Mich. Admin. Code R. 390.562a - Surety

Rule 2a.

(1) If surety is terminated, the school's license or permit shall expire if a surety is not secured to replace the expired surety. Notification, in writing, shall be given by the school to the department if surety is to expire or be terminated and not replaced.

(2) A school shall not enroll students following notice of cancellation of surety unless another form of surety has been provided.

(3) A surety shall be provided by a school in an amount determined according to the following:

(a) An accredited school shall provide evidence of surety of not less than $5,000.00 for 1 to 100 full-time equated students, not less than $7,500.00 for 101 to 500 full-time equated students, and not less than $10,000.00 for 501 to 1,000 or more full-time equated students.

(b) A nonaccredited school shall provide evidence of surety in an amount equal to $200.00 per student, but not less than $5,000.00.

Notes

Mich. Admin. Code R. 390.562a

1987 AACS; 2014 AACS