Section R152-34-5 - Surety Bond, Certificate of Deposit, or Irrevocable Letter of Credit - Form - Amount - Execution and Cancellation - Other Proof of Financial Viability(1) A postsecondary school that provides to the division other proof of financial viability in accordance with Subsection R152-34-3(6) is not required to maintain a surety bond, certificate of deposit, or irrevocable letter of credit.(2)(a) A postsecondary school shall provide with its registration statement a surety bond, certificate of deposit, or irrevocable letter of credit in a form and amount approved by the division.(b) A postsecondary school may provide a continuation certificate to demonstrate it maintains a surety bond in accordance with Section 13-34-202 and Section R152-34-5.(c) A certificate of deposit or irrevocable letter of credit obtained in accordance with Section 13-34-202 and Section R152-34-5 shall be issued or held by a financial institution that has a location in Utah.(3)(a) A postsecondary school's surety bond, certificate of deposit, or irrevocable letter of credit shall be for an amount based on the postsecondary school's gross tuition revenue, according to the following table: TABLE Amount of Surety Bond, Certificate of Deposit, or Irrevocable Letter of Credit |
Gross Tuition Revenue | Maximum Amount |
$0.00 - $50,000 | $12,500 |
$50,000.01 - $100,000 | $25,000 |
$100,000.01 - $200,000 | $50,000 |
$200,000.01 - $300,000 | $75,000 |
$300,000.01 - $400,000 | $100,000 |
$400,000.01 - $500,000 | $125,000 |
$500,000.01 - $1,000,000 | $250,000 |
$1,000,000.01 - $2,000,000 | $500,000 |
$2,000,000.01 - $5,000,000 | $1,250,000 |
$5,000,000.01 - $10,000,000 or greater | $2,500,000 |
(b) A postsecondary school that operates in Utah, but does not maintain physical presence in Utah, shall obtain a surety bond, certificate of deposit, or irrevocable letter of credit in an amount based on its gross tuition revenue attributable to Utah residents enrolled in the postsecondary school.(c) A postsecondary school may obtain more than one surety bond, certificate of deposit, or irrevