22 Pa. Code § 73.54 - Surety
(a)
Forms
of surety. A school applying for a license or registration or for
renewal shall include with its application evidence of surety, the purpose of
which is to reimburse the unearned tuition due students whenever the licensed
or registered school closes. Schools may select one of the following forms of
surety or a combination thereof, in sufficient amount to meet the requirements
of subsection (b):
(1) Surety bond.
(2) Participation in a Board-approved private
surety fund.
(b)
Levels of surety. Regardless of the form of surety selected by
the school, surety shall be demonstrated to exist at the following levels:
(1) For a prospective licensee applying for
an original license, the required minimum surety level is $10,000.
(2) For a licensee applying for a renewal
license, the required minimum surety level is $10,000 for licensees with gross
tuition collected during the previous fiscal year of $500,000 or less. For
licensees with gross tuition collected during the previous fiscal year in
excess of $500,000, the minimum surety level is $10,000 for each $500,000 or
portion thereof of gross tuition collected during the previous fiscal
year.
(3) For a licensee applying
for a renewal license, the maximum surety level is $100,000.
(4) For a registered school, the minimum
surety level is $10,000, with subsequent surety levels to be based on tuition
generated by residents of this Commonwealth. The maximum required amount is
$100,000.
(c)
Approval. The form and level of surety established by a school
are subject to the approval of the Board. Board approval constitutes a
condition precedent to the granting or renewal of a license or
registration.
(d)
Alteration by school. A school may apply to the Board for
alteration of its approved form or level of surety. An application for
alteration of surety will be approved by the Board prior to its taking
effect.
(e)
Alteration by
Board. The Board may direct that a school alter its approved form or
level of surety with cause. A school which fails, within 30 days, to comply
with a directive of the Board may be subject to suspension or revocation of its
license or registration.
(f)
Schools are required to maintain surety at the levels under subsection (b)
throughout the period of licensure.
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