tuit ion and Mandatory Fees paid under an MPACT Contract will be In-state Tuition and In-state Mandatory Fee charges only. The State Treasurer, the MPACT Program, and the Trust Fund are not responsible for payment of the difference between In-State and Out-of-State tuition and fee

rates. MPACT will not pay tuition charges or Mandatory Fee charges at a rate in excess of the rate charged to students who are eligible for In-state Tuition and Mandatory Fee rates. All MPACT Beneficiaries are considered Mississippi residents for purposes of tuition payments regardless of the Beneficiary’s residence on the date of college enrollment.

History

Source: Miss. Code Ann. § 37-155-9 (Rev. 2003).

38 Miss. Admin. Code Pt. 2, R. 11.15 Transfers between Senior and Junior College Plans

If a Beneficiary under a junior college plan elects to attend a university or senior college, the MPACT Program will convert the community college hours into university hours based on the then current relative costs and pay the tuit ion. This results in fewer hours on your Contract but enables the Program to pay tuit ion until benefits are exhausted.

If a Beneficiary under a university or senior college plan elects to attend a junior or community college, the Purchaser may request a refund of the difference between the amount actually paid by MPACT to the junior or community college and the Weighted Average Tuit ion and Mandatory Fees at Mississippi’s public universities in that year.

History

Source: Miss. Code Ann. § 37-155-9 (Rev. 2003), § 37-155-11.

Chapter 12 Administrative Fees

38 Miss. Admin. Code Pt. 2, R. 12.1 Administrative Fees

Administrative Fees are assessed when a Purchaser submits an Application for an MPACT Contract, when payments are made or when alterations are made in Contract information or in the ordinary services provided under the MPACT Program. The types of fees as well as the amount charged for each are subject to change during the life of any MPACT Contract.

History

Source: Miss. Code Ann. § 37-155-9 (Rev. 2003).

38 Miss. Admin. Code Pt. 2, R. 12.2 Fees Assessed and Fee Schedules

The following Administrative Fees and fee schedules will apply to all Purchasers of MPACT Contracts, subject to changes the State Treasurer may make over the life of the Contract in the types and/or amounts of such Administrative Fees:

A. Application Processing Fee - A sixty dollar ($60.00) Application Processing Fee will be collected for EACH MPACT Application at the time that the Application is submitted to the State Treasurer. An Application will not be accepted unless the full amount of the Application Processing Fee is submitted along with the Application.

B. In general, the Application Processing Fee is nonrefundable. The Application Processing Fee will only be refunded if the MPACT Application is rejected and the Purchaser is denied participation in the MPACT Program through no fault of the Purchaser.

C. Account Maintenance Fee - All MPACT Contract payments include a nonrefundable account maintenance fee. The account maintenance fee for monthly payment Contracts is

two dollars ($2.00) per month. The account maintenance fee for lump-sum payment Contracts is three dollars ($3.00) per year till matriculation of the Qualified Beneficiary.

D. Cancellation Fee - An MPACT Contract may be canceled for any of the following:

The Purchaser submits a written request;
The Purchaser fails to make payments pursuant to the Master MPACT and/or the Participation and Payment Schedule;
The Purchaser fails to make a Contract payment within forty-five (45) days of the first payment due date following the close of the MPACT Enrollment period during which the MPACT Application was submitted.

Fifty percent (50%) of the amount paid into the Trust Fund, up to a maximum of one hundred fifty dollars ($150.00), excluding Administrative Fees, will be assessed upon the Cancellation of an MPACT Contract. The Cancellation Fee will be waived in the event of death or disability of the Qualified Beneficiary or with proof of scholarship. Effective for cancellations between January 1, 2002, and September 30, 2014, the cancellation fee will be fifty percent (50%) of the amount paid into the Trust Fund, up to a maximum of twenty five dollars ($25.00), excluding Administrative Fees. Effective for cancellations on or after October 1, 2014, the Cancellation Fee will be fifty percent (50%) of the amount paid into the Trust Fund, up to a maximum of one hundred fifty dollars ($150.00), excluding Administrative Fees.

In the event of death or disability of the Qualified Beneficiary, the Purchaser must submit acceptable documentation along with a written request at the time of application for a refund.

E. Termination Fee - An MPACT Contract may be Involuntarily Terminated for any of the following reasons:

The Purchaser or Beneficiary has made a material misrepresentation of information;
The Purchaser or Beneficiary has provided false information to the MPACT Program;
The Purchaser has requested or accepted any form of compensation, fee, commission, service charge or any other form of payment or remuneration for entering into a Contract for the benefit of a nonresident Beneficiary; or,
Such other reasons as the State Treasurer may reasonably impose.

If the MPACT Contract is terminated, a Termination Fee of one hundred percent (100%) of the amounts paid into the Trust Fund, excluding Administrative Fees, up to a maximum

of five hundred dollars ($500.00) will be assessed. Effective for terminations on or after October 1, 2014, a Termination Fee of one hundred percent (100%) of the amounts paid into the Trust Fund, excluding Administrative Fees, up to a maximum of one thousand five hundred dollars ($1,500.00) will be assessed. Any refund due to the Purchaser of amounts paid into the Trust Fund, in the event of Termination of the MPACT Contract, is addressed in Rule 15.8.

F. Substitution of Beneficiary Fee - A twenty five dollar ($25.00) fee will be assessed to transfer MPACT Contract benefits to a Substitute Beneficiary. In the event of death or disability of the original Beneficiary, or in the event the Beneficiary receives a Full or Partial Scho larship, this fee may be waived. Proof of death or disability of the Qualified Beneficiary, or receipt of a Full or Partial Scholarship by the Qualified Beneficiary, must be provided in such form as deemed acceptable by the State Treasurer.

G. Fee for Transfer of Contract Purchaser and Contingent Purchaser - A twenty five dollar ($25.00) fee will be assessed to change the MPACT Contract Purchaser and/or Contingent Purchaser in accordance with the provisions of Rule 8.4 herein. In the event of death or disability of the current Purchaser, this fee may be waived.

H. Fee for Enrollment in an Independent/Private In-state Postsecondary or Graduate Institution or in an Out-of-State Postsecondary or Graduate Institution - In the event a Qualified Beneficiary elects to attend an Independent/Private In-state Postsecondary or Graduate Institution or an Out-of-State Postsecondary or Graduate Institution, or in the event a Qualified Beneficiary transfers from an In-state Institution of Higher Education Postsecondary Institution to an Independent/Private In-state Postsecondary or Graduate Institution or to an Out-of-State Postsecondary or Graduate Institution, the Contract benefits will be transferred to such other Postsecondary or Graduate Institution in accordance with the provisions of Chapter 13. Each time a transfer occurs, the MPACT Contract Purchaser may be assessed a twenty-five dollar ($25.00) processing fee per transfer.

I. Late Payment Fee - A late payment fee of twenty dollars ($20.00) shall automatically be assessed on each monthly MPACT Contract payment received more than fifteen (15) days past the payment due date. An Actuarial Assessment of 1% per month will automatically be assessed on each lump-sum payment received more than fifteen (15) days past the payment due date. For accounts with partial lump sums and monthly payments, the fee for late payment will be twenty dollars ($20.00) or 1%, whichever is greater. A grace period, up to four (4) days in length, may be granted when a federal and/or state holiday occurs within the fifteen (15) days specified in this Section. If a Purchaser’s payments are habitually late, the State Treasurer, at his discretion, may suspend the Contract as described in Rule 11.8.

J. Fee for Return Items - A thirt y dollar ($30.00) returned item fee shall automatically be assessed for any returned item including, but not limited to, payment made by check or through ACH (Automatic Clearinghouse). Such payments include both MPACT Contract payments and Administrative Fee payments that are returned.

K. Fee for Document Replacement or Copies - Except as provided herein, Purchasers and/or Beneficiaries shall automatically be assessed a ten dollar ($10.00) fee per document (not per page) when requesting more than one copy, or a replacement copy, of any MPACT document including, but not limited to, the MPACT Application, the Participation and Payment Schedule, the Master MPACT Contract, the coupon book, and the identification card. If another gift pack is requested, a $7.00 fee will be assessed for the entire gift pack rather than for each document contained in the gift pack. However, for lengthy documents, for documents requiring additional postage beyond the basic postage rate for a first class letter, and for documents requiring overnight delivery, the State Treasurer may assess an additional amount above the ten dollar ($10.00) fee. The additional amount shall not exceed $25.00 per request from the Contract Purchaser.

L. Fee for Failure to Provide Sufficient Notification of Intent to Use the Contract Benefits - Pursuant to Rule 11.4 of these Rules , Regulations, and Procedures, the Purchaser should give at least sixty (60) days written notification of the Beneficiary’s intent to use MPACT Contract benefits to attend a Private or Out-of-State Postsecondary Inst itution and should specify the Postsecondary Institution the Beneficiary will attend. Failure to provide adequate notification may result in assessment of a forty-five dollar ($45.00) fee. This fee must be paid by the Purchaser before benefits under the MPACT Contract will be paid to the Postsecondary Institution in which the Qualified Beneficiary has matriculated.

M. Fee for Changes in Payment Schedule - A twent y five dollar ($25.00) processing fee will be assessed for a change in payment schedule.

History

Source: Miss. Code Ann. § 37-155-9 (Rev. 2003).

Chapter 13 Attendance at an Independent/Private In-state or Out-of State Postsecondary Institution

38 Miss. Admin. Code Pt. 2, R. 13.1 Rule 13.1

Utilization of MPACT Contract Benefits at an Independent/Private Postsecondary Institution or at an Out-of-State Postsecondary Institution. In the event the Qualified Beneficiary matriculates in an Independent/Private In-state Postsecondary Institution or in an Out-of-State Postsecondary Institution, the Current Tuition Value will be forwarded, each academic term, to the Postsecondary Institution on an academic equivalent hourly basis subject to the provisions of the MPACT Contract described in Rule 11.2. In no case will the amount forwarded ever exceed the cost of undergraduate tuition plus Mandatory Fees of the Postsecondary Institution to which the money is forwarded for the particular academic hours and term in quest ion.

Forwarding of MPACT Contract benefits under this Chapter will be made only when all of the following have occurred:

A. The Purchaser has submitted a written request and all applicable Administrative Fees to the State Treasurer for transfer of the MPACT Contract benefits. The request should be submitted not less than sixty (60) days in advance of the first academic term for which the MPACT Contract benefits are to be paid;

B. The Purchaser has paid the applicable Administrative Fee(s) in accordance with Rule 12.2;

C. The State Treasurer has received a valid invoice from the Beneficiary’s college or university after the end of the Institution’s official drop/add period for each academic term for which MPACT Contract benefits are to be paid.

Failure to comply with the sixty (60) day requirements in this Chapter may result in the delay or unavailability of the MPACT Contract benefits until the following academic term.

History

Source: Miss. Code Ann. § 37-155-9 (Rev. 2003), §37-155-11.

38 Miss. Admin. Code Pt. 2, R. 13.2 Utilization of MPACT Contract Benefits at an In-State or Out-Of-State Graduate Institution

In the event the Qualified Beneficiary with unused Contract benefits attends an In- State or Out-of-State Graduate Institution, the Current Tuition Value will be forwarded, each academic term, to the Graduate Institution on an academic equivalent hourly basis subject to the provisions of the MPACT Contract described in Rule 11.2. In no case will the amount forwarded ever exceed the cost of tuition plus Mandatory Fees of the Graduate Institution to which the money is forwarded for the particular academic hours and term in question.

Forwarding of MPACT Contract benefits under this Chapter will be made only when all o f the following have occurred:

B. The Purchaser has paid the applicable Administrative Fee(s) in accordance with Rule 12.2;

C. The State Treasurer has received a valid invoice from the Beneficiary’s Graduate Institution after the end of the Institution’s official drop/add period for each academic term for which MPACT Contract benefits are to be paid.

Failure to comply with the sixty (60) day requirements in this Chapter may result in the delay or unavailability of the MPACT Contract benefits until the following academic term.

History

Source: Miss. Code Ann. § 37-155-9 (Rev. 2003), §37-155-11.

Chapter 14 Termination or Cancellation of MPACT Contract

38 Miss. Admin. Code Pt. 2, R. 14.1 General

Unless otherwise stated herein, Termination or Cancellation of an MPACT Contract shall result in a refund to the Purchaser only after payment of applicable Administrative Fees.

History

Source: Miss. Code Ann. § 37-155-9 (Rev. 2003).

38 Miss. Admin. Code Pt. 2, R. 14.2 Individual Entitled to Cancel an MPACT Contract

The person entitled to cancel an MPACT Contract is the Contract Purchaser.

History

Source: Miss. Code Ann. § 37-155-9 (Rev. 2003).

38 Miss. Admin. Code Pt. 2, R. 14.3 Individual Entitled to Receive Refunds

Unless otherwise stated herein, the individual entitled to receive any refunds which may be due under an MPACT Contract is the named Contract Purchaser.

History

Source: Miss. Code Ann. § 37-155-9 (Rev. 2003).

Chapter 15 Refunds of Amounts Paid Into the Trust Fund

38 Miss. Admin. Code Pt. 2, R. 15.1 General

Unless otherwise stated herein, refunds will be paid to the Purchaser. Refund amounts will be based on the reason for Terminating or Canceling an MPACT Contract. Except as provided herein, refunds shall include but not be limited to the amount paid in and an additional amount in the nature of interest at a rate that corresponds to the prevailing interest rates for savings accounts provided by banks and savings and loan associations. The Board may impose reasonable charges for such withdrawal or refund. Termination of student status after the official drop/add period eliminates the refund option for that academic term.

If a Qualified Beneficiary does not receive course credit for credit hours paid under an MPACT Contract, a refund will not be available for these credit hours. Furthermore, once the Trust Fund has paid a Postsecondary Institution for credit hour(s) on behalf of a Qualified Beneficiary, the hour(s) paid to the Postsecondary Institution reduce the total number of credit hours available for calculation of any refund amount that may be due to the Purchaser.

