(a) The Comptroller, HESC and the program manager have adopted procedures for determining whether a withdrawal is:

Following the request of an account owner for a withdrawal of all or part of the balance from an account, payment shall be made not later than seven days after the date on which a determination is made by the program manager and/or HESC, as applicable, using the above-referenced procedures, that a withdrawal request should be effected.

(b) If the program manager determines that a withdrawal is an early withdrawal, the program manager shall pay the amount of the withdrawal to the account owner net of penalties, except for withdrawals made as a result of the death or disability of a designated beneficiary or a withdrawal made on account of scholarship awarded to the designated beneficiary. If such withdrawal is subsequently determined not to be an early withdrawal, pursuant to procedures established by the Comptroller, HESC and the program manager, the account owner may request a refund of penalties from the program manager and the program manager shall refund such penalties not later than seven days after the date on which the determination is made by the program manager that the withdrawal was not an early withdrawal.