1. (a) Refunds shall be made in accordance with provisions of these rules and the prepaid tuition contract, in a manner that will not adversely affect the tax status of the program under applicable provisions of the Internal Revenue Code, as amended from time to time. Refunds shall be governed by these rules as amended and as in effect on the date the request for refund is submitted to the board. The amount of any refund shall be the sum of all payments made under the contract for tuition and required fees, less fees due and payable to the program under the board's fee schedule and less any amounts paid by the program pursuant to the prepaid tuition contract prior to the refund. If a contract is cancelled due to the death of the purchaser or beneficiary or due to the graduation of the beneficiary from an eligible educational institution, no cancellation fee will be assessed against the contract.
2. (b) Refunds shall be made to the purchaser of the prepaid tuition contract unless otherwise designated by the purchaser in writing to the board in the event of the purchaser's death.
3. (c) Should a beneficiary terminate his/her student status on or after the date on which the institution denies refunds to students withdrawing for a particular semester, no refund shall be paid under the prepaid tuition contract for amounts relating to such semester.

Source Note:The provisions of this §7.81 adopted to be effective January 8, 1996, 20 TexReg 11124; amended to be effective November 15, 1996, 21 TexReg 10890; amended to be effective December 3, 1997, 22 TexReg 11716; amended to be effective July 4, 1999, 24 TexReg 5021; amended to be effective July 14, 2002, 27 TexReg 6042; amended to be effective November 1, 2009, 34 TexReg 5958.