If the Qualified Beneficiary achieves a baccalaureate degree in fewer than the maximum number of credit hours guaranteed under an MPACT Contract and/or in fewer than the number of academic terms for which payment of Mandatory Fees is guaranteed under the Contract, a refund will not be available. As soon as a Qualified Beneficiary attains a baccalaureate degree, and/or utilizes the total number of credit hours guaranteed under the Contract, all services under the MPACT Contract will be Terminated. Any refund made to the Purchaser will occur only after the Purchaser has paid any outstanding Administrative Fees.

Unless otherwise specified herein, refunds may be paid in installments as determined by the State Treasurer. The amount of the refund installments will be calculated by the State Treasurer at the time the written request for a refund is approved. Unless otherwise stated herein, the refund installments will be paid to the Purchaser. The State Treasurer is not responsible for any refunds that may be payable by the Postsecondary Institutions.

A Purchaser who voluntarily cancels their Contract will be allowed to reinstate up to the point where a refund check is issued. If the Purchaser changes their mind regarding Cancellation after issuance of a refund check, they must purchase a new Contract during the next Enrollment Period at that Enrollment Period’s prices.

History

Source: Miss. Code Ann. § 37-155-9 (Rev. 2003).

38 Miss. Admin. Code Pt. 2, R. 15.2 Refund in the Event of Death or Disability of the Qualified Beneficiary

Refunds may exceed the amounts paid into the Trust Fund and the minimum interest as specified in Rule 15.1 in the following circumstances: In the event of death or disability of a Qualified Beneficiary. In any of these circumstances, the Purchaser shall receive a refund equal to the sum of all MPACT Contract payments paid to date, excluding all Administrative Fees, minus any amount paid by the Trust Fund to Postsecondary Institutions on behalf of the Qualified Beneficiary, with such net amounts adjusted to reflect the increase in Current Tuit ion Value over the period from the purchase of the MPACT Contract to the date the refund calculation is made.

For the refund provisions stated herein to apply, the Purchaser must submit a written request for Cancellation of the MPACT Contract. The written request should be submitted within one hundred eighty (180) days of the death or disability of the Qualified Beneficiary. Furthermore, proof of death, disability, or qualification must be submitted in such form as is deemed acceptable by the State Treasurer. If the written request and required documentation are not submitted within the one hundred eighty (180) day deadline, the refund provisions of Rule 15.8 may apply.

History

Source: Miss. Code Ann. § 37-155-9 (Rev. 2003).

38 Miss. Admin. Code Pt. 2, R. 15.3 Refund in the Event of a Reduction in Tuition and/or Fees for a Child of an Employee of a Postsecondary Institution

Some Postsecondary Institutions may charge lower tuition and/or fees to a student who is a child of an employee of the Postsecondary Institution. If an MPACT Contract Beneficiary is eligible for this reduction, the Contract Purchaser may elect to cancel the MPACT Contract and request a refund under Rule 15.7 herein. The refund will be equal to the Redemption Value of the Contract. If the Purchaser does not cancel the MPACT Contract, MPACT will pay the college or university based on the invoice submitted by the Postsecondary Inst itution and subject to the provisions of MPACT stated in these Rules, Regulations, and Procedures. If the Beneficiary receives a tuition reduction from the college or university and the Trust Fund pays, based on the invoice from the Institution, the full amount of the MPACT Contract to the college or university attended by the Beneficiary, it shall be the responsibility of the Purchaser to request a refund of the overpayment of tuition and fees from the college or university. If the college or university invoices the Trust Fund for a reduced amount of tuition and Mandatory Fees, i.e., an amount less than that contracted for by the Purchaser in the MPACT Contract, then the Purchaser shall request a refund from the Trust Fund of the difference between the invoiced amount and the amount for which the Purchaser contracted, and the refund will be made by the Trust Fund directly to the Purchaser, based on the appropriate documentation.

History

Source: Miss. Code Ann. § 37-155-9 (Rev. 2003).

38 Miss. Admin. Code Pt. 2, R. 15.4 Refund in the Event of Receipt of a Full or Partial Scholarship by a Qualified Beneficiary

cancel the MPACT Contract, MPACT will pay the college or university based on the invoice submitted by the Postsecondary Institution and subject to the provisions of MPACT stated in these Rules, Regulations, and Procedures. If a Qualified Beneficiary is awarded a Full or Partial Scholarship, the terms of which fully or partially cover the benefits guaranteed in the MPACT Contract and the Trust Fund pays, based on the invoice from the institution, the full amount of the MPACT Contract to the college or university attended by the Beneficiary, it shall be the responsibility of the Purchaser to request a refund of the overpayment of tuition and fees from the college or university. If the college or university invoices the Trust Fund for a reduced amount of tuit ion and Mandatory Fees, i.e., an amount less than that contracted for by the Purchaser in the MPACT Contract, then the Purchaser shall request a refund from the Trust Fund of the difference between the invoiced amount and the amount for which the Purchaser contracted, and the refund will be made by the Trust Fund directly to the Purchaser, based on the appropriate documentation.

History

Source: Miss. Code Ann. § 37-155-9 (Rev. 2003).

38 Miss. Admin. Code Pt. 2, R. 15.5 Refund if the Beneficiary Matriculates in a Military College or University

In the event the MPACT Contract Beneficiary matriculates in one of the U.S. Government sanctioned military academies listed below, such that tuition and Mandatory Fees are not charged, the Purchaser will receive a refund equal to the sum of all MPACT Contract payments paid to date, excluding all Administrative Fees, minus any amount paid by the Trust Fund to Postsecondary Institutions on behalf of the Qualified Beneficiary, with such net amounts adjusted to reflect the increase in Current Tuition Value over the period from the purchase of the MPACT Contract to the date the refund calculation is made.. A Request for a refund should be submitted within sixty (60) days of the Beneficiary’s enrollment in the military college or university and must be accompanied by written documentation, deemed acceptable by the State Treasurer, evidencing enrollment. Otherwise, the refund provisions of Rule 15.8 may apply. The provisions herein apply to attendance at any one of the following military academies: The United States Air Force Academy in Colorado Springs, Colorado; The United States Naval Academy in Annapolis, Maryland; The United States Military Academy at West Point, New York; The United States Merchant Marine Academy at Kings Point, New York; or, The United States Coast Guard Academy in New London, Connecticut

History

Source: Miss. Code Ann. § 37-155-9 (Rev. 2003).

38 Miss. Admin. Code Pt. 2, R. 15.6 Refund if the Beneficiary Matriculates in a Postsecondary Institution Located Outside of the United States

If the Beneficiary matriculates in a Postsecondary Institution located outside of the United States, the MPACT Contract Purchaser may receive a refund of the Redemption Value of the Contract. The Cancellation Fee will be waived. The Contract Purchaser must submit a written request for a refund and must furnish written documentation, acceptable to the State Treasurer, substantiating the Beneficiary’s attendance at a Postsecondary Institution located outside of the United States.

History

Source: Miss. Code Ann. § 37-155-9 (Rev. 2003).

38 Miss. Admin. Code Pt. 2, R. 15.7 Refund in the Event Qualified Beneficiary Graduates With Unused Contract Hours

If a Qualified Beneficiary completes an undergraduate program and obtains a baccalaureate degree without using all semester hours purchased in their MPACT Contract, the remaining Contract hours may be used for graduate school as described under Rule 13.2. If the Beneficiary will not be attending graduate school, the Purchaser may request at refund to be based on the cost of the number of remaining hours in their Contract adjusted to reflect the increase in Current Tuition Value over the period from the purchase of the MPACT Contract to the date the refund calculation is made. Such requests must be in writing and include appropriate written documentation, acceptable to the State Treasurer, that the Beneficiary has received a baccalaureate degree. If the Beneficiary has not earned an undergraduate degree, the refund provisions of Rule 15.8 will apply.

History

Source: Miss. Code Ann. § 37-155-9 (Rev. 2003).

38 Miss. Admin. Code Pt. 2, R. 15.8 Other Refunds

Refunds for reasons or circumstances other than those stipulated above in Rule 15.1 through 15.6 may be made to the Purchaser upon written request by the Purchaser after submission of all documentation required by the State Treasurer to substantiate the refund request, and after payment of the required Administrative Fee(s).

The Purchaser will be entitled to a refund equal to the Redemption Value of the Contract. A refund under this Rule will not include credit hours or Mandatory Fees paid by the Trust Fund on behalf of the Qualified Beneficiary prior to the time of refund. A Cancellation Fee will also be charged.

History

Source: Miss. Code Ann. § 37-155-9 (Rev. 2003).

Chapter 16 Rollovers

38 Miss. Admin. Code Pt. 2, R. 16.1 General

Qualified Rollover Distributions are not subject to taxation or penalty. Rollover Distributions include both:

A. Transfers between a QTP operated by one state and a QTP operated by another state; or

B. Transfers between separate QTP’s operated by the same state.

These changes can be made as a non-taxable event without penalty or additional tax if there is a change of Beneficiary and the new Beneficiary is a "member of the family" of the previous Beneficiary. Account Owners may also rollover from one QTP to another for the same Beneficiary once every twelve (12) months without incurring State or federal income tax, any penalty or the additional tax, so long as the transfer occurs within sixty (60) days of the original withdrawal.

History

Source: Miss. Code Ann. § 37-155-9 (Rev. 2003).

38 Miss. Admin. Code Pt. 2, R. 16.2 Rollovers from MACS to MPACT

Purchasers desiring to transfer money from a MACS Account to pay for their MPACT Contract must contact the MACS Program Manager to

request a rollover. Purchasers should also complete, sign and transmit to MPACT an MPACT Rollo ver Form.

History

Source: Miss. Code Ann. § 37-155-9 (Rev. 2003).

38 Miss. Admin. Code Pt. 2, R. 16.3 Rollovers from MPACT to MACS

Purchasers desiring to transfer money from their MPACT Contract to a MACS Account may request such a transfer by completing and transmitting a request that the Contract be Cancelled and requesting the refund be sent to their MACS Account. The MACS Account must be already opened and a MACS Account Number provided at the time of the request.

History

Source: Miss. Code Ann. § 37-155-9 (Rev. 2003).

38 Miss. Admin. Code Pt. 2, R. 16.4 Rollovers from QTP’s (529 Plans) Operated by Other States to MPACT

It is the responsibility of the Purchaser to notify the other QTP and request that the proper amount be sent to MPACT. Purchasers should also complete, sign and transmit to MPACT an MPACT Rollover Form as notification to expect the rollover payment.

History

Source: Miss. Code Ann. § 37-155-9 (Rev. 2003).

38 Miss. Admin. Code Pt. 2, R. 16.5 Rollovers from MPACT to a QTP (529 Plan) Operated by Other States

Purchasers desiring to transfer money from their MPACT Contract to a QTP operated by another state may request such a transfer by completing and transmitting a request that the Contract be Cancelled and requesting the refund be sent to their QTP Account. The QTP Account must be already opened and an Account Number and payment address provided at the time of the request. MPACT will provide the other QTP with a breakdown between interest and return of principal along with the rollover payment.

History

Source: Miss. Code Ann. § 37-155-9 (Rev. 2003).

Chapter 17 Special Petition

38 Miss. Admin. Code Pt. 2, R. 17.1 General

Any individual, corporation, organization, or other Entity desiring to petition for relief from the Rules, Regulations, and/or Procedures dictated herein may do so by filing a written petition with the State Treasurer. The petition shall contain the name and address of the person requesting relief; the specific nature of the relief requested; the name and address of any Purchaser or Beneficiary on any disputed MPACT Contract; the MPACT Contract account number(s) of the Contract(s) in question; the Rule, Regulation, and/or Procedure from which the Petitioner is requesting relief; the date of request; the social security number or tax identification number of the Beneficiary and of the Purchaser; and the sworn signature of the petitioner. The response to the petition will be in writing and will be made within forty-five (45) days of receipt of the petition from the individual requesting relief. The State Treasurer, or his/her designee, has the authority to respond to the petition on behalf of the Board of Directors.

Any individual or Entity as described above may appeal to the Board of Directors an adverse ruling by the Treasurer, or the Treasurer and MPACT Director may decide at their discretion that

an appeal by any Entity as described above should be considered by the MPACT Board of Directors. In such cases, the written statement of the petitioner shall be forwarded to the appropriate committee of the Board, and the matter placed on the agenda for the next meeting of that committee. The committee shall consider the appeal and make a recommendation as to the appeal to the entire Board. The person making such an appeal may request or be requested to appear in person at a meeting of a committee or the Board, at the discretion of the committee or Board. Decisions by the Committee or the Board shall be communicated in writing to the person making the appeal. All such decisions by the Board are final.

History

Source: Miss. Code Ann. § 37-155-9 (Rev. 2003).

Chapter 18 Miscellaneous Provisions

38 Miss. Admin. Code Pt. 2, R. 18.1 Promulgation and Amendment of these Rules, Regulations, and Procedures

The State Treasurer, on behalf of the Board of Directors, shall promulgate such other Rules, Regulations, and Procedures as are deemed necessary to implement the MPACT Program and shall amend such Rules, Regulations, and Procedures as is necessary for operation of the MPACT Program.

History

Source: Miss. Code Ann. § 37-155-9 (Rev. 2003).

Chapter 19 Waiver of Rules, Regulations, and Procedures

38 Miss. Admin. Code Pt. 2, R. 19.1 General

The State Treasurer may waive portions of these Rules, Regulations, and Procedures to prevent hardship of the Purchaser and/or of the Qualified Beneficiary.

History

Source: Miss. Code Ann. § 37-155-9 (Rev. 2003).

Chapter 20 MPACT Rules, Regulations and Procedures for Corporations, Trusts, Charitable Organizations, and Other Qualified Entities

38 Miss. Admin. Code Pt. 2, R. 20.1 General

These Rules, Regulations, and Procedures have been established by the Board for Contract Purchasers who are not natural persons. The State Treasurer has determined that entering into MPACT Contracts to be awarded to Beneficiaries who are not immediately known will allow and encourage corporations, trusts, charitable organizations, foundations, civic groups and other interested parties, who are not natural persons, to enter into MPACT Contracts. This type of Contract will also provide educational benefits to Beneficiaries who might otherwise not be able to afford postsecondary education. For the purpose of these Rules, Regulations, and Procedures, the term “Entity” shall mean any corporation, trust, charitable organization, or any other business or organization which is not a natural person and which is approved by the State Treasurer for the purchase of an MPACT Contract. Unless specifically exempted herein, all Rules, Regulations, and Procedures pertaining to MPACT Contract Purchasers who are natural persons also apply to any Purchaser that is an Entity.

