West Virginia Code of State Rules › Agency 135 - Community And Technical College Education › Title 135 - LEGISLATIVE RULE WEST VIRGINIA COUNCIL FOR COMMUNITY AND TECHNICAL COLLEGE EDUCATION › Series 135-35 - Business, Occupational, and Trade Schools › Section 135-35-7 - Surety Bond Requirements

Current through Register Vol. XLI, No. 28, July 12, 2024
7.1. A
				school located in the state shall submit with its initial or renewal
				application, the original fully executed continuous surety bond written by a
				company authorized to do business in this state in the sum of fifty thousand
				dollars ($50,000) unless required otherwise by a provision of this
				section.
7.2. Any school which has
				its physical facilities located in this state and has operated in this state
				under the present ownership, or ownership control within the immediate family,
				for at least ten (10) years is required to submit with its renewal application
				the original copy of a fully executed continuous surety bond written by a
				company authorized to do business in this state in the sum of thirty-five
				thousand dollars ($35,000).
7.3.
				Schools having branch campuses within this state shall provide one fully
				executed surety bond in the appropriate amount providing coverage for all
				campuses.
7.4. In the event of
				notice of cancellation of the surety bond by a bonding company, the school
				shall furnish a fully executed replacement to the Council within sixty (60)
				days of the school's receipt of the notice of cancellation. But in no event may
				a school solicit or enroll new students until the appropriate surety bond is in
				effect.
7.5. The termination of a
				school's surety bond coverage shall be grounds for revocation of its permit if
				the school fails to replace the bond within the required time.
7.6. A school whose physical facilities are
				located outside this state, and which applies for a permit to solicit students
				in this state, shall submit a fully executed surety bond in the sum of fifty
				thousand dollars ($50,000).
7.7.
				The Council may increase the bond requirement of any school to one hundred
				fifty thousand dollars ($150,000) if the school has its accreditation
				terminated or its institutional eligibility under the Higher Education Act of
				1965, as amended, is terminated for cause.
7.8. If, in accordance with the standards of
				the American Institute of Certified Public Accountants, the school's audited
				financial statements are qualified because the school's continued financial
				viability as an ongoing concern is in doubt, and the school is not financially
				sound as defined in Section 2 of this rule, the Council may require the surety
				bond be increased up to an amount not to exceed four hundred thousand dollars
				($400,000) if the Council determines an increased bond is reasonably necessary
				to protect the financial obligations legally due to the students then enrolled
				at the institution.
7.9.
				Confidentiality Statement - any financial information submitted to the Council
				by a school covered under this rule shall be used by the Council only for
				purposes of this rule.