The following words and terms, when used in this part, have the following meanings, unless the context clearly indicates otherwise:
Act-The Tuition Account Program and College Savings Bond Act (24 P. S. §§ 6901.101-6901.509).
Beneficiary-A person who meets the eligibility criteria in the act, and on whose behalf a purchaser enters into a tuition account payment contract.
Department-The Treasury Department of the Commonwealth.
Fund-The Tuition Payment Fund established by the act.
Material misrepresentation-A false statement made with the intent to deceive by the purchaser or beneficiary, either in the application or in written correspondence with the Department regarding the tuition account payment contract, relating to a substantial fact, including the age of the purchaser, the residency of the purchaser or beneficiary or the reason for termination of the tuition account payment contract.
Net earnings rate of the Fund-The percentage return of the investment of Fund assets after adjusting for taxes and operating expenses.
Participating institution-An accredited, degree-granting college or university required by the act to participate in the Program as follows:
Program-The Tuition Account Program established by the act.
Purchaser-A person of legal age, including a natural person, corporation, association, partnership or other legal entity, who meets the eligibility requirements in the act and who enters into a tuition account payment contract.
Standard tuition level-The approximate average tuition for an academic year at one of the following as established by the Department:
Termination of the tuition account payment contract-The voluntary or involuntary discontinuation of a purchaser from the Program and the voluntary or involuntary discontinuation of the beneficiary's right to receive benefits under a tuition account payment contract.
Tuition-The total of fees and charges required for attendance at an institution of higher education for a full-time, undergraduate academic year, excluding charges for room and board. Fees and charges as used in this definition do not include costs for:
Tuition account-The account established by a tuition account payment contract for a beneficiary.
Tuition account payment contract-The contract entered into by a purchaser and the Department to provide for the advance purchase of tuition credits for a beneficiary attending a participating institution, which contract consists of a master agreement, application, acceptance package, annual price schedule for tuition credits as periodically amended and other related documents.
Tuition credit-
Tuition unit-Five percent of a tuition credit. For example, 20 tuition units equal 1 tuition credit.
Value of the account-The sum of payments made under a tuition account payment contract for the purchase of tuition credits or tuition units plus, in the case of each payment, a pro rata share of the net earnings rate of the Fund from the date of payment to the time of valuation, compounded annually.
22 Pa. Code § 601.1