History

Source: Miss. Code Ann. § 37-155-9 (Rev. 2003).

38 Miss. Admin. Code Pt. 2, R. 20.2 Eligibility of the Purchaser

The Purchaser of an MPACT Contract may be any Entity approved, in writing, by the State Treasurer.

History

Source: Miss. Code Ann. § 37-155-9 (Rev. 2003).

38 Miss. Admin. Code Pt. 2, R. 20.3 Naming the Beneficiary

An Entity which purchases an MPACT Contract is required to name the Contract Beneficiary at the time the MPACT Application is submitted to the State Treasurer, unless the entity is a state or local government or an organization described in IRC § 501(c)(3). If an exempt Entity, such as a state or local government or an organization described in IRC § 501(c)(3), submits an MPACT Application for an unnamed Beneficiary, a Projected College Entrance Date for the unnamed Beneficiary must be specified on the MPACT Application. The age of the unnamed Beneficiary on the MPACT Application will be the normal age for a Beneficiary expected to enter college in the academic school year corresponding to the Projected College Entrance Date. The Beneficiary should be named not less than six (6) months prior to the Projected College Entrance Date specified by the entity on the MPACT Application.

History

Source: Miss. Code Ann. § 37-155-9 (Rev. 2003).

38 Miss. Admin. Code Pt. 2, R. 20.4 Beneficiary Eligibility

If the Beneficiary is named at the time the MPACT Application is submitted to the State Treasurer, the Beneficiary eligibility requirements of Rule 9.1 are applicable. If the Beneficiary is not named, pursuant to the exemption stated in Rule 20.3, when the MPACT Application is submitted to the State Treasurer, at such time as the Beneficiary is named, the named Beneficiary must meet all of the following requirements:

A. The Beneficiary must be a resident of the State of Mississippi, or a nonresident provided that the Purchaser is a resident of the State.

B. The Beneficiary must be eighteen (18) years of age or younger.

C. The Beneficiary must have a college enrollment year which is the same year as the Projected College Entrance Date provided in the MPACT Application by the Entity.

D. The Beneficiary must be born and have a valid birth certificate.

History

Source: Miss. Code Ann. § 37-155-9 (Rev. 2003).

38 Miss. Admin. Code Pt. 2, R. 20.5 Failure to Name the Beneficiary

Failure to name the Beneficiary within the time frame specified in Rule 20.3 will result in a Cancellation of the MPACT Contract, and the monies will be refunded from the Trust Fund including but not limited to the amount paid in and an addit io nal amount in the nature of interest at a rate that corresponds to the prevailing interest rates for savings accounts provided by banks and savings and loan associations and the Board may impose reasonable charges for such refund.

History

Source: Miss. Code Ann. § 37-155-9 (Rev. 2003).

38 Miss. Admin. Code Pt. 2, R. 20.6 Beneficiary Substitutions

Should the named Beneficiary elect not to use the MPACT Contract benefits, and the Contract is transferred to an Eligible Substitute Beneficiary, the provisio ns of Rule 9.3 will apply. The Purchaser may be required to submit documentation evidencing the relationship of the eligible Substitute Beneficiary to the first Beneficiary.

History

Source: Miss. Code Ann. § 37-155-9 (Rev. 2003).

38 Miss. Admin. Code Pt. 2, R. 20.7 Application

For any corporation or trust submitting an MPACT Application, the Application will be considered incomplete, and will not be accepted by the State Treasurer, unless the corporate applicant provides its taxpayer identification number on the Application, and the Application must be complete in all other respects as described in Rule 10.2 and Rule 20.3.

History

Source: Miss. Code Ann. § 37-155-9 (Rev. 2003).

38 Miss. Admin. Code Pt. 2, R. 20.8 Utilization of the MPACT Contract Benefits

The MPACT Contract benefits may not be used unless the Purchaser has furnished to the State Treasurer the name, age, and social security number of the Qualified Beneficiary and has complied with all other applicable Rules, Regulations, and Procedures pertaining to Purchasers who are natural persons.

History

Source: Miss. Code Ann. § 37-155-9 (Rev. 2003).

Chapter 21 Dormitory Residence Plan

38 Miss. Admin. Code Pt. 2, R. 21.1 Dormitory Residence Plans

Pursuant to the statutory authority of the Board of Directors which grants the Board the powers necessary or convenient to carry out the purposes and provisions of this act, upon the completion of a feasibility and advisability study the Board elected to not offer a prepaid dormitory plan.

The Mississippi Affordable College Savings (MACS) Plan provides a savings vehicle which can be used for books, room and board, graduate school, and other higher education expenses.

History

Source: Miss. Code Ann. § 37-155-9 (Rev. 2003), §37-155-13.

Part 3 Part 3: Mississippi Prepaid Affordable College Tuition Program (Horizon Contracts)

Chapter 1 Introduction

38 Miss. Admin. Code Pt. 3, R. 1.1 Introduction

The Mississippi Prepaid Affordable College Tuition (MPACT) Program was established by the 1996 Mississippi Legislature. The purpose of the Program is to encourage and foster higher education in Mississippi. The Program’s statutory authority and purpose are controlled by Sections 37-155-1 to 37-155-27 of the Mississippi Code (As Amended).

MPACT is administered by College Savings Mississippi, a division of the Office of the State Treasurer, under the administrative authority of the State Treasurer and with the guidance of a Board of Directors. The MPACT Contract provides for the payment of undergraduate tuition, for a specified number of semester hours, and for the payment of Mandatory Fees, for a specific number of academic terms, on behalf of a Beneficiary for whom the Contract is purchased.

The cost of an MPACT Contract is based primarily on the average current and projected Tuition and Mandatory Fees rates at public senior colleges, universities, community colleges in the State of Mississippi, and on the number of years between the purchase of a Contract and the utilization of Contract benefits. The Board of Directors establishes the costs of MPACT Contracts in accordance with actuarial assumptions adopted by the Board at the recommendation of independent actuaries.

The State of Mississippi also operates another college savings program, known as the Mississippi Affordable College Savings (MACS) Program. This document is intended to describe and apply to only the MPACT Program. Information on MACS can be obtained by contacting the Office of the State Treasurer.

History

Source: Miss. Code Ann. § 37-155-1 through 37-155-27 (Rev. 2003)

Chapter 2 Administration

38 Miss. Admin. Code Pt. 3, R. 2.1 Administration

MPACT is administered by the Office of the State Treasurer under the direction of a Board of Directors. The College Savings Plans of Mississippi Board of Directors is composed of nine (9) voting members. Five (5) board members are appointed by the Governor, one (1) from each of the State’s original congressional districts. The other four (4) ex- officio board members are the State Treasurer, the Executive Director of the Department of Finance and Administration, the Commissioner of Higher Education, and the Executive Director of the Community and Junior College Board. There are also four (4) legislative advisors to the Board, two (2) appointed by the Lieutenant Governor and two (2) appointed by the Speaker of the House of Representatives.

The powers of the Board are outlined in Sections 37-155-1 to 37-155-27 of the Mississippi Code (As Amended).

History

Source: Miss. Code Ann. § 37-155-7, §37-155-9 (Rev. 2003).

Chapter 3 Trust Fund

38 Miss. Admin. Code Pt. 3, R. 3.1 Trust Fund

The MPACT Trust Fund was established as a separate fund in the State Treasury to receive payments by MPACT Contract Purchasers in accordance with MPACT Contracts, legislative appropriations, as well as contributions, gifts and bequests by businesses or individuals. All monies deposited into this Trust Fund are invested by the Office of the State Treasurer in accordance with statute and the Investment Policy of the Board, with the goal of yielding sufficient income to generate the difference between the prepaid amount and the cost of In-State Tuition and Mandatory Fees at the time of actual enrollment of the Beneficiary.

History

Source: Miss. Code Ann. § 37-155-15.

Chapter 4 Administrative Fund

38 Miss. Admin. Code Pt. 3, R. 4.1 Administrative Fund

An Administrative Fund, separate from the Trust Fund, was established in the State Treasury to provide for the administrative costs of the MPACT Program. The Mississippi Legislature must appropriate an annual transfer from the earnings of the Trust Fund to the Administrative Fund to provide for the administrative costs of the Program for that fiscal year. In general, Administrative Fees or penalties paid by Contract Purchasers are transferred to the Administrative Fund and are used to defray the administrative costs of the Program.

History

Source: Miss. Code Ann. § 37-155-15.

Chapter 6 Contract Purchaser

38 Miss. Admin. Code Pt. 3, R. 6.1 Eligibility of Contract Purchaser

The Purchaser must be of legal age and capacity to enter into a legal Contract. If the Qualified Beneficiary is a resident of Mississippi as defined in Rule 5.1BB, the Purchaser need not be a resident. If the Qualified Beneficiary is not a Resident of Mississippi, the Purchaser must be a Resident of the State as defined in Rule 6.1DD.Other determinations may be mandated as set forth in Chapter 18.

History

Source: Miss. Code Ann. § 37-155-9 (Rev. 2003).

38 Miss. Admin. Code Pt. 3, R. 6.2 Nonacceptance of the Purchaser’s Application

A prospective Contract Purchaser may be denied the right to enter into an MPACT Contract:

A. If the Purchaser does not meet the qualifications set forth in Chapter;

B. If the MPACT Contract violates local, state, or federal laws;

C. If the proposed Beneficiary is not a Qualified Beneficiary in accordance with Chapter 7;

D. If the Board determines that it is advisable to limit the number of MPACT Contracts;

E. If the Contract Purchaser fails to submit the MPACT Application during an official MPACT Enrollment Period;

F. If the Contract Purchaser fails to submit the Application Processing Fee;

G. If the Contract Purchaser submits an Application with incomplete information; or

H. Such other reasons as may be determined by the State Treasurer or the Board.

History

Source: Miss. Code Ann. § 37-155-9 (Rev. 2003).

38 Miss. Admin. Code Pt. 3, R. 6.3 Number of Purchasers Per Contract

Only one (1) individual may be named on the MPACT Application and on the MPACT Contract as the MPACT Contract Purchaser. Joint Purchasers are not permitted. However, if a given application and current Contract purchases equals less than five (5) years of Tuition on behalf of a given Qualified Beneficiary, other persons who qualify as Purchasers as defined herein may purchase an additional Contract(s) for the same Qualified Beneficiary, provided that the total number of years of Tuition purchased for the Qualified Beneficiary does not exceed five (5) years as defined in Chapter 9. Each year or multiple of years purchased by a different Purchaser for the same Qualified Beneficiary will be treated as a separate Contract. A Purchaser may change, add, or delete the designated Contingent Purchaser on the MPACT Application or after the MPACT Contract is purchased by submitting a request in such form as deemed acceptable by the State Treasurer.

History

Source: Miss. Code Ann. § 37-155-9 (Rev. 2003).

38 Miss. Admin. Code Pt. 3, R. 6.4 Change of Contract Purchaser and Contingent Purchaser

Purchaser listed, proof of death, in such form as deemed acceptable by the State Treasurer, must accompany the written request for a change in Purchaser in lieu of the current Purchaser’s signature. If the Purchaser has not designated a Contingent Purchaser, becomes disabled and cannot furnish a signature, proof of disability, in such form as deemed acceptable by the State Treasurer, must accompany the written request for a change in Purchaser in lieu of the current Purchaser’s signature.

The request must be accompanied by the applicable Administrative Fee(s) as described in Rule 10.1 and Rule 10.7. See Rule 7.3 for additional restrictions applicable to UTMA/UGMA accounts.

History

Source: Miss. Code Ann. § 37-155-9 (Rev. 2003).

38 Miss. Admin. Code Pt. 3, R. 6.5 No Direction of Investments

A Purchaser or Beneficiary of an MPACT Contract may not directly or indirectly direct the investments of their contribution to the Program or any earnings thereon.

History

Source: Miss. Code Ann. § 37-155-9 (Rev. 2003).

38 Miss. Admin. Code Pt. 3, R. 6.6 No Pledging of Interest as a Security

No interest in an MPACT Contract or any portion thereof may be pledged as security for a loan.

History

Source: Miss. Code Ann. § 37-155-9 (Rev. 2003).

Chapter 7 Qualified Beneficiary

38 Miss. Admin. Code Pt. 3, R. 7.1 Beneficiary Eligibility

An individual may be named the Beneficiary of an MPACT Contract if such individual meets all of the following requirements:

A. The individual is a Resident of the State of Mississippi as defined in Rule 5.1BB; or (b) a nonresident if the Purchaser is a resident of the State of Mississippi.

B. The individual is eighteen (18) years of age or younger on the first day of the MPACT Enrollment Period in question;

C. The individual has been born at the time the Application is submitted;

D. The individual must not have yet enrolled at a Postsecondary Institution.

A Beneficiary may be a U.S. citizen, a permanent resident alien, or a dependent of a U.S. citizen or of a permanent resident alien.

History

Source: Miss. Code Ann. § 37-155-9 (Rev. 2003).

38 Miss. Admin. Code Pt. 3, R. 7.2 Evidence of Residency

A Contract Purchaser must execute a statement in the MPACT

Application that the Beneficiary is a Resident of Mississippi or, if the Beneficiary is a nonresident, that the Purchaser is a Mississippi resident.

Submission of any of the following documents, upon request, will be considered as sufficient to establish the residency status of the Qualified Beneficiary:

A. If the Beneficiary is one year old or younger:

A birth certificate indicating that the Qualified Beneficiary was born in Mississippi; . 2. Or any other documentation that the State Treasurer deems appropriate.

B. If the Beneficiary is over the age of one:

A birth certificate indicating that the Qualified Beneficiary was born in Mississippi;
A progress report from the Mississippi preschool or Mississippi day care center of the Beneficiary; or
A school report card or transcript from a Mississippi public or private school.

For Purchasers who are in the Unites States Military and are stationed outside of Mississippi, military documents evidencing that Mississippi is their home of record will satisfy the provisions of this Chapter.

History

Source: Miss. Code Ann. § 37-155-9 (Rev. 2003).

