Utah Admin. Code R152-34-5 - Surety Bond, Certificate of Deposit, or Irrevocable Letter of Credit - Form - Amount - Execution and Cancellation - Other Proof of Financial Viability
(1) A postsecondary school that provides to
the division other proof of financial viability in accordance with Subsection
R152-34-3(6) is
not required to maintain a surety bond, certificate of deposit, or irrevocable
letter of credit.
(2)
(a) A postsecondary school shall provide with
its registration statement a surety bond, certificate of deposit, or
irrevocable letter of credit in a form and amount approved by the
division.
(b) A postsecondary
school may provide a continuation certificate to demonstrate it maintains a
surety bond in accordance with Section
13-34-202 and Section
R152-34-5.
(c) A certificate of deposit or irrevocable
letter of credit obtained in accordance with Section
13-34-202 and Section
R152-34-5 shall be issued or
held by a financial institution that has a location in Utah.
(3)
(a) A postsecondary school's surety bond,
certificate of deposit, or irrevocable letter of credit shall be for an amount
based on the postsecondary school's gross tuition revenue, according to the
following table:
|
TABLE Amount of Surety Bond, Certificate of Deposit, or Irrevocable Letter of Credit |
|
|
Gross Tuition Revenue |
Maximum Amount |
|
$0.00 - $50,000 |
$12,500 |
|
$50,000.01 - $100,000 |
$25,000 |
|
$100,000.01 - $200,000 |
$50,000 |
|
$200,000.01 - $300,000 |
$75,000 |
|
$300,000.01 - $400,000 |
$100,000 |
|
$400,000.01 - $500,000 |
$125,000 |
|
$500,000.01 - $1,000,000 |
$250,000 |
|
$1,000,000.01 - $2,000,000 |
$500,000 |
|
$2,000,000.01 - $5,000,000 |
$1,250,000 |
|
$5,000,000.01 - $10,000,000 or greater |
$2,500,000 |
(b)
A postsecondary school that operates in Utah, but does not maintain physical
presence in Utah, shall obtain a surety bond, certificate of deposit, or
irrevocable letter of credit in an amount based on its gross tuition revenue
attributable to Utah residents enrolled in the postsecondary school.
(c) A postsecondary school may obtain more
than one surety bond, certificate of deposit, or irrevocable letter of credit
to reach the amount required by Subsection
R152-34-5(3)(a).
(d) The division may, at its discretion,
determine whether a surety bond, certificate of deposit, or irrevocable letter
of credit maintained by the postsecondary school, but that is not payable to
the division, satisfies, in whole or in part, the requirements of Sections
13-34-202 and R152-34-5.
(4) A postsecondary school that submits pro
forma financial projections in accordance with Subsection
R152-34-4(2)(c)(iv)
shall provide a surety bond, certificate of deposit, or irrevocable letter of
credit for an amount:
(a) based on the
postsecondary school's projected gross tuition revenue for its first 12 months
of operation; and
(b) consistent
with Subsection R152-34-5(3)(a).
Notes
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