Participation Agreement

By opening an Account, you accept the terms of the following agreement (the “Participation Agreement”), in which you agree to indemnify the Program Administrators, make certain representations to us and acknowledge your responsibilities.

Indemnity

As an Account Owner, I agree to and acknowledge the following:

  1. I am opening an Account in the Program based upon my statements, agreements, representations, warranties, and covenants as set forth in the Plan Disclosure Booklet and the Enrollment Form.
  2. I, through my Enrollment and this Agreement, indemnify and hold harmless the Program Administrators from and against any and all loss, damage, liability, penalty, tax, or expense, including costs of reasonable attorneys’ fees, which they incur by reason of, or in connection with, any misstatement or misrepresentation that is made by me or my Beneficiary, any breach by me of the acknowledgements, representations, or warranties in the Plan Disclosure Booklet or the Enrollment Form, or any failure by me to fulfill any covenants or agreements in the Plan Disclosure Booklet, or the Enrollment Form.

Representations, Warranties and Acknowledgements

I, as Account Owner, represent and warrant to, and acknowledge and agree with the Board regarding the matters set forth in the Plan Disclosure Booklet and the Enrollment Form including that:

  1. I have received, read, and understand the terms and conditions of the Plan Disclosure Booklet and Enrollment Form and any additional information provided to me by any of the Program Administrators with respect to the Oregon College Savings Plan.
  2. I certify that I am a natural person, at least 18 years of age and a citizen or a resident of the United States of America, who resides in the United States of America, and that I have the requisite authority to enter into this Participation Agreement and to open an Account on behalf of the Beneficiary. I also certify that the person named as Beneficiary of the Account is a citizen or a resident of the United States of America.
  3. I understand that the Oregon College Savings Plan is intended to be used only to save for Qualified Expenses of the Beneficiary.
  4. If I am establishing an Account as a custodian for a minor under UGMA/UTMA, I understand and agree that I assume responsibility for any adverse consequences resulting from the establishment, maintenance, or termination of the Account.
  5. If I am establishing an Account as a trustee for a trust, I represent that (i) I am duly authorized to act for the trust; (ii) I understand that the Plan Disclosure Booklet may not discuss tax consequences and other aspects of the Oregon College Savings Plan of particular relevance to the trust and individuals having an interest in the trust; and (iii) I, as trustee, for the benefit of the trust, have consulted with and relied on a professional advisor, as deemed appropriate on behalf of the trust.
  6. I have been given an opportunity to ask questions and receive answers concerning the terms and conditions of the Oregon College Savings Plan and the Plan Disclosure Booklet.
  7. I understand that the Oregon College Savings Plan assets may be allocated among equity Funds, fixed-income Funds, cash management Funds, funding agreements, and other investments.
  8. In making my decision to open an Account and completing my Enrollment Form, I have not relied upon any representations or other information, whether written or oral, other than as set forth in the Plan Disclosure Booklet, and I have considered the availability of alternative education savings and investment programs, including other Qualified Tuition Programs.
  9. I understand that I am solely responsible for determining which Qualified Tuition Program is best suited to my needs and objectives. I understand that each of the Investment Options within the Oregon College Savings Plan may not be suitable, and that the Oregon College Savings 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 Oregon College Savings Plan is a suitable investment for me as a means of saving for the Qualified Expenses of the Beneficiary.
  10. I have been given an opportunity to obtain any additional information needed to complete my Enrollment Form and/or verify the accuracy of any information I have furnished. I certify that all of the information that I provided in the Enrollment Form and any other documentation subsequently furnished in connection with the opening or maintenance of, or any withdrawals from, my Account is and shall be accurate and complete, and I agree to notify the Board or the Oregon College Savings Plan promptly of any material changes in such information.
  11. The value of my Account depends upon the performance of the Portfolios. I understand that at any time the value of my Account may be more or less than the amounts contributed to the Account. I understand that all contributions to my Account are subject to investment risks, including the risk of loss of all or part of the contributions and any return or interest earned. I understand that the value of the Account may not be adequate to fund actual Qualified Expenses.
  12. I understand that the Portfolios are not designed to assist me in saving for K-12 Tuition.
  13. I understand that although I own trust interests in a Portfolio, I do not have a direct beneficial interest in the Funds and other investment products approved by the Board from time to time, and therefore, I do not have the rights of an owner or shareholder of those Funds or other investments. I further understand that I received no advice or investment recommendation from, or on behalf of, the Program Administrators.
  14. I understand that after I make a contribution to a specific Investment Option, I will be allowed to direct the further investment of that contribution and earnings thereon no more than two times per calendar year, unless I change the Beneficiary.
  15. 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 Oregon College Savings Plan will not lend any assets to my Beneficiary or to me.
  16. I understand that the Program Manager has the right to provide an investment advisor identified by me to the Oregon College Savings Plan with access to financial and other information regarding my Account.
  17. I understand that none of the Program Administrators are providing me with investment advisory services in connection with my participation in the Oregon College Savings Plan and that if I so choose I may contract separately with an investment advisor or investment advisor to advise me on my investment in the Oregon College Savings Plan.
  18. Except as described in this Plan Disclosure Booklet, I will not assign or transfer any interest in my Account. I understand that, except as allowed by law, any attempt to assign or transfer that interest is void.
  19. I acknowledge that the Oregon College Savings Plan intends to qualify for favorable federal tax treatment under the Code. Because this qualification is vital to the Oregon College Savings Plan, the Board may modify the Oregon College Savings Plan or amend this Plan Disclosure Booklet at any time if the Board decides that the change is needed to meet the requirements of the Code or the regulations administered by the IRS pursuant to the Code, State law or regulations, or to ensure the proper administration of the Oregon College Savings Plan.
  20. I understand that my Account(s), including assets and records, may be serviced by a different program manager at the Board’s direction in the event of a change in Program Manager and that the Underlying Funds in the Portfolios in my Account, and their Investment Managers, may be changed as a result of decisions made by the Board in its discretion.
  21. The Program Administrators, individually and collectively, do not guarantee that my Beneficiary: will be accepted as a student by any institution of higher education, other institution of post-secondary education or a K-12 School; if accepted, will be permitted to continue as a student; will be treated as a state resident of any state for tuition purposes; will graduate from any institution of higher education, other institution of post-secondary education, or a K-12 School; or will achieve any particular treatment under any applicable state or federal financial aid programs.
  22. The Program Administrators, individually and collectively, do not guarantee any rate of return or benefit for contributions made to my Account or guarantee the amount of tuition and fees that may be charged by an Eligible Educational Institution.
  23. The Program Administrators, individually and collectively, are not:
    1. liable for a failure of the Oregon College Savings Plan 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;
    2. liable for any loss of funds contributed to my Account or for the denial to me of a perceived tax or other benefit under the Oregon College Savings Plan, the Plan Disclosure Booklet or the Enrollment Form; or
    3. 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.
  24. I understand that under Oregon State law, Oregon State residency is not established for the Beneficiary merely because I have designated him or her as the Beneficiary of the Account.
  25. My statements, representations, warranties, and covenants will survive the termination of my Account.