38 Miss. Admin. Code Pt. 3, R. 7.3 UTMA or UGMA Accounts

The MPACT Trust Fund may receive amounts transferred from an UGMA, UTMA or other account established for the benefit of a minor. It is the responsibility of the Purchaser to comply with all relevant Federal or state laws regarding UTMA or UGMA accounts Purchasers should be mindful of the following UTMA restrictions:

A. The custodian will be required to sign the MPACT Application Form in the custodian's representative capacity as a custodian;

B. The custodian is not allowed to change the Beneficiary of a Contract (directly or by means of a Rollover Distribution);

C. The custodian is not allowed to change the Purchaser of a Contract from the custodian to anyone other than a successor custodian without providing MPACT with a court order directing the change;

D. The custodian must complete an UTMA/UGMA form in addition to the MPACT Application Form;

F. The custodian is allowed to request a refund only in accordance with the UGMA/UTMA rules, which may indicate that any funds withdrawn must be used for the benefit of the Beneficiary.

History

Source: Miss. Code Ann. § 37-155-9 (Rev. 2003).

Chapter 8 Application

38 Miss. Admin. Code Pt. 3, R. 8.1 MPACT Enrollment Period

An MPACT Contract may be purchased during a valid Enrollment Period. The Enrollment Period shall commence and terminate on dates set by the Board.

History

Source: Miss. Code Ann. § 37-155-9 (Rev. 2003).

38 Miss. Admin. Code Pt. 3, R. 8.2 Application

By completing the Application and submitting the Application Processing Fee, the Purchaser is making application to enter into an MPACT Contract. The MPACT Application will become part of the formal Contract between the MPACT Program on behalf of the Board and the Purchaser. After review and acceptance of the Application by the State Treasurer, the Purchaser will be mailed a Participation and Payment Schedule. Both of these documents become part of the formal Contract between MPACT and the Purchaser.

History

Source: Miss. Code Ann. § 37-155-9 (Rev. 2003).

38 Miss. Admin. Code Pt. 3, R. 8.3 Naming the Qualified Beneficiary

Unless specifically exempted by the State Treasurer a Purchaser must name the Qualified Beneficiary in the MPACT Application at the time the Application is submitted. Only one (1) Qualified Beneficiary is allowed per MPACT Contract.

The Purchaser does not have to designate the Postsecondary Institution that the Beneficiary will

attend until such time as the Qualified Beneficiary matriculates and in accordance with Rule 9.6. If more than one (1) Purchaser has submitted an Application for the same Beneficiary, the State Treasurer will determine which Application is accepted on behalf of the Qualified Beneficiary.

History

Source: Miss. Code Ann. § 37-155-9 (Rev. 2003).

Chapter 9 The MPACT Contract

38 Miss. Admin. Code Pt. 3, R. 9.1 General

The MPACT Contract shall consist of the completed Application, the Master MPACT Contract, and the Participation and Payment Schedule. Additional documents, as described in Rule 5.15S, will be incorporated into the MPACT Contract.

History

Source: Miss. Code Ann. § 37-155-9 (Rev. 2003).

38 Miss. Admin. Code Pt. 3, R. 9.2 Contract Benefits

The MPACT Contract guarantees, unless otherwise stated herein, payment by the Trust Fund of Standard In-State Undergraduate Tuition and Mandatory Fees on behalf of the Qualified Beneficiary of the MPACT Contract, to the Postsecondary Institution in which the Qualified Beneficiary matriculates.

The MPACT Contract guarantees the following:

A. Payment of Standard In-State Undergraduate Tuition of not more than five (5) years (156 semester hours);

B. Payment of Mandatory Fees for not more than ten (10) registrations on a semester system, fifteen (15) registrations on a quarter system, or the completion of 156 semester hours or the academic equivalent units on a quarter system of other academic term basis.

Should the Purchaser cancel the Contract and request a refund subsequent to the payment of any Tuition on the behalf of the Beneficiary, but before total usage of the Contract benefits as described above, partial usage will be calculated based on the number of credit hours used and the per credit hour charge originally paid by the Purchaser for purposes of establishing the refund amount due.

The MPACT Contract does not cover full tuition for specialty courses of study if the specialty course’s tuition rate exceeds the Postsecondary Institution’s standard undergraduate tuition rate. If the specialty course’s tuition rate exceeds the Institution’s standard undergraduate tuition rate, MPACT will pay an amount equal to the Postsecondary Institution’s standard undergraduate tuition rate for the number of semester hours in which the qualified beneficiary is enrolled. The beneficiary’s Contract benefits will be reduced based on the number of hours paid on behalf of

the Beneficiary.

The MPACT Contract does not cover fees and costs related to dormitory housing or any other type of housing. The MPACT Contract does not cover meals, books, transportation, supplies, college application or entrance fees, or orientation fees. The Contract also does not cover miscellaneous fees such as health fees, athletic fees, fraternity or sorority fees, or laboratory fees unless these fees qualify as Mandatory Fees as defined in Rule 5.1Q. No graduate program, continuing education program, professional degree program, or adult education program is available under the MPACT Contract except as described in Rule 11.1. The MPACT Contract covers only those costs and fees specified herein.

The benefits of an MPACT Contract may not be used unless all Contract payments, Actuarial Assessments, and any outstanding Administrative Fees have been paid, and the social security number of the Qualified Beneficiary has been provided to the State Treasurer.

History

Source: Miss. Code Ann. § 37-155-9 (Rev. 2003).

38 Miss. Admin. Code Pt. 3, R. 9.3 Earliest Availability of Contract Benefits

In general, the earliest a Qualified Beneficiary may receive benefits under an MPACT Contract purchased during any Enrollment Period will be the Projected Enrollment Year of the Qualified Beneficiary as provided in the MPACT Contract, unless the Beneficiary is an accelerated student. In the event that the Beneficiary is an accelerated student, the MPACT Contract may be used, with no penalty or additional Contract cost, within three (3) years in advance of the Projected College Entrance Date of the Qualified Beneficiary. Proof that the Beneficiary is an accelerated student must be provided in such form and detail as required by the State Treasurer.

The MPACT Contract and any outstanding Actuarial Assessments and Administrative Fees should be paid in full to advance utilization of the Contract benefits prior to the Beneficiary’s Projected College Entrance Date. However, utilization of the Contract benefits prior to the Beneficiary’s Projected Enrollment Year will not be available unless such early utilization is deemed actuarially feasible.

History

Source: Miss. Code Ann. § 37-155-9 (Rev. 2003).

38 Miss. Admin. Code Pt. 3, R. 9.4 Beneficiary’s Projected Enrollment Year

At the time of Application, the Projected Enrollment Year is calculated based on information provided by the Purchaser on the MPACT Application.

If the Beneficiary is held back or advances after the MPACT Contract is purchased and an account has been established, there will be no adjustment in the Qualified Beneficiary’s Projected Enrollment Year.

History

Source: Miss. Code Ann. § 37-155-9 (Rev. 2003).

38 Miss. Admin. Code Pt. 3, R. 9.5 Contract Term

In general, benefits under an MPACT Contract may be received for up to an eight (8) year period after the Projected College Entrance Date of the Qualified Beneficiary. If the Beneficiary, however, is an accelerated student, the MPACT Contract

benefits may be used for up to eight (8) years after the actual college entrance date of the Qualified Beneficiary who is an accelerated student.

Prior to the expiration of the eight (8) year benefit period, as long as an MPACT Contract has not been Terminated or Cancelled and is not in default, a Purchaser may request an extension of the time allowed to exercise rights under the Contract only if the Beneficiary has not been able to fully utilize benefits due to active service in a branch of the United States Military. If approved, the extension of benefits will not exceed the number of years of military service. The Purchaser must submit a written request at least one hundred and eighty (180) days prior to the expiration of the eight (8) year benefit period, the Contract must have thirty two (32) semester hours remaining in benefits, and the Purchaser must pay a non-refundable renewal fee equal to 5% of the original Contract price, assessed at the time of request for extension of the Contract term. If the request is granted, an Actuarial Assessment may be assessed to protect the actuarial soundness of the Trust Fund. The Contract extension will be valid for one (1)year from the Contract expiration date.

If an MPACT Contract has not been Cancelled or Terminated, and if the Qualified Beneficiary’s rights under the Contract have not been fully exercised within eight (8) years from the Projected College Date of the Qualified Beneficiary, or from the actual college entrance date of an accelerated student, all Contract rights are Terminated, and no refunds are available. The money will revert to the Trust Fund.

History

Source: Miss. Code Ann. § 37-155-9 (Rev. 2003).

38 Miss. Admin. Code Pt. 3, R. 9.6 Notification of Intent to Receive Educational Benefits

At such time as the Qualified Beneficiary intends to begin using the benefits under the MPACT Contract to attend a Private or Out-of-State Postsecondary Institution, the Contract Purchaser must submit written notification, including the name of the Postsecondary Institution the Beneficiary will attend, not less than sixty (60) days prior to the projected commencement date for utilization of Contract benefits by the Qualified Beneficiary. Failure to provide at least sixty (60) days advance notice may result in a delay in the availability of the MPACT Contract benefits until the academic term immediately following the term in which the projected commencement date for utilization of the MPACT Contract benefits falls.

History

Source: Miss. Code Ann. § 37-155-9 (Rev. 2003).

38 Miss. Admin. Code Pt. 3, R. 9.7 Identification Cards for Qualified Beneficiaries

A Qualified Beneficiary, whose Contract is in good standing, will be issued an identification card prior to their scheduled matriculation date. An identification card may not be issued to a Beneficiary unless the MPACT Contract and any outstanding Administrative Fees have been paid in full. An identification card shall not be issued unless the Qualified Beneficiary submits a valid social security number. The Postsecondary Institution in which the Qualified Beneficiary has enrolled may request that the Beneficiary present an identification card to verify the student has an MPACT account.

History

Source: Miss. Code Ann. § 37-155-9 (Rev. 2003).

38 Miss. Admin. Code Pt. 3, R. 9.8 MPACT Contract Prices

New MPACT Contract prices will be established by the Board

for each Enrollment Period. Contract prices will be based on actuarial assumptions recommended by the Program’s retained actuary and adopted by the Board regarding Tuition rates and other relevant factors. MPACT Contract prices will not include the Application Processing Fee. The Contract price may include a non- refundable Account Maintenance Fee in accordance with Rule 10.4.

After a Purchaser has entered into an MPACT Contract, the Contract price will not change, unless otherwise specified herein. Establishment of new prices for future MPACT Enrollment Periods will not affect or change the pricing of MPACT Contracts purchased during previous Enrollment Periods.

History

Source: Miss. Code Ann. § 37-155-9 (Rev. 2003).

38 Miss. Admin. Code Pt. 3, R. 9.9 MPACT Contract Payments

MPACT Contract payments are due in full on the dates specified in the MPACT Contract. Contract payments may be made under the following payment options, chosen by the Purchaser at the time of application into the MPACT Program:

A. A lump sum payment due in full on or before the date designated by the State Treasurer.

B. Continuous monthly payments beginning on a date specified by the State Treasurer and continuing on a monthly basis until no later than the summer of the Projected Enrollment Year of the Qualified Beneficiary.

D. A series of annual payments beginning on a date specified by the State Treasurer and continuing on an annual basis.

History

Source: Miss. Code Ann. § 37-155-9 (Rev. 2003).

38 Miss. Admin. Code Pt. 3, R. 9.10 Involuntary Cancellation After Payment Delinquency of 180 Days

If a Contract is delinquent for 210 days, the Contract will be Involuntarily Cancelled and the Purchaser will receive a refund as per provisions in Rule 10.5.

History

Source: Miss. Code Ann. § 37-155-9 (Rev. 2003).

38 Miss. Admin. Code Pt. 3, R. 9.11 Reinstatement

If after 180 days of default payment is not received, the Contract will be placed in suspended status. After being placed in suspended status, the account will then be involuntarily discontinued in accordance with Rule 9.10. To return the account to active status, the Purchaser must either pay the delinquent amounts, including Assessments and Fees, or agree to change the Contract or payment terms (see Rules9.12 through 9.15) in order to convert the account to some arrangement where they will not be delinquent. All delinquent amounts must be paid before the involuntary Cancellation refund is issued. The Purchaser may also elect to voluntarily cancel the Contract as described in Chapter 12.

History

Source: Miss. Code Ann. § 37-155-9 (Rev. 2003).

38 Miss. Admin. Code Pt. 3, R. 9.12 MPACT Contract Modifications

All requests by Contract Purchasers for a modification of the Contract provisions must be submitted in writing and must be accompanied by any written documentation which the State Treasurer may reasonably request and deem sufficient, along with all applicable Administrative Fees.

History

Source: Miss. Code Ann. § 37-155-9 (Rev. 2003).

38 Miss. Admin. Code Pt. 3, R. 9.13 Changes in Payment Schedule

An MPACT Contract Purchaser may request a change in payment schedule any time during the MPACT Enrollment Period in which the Purchaser enters the MPACT Program and extending through the tenth day of the month in which the first payment is due for monthly Purchasers, or in which the onetime, lump sum payment is due for lump sum Purchasers. A request for a change in payment schedule must be submitted, in writing, to the State Treasurer and must be received by the State Treasurer within the time frame specified herein. A change in payment schedule at any other time may require the MPACT Contract Purchaser to cancel their existing MPACT Contract and to purchase a new Contract during a subsequent MPACT Enrollment Period. Purchasers electing a monthly payment plan may pay off the plan early.

History

Source: Miss. Code Ann. § 37-155-9 (Rev. 2003).

38 Miss. Admin. Code Pt. 3, R. 9.14 MPACT Contract Payment Methods

Any one of a variety of payment methods is available to an MPACT Contract Purchaser. These methods may include, but are not limited to, coupon book, ACH (Automatic Clearing House), or payroll deduction. A Purchaser may change payment method after submitting a written request to the State Treasurer.

Contract Purchasers electing payment by coupon book will be responsible for making all payments on time, even if the Purchaser has not received a coupon book. Similarly, a Purchaser will be responsible for making all payments on time, prior to implementation of payroll deduction or automatic deduction from a checking or savings account. Any Purchaser who delays payment beyond the payment due date until a coupon book has been issued or until payroll deduction or automatic bank deduction has been implemented may be assessed late payment fees and an Actuarial Assessment.

