CFNC.org/NC529 800-600-3453 CFI Form C420 (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. CERTAIN AGREEMENTS, REPRESENTATIONS AND WARRANTIES. I
hereby represent and warrant to the Program Administrator and 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
establish an Account in North Carolina’s National College Savings Program.
3. Limit on Contributions. I certify that I intend that this Account fund the Qualified
Higher Education Expenses of the Beneficiary of the 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. I recognize that the investment of my Account involves risks, including the
risk of loss of my 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 my Account may fluctuate depending on market conditions and the
performance of the Investment Options selected and that I could lose money by
investing in the Program.
5. Electronic Funds Transfers and Automatic Drafts. If I have elected to make
Contributions by electronic funds transfers (EFT) or automatic draft, I authorize the
Authority and the Program Administrator to initiate debit and/or credit entries in
accordance with my instructions designated in the Enrollment Agreement or any
future instructions against my account designated in this Enrollment Agreement or
later designated by me. I authorize the financial institution to accept any such debits
or credits to my 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 my 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 to maintain the balance in my designated account 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. Payroll Deduction. If enrolling through a payroll deduction plan, I understand
that the payroll deduction plan is being made available to me by my employer, and
that my employer is responsible for collecting and forwarding my Contributions to
the Program Administrator. I understand and agree that none of the Authority, the
Program Administrator, each investment manager or any successor investment
manager or any third party payroll service provider of my employer, or any of their
affiliates, directors, officers, employees, or agents (collectively the “Program
Parties”) is liable for any act, omission or error by the Program Parties in connection
with my Account, except to the extent of any liability imposed by federal law or other
applicable law that cannot be waived.
7. Transfers and Rollovers.
a. Transfers from an Existing UGMA/UTMA Custodial Account.
If I am funding my 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 I 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 Rollover and Transfer Form with this Agreement, I certify that no
part of any Contribution that I make to an Account established pursuant to this
Enrollment Agreement consists of proceeds derived from a Rollover of amounts
from another qualified tuition program or transfer of proceeds from a Coverdell
Education Savings Account or a Qualified Savings Bond (Series EE or Series I,
issued after 1989). I further certify that if any part of a future Contribution consists of
such amounts or proceeds, I 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, Coverdell Education
Savings Account, or Qualified Savings Bond (Series EE or Series I, issued after
1989). I recognize that if I fail 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.
8. 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 to hold harmless the Program Administrator and
its agents for any loss, damage, liability, cost, or expenses including reasonable
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’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 Participant. In addition, telephone calls may
be recorded as documentation, and I consent to such recording.
9. Taxes. I understand my Contributions per Beneficiary in a calendar year
generally may not exceed the applicable annual federal exclusion without incurring
federal and North Carolina gift taxes. I further understand that certain transactions
with my Account including but not limited to certain Rollovers, Non-Qualified
Withdrawals, or Withdrawals on account of Beneficiary’s death, Permanent
Disability, or receipt of a Scholarship, may result in regular federal and/or state
income taxes and an additional 10% federal income tax on earnings. Please refer to
the Program Description for details on any tax consequences related to
Contributions or other transactions with my Account.
10. 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.
11. 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.
12. Indemnity. I understand that the establishment of my Account is based on my
agreements, representations and warranties set forth in this Enrollment Agreement.
I will indemnify and hold harmless Program Parties, 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 my Account, and any
breach by me of any of the agreements, representations or warranties contained in
this Enrollment Agreement. I agree to hold harmless the Program Parties for any
loss, cost, or expense resulting from my instructions reasonably believed to be
genuine. This provision, and all of my agreements, representations or warranties
will survive termination of this Enrollment Agreement.
13. Use of Tax Identification Numbers. 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.
14. Effectiveness of Enrollment Agreement. This Enrollment Agreement will
become effective upon the opening of the Account by the Program Administrator.
15. 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.
16. 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.
17. Governing Law. The Program and this Enrollment Agreement are governed by
North Carolina law, and I submit 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.
9 Agreements, Representations, and Warranties of the Participant
