D.C. Mun. Regs. tit. 5, r. 5-A8125
A school shall provide a bond or other surety acceptable to the Commission so long as the school operates within the District of Columbia.
The bond or surety shall be payable to the Commission for the purpose of protecting students should the school declare bankruptcy or otherwise breach its contract with its students by terminating an educational program without providing adequate student refund or teach-out arrangements.
A student, or the student's parent or guardian, who is aggrieved by an action under § 2225.2 has a right of action on the bond for the recovery of money, or damages, or both.
The amount of surety required to be filed by a school shall be as follows:
Number Students Enrolled | Annual Net Tuition Received | Amount of Surety | |
50 or fewer | and | $100,000 or less | $500 |
51 to 150 | or | $100,000 to $1.000,000 | $10,000 |
151 or more | or | $1,000,001 and up* | $20,000 |
D.C. Mun. Regs. tit. 5, r. 5-A8125