History

Source: Miss. Code Ann. § 37-155-9 (Rev. 2003).

38 Miss. Admin. Code Pt. 3, R. 9.15 Contract Modifications Other Than Changes in Payment Schedule

History

Source: Miss. Code Ann. § 37-155-9 (Rev. 2003).

38 Miss. Admin. Code Pt. 3, R. 9.16 Contract Exclusions

A. Admission of the Qualified Beneficiary to a Postsecondary Institution;

B. Admission of the Qualified Beneficiary to a particular Postsecondary Institution;

C. Authorization to the Qualified Beneficiary to continue enrollment at a Postsecondary Institution after admission;

D. Graduation of the Qualified Beneficiary from a Postsecondary Institution.

No continuing education course, graduate program, first professional program, or adult education program is available under the MPACT Program except as described under Rule 11.1.

Tuition and Mandatory Fees paid under an MPACT Contract will be In-State Tuition and In- State Mandatory Fee charges only. The State Treasurer, the MPACT Program, and the Trust Fund are not responsible for payment of the difference between In-State and Out-of-State tuition and fee rates. MPACT will not pay Tuition charges or Mandatory Fee charges at a rate in excess of the rate charged to students who are eligible for In-State Tuition and Mandatory Fee rates. All MPACT Beneficiaries are considered Mississippi Residents for purposes of Tuition payments regardless of the Beneficiary’s residence on the date of college enrollment.

History

Source: Miss. Code Ann. § 37-155-9 (Rev. 2003).

38 Miss. Admin. Code Pt. 3, R. 9.17 Transfers Between Senior and Junior College Plans

If a Beneficiary under a junior college plan elects to attend a university or senior college, the MPACT Program will convert the community college hours into university hours based on the then current relative costs and pay the Tuition. This results in fewer hours on the Contract but enables the Program to pay university Tuition until benefits are exhausted.

If a Beneficiary under a university or senior college plan elects to attend a junior or community college, the Purchaser may request a refund of the difference between the amount actually paid by MPACT to the junior or community college and the weighted average Tuition and Mandatory Fees at Mississippi’s public universities in that year.

History

Source: Miss. Code Ann. § 37-155-9 (Rev. 2003), § 37-155-11.

Chapter 10 Administrative Fees

38 Miss. Admin. Code Pt. 3, R. 10.1 Administrative Fees

Administrative Fees are either built into Contract pricing or

assessed to the MPACT Contract Purchaser upon application for enrollment in the MPACT Program; upon making changes in the ordinary services provided under the MPACT Program; or upon making changes in MPACT Contract information provided to the State Treasurer. Administrative Fees include any other fees designated as administrative by the State Treasurer. Administrative Fees are nonrefundable and are deducted from Contract payments before calculation of the Redemption Value. The types of fees as well as the amount charged for each are subject to change during the life of any MPACT Contract.

History

Source: Miss. Code Ann. § 37-155-9 (Rev. 2003).

38 Miss. Admin. Code Pt. 3, R. 10.2 Fees Assessed and Fee Schedules

Administrative Fees and fee schedules will apply to all Purchasers of MPACT Contracts, subject to changes the Board may make over the life of the Contract in the types and/or amounts of such Administrative Fees.

History

Source: Miss. Code Ann. § 37-155-9 (Rev. 2003).

38 Miss. Admin. Code Pt. 3, R. 10.3 Application Processing Fee

A sixty dollar ($60.00) Application Processing Fee will be collected for each MPACT Application at the time that the Application is submitted to the State Treasurer. An Application will not be accepted unless the full amount of the Application Processing Fee is submitted along with the Application.

In general, the Application Processing Fee is nonrefundable. The Application Processing Fee will only be refunded if the MPACT Application is rejected and the Purchaser is denied participation in the MPACT Program through no fault of the Purchaser.

History

Source: Miss. Code Ann. § 37-155-9 (Rev. 2003).

38 Miss. Admin. Code Pt. 3, R. 10.4 Account Maintenance Fee

All MPACT Contract payments include a nonrefundable Account Maintenance Fee. The Account Maintenance Fee is 5% of the specific Contract price being purchased by the Purchaser. The Account Maintenance Fee is utilized to pay the MPACT Program’s administrative expenses. Refunds of amounts paid into the Trust Fund may not be available until the Purchaser has paid more than the Account Maintenance Fee into the Fund for their specific plan type.

History

Source: Miss. Code Ann. § 37-155-9 (Rev. 2003).

38 Miss. Admin. Code Pt. 3, R. 10.5 Cancellation Fee - An MPACT Contract may be Cancelled for any of the following:

A. The Purchaser submits a written request.

B. The Purchaser fails to make payments pursuant to the Master MPACT and/or the Participation and Payment Schedule.

C. The Purchaser fails to make a Contract payment within forty-five (45) days of the first payment due date following the close of the MPACT Enrollment period during which the MPACT Application was submitted.

In the event of death or disability of the Qualified Beneficiary, the Purchaser must submit acceptable documentation along with a written request at the time of application for a refund.

History

Source: Miss. Code Ann. § 37-155-9 (Rev. 2003).

38 Miss. Admin. Code Pt. 3, R. 10.6 Involuntary Termination Fee

An MPACT Contract may be Involuntarily Terminated for any of the following reasons: A. The Purchaser or Beneficiary has made a material misrepresentation of information;

B. The Purchaser or Beneficiary has provided false information to the MPACT Program;

C. The Purchaser has requested or accepted any form of compensation, fee, commission, service charge or any other form of payment or remuneration for entering into a Contract for the benefit of a nonresident Beneficiary; or

D. Such other reasons as the State Treasurer may reasonably impose.

If the MPACT Contract is Terminated, a Termination Fee of one hundred percent (100%) of the amounts paid into the Trust Fund, excluding Administrative Fees, up to a maximum of five hundred dollars ($1,500.00) will be assessed. Any refund due to the Purchaser of amounts paid into the Trust Fund, in the event of Termination of the MPACT Contract, is addressed in Rule 13.6.

History

Source: Miss. Code Ann. § 37-155-9 (Rev. 2003).

38 Miss. Admin. Code Pt. 3, R. 10.7 Fee for Change of Contract Purchaser and Contingent Purchaser

A twenty five dollar ($25.00) fee will be assessed to change of the MPACT Contract Purchaser and/or Contingent Purchaser in accordance with the provisions of Rule 6.3 herein. In the event of death or disability of the current Purchaser, this fee may be waived.

History

Source: Miss. Code Ann. § 37-155-9 (Rev. 2003).

38 Miss. Admin. Code Pt. 3, R. 10.8 Rule 10.8

Fee for Enrollment in Independent/Private In-State Postsecondary or Graduate Institution or in Out-of State Postsecondary or Graduate Institution. In the event a Qualified Beneficiary elects to attend an Independent/Private In-State Postsecondary or Graduate Institution or an Out-of-State Postsecondary or Graduate Institution, or in the event a Qualified Beneficiary transfers from an In-State Institution of Higher Education Postsecondary or Graduate Institution to an Independent/Private In-State Postsecondary or Graduate Institution or to an Out- of-State Postsecondary or Graduate Institution, the Contract benefits will be transferred to such other Postsecondary or Graduate Institution in accordance with the provisions of Chapter 11. Each time a transfer occurs, the MPACT Contract Purchaser may be assessed a twenty-five

dollar ($25.00) processing fee.

History

Source: Miss. Code Ann. § 37-155-9 (Rev. 2003).

38 Miss. Admin. Code Pt. 3, R. 10.9 Late Payment Fee

A late payment fee of twenty dollars ($20.00) shall automatically be assessed on each monthly MPACT Contract payment received more than fifteen (15) days past the payment due date. An Actuarial Assessment of 1% per month will automatically be assessed on each lump-sum payment received more than fifteen (15) days past the payment due date. For accounts with partial lump sums and monthly payments, the fee for late payment will be twenty dollars ($20.00) or 1%, whichever is greater.

History

Source: Miss. Code Ann. § 37-155-9 (Rev. 2003).

38 Miss. Admin. Code Pt. 3, R. 10.10 Fee for Return Items

A thirty dollar ($30.00) returned item fee shall automatically be assessed for any returned item including, but not limited to, payment made by check or through ACH (Automatic Clearing House). Such payments include both MPACT Contract payments and Administrative Fee payments that are returned.

History

Source: Miss. Code Ann. § 37-155-9 (Rev. 2003).

38 Miss. Admin. Code Pt. 3, R. 10.11 Fee for Document Replacement or Copies

Except as provided herein, Purchasers and/or Beneficiaries shall automatically be assessed a ten dollar ($10.00) fee per document (not per page) when requesting more than one copy, or a replacement copy, of any MPACT document including, but not limited to, the MPACT Application, the Participation and Payment Schedule, the Master MPACT, the coupon book, and the identification card. For lengthy documents, for documents requiring additional postage beyond the basic postage rate for a first class letter, and for documents requiring overnight delivery, the State Treasurer may assess an additional amount above the ten dollar ($10.00) fee. The additional amount shall not exceed twenty five dollars ($25.00) per request from the Contract Purchaser.

History

Source: Miss. Code Ann. § 37-155-9 (Rev. 2003).

38 Miss. Admin. Code Pt. 3, R. 10.12 Fee for Changes in Payment Schedule

A twenty five dollar ($25.00) processing fee will be assessed for a change in payment schedule.

History

Source: Miss. Code Ann. § 37-155-9 (Rev. 2003).

Chapter 11 Attendance at Independent/Private In-state or Out-of State Postsecondary Institutions

38 Miss. Admin. Code Pt. 3, R. 11.1 Utilization of MPACT Contract Benefits at Independent/Private or Out-of-State Postsecondary or Graduate Institutions

In the event the Qualified Beneficiary matriculates in an Independent/Private In-State Postsecondary or Graduate Institution or in an Out-of-State Postsecondary or Graduate Institution, the Current Tuition Value will be forwarded each academic term to the Postsecondary Institution on an academic equivalent hourly basis subject to the provisions of the MPACT Contract described in Rule 9.2. In no case will the amount forwarded ever exceed the cost of undergraduate or graduate Tuition plus Mandatory Fees of the

Postsecondary Institution to which the money is forwarded for the particular academic hours and term in question. Forwarding of MPACT Contract benefits under this Chapter will be made only when all of the following have occurred:

B. The Purchaser has paid the applicable Administrative Fee(s) in accordance with Rule 10.8.

C. The State Treasurer has received a valid invoice from the Beneficiary’s Postsecondary or graduate Institution after the end of the Institution’s official drop/add period for each academic term for which MPACT Contract benefits are to be paid.

Failure to comply with the sixty (60) day requirements in this Chapter may result in the delay or unavailability of the MPACT Contract benefits until the following academic term.

History

Source: Miss. Code Ann. § 37-155-9 (Rev. 2003), §37-155-11.

Chapter 12 Termination or Cancellation

38 Miss. Admin. Code Pt. 3, R. 12.1 General

Unless otherwise stated herein, Termination or Cancellation of an MPACT Contract shall result in a refund to the Purchaser only after payment of applicable Administrative Fees.

History

Source: Miss. Code Ann. § 37-155-9 (Rev. 2003).

38 Miss. Admin. Code Pt. 3, R. 12.2 Individual Entitled to Cancel an MPACT Contract

The person entitled to cancel an MPACT Contract is the named Contract Purchaser.

History

Source: Miss. Code Ann. § 37-155-9 (Rev. 2003).

38 Miss. Admin. Code Pt. 3, R. 12.3 Individual Entitled to Receive Refunds

Unless otherwise stated herein, the individual entitled to receive any refunds which may be due under an MPACT Contract is the named Contract Purchaser.

History

Source: Miss. Code Ann. § 37-155-9 (Rev. 2003).

Chapter 13 Refunds

38 Miss. Admin. Code Pt. 3, R. 13.1 General

Unless otherwise stated herein, refunds will be paid to the Purchaser. Refund amounts will be based on the reason for Terminating or Cancelling an MPACT Contract. Except as provided herein, refunds shall include the amount paid into the Trust Fund. The Board may impose reasonable charges for such withdrawal or refund. Termination of student status after the official drop/add period eliminates the refund option for that academic term.

38 Miss. Admin. Code Pt. 3, R. 13.2 Refund in the Event of Receipt of a Full or Partial Scholarship by A Qualified Beneficiary

If a Qualified Beneficiary is awarded a Full or Partial Scholarship, the terms of which fully or partially cover the benefits guaranteed in the MPACT Contract, the Contract Purchaser may elect to cancel the MPACT Contract and request a refund under Rule 13.5 herein. The refund will be equal to the Redemption Value of the Contract. If the Purchaser does not cancel the MPACT Contract, MPACT will pay the college or university based on the invoice submitted by the Postsecondary Institution and subject to the provisions of MPACT stated in these Rules, Regulations, and Procedures. If a Qualified Beneficiary is awarded a Full or Partial Scholarship, the terms of which fully or partially cover the benefits guaranteed in the MPACT Contract and the Trust Fund pays, based on the invoice from the Institution, the full amount of the MPACT Contract to the college or university attended by the Beneficiary, it shall be the responsibility of the Purchaser to request a refund of the overpayment of Tuition and Fees from the college or university. If the college or university invoices the Trust Fund for a reduced amount of Tuition and Mandatory Fees, i.e., an amount less than that Contracted for by the Purchaser in the MPACT Contract, then the Purchaser shall request a refund from the Trust Fund of the difference between the invoiced amount and the amount for which the Purchaser contracted, and the refund will be made by the Trust Fund directly to the Purchaser, based on the appropriate documentation.

History

Source: Miss. Code Ann. § 37-155-9 (Rev. 2003).

