CFNC.org/NC529 800-600-3453 CFI Form C420d (08/18)
Please read this carefully before you sign and submit your Enrollment Agreement.
A. DEFINED TERMS. Capitalized terms appearing but not defined in this
Enrollment Agreement have the meanings assigned to them in the Program
Description.
B. AUTHORITY TO EXECUTE AGREEMENT. As the individual executing this
Enrollment Agreement on behalf of the entity named in Section 1 that is
establishing this Account, I certify that I have the authority to enter into this
Enrollment Agreement and bind such entity and represent such entity in all
subsequent transactions related to the Account.
C. CERTAIN AGREEMENTS, REPRESENTATIONS AND WARRANTIES. I, the
Authorized Representative acting on behalf of the entity named in Section 1, hereby
represent and warrant to the Program Administrator that the entity is duly
organized, validly existing and in good standing in the state under which the entity
is established, and that the entity has the full legal right, power, and authority to
enter into this Enrollment Agreement. I, as the Authorized Representative
establishing this Account on behalf of such entity, agree as follows:
1. Program Description. I have received, read and understand the Program
Description for North Carolina’s National College Savings Program as currently in
effect, and as may be amended from time to time (the “Program Description”). In
making a decision to open an Account and enter into this Enrollment Agreement, I
have not relied on any representations or other information, whether oral or written,
other than as set forth in the Program Description and this Enrollment Agreement. I
agree to be bound by the terms and conditions set forth in the Program Description.
2. Full Authority and Legal Capacity. I have full authority and legal capacity to
purchase investment units to open an Account in North Carolina’s National College
Savings Program.
3. Limit on Contributions. As the Authorized Representative, I certify that the
entity intends that this Account fund the Qualified Higher Education Expenses of the
Beneficiary of the Account or a future Beneficiary if this is a Scholarship Account,
that each Contribution to the Account will be for that purpose, and that I will not
make any Contribution to the Account if, to the best of my knowledge, the total
value of the Account combined with the total value of all other accounts established
for the Beneficiary in other qualified tuition programs under Section 529 of the
Internal Revenue Code exceeds the amount necessary to provide for the Qualified
Higher Education Expenses of the Beneficiary.
4. Risks. As the Authorized Representative, I recognize that the investment of the
Account involves risks, including the risk of loss of this investment, as described in
the Program Description. I understand that the returns on Contributions are not
guaranteed by the State of North Carolina, the Authority, the Program
Administrator, or any other governmental authority, or by any current or successor
investment manager or any of their affiliates, directors, officers or employees. Not
withstanding the foregoing, contributions and interest thereon allocated to the
Federally-Insured Deposit Account are guaranteed by SECU and insured by the
National Credit Union Administration (“NCUA”), which is backed by the full faith and
credit of the United States Government. I understand the value of this Account may
fluctuate depending on market conditions and the performance of the Investment
Options selected and that the entity could lose money by investing in the Program.
5. Electronic Funds Transfers and Automatic Drafts. As the Authorized
Representative, I certify that have the authority to and hereby authorize the
Authority, the Program Administrator, and its or their service providers, to initiate
debit and/or credit entries against the entity’s designated account in accordance
with my instructions designated in the Enrollment Agreement or any future
instructions against the entity’s account designated in this Enrollment Agreement or
later designated. I authorize the entity’s financial institution to accept any such
debits or credits to the entity’s designated account. I understand that my
authorization for any such credit or debit must comply with applicable law, and I
agree to hold harmless the Authority and Program Administrator for any credits or
debits related to the entity’s Account that result in any losses, damage, liability,
cost, or expenses. This authorization will remain in effect until I notify the Program
Administrator in writing of its termination and until the Program Administrator has
reasonable time to act on that termination. I further agree that the balance in the
entity’s designated account, as indicated in this Enrollment Agreement, will be
maintained at a level sufficient to satisfy each debit transaction, and I understand
that if the balance is insufficient, the Program Administrator may assess a fee in
accordance with this Enrollment Agreement and the Program Description.
6. Transfers and Rollovers.
a. Transfers from an Existing UGMA/UTMA Custodial Account. If the entity is
funding this Account through a transfer of assets from an existing Uniform Gifts to
Minors Act/ Uniform Transfers to Minors Act (UGMA/UTMA) custodial account, I
recognize that there may be certain adverse tax consequences. I understand that
the entity will not be able to change the Beneficiary of the Account or authorize any
Withdrawals from the Account unless the Withdrawal is for a use permitted under
the law governing the UGMA/UTMA custodial account and any relevant terms and
conditions for the UGMA/UTMA custodial account. I further understand that any
additional Contributions made to the UGMA/UTMA Account established by this
Enrollment Agreement will be subject to the terms and conditions of the
UGMA/UTMA custodial account and the state law that governs the UGMA/UTMA
custodial account.
