Security required in conjunction with an application
 5. (1) A private institution seeking a consent for a program shall give security relating to the program that meets the requirements described in this Regulation.  O. Reg. 279/02, s. 5 (1). (2) The security is to be made payable to the Crown and must be in the form of a note, bond, debenture or other evidence of indebtedness issued or guaranteed by an authorized issuer or guarantor.  O. Reg. 279/02, s. 5 (2). (3) The security must meet the following specifications: 1. Before the consent is given and while the consent is in effect, the authorized issuer or guarantor is not entitled to cancel the security before it expires unless, i. the authorized issuer or guarantor gives at least two months’ written notice to the Minister and to the private institution that the authorized issuer or guarantor wishes to cancel it, and ii. the Minister gives the authorized issuer or guarantor a written permission to do so, specifying the date on or after which the security may be cancelled. 2. The amount of the security becomes payable to the Crown upon the written direction of the Minister. 3. The Minister may give such a direction while the security is in effect or within two years after the security expires or is cancelled.  O. Reg. 279/02, s. 5 (3). (4) The amount of security given must be the greater of “A” or “B” where, “A” is $150,000 for each program for which the private institution has consent, and “B” is the amount described in subsection (5) for a private institution that provided the program in the preceding fiscal year and the amount described in subsection (6) for any other private institution.  O. Reg. 279/02, s. 5 (4). (5) If the private institution provided the program in the preceding fiscal year, the amount of “B” is determined as follows. 1. If the private institution does not require students registered in the program to prepay any of their tuition fees, “B” is zero. 2. If the private institution requires students registered in the program to prepay 25 per cent or less of their tuition fees for the period for which they are registered, “B” is determined as follows: i. For each month of the preceding fiscal year, calculate the amount of the prepaid tuition fees for the program that constituted unearned tuition fee revenue for the institution on the first day of the month. ii. Identify the date on which the amount of the prepaid tuition fees that constituted unearned tuition fee revenue for the institution was the highest. iii. “B” is the amount of the prepaid tuition fees that constituted unearned tuition fee revenue on the date identified in subparagraph ii. 3. If the private institution requires students registered in the program to prepay more than 25 per cent of their tuition fees for the period for which they are registered, “B” is determined as follows: i. Take the steps described in subparagraphs 2 i and ii. ii. “B” is 25 per cent of the amount of the prepaid tuition fees that constituted unearned tuition fee revenue on the date identified in subparagraph 2 ii.  O. Reg. 279/02, s. 5 (5). (6) If the private institution did not provide the program in the preceding fiscal year, the amount of “B” is determined as follows. 1. If the private institution will not require students registered in the program to prepay any of their tuition fees, “B” is zero. 2. If the private institution will require students registered in the program to prepay 25 per cent or less of their tuition fees for the period for which they are registered, “B” is determined as follows: i. For each month of the first fiscal year in which the program will be offered, calculate the amount of the prepaid tuition fees reasonably expected for the program that will constitute unearned tuition fee revenue for the institution on the first day of the month. ii. Identify the date on which the amount of the prepaid tuition fees reasonably expected for the program that will constitute unearned tuition fee revenue for the institution is the highest. iii. “B” is the amount of the prepaid tuition fees reasonably expected for the program that will constitute unearned tuition fee revenue on the date identified in subparagraph ii. 3. If the private institution will require students registered in the program to prepay more than 25 per cent of their tuition fees for the period for which they are registered, “B” is determined as follows: i. Take the steps described in subparagraphs 2 i and ii. ii. “B” is 25 per cent of the amount of the prepaid tuition fees reasonably expected for the program that will constitute unearned tuition fee revenue on the date identified in subparagraph 2 ii.  O. Reg. 279/02, s. 5 (6). Private Institutions — Conditions that apply to Consents