38 Miss. Admin. Code Pt. 3, R. 13.3 Refund if the Beneficiary Matriculates in a Military College or University

In the event the MPACT Contract Beneficiary matriculates in one of the U.S. Government sanctioned

military academies listed below, such that Tuition and Mandatory Fees are not charged, the Purchaser will receive a refund equal to the sum of all MPACT Contract payments paid to date, excluding all Administrative Fees, minus any amount paid by the Trust Fund to Postsecondary Institutions on behalf of the Qualified Beneficiary. A request for a refund should be submitted within sixty (60) days of the Beneficiary’s enrollment in the military college or university and must be accompanied by written documentation, deemed acceptable by the State Treasurer, evidencing enrollment. Otherwise, the refund provisions of Rule 13.6 may apply. The provisions herein apply to attendance at any one of the following military academies:

A. The United States Air Force Academy in Colorado Springs, Colorado

B. The United States Naval Academy in Annapolis, Maryland C. The United States Military Academy at West Point, New York

D. The United States Merchant Marine Academy at Kings Point, New York

E. The United States Coast Guard Academy in New London, Connecticut

History

Source: Miss. Code Ann. § 37-155-9 (Rev. 2003).

38 Miss. Admin. Code Pt. 3, R. 13.4 Refund if the Beneficiary Matriculates in a Postsecondary Institution Located Outside of the United States

History

Source: Miss. Code Ann. § 37-155-9 (Rev. 2003).

38 Miss. Admin. Code Pt. 3, R. 13.5 Refund in the Event Qualified Beneficiary Graduates With Unused Contract Hours

If the Qualified Beneficiary achieves a baccalaureate degree in fewer than the maximum number of credit hours guaranteed under an MPACT Contract and/or in fewer than the number of academic terms for which payment of Mandatory Fees is guaranteed under the Contract, the Purchaser may request a refund of the Redemption Value as defined in Rule 5.1AA. Such requests must be in writing and include appropriate written documentation, acceptable to the State Treasurer.

History

Source: Miss. Code Ann. § 37-155-9 (Rev. 2003).

38 Miss. Admin. Code Pt. 3, R. 13.6 Other Refunds

Refunds for reasons or circumstances other than those stipulated above in Rules 3.1, 3.2, 3.3, 3.4 and 3.5 may only be made to the Purchaser upon written request by the Purchaser after submission of all documentation required by the State Treasurer to substantiate the refund request, and after payment of the required Administrative Fee(s).

The Purchaser will be entitled to a refund equal to the Redemption Value of the Contract. A refund under this rule will not include credit hours or Mandatory Fees paid by the Trust Fund on

behalf of the Qualified Beneficiary prior to the time of refund. A Cancellation Fee will also be charged.

History

Source: Miss. Code Ann. § 37-155-9 (Rev. 2003).

Chapter 14 Rollovers

38 Miss. Admin. Code Pt. 3, R. 14.1 General

Qualified Rollover Distributions are not subject to taxation or penalty. Rollover Distributions include both:

A. Transfers between a QTP operated by one state and a QTP operated by another state; or,

B. Transfers between separate QTP’s operated by the same state. These changes can be made as a non-taxable event without penalty or additional tax if there is a change of Beneficiary and the new Beneficiary is a "member of the family" of the previous Beneficiary. Account Owners may also rollover from one QTP to another for the same Beneficiary once every twelve (12) months without incurring state or federal income tax, any penalty or the additional tax, so long as the transfer occurs within sixty (60) days of the original withdrawal.

History

Source: Miss. Code Ann. § 37-155-9 (Rev. 2003).

38 Miss. Admin. Code Pt. 3, R. 14.2 Rollovers from MACS to MPACT

Purchasers desiring to transfer money from a MACS Account to an MPACT Contract must contact the MACS Program Manager to request a rollover. Purchasers should also complete, sign and transmit to MPACT the official MPACT Rollover Form.

History

Source: Miss. Code Ann. § 37-155-9 (Rev. 2003).

38 Miss. Admin. Code Pt. 3, R. 14.3 Rollovers from MPACT to MACS

Purchasers desiring to transfer money from an MPACT Contract to a MACS Account must complete, sign and transmit to MPACT the official Rollover Form. The MACS Account must be already open and a MACS Account Number provided at the time of the request.

History

Source: Miss. Code Ann. § 37-155-9 (Rev. 2003).

38 Miss. Admin. Code Pt. 3, R. 14.4 Rollovers from QTP’s (529 Plans) Operated by Other States to MPACT

It is the responsibility of the Purchaser to notify the other QTP and request that the proper amount be sent to MPACT. Purchasers should also complete, sign and transmit to MPACT the official MPACT Rollover Form as notification to expect the rollover payment.

History

Source: Miss. Code Ann. § 37-155-9 (Rev. 2003).

38 Miss. Admin. Code Pt. 3, R. 14.5 Rollovers from MPACT to a QTP (529 Plan) Operated by Other States

Purchasers desiring to transfer money from their MPACT Contract to a QTP operated by another state must complete, sign and transmit to MPACT the official Rollover Form. The QTP Account must be already opened and an account number and payment address provided at the time of the request.

MPACT will provide the other QTP with a breakdown between interest and return of principal along with the rollover payment.

History

Source: Miss. Code Ann. § 37-155-9 (Rev. 2003).

Chapter 15 Special Petition

38 Miss. Admin. Code Pt. 3, R. 15.1 General

Any individual, corporation, organization, or other Entity desiring to petition for relief from the Rules, Regulations, and/or Procedures dictated herein may do so by filing a written petition with the State Treasurer. The petition shall contain the name and address of the person requesting relief; the specific nature of the relief requested; the name and address of any Purchaser or Beneficiary on any disputed MPACT Contract; the MPACT Contract account number(s) of the Contract(s) in question; the rule, regulation, and/or procedure from which the Petitioner is requesting relief; the date of request; the social security number or tax identification number of the Beneficiary and of the Purchaser; and the sworn signature of the petitioner. The response to the petition will be in writing and will be made within forty-five (45) days of receipt of the petition from the individual requesting relief. The State Treasurer, or his/her designee, has the authority to respond to the petition on behalf of the Board of Directors.

Any individual or Entity as described above may appeal to the Board of Directors an adverse ruling by the Treasurer, or the Treasurer and MPACT Director may decide at their discretion that an appeal by any Entity as described above should be considered by the MPACT Board of Directors. In such cases, the written statement of the petitioner shall be forwarded to the appropriate committee of the Board and the matter placed on the agenda for the next meeting of that committee. The committee shall consider the appeal and make a recommendation as to the appeal to the entire Board. The person making such an appeal may request or be requested to appear in person at a meeting of a committee or the Board, at the discretion of the committee or Board.

Decisions by the Committee or the Board shall be communicated in writing to the person making the appeal. All such decision by the Board is final.

History

Source: Miss. Code Ann. § 37-155-9 (Rev. 2003).

Chapter 16 Miscellaneous Provisions

38 Miss. Admin. Code Pt. 3, R. 16.1 Promulgation and Amendment of these Rules, Regulations, and Procedures

The State Treasurer, on behalf of the Board of Directors, shall promulgate such other Rules, Regulations, and Procedures as are deemed necessary to implement the MPACT Program and shall amend these Rules, Regulations, and Procedures as is necessary for operation of the MPACT Program.

History

Source: Miss. Code Ann. § 37-155-9 (Rev. 2003).

Chapter 17 Waiver of Rules, Regulations, and Procedures

38 Miss. Admin. Code Pt. 3, R. 17.1 General

The State Treasurer may waive portions of these Rules, Regulations, and

Procedures to prevent hardship of the Purchaser and/or of the Qualified Beneficiary.

History

Source: Miss. Code Ann. § 37-155-9 (Rev. 2003).

Chapter 18 Corporations, Trusts, Charitable Organizations and Other Qualified Entities

38 Miss. Admin. Code Pt. 3, R. 18.1 General

Unless specifically exempted herein, all Rules, Regulations, and Procedures pertaining to MPACT Contract Purchasers who are natural persons also apply to any Purchaser that is an Entity.

History

Source: Miss. Code Ann. § 37-155-9 (Rev. 2003).

38 Miss. Admin. Code Pt. 3, R. 18.2 Eligibility of the Purchaser

The Purchaser of an MPACT Contract may be any Entity approved, in writing, by the State Treasurer. Contracts opened by Entities, IRS Section 501(c)(3) organizations, trusts and custodians are subject to additional restrictions and may be required to provide documentation evidencing the legal status of the Entity and the authorization of the representative to enter into and administer an MPACT Contract. UGMA/UTMA custodians are also subject to certain limitations on their ability to make changes to, and transfer to and from, such Contracts. UGMA/UTMA custodians and trust representatives should consult a tax advisor about the tax consequences of opening and holding a Contract, as well as legal counsel regarding their rights and responsibilities as custodians and representatives.

History

Source: Miss. Code Ann. § 37-155-9 (Rev. 2003).

38 Miss. Admin. Code Pt. 3, R. 18.3 Naming the Beneficiary

If an Entity which purchases an MPACT Contract does not name the Contract Beneficiary at the time the MPACT Application is submitted to the State Treasurer, a Projected College Entrance Date for the unnamed Beneficiary must be specified on the MPACT Application. The age of the unnamed Beneficiary on the MPACT Application will be the normal age for a Beneficiary expected to enter college in the Academic School Year corresponding to the Projected College Entrance Date. The Beneficiary should be named not less than six (6) months prior to the Projected College Entrance Date specified by the Entity on the MPACT Application.

History

Source: Miss. Code Ann. § 37-155-9 (Rev. 2003).

38 Miss. Admin. Code Pt. 3, R. 18.4 Beneficiary Eligibility

If the Beneficiary is named at the time the MPACT Application is submitted to the State Treasurer, the Beneficiary eligibility requirements of Rule 7.1 are applicable. If the Beneficiary is not named, pursuant to the exemption stated in Rule 18.3, when the MPACT Application is submitted to the State Treasurer, at such time as the Beneficiary is

named, the named Beneficiary must meet all of the following requirements:

A. The Beneficiary must be a Resident of the State of Mississippi; or a nonresident provided that the Purchaser is a resident of the State;

B. The Beneficiary must be eighteen (18) years of age or younger;

C. The Beneficiary must have a college enrollment year which is the same year as the Projected;

D. College Entrance Date provided in the MPACT Application by the Entity; and

E. The Beneficiary must be born and have a valid birth certificate.

History

Source: Miss. Code Ann. § 37-155-9 (Rev. 2003).

38 Miss. Admin. Code Pt. 3, R. 18.5 Failure to Name the Beneficiary

Failure to name the Beneficiary within the time frame specified in Rule 18.3 will result in the Cancellation of the MPACT Contract, with the monies refunded from the Trust Fund at the Redemption Value. The Board may impose reasonable charges for such refund.

History

Source: Miss. Code Ann. § 37-155-9 (Rev. 2003).

38 Miss. Admin. Code Pt. 3, R. 18.6 Application

History

Source: Miss. Code Ann. § 37-155-9 (Rev. 2003).

38 Miss. Admin. Code Pt. 3, R. 18.7 Utilization of the MPACT Contract Benefits

Chapter 19 Dormitory Residence Plan

38 Miss. Admin. Code Pt. 3, R. 19.1 Dormitory Residence Plans

Pursuant to the statutory authority of the Board of Directors which grants the Board the powers necessary or convenient to carry out the purposes and provisions of this Act, upon the completion of feasibility and advisability study the Board elected to not offer a prepaid dormitory plan.

The Mississippi Affordable College Savings (MACS) Plan provides a savings vehicle which can

be used for books, room and board, graduate school and other higher education expenses.

History

Source: Miss. Code Ann. § 37-155-9 (Rev. 2003), §37-155-13.

Part 4 Part 4: Uniform Disposition of Unclaimed Property Act

Chapter 1 Introduction

38 Miss. Admin. Code Pt. 4, R. 1.1 Introduction

Section 89-12-49 of the Mississippi Code of 1972 Annotated, as amended, authorizes the Mississippi State Treasurer to adopt necessary rules and regulations to carry out the provisions of the Uniform Disposition of Unclaimed Property Act. The following rules will serve to clarify certain provisions of the Uniform Disposition of Unclaimed Property Act. The Office of the Mississippi State Treasurer will adhere to the following rules when administering the Act. If any one or more of these rules is found to be invalid by any court of competent jurisdiction, such finding shall not affect the validity of any other of these rules.

History

Source: Miss. Code Ann. Section 89-12-49.

38 Miss. Admin. Code Pt. 4, R. 1.2 Definitions

As used in this regulation, unless the context otherwise requires:

A. “Act” means the Uniform Disposition of Unclaimed Property Act per Miss. Code Ann. Section 89-12-1 et seq.

B. “Activity” means any action taken by an owner with respect to his or her property which indicates that the owner intends for the property not to be presumed unclaimed.

C. “Aggrieved party” includes any claimant, owner, holder, or other person that asserts a grievance regarding any decision or action taken by the Unclaimed Property Division.

D. “Apparent owner” means the person who appears from the records of the holder to be entitled to property held by the holder.

E. “Banking organization” means any national or state bank, trust company, savings bank, land bank, private banker, or any similar organization which is engaged in business in this state.

F. “Business association” means any corporation, joint stock company, business trust, partnership, or any association for business purposes of TWO (2) or more individuals, whether organized for profit or nonprofit, including, but not limited to, a banking organization, financial organization, life insurance corporation and utility.

G. “Claim” means the demand with the necessary supporting ownership documents made by any person who has or appears to have an interest in unclaimed property or the proceeds from the sale of unclaimed property.

H. “Claimant” means any person or entity making a claim who has stated his or her interest in unclaimed property or the proceeds from the sale of unclaimed property.

I. “Date of last transaction” means the last date of owner contact or owner generated activity, or the date when property became due or payable.

J. “Division” means the employees within the Office of the Mississippi State Treasurer designated to administer the Act.

K. “Documentation” means information supplied to the Treasurer by the claimant and/or the holder, which is used as a basis to determine ownership of property which has been deemed to be abandoned or unclaimed.

L. “Financial organization” means any federal or state savings and loan association, building and loan association, credit union, cooperative bank or investment company, or any similar organization which is engaged in business in this state.

M. “Hearing” means an administrative review of a decision or action carried out by the Treasurer or the Division, held before a hearing officer designated by the Treasurer, to resolve a formal protest filed by a holder or a claimant against the decision or action carried out by the Division. After the review of the evidence and based upon the recommendations of the hearing officer, the Treasurer issues a final order stating her decision.

N. “Holder” means any person in possession of property subject to the provisions of the Act belonging to another, or who is trustee in case of a trust, or is indebted to another on an obligation subject to the provisions of this Act.

