52 Direct Plan Disclosure Booklet and Tuition Savings Agreement
Section 14. New York’s College Savings Program Direct Plan
Tuition Savings Agreement
I hereby agree with, and represent and warrant to, the
Comptroller of the State of New York, as Trustee of the
Trust, on behalf of myself and my Beneficiary, as follows.
Each capitalized term used but not defined in this Tuition
Savings Agreement (Agreement) has the meaning that term
has in the Disclosure Booklet:
A. 1. I have accepted, read, and understand the Disclosure
Booklet, this Agreement, and the Enrollment Application
as currently in effect. I have been given the opportunity to
obtain answers to all of my questions concerning the
Program, the Trust, the Account, and this Agreement. In
making a decision to open an Account and enter into this
Agreement, I have not relied upon any representations or
other information, whether oral or written, other than as
set forth in the Disclosure Booklet and this Agreement.
2. I certify that I am at least 18 years of age and a citizen
or a resident of the United States of America. My
Beneficiary of the Account also is a citizen or a
resident of the United States of America.
3. I am opening this Account solely to provide funds
for Qualified Higher-Education Expenses.
4. I understand that I am solely responsible for
determining which Qualified Tuition Program is best
suited to my needs and objectives. I understand that
the Investment Options within the Direct Plan may
not be suitable, and that the Direct Plan may not be
suitable, for all investors as a means of saving and
investing for higher-education costs. I have determined
that an investment in the Direct Plan is a suitable
investment for me as a means of saving for the
Qualified Expenses of my Beneficiary.
5. I recognize that investment in the Direct Plan involves
certain risks, including, but not limited to, those referred
to in Section 3 and Section 5 of the Disclosure Booklet,
and I understand these risks and have taken them into
consideration in making my investment decisions. I
understand and agree that there is no guarantee that
any investment objectives described in the Disclosure
Booklet will be realized and that none of the State of
New York; the Comptroller; HESC; any agency or
instrumentality of the federal government or the State
of New York; any fund established by the State of New
York or through operation of New York State law for
the benefit of holders of insurance contracts or policies
generally; Ascensus Broker Dealer Services, Inc., or any
of its affiliates; Vanguard or any of its affiliates; any
successor Program Manager or Investment Manager;
any agent, representative, or subcontractor retained in
connection with the Program (together, the Direct Plan
Officials); or any other person makes any guarantee of,
insures, or has any legal or moral obligation to insure
either the ultimate payout of all or any portion of the
amount contributed to my Account or any investment
return, or an investment return at any particular level,
on my Account.
6. I understand that contributions to a Portfolio will be
invested in one or more of the Underlying Funds. I will
not own shares of or interests in the Underlying Funds.
Instead, I will own interests in the Trust.
7. I cannot use my Account as collateral for any loan. I
understand that any attempt to use my Account as
collateral for a loan would be void. I also understand
that the Trust will not lend any assets to my Beneficiary
or to me.
8. I understand that the Program Manager has the right to
provide a Financial Advisor identified by me to the
Direct Plan with access to financial and other
information regarding my Account.
9. The Direct Plan Officials, individually and collectively,
are not: (i) liable for a failure of the Program to qualify
or to remain a Qualified Tuition Program under the
Code including any subsequent loss of favorable tax
treatment under state or federal law; (ii) liable for any
loss of funds contributed to my Account or for the
denial to me or my Beneficiary of a perceived tax or
other benefit under the Direct Plan, the Trust, or the
Enrollment Application; or (iii) liable for loss caused
directly or indirectly by government restrictions,
exchange or market rulings, suspension of trading,
war, acts of terrorism, strikes, or other conditions
beyond their control.
10. I understand and agree that there is no guarantee or
commitment whatsoever of or from the Direct Plan
Officials, or any other person that (i) the Beneficiary
of my Account will be admitted to any institution
(including any Eligible Educational Institution); (ii)
upon admission to an institution, my Beneficiary will
be permitted to continue to attend; (iii) my Beneficiary
will receive a degree from any institution; (iv) New
York State residency will be created for tax status,
financial aid eligibility, or any other purpose for my
Beneficiary because the individual is a Beneficiary of an
Account; or (v) contributions to my Account plus the
earnings thereon will be sufficient to pay the Qualified
Higher-Education Expenses of my Beneficiary. I
acknowledge that the Beneficiary of my Account has
no rights or legal interest with respect to the Account
(unless the Account is an UGMA/UTMA account or I
am both the Account Owner and my Beneficiary).
11. I understand and agree that neither I nor my Beneficiary
will be permitted to have any role in the selection or
retention of the Program Manager or Investment
Manager or to direct the investment of my Account
other than through my selection of Investment Options,
and that, once invested in a particular Investment
Option, contributions and earnings thereon may only
be transferred to another Investment Option twice
per calendar year, or otherwise when I select a new
Beneficiary of my Account.
12. I understand and agree that Ascensus Broker Dealer
Services, Inc., may not necessarily continue as Program
Manager, and Vanguard may not necessarily continue
as Investment Manager, for the entire period that my
Account is open, and even if they do, that there is no
assurance that the terms and conditions of the current
Management Agreement will continue without material
change, and that there are, accordingly, various
potential consequences I should take into consideration
as discussed in the Disclosure Booklet under Section 3.