West Virginia Code of State Rules › Agency 133 - Higher Education Policy Commission › Title 133 - LEGISLATIVE RULE WEST VIRGINIA HIGHER EDUCATION POLICY COMMISSION › Series 133-35 - Correspondence, Business, Occupational, And Trade Schools › Section 133-35-6 - Surety Bond Requirements

Current through Register Vol. XLI, No. 28, July 12, 2024
6.1. 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.
6.2. 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 as of June 10, 1994, 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).
6.3. Schools having branch campuses within
				this state shall provide one fully executed surety bond in the appropriate
				amount providing coverage for all campuses.
6.4. 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 Commission 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.
6.5. 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.
6.6. 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).
6.7.
				The Commission 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.
6.8. 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 Commission may require the
				surety bond be increased up to an amount not to exceed four hundred thousand
				dollars ($400,000) if the Commission determines an increased bond is reasonably
				necessary to protect the financial obligations legally due to the students then
				enrolled at the institution.
6.9.
				Confidentiality Statement - any financial information submitted to the
				Commission by a school covered under this rule shall be used by the Commission
				only for purposes of this rule.