b. Rollovers and Other Transfers. Unless I return the Transfer/Rollover Form with
this Agreement, as the Authorized Representative of the entity named in Section 1,
I certify that no part of the initial Contribution that the entity makes to this Account
established pursuant to this Enrollment Agreement consists of proceeds derived
from a Rollover of amounts from another qualified tuition program. I further certify
that no part of the initial Contribution or any subsequent Contributions will be made
with funds from a transfer of proceeds from a Coverdell Education Savings Account
or a qualified U.S. Savings Bond (Series EE or Series I, issued after 1989). I further
certify that if any part of a future Contribution consists of a Rollover from a qualified
tuition program, the entity will so inform the Program Administrator and agree to
provide documentation as requested by the Program Administrator regarding the
earnings associated with the other qualified tuition program. I recognize that if the
entity fails to provide acceptable documentation, the Program Administrator will
treat such Contributions entirely as earnings as required by applicable rules,
regulation, or guidance from the Internal Revenue Service.
7. Account Changes. If I use telephone services or other electronic means for
Account changes, (a) I recognize that I may use the services only to update or
change certain information contained in the Enrollment Agreement, as explained in
the Program Description; (b) I authorize the Program Administrator and its agents to
act on my instructions and I agree that the entity will hold harmless the Program
Administrator and its agents for any loss, damage, liability, cost, or expenses
including reasonable attorney’s fees resulting from such instructions reasonably
believed to be genuine; and (c) I understand that the Program Administrator or its
agents will employ reasonable procedures such as requesting personal information
to verify that the caller or user of electronic means is the Authorized
Representative. In addition, telephone calls may be recorded as documentation,
and I consent to such recording.
8. Taxes. As the Authorized Representative, I understand that tax consequences
may result from certain transactions with this Account, including but not limited to
certain Rollovers, Non-Qualified Withdrawals or Withdrawals on account of the
Beneficiary’s death, Permanent Disability, or receipt of Scholarship, may result in
regular federal and/or state income taxes or an additional 10% federal income tax
on earnings. Please refer to the Program Description for details.
9. Fees and Charges. I understand that my Account and certain transactions to or
from my Account are subject to the fees and charges set forth in the Program
Description. I understand further that these fees and charges may change in the
future. I agree that the payment of the administrative fees, asset-based charges,
and any other fees set forth in the Program Description are an unconditional
obligation of mine and the Account and shall be payable on my behalf by the
Program Administrator from Contributions or transfers of funds to my Account or
from assets in my Account as provided in the Program Description.
10. Finality of Decisions and Interpretations. All decisions and interpretations by
the Authority and the Program Administrator in connection with the operation of the
Program shall be final and binding on each Participant, Beneficiary and any other
person affected thereby.
11. Indemnity. As the Authorized Representative, I understand that the
establishment of this Account is based on the agreements, representations and
warranties set forth in this Enrollment Agreement. The entity will indemnify and hold
harmless the Authority, the Program Administrator, each investment manager, any
successor investment manager and any of their affiliates, directors, officers,
employees or agents, from and against any loss, damage, liability or expense,
including reasonable attorney’s fees, that any of them may incur by reason of, or in
connection with, any misstatement or misrepresentation by me herein or otherwise
with respect to this Account, and any breach by me of any of the agreements,
representations or warranties contained in this Enrollment Agreement. The entity
will hold harmless the Program Administrator and its agents for any loss, cost or
expenses resulting from instructions reasonably believed to be genuine. This
provision, and all of the agreements, representations or warranties will survive
termination of this Enrollment Agreement.
12. Use of Tax Identification Numbers. As the Authorized Representative, I
understand that the Program Administrator may collect and use the Social Security
Numbers or Taxpayer Identification Numbers provided in this Enrollment
Agreement for certain federal and state tax reporting requirements and for verifying
identity for Account access by telephone or other electronic means, and I consent
to such use.
13. Effectiveness of Enrollment Agreement. This Enrollment Agreement will
become effective upon the opening of the Account by the Program Administrator.
14. Amendment and Termination. At any time, and from time to time, the
Authority and the Program Administrator may amend this Enrollment Agreement or
the Program Description, or may suspend or terminate the Program.
15. Governing Law. The Program and this Enrollment Agreement are governed by
North Carolina law, and the entity submits to the exclusive jurisdiction of courts in
North Carolina for all legal proceedings arising out of or relating to the Program or
this Enrollment Agreement.
16. Change of Authorized Representative. I understand that I, or another
individual, with the authority to act on behalf of the entity, must notify the Program
Administrator in the event that the Authorized Representative named in Section 1
changes and the subsequent Authorized Representative will be bound by the terms
and conditions of this Agreement.
17. Binding Nature, Third-Party Beneficiaries. This agreement will survive my
death and will be binding on my personal representatives, heirs, successors, and
assigns. The Program Administrator is a third-party beneficiary of my agreements,
representations, and warranties in this Enrollment Agreement.
9 Agreements, Representations, and Warranties of the Participant