O. “Insurance corporation” means any association or corporation transacting in this state the business of insurance involving in any manner a person or property.

P. “Intangible personal property” includes, but is not limited to: 1. Monies, checks, drafts, deposits, interest, dividends, and income; 2. Credit balances, customer overpayments, gift certificates, security deposits, refunds, credit memos, unpaid wages, unused airline tickets, and unidentified remittances; 3. Monies deposited to redeem stocks, bonds, coupons, and other securities, or to make distributions; 4. Amounts due and payable under the terms of insurance policies; 5. Amounts distributable from a trust or custodial fund established under a plan to provide health, welfare, pension, vacation, severance, retirement, death, stock purchase, profit sharing, employee savings, supplemental unemployment insurance, or similar benefits; 6. Shares of corporate stock and other intangible ownership interests in business associations; and 7. Bonds, notes and other debt obligations.

Q. “Last known address” means the address of an apparent owner of unclaimed property as

shown on the records of the holder for the purpose of delivery of mail.

R. “Legal representative of the owner” means a person, other than the original owner, claiming property on behalf of the original owner and having such authority under Mississippi law.

S. “Negative report” means an unclaimed property report filed by a holder in which the holder affirms that it has no unclaimed property that is reportable to the Division.

T. “Owner” means a depositor in case of a deposit, a beneficiary in case of a trust, a creditor, claimant or payee in case of other choses in action, or any person having a legal or equitable interest in property subject to the provisions of the Act, or his or her legal representative.

U. “Person” means any individual, business association, government or political subdivision or agency, corporation, public authority, estate, trust, TWO (2) or more persons having a joint or common interest, or any other legal or commercial entity whether such person is acting in his or her own right or in a representative capacity.

V. “Treasurer” means the State Treasurer of the State of Mississippi.

W. “Trust” means a legal arrangement whereby control of an account or property is transferred to a person or organization for the benefit of another person.

X. “Utility” means any person who owns or operates in this state for public use, any plant, equipment, property, franchise, or license for the transmission of communications or the production, storage, transmission, sale, delivery, or furnishing of electricity, water, steam or gas.

History

Source: Miss. Code Ann. Sections 89-12-3, 89-12-49.

Chapter 2 Presumed Abandonment

38 Miss. Admin. Code Pt. 4, R. 2.1 Certificates of Deposit

Subject to the provisions of the Act, the following property held or owing by a banking or financial organization shall be presumed abandoned:

A. Any matured certificate of deposit made in this state, upon maturity, if such certificate of deposit had a maturity term equal to or greater than TEN (10) years, together with any interest thereon, excluding any charges that may have accrued, unless the owner has, within FIVE (5) consecutive years prior to maturity: 1. Increased or decreased the amount of the certificate of deposit, or presented the passbook or other similar evidence of the deposit for the crediting of interest; 2. Corresponded in writing with the banking organization or financial organization concerning the certificate of deposit; or 3. Otherwise indicated an interest in the certificate of deposit as evidenced by a

memorandum on file with the banking organization or financial organization.

B. Any matured certificate of deposit made in this state, five years after maturity, if such certificate of deposit had a maturity term less than TEN (10) years, together with any interest thereon, excluding any charges that may have accrued, unless within the previous FIVE (5) consecutive years: 1. The certificate of deposit had not yet matured; 2. The owner increased or decreased the amount of the deposit, or presented the passbook or other similar evidence of the deposit for the crediting of interest; 3. The owner corresponded in writing with the banking organization or financial organization concerning the deposit; or 4. The owner otherwise indicated an interest in the deposit as evidenced by a memorandum on file with the banking organization or financial organization.

History

Source: Miss. Code Ann. Sections 89-12-5, 89-12-49.

38 Miss. Admin. Code Pt. 4, R. 2.2 Intangible Assets Held in Safe Deposit Boxes

Any intangible assets contained by safe deposit boxes shall be presumed abandoned if such assets would otherwise be presumed abandoned based on the provisions of the Act.

History

Source: Miss. Code Ann. Sections 89-12-5, 89-12-14, 89-12-19, 89-12-49.

38 Miss. Admin. Code Pt. 4, R. 2.3 Unpaid Wages

Subject to the provisions of the Act, any unpaid wages shall be presumed abandoned if, for longer than FIVE (5) years, the existence and location of the person to whom the wages are owed is unknown to the holder of the wages, and according to the knowledge and records of the holder of the wages, a claim to the wages has not been asserted or an act of ownership of the wages has not been exercised.

History

Source: Miss. Code Ann. Sections 89-12-14, 89-12-17, 89-12-49.

Chapter 3 Holder Reporting

38 Miss. Admin. Code Pt. 4, R. 3.1 Reporting Requirements for Holders of Unclaimed Property

Every person holding funds or other intangible personal property presumed abandoned under the provisions of the Act shall report to the Treasurer with respect to the property as hereinafter provided.

A. The report shall be verified, and shall include: 1. Except with respect to traveler’s checks and money orders, the name, if known, and last known address, if any, of each person appearing from the records of the holder to be the owner of any property of the value of more than ONE HUNDRED dollars ($100.00) presumed abandoned under the provisions of the Act; 2. The nature and identifying number, if any, or description of the property and the amount appearing from the records to be due, except that items of value under ONE HUNDRED dollars ($100.00) each may be reported in aggregate;

In the case of banking organizations, the owner’s account number; 4. In case of unclaimed funds of life insurance corporations, the owner’s date of birth, policy number, and the social security number of all beneficiaries listed on the policy according to the life insurance corporation’s records; 5. In the case of securities, confirmation of transfer by a Depository Trust Company (“DTC”) to the Division (DTC instructions available at the Division website), or, in the case of non-DTC eligible securities, confirmation of direct delivery or transmittal to the Division; 6. In the case of mutual funds or dividend reinvest accounts, a transfer confirmation statement from the transferor; 7. Except for any property reported in the aggregate, the date when the property became payable, demandable, or returnable, and the date of the last transaction with the owner with respect to the property; 8. In the case of a holder reporting property for TEN (10) or more owners, an electronic copy of the report in the file format currently approved by the Treasurer and the National Association of Unclaimed Property Administrators (“NAUPA”); 9. In the case of a holder reporting property in electronic format, the NAUPA approved property code for each property submitted; and 10. Other information which the Treasurer prescribes by regulation as necessary for the administration of the Act.

B. Reports of unclaimed property submitted to the Treasurer will be returned to the holder for correction if the holder: 1. Fails to report on forms prescribed or approved by the Treasurer; 2. Fails to identify the NAUPA unclaimed property category(ies) contained in an electronically submitted report; 3. Fails to provide the date of the last transaction or first payable date for property reported; or 4. Fails to include any other information on the report as required under the Act or this regulation.

C. If the person holding property presumed abandoned under the provisions of the Act, or this regulation, is a successor to other persons who previously held the property for the owner, or if the holder has changed his or her name while holding the property, he or she shall file with his or her report all prior-known names and addresses of each holder of the property.

D. Reports shall be filed every third year as required by Miss. Code Ann. Section 89-12-23. The report shall be filed before November 1 of each year in which a report is required as of June 30 next preceding. The Treasurer may postpone the reporting date upon written request by any person required to file a report.

E. Every banking organization in this state that has no reportable property is required to file a negative report in accordance with the Act and this regulation.

F. Every person who is requested in writing by the Treasurer shall file a report stating that such person is not holding any abandoned property which is reportable pursuant to the provisions of the Act or this regulation.

G. If the holder of property presumed abandoned under the provisions of the Act knows the whereabouts of the owner and if the owner’s claim has not been barred by the statute of limitations, the holder shall, before filing the required report, endeavor to communicate with the owner and take reasonable steps to prevent abandonment from being presumed. The mailing of notice to the last-known address of the owner by the holder shall constitute compliance with the Act and no further act on the part of the holder shall be necessary.

H. Verification, if made by a partnership, shall be executed by a partner; if made by an unincorporated association or private corporation, by an officer; and if made by a public corporation, by its chief fiscal officer.

I. The initial report filed under the Act shall include all items of property that would have been presumed abandoned if the Act had been in effect since July 1, 1969, and all such property shall be subject to the provisions of the Act.

History

Source: Miss. Code Ann. Sections 89-12-23, 89-12-49

38 Miss. Admin. Code Pt. 4, R. 3.2 Submittal of Property to the Treasurer

Except as otherwise provided in the Act, a person who is required to file a report under the provisions of the Act shall pay or deliver to the Treasurer all abandoned property together with the report.

A. Submittals of monetary property in hardcopy form must be made by certified check or money order made payable to the Mississippi Treasury Department.

B. Submittals of monetary property in electronic form must be made by Electronic Funds Transfer (“EFT”) or Automatic Clearing House (“ACH”) in accordance with instructions available at the Division website.

C. Submittals of shares of corporate stock and other intangible ownership interests in business associations shall be made by transfer of such property to the master custodian of the Division in accordance with instructions available at the Division website.

History

Source: Miss. Code Ann. Sections 89-12-29, 89-12-31, 89-12-49

Chapter 4 Claims

38 Miss. Admin. Code Pt. 4, R. 4.1 Qualifications for Claimants

Any person claiming an interest in any property delivered to the state under the provisions of the Act must file a claim on the form prescribed by the Treasurer. A claimant must be one of the following in order to be declared as having a valid interest in the property: A. The original owner or an officer of a corporation or business which is an original owner

or legal successor; B. The legal representative of the original owner.

History

Source: Miss. Code Ann. Sections 89-12-39, 89-12-49

38 Miss. Admin. Code Pt. 4, R. 4.2 Required Documentation for Claim Processing

Claimants must complete and deliver to the Division claim forms and supporting documentation required by the Act and this regulation before the Division will approve a claim. A. The following documentation is required to be presented to the Division in order to validate a claim of ownership. 1. Completed, signed, and notarized claim form as prescribed by the Treasurer and sent by mail OR completed electronic form with electronic signature as prescribed by the Treasurer at www.treasury.ms.gov, including checked acknowledgement that the claimant agrees to submit the claim form and required supporting documentation by electronic means; 2. Copy of photo identification (examples include: driver’s license, passport, military identification card, and official identification card); 3. Copy of proof of residence during the year cited as the date of last transaction in the holder’s report (examples include: utility bill, school records, bank statement, and cancelled check); 4. Documentation of claimant’s name change if a different name appears on the claim form; 5. If the claimant and owner are not the same person, but both living: a. Copy of claimant’s social security card or birth certificate and owner’s social security card or birth certificate; b. Notarized copy of agreement establishing claimant as the legal representative of the owner; 6. If the owner is deceased: a. Copy of owner’s death certificate; b. Copy of filed will or obituary if no filed will exists; 7. If the claimant is a business: a. Copy of photo identification of the corporate officer or owner submitting the claim (examples include: business picture identification, driver’s license, passport, military identification card, and official identification card); b. Employer Identification Number (“EIN”); c. Documentation of claimant’s position and authority to make the claim (examples include: business card and executed authorization letter on company letterhead); b. Copy of proof of residence during the year cited as the date of last transaction in the holder’s report (examples include: utility bill, business records, bank statement, and cancelled check).

B. The Division will consider all documents submitted in making a reasonable assessment of whether a valid claim of ownership exists. The Division may request and require additional documentation in order to validate ownership. Such documentation includes, but is not limited to, the following by property type:

Checking accounts: a. Check (blank or cancelled) showing the account number for that bank; b. Account statement which contains the account number. 2. Savings accounts: a. Copy of passbook; b. Copy of a deposit slip; c. Account statement which contains the account number; d. “1099 INT” Form issued by the bank, showing the account number. 3. Wages: 1. Copy of W-2 Form; 2. Copy of 1099 Form; 3. Copy of state income tax return; 4. Copy of federal income tax return; 5. Previous pay stub. 4. Stock and/or dividends: a. Copy of stock certificate; b. Correspondence or statement from broker showing purchase or sale of the stock. 5. Bearer bonds and certificates of deposit: a. Copy of the record of purchase. 6. Insurance policies: a. Copy of policy; b. Correspondence with insurance company related to and referencing the policy by policy number. 7. Court clerk funds: a. Copy of the court decree or court order for the case that was the source of the funds (examples include probate, condemnation, quiet title, divorce, child support, appearance bond, etc.). 8. Vendor checks: a. Copy of accounts receivable billing; b. Invoices; c. Bills of lading. 9. Property held for deceased owners: a. Affirmation that there has been no probate of the estate of the deceased owner; b. Affirmation that no such probate is contemplated; and c. Affirmation that claimant will indemnify the State of Mississippi for any loss, including attorney fees, should another claimant assert a prior right to the property.

History

Source: Miss. Code Ann. Section 89-12-49

38 Miss. Admin. Code Pt. 4, R. 4.3 Payment of Claims

A. Disbursement of Monies. Payment vouchers for claim payments shall be made in the name of, and mailed to, the claimant determined to have a valid ownership interest in the

claimed property in accordance with the provisions of the Act.

B. Disbursement of Securities. In the case of securities, claim approval shall result in a letter being sent to a third-party agent, instructing the agent to transfer the securities from the unclaimed property custodial account to an account registered in the name of and specified by the claimant.

C. If evidence is brought to light that causes the Treasurer to determine that property was improperly released to a claimant, the Treasurer shall suspend such payment, if possible. If payment cannot be suspended, the Treasurer shall issue a demand notice to the claimant. The demand notice may include, but not be limited to, the following: 1. The facts and circumstances supporting Treasurer’s conclusion that the property was improperly released; 2. The amount of property that was improperly released; 3. A request for refund of the property that was improperly released; 4. Notification that the refund is due upon receipt of the demand notice; and 5. Notification that the Treasurer may pursue collection through appropriate court action.

D. Disputes between Apparent Owners. When one claimant has been paid the full amount of unclaimed property held by the Division, there is no requirement that the Treasurer subsequently pay additional claimants for the property unless the additional claimants provide evidence to the Treasurer that the original claimant was not entitled to part or all of the distributed property in accordance with the provisions of the Act. In such case, the Treasurer shall suspend payment, if possible, to the initial payee until the conflicting claims are resolved. The Treasurer will notify the initial payee that: 1. Another claimant has filed for a portion or all of the property and appears to be a valid owner; 2. He or she is requested to refund the property received from the Division; 3. The Treasurer may pursue collection through appropriate court action. 4. He or she has the right to present evidence to the Treasurer if he or she has a prior claim and a more fully documented proof of ownership; 5. The Treasurer may require a hearing before a hearing officer, designated by the Treasurer, to determine or verify ownership; 6. If it is determined that the second claimant is a valid owner, the all or part of the property will be distributed to the second claimant.

