1. (a) A prepaid tuition contract remains in effect after the program is terminated if, when the program is terminated, the beneficiary:

   1. (1) has been accepted by or is enrolled at a general academic teaching institution, two-year institution of higher education, private or independent institution of higher education, or accredited out-of-state institution of higher education; or
   2. (2) is projected to graduate from high school not later than the third anniversary of the date the program is terminated.
2. (b) A prepaid tuition contract terminates when the program is terminated if the contract does not remain in effect under subsection (a) of this section.
3. (c) For contracts that are terminated pursuant to subsection (b) of this section, the purchaser is entitled to a refund of the Refund Value, less any fees that are past due and payable to the program under the board's fee schedule.

Source Note:The provisions of this §7.141 adopted to be effective August 27, 2008, 33 TexReg 6957.