§ 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.
Source The provisions of this § 73.54 amended April 1, 2005, effective April 2, 2005, 35 Pa.B. 1982. Immediately preceding text appears at serial pages (220310) to (220311).
Cross References This section cited in 22 Pa. Code § 73.52 (relating to contents of application); and 22 Pa. Code § 73.143 (relating to license or registration not transferable).
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