History

Source: Miss. Code Ann. Section 89-12-49

Chapter 5 Examinations

38 Miss. Admin. Code Pt. 4, R. 5.1 Overview

The Treasurer may at reasonable times examine the records of any person to determine if such person has complied with the provisions of the Act. The Treasurer may designate the Commissioner of Banking and Consumer Finance, Commissioner of Insurance, or other appropriate regulatory authority to examine the records of institutions of regulated industries to determine if such institutions have complied with the provisions of the Act. The Treasurer also

may contract with any other qualified person to carry out the examination.

A. The process for unclaimed property examinations carried out by another state agency on behalf of the Treasurer shall be consistent with such agency’s standard audit policies and procedures.

B. Holders shall maintain records containing the information required to be included in the holder report for a minimum of SEVEN (7) years after the date of the holder’s report.

C. In the case of a holder that has met the annual reporting requirement of the Act, but where the holder does not meet the records retention requirements prescribed herein, the Treasurer, or her agent, may employ such estimation techniques in the conduct of the audit as are customary and reasonable in the area of regulatory compliance and enforcement to fairly and accurately estimate the liability for property category types that may not have been reported or fully reported by the holder.

History

Source: Miss. Code Ann. Sections 89-12-45, 89-12-49

38 Miss. Admin. Code Pt. 4, R. 5.2 Initiation of Examination

The Treasurer may conduct an examination, at her discretion, in accordance with the Act and this regulation. If any person refuses to permit an examination, as required under the provisions of the Act, and this regulation, the Treasurer shall bring an action in a court of appropriate jurisdiction to compel compliance with such examination.

A. Events that prompt an examination may include, but not be limited to: 1. Failure to report; 2. Failure to report property types normally reported by like holders; 3. Amounts reported and/or remitted are not comparable to reports received from like holders; 4. Failure to substantiate differences between reported property and remitted property; or 5. Errors identified during previous audits.

B. Excluding any state-authorized multi-state unclaimed property audit/examination, all examinations undertaken by the Treasurer shall be conducted in the following order of priority, unless otherwise directed by the Treasurer: 1. First Priority. Holders who have never reported unclaimed property to the Division. 2. Second Priority. Holders who have previously reported unclaimed property to the Division, but who have not recently filed a report. 3. Third Priority. Holders whose current reporting levels appear deficient.

C. Performance of an examination does not preclude the Treasurer from performing any subsequent examination.

History

Source: Miss. Code Ann. Sections 89-12-45, 89-12-49.

38 Miss. Admin. Code Pt. 4, R. 5.3 Examination Process

Except as otherwise provided herein, unclaimed property examinations carried out by the Treasurer, or her agent, shall include, but not be limited to, the following procedures:

A. A written notice of intent shall be issued to the holder. The notice will state the Treasurer’s intent to commence an examination and the holder’s obligation to provide certain records to facilitate the examination.

B. An opening conference will be held with the holder to explain the overall process for examination and to answer any questions the holder may have regarding the examination. During the opening conference, a list of requests for supporting documentation will be provided to the holder.

C. The Treasurer, or her agent, will review supporting documentation as well as the holder’s procedures around recording and reporting unclaimed property. Any follow up inquiries or requests will be carried out at this time.

History

Source: Miss. Code Ann. Sections 89-12-45, 89-12-49.

38 Miss. Admin. Code Pt. 4, R. 5.4 Examination Findings

A. Upon completion of the examination process, the Treasurer, or her agent, will provide to the holder a draft report and letter of demand, if necessary. The holder will review such drafts and have a reasonable opportunity to resolve any issues or concerns the holder has with the examination findings.

B. The Treasurer, or her agent, will then schedule an exit conference with the holder during which time the holder will be presented with the final report. The final report shall detail the results of the examination and shall be accompanied by a letter of demand, if necessary. The letter of demand will express to the holder the terms and conditions under which any previously unreported property is required to be reported and submitted to the Division.

C. The letter of demand shall outline the holder’s right to protest any findings or demands resulting from the examination. If the holder does not file a written protest in accordance with the Act, and this regulation, the examination findings, without further action of the Treasurer, will be presumed valid, and the holder shall immediately transmit to the Treasurer the demandable property as set out in the demand notice. If any person refuses to deliver property to the Treasurer as required under the provisions of the Act, and this regulation, the Treasurer shall bring an action in a court of appropriate jurisdiction to enforce such delivery.

D. If, in connection with an examination, property which should have been reported pursuant to the provisions of the Act is discovered: 1. The holder shall pay a per diem rate equal to the cost of conducting the examination at the standard daily rate for each examiner, or a greater amount

that is reasonable and was incurred; in addition, the holder may also incur penalties and interest pursuant to the provisions of Act. 2. If the holder had previously submitted a report to the Division, the holder shall submit an amended report including documentation of the reason for the amendment(s). Documentation accompanying the amended report shall include but not limited to support for the following: a. Change of owner name; b. Change of owner last known address; c. Change of date of last transaction; d. Change of legal description of property; or e. Change in original amount reported. 3. The Treasurer may, at her discretion, waive the per diem, interest or penalties provided by the Act and by Rule 5.4 D.1. if a holder has failed to remit unclaimed property due to misinterpretation of the law or the facts, or if a holder is unable to pay interest or penalty due to insolvency.

E. An examination shall be deemed closed when all: 1. Property identified as unclaimed property in the final report is remitted to the Division in the reporting format prescribed by the Act and this regulation; 2. Penalties assessed as a result of the examination findings, in accordance with the Act are remitted to the Division; and 3. Adjustments made by the holder during the review period are confirmed by the Treasurer or her agent.

History

Source: Miss. Code Ann. Sections 89-12-45, 89-12-49

Chapter 6 Protests

38 Miss. Admin. Code Pt. 4, R. 6.1 Written Protests

Any aggrieved party, as defined in these rules, may file with the Treasurer, a written protest, under oath, signed by the aggrieved party or his or her duly authorized agent. As part of a written protest, an aggrieved party may request an administrative hearing. In the event an administrative hearing is not requested, the Treasurer shall proceed without further notice to review the protest and available evidence.

A. A written protest shall include the following: 1. All information identifying the holder report, examination report, claim request or any other subject matter documentation relevant to the protest and the amount of property protested or in controversy; 2. A clear and concise assignment of each error alleged to have been committed by the Division; 3. The argument and legal authority upon which each assignment of error is made; and 4. A statement of relief or adjustment sought by the aggrieved party.

B. Hearing Officer. The Treasurer may designate a hearing officer to review a written protest or administrative hearing, and available evidence. At the conclusion of the hearing

officer’s review, the hearing officer shall submit to the Treasurer all evidence along with the hearing officer’s findings of fact and conclusions of law. Upon review of the hearing officer’s findings and conclusions, the Treasurer may accept, modify, or reject, in whole or in part, such findings and conclusions. The Treasurer shall thereafter issue a final order and promptly send a copy of such, via certified mail with return receipt requested, to the aggrieved party.

C. Time Limitations. If any holder aggrieved by the examination findings of the Treasurer fails to file a written protest within SIXTY (60) days of the Treasurer’s mailing of a demand notice, the examination findings, without further action of the Treasurer, will be presumed valid and final. The Treasurer may extend the time period for filing a protest for any period of time, at her discretion.

D. Payments Made under Protest. If a holder files a written protest of examination findings with the Treasurer, the holder may pay the amount specified in the examination findings and designate the payment as being made under protest. Such payment shall stop the accrual of interest, if any, upon the amount paid. If the Treasurer sustains the protest, in whole or in part, the amount determined by the Treasurer not to be due shall be refunded to the holder, with interest, in accordance with the Act.

History

Source: Miss. Code Ann. Sections 89-12-39, 89-12-49

38 Miss. Admin. Code Pt. 4, R. 6.2 Administrative Hearings

The Treasurer, or her designated hearing officer, may grant an administrative hearing to any aggrieved party that has submitted a request for such in accordance with these rules.

A. Notice of Administrative Hearing. The Treasurer shall provide written notice of the hearing to the aggrieved party no more than THIRTY (30) days from the Treasurer’s receipt of the request. Such notice, delivered by certified mail with return receipt requested, shall set forth the date, time, and place for the administrative hearing and shall also designate a hearing officer.

B. Witnesses. Any party that wishes to appear or to introduce evidence or other testimony at the hearing shall, at least FOURTEEN (14) days prior to the hearing date, file with the hearing officer a list of exhibits to be introduced and any witnesses intended to be called to testify or to otherwise provide evidence. A true and correct copy of such list shall be forwarded to all parties no later than FOURTEEN (14) days prior to the hearing date. The list shall contain for each witness: 1. Name; 2. Current residential and business addresses and telephone numbers, if known; 3. A statement indicating whether such person is to testify in person or by affidavit.

C. Documents. Upon request by any party to the hearing, any documents, papers or tangible things to be introduced by any other party to the hearing shall be made available for inspection and copying by the requesting party no later than FOURTEEN (14) days prior

to the hearing date. This shall include written reports prepared by any expert retained by any party to testify at the hearing.

D. Conduct of Hearing. The hearing officer shall have the authority to administer oaths and affirmations. Each party may be represented by an attorney or other authorized representative. The hearing officer may clear the hearing room of any witnesses not directly subject to the examination. The hearing officer shall have the authority to maintain the decorum of the hearing and shall take reasonable steps to do so when necessary, including clearing the hearing room of any person who is disruptive.

E. Evidence. All witnesses who appear and testify under oath shall be subject to cross examination. A witness who does not appear may testify by affidavit provided the party presenting the particular witness' affidavit has complied with the requirements of this regulation, thereby affording any other party an opportunity to contact said witness and obtain an affidavit on its own behalf. The hearing officer shall have the authority to admit into the record any evidence which, in his or her judgment, has a reasonable degree of probative value and trustworthiness. The hearing officer shall have the authority to exclude evidence which is irrelevant, immaterial, lacking in probative value, untrustworthy or unduly cumulative. Documents received into evidence by the hearing officer shall be marked by him or her, or under his or her direction, and filed for the record of the appeal. Rebuttal and surrebuttal evidence may be heard at the discretion of the hearing officer. Arguments summarizing the evidence and the law may be heard at the discretion of the hearing officer.

F. Order of Proof: Burden of Proof. At the hearing, the aggrieved party shall be the first to present evidence. The aggrieved party shall have the burden of proving its allegations by a preponderance of the evidence.

G. Preservation and Transcription of Record of Hearing. A record of testimony at the hearing may be made by stenographic or other means, in which event notice shall be given to all parties designating the manner of recording and preserving the testimony. It shall be the responsibility of any party desiring to preserve by stenographic or other means a record of testimony at the hearing to: 1. Arrange for a court reporter to make stenographic recording of the hearing; 2. Pay all fees and expenses for such recording and transcription directly to the court reporter; 3. Make available to any other party requesting such, a true and correct copy of said recording, provided such party agrees to pay the expense of such copy.

H. Order to be Filed upon Completion of Hearing. After all evidence is heard or received and the hearing is completed, the hearing officer shall, within a reasonable time thereafter, prepare and file proposed written findings of fact and conclusions of law and a proposed decision and final order based thereon. The Treasurer shall review the findings and conclusions, and may accept, modify, or reject, in whole or in part, the findings and conclusions. The Treasurer shall thereafter issue a final order, a copy of which shall be

sent promptly, via certified mail, return receipt requested, to all parties who appeared at the administrative hearing, or to their attorney(s) or authorized representative(s).

I. Continuances. Continuances requested by any party shall be granted within the discretion of the hearing officer only for good cause shown.

J. Computation of Time. In computing any period of time not specifically prescribed under these rules, the hearing officer shall be guided by the Mississippi Rules of Civil Procedure.

History

Source: Miss. Code Ann. Section 89-12-49

38 Miss. Admin. Code Pt. 4, R. 6.3 Judicial Review

Any party aggrieved by the final order of the Treasurer, with regard to a written protest or administrative hearing, may commence an action in the Circuit Court of the First Judicial District of Hinds County, Mississippi. Except as otherwise provided by law, the Attorney General shall, in person or by his assistant, act as counsel for any of the state officers in suits brought by, or against, them in their official capacity, touching any official duty or trust.

History

Source: Miss. Code Ann. Sections 7-5-39, 89-12-41, 89-12-49

Chapter 7 Confidentiality

38 Miss. Admin. Code Pt. 4, R. 7.1 Confidentiality of Reports, Records and Files in the Administration of the Act

A. The Treasurer shall consider confidential any documents submitted by claimants, information discovered by Treasurer concerning claims and claimants, reports filed by holders, records and files of holders, and information secured therefrom, created by, received by, or coming into the custody of the Treasurer as a result of any audit.

B. Confidential information relating to a particular item of property may be disclosed to a claimant provided that such claimant has demonstrated probable entitlement to the property.

History

Source: Miss. Code Ann. Sections 25-61-1 et seq., 89-12-27, 89-12-49

38 Miss. Admin. Code Pt. 4, R. 7.2 Disclosure of Certain Information, Reports, and Records; Mississippi Public Records Act of 1983

A. The Treasurer may disclose statistical information gathered from confidential information, provided that no such information is attributable to any one claimant.

B. Confidential information, obtained as required for proper administration of the Act or this regulation, may be disclosed to: 1. Any employee of the Treasurer whose official duties involve unclaimed property;

The State Auditor, or his duly authorized agent, in connection with any audit of the Treasurer; or 3. The Office of the Attorney General for its use in providing counsel relating to unclaimed property administration or in preparation for any proceeding involving unclaimed property before any agency or board of this state or before any grand jury or any state or federal court.

C. Nothing in these rules shall be construed to prevent the disclosure of information in accordance with the Mississippi Public Records Act of 1983.

History

Source: Miss. Code Ann. Sections 25-61-1 et seq., 89-12-27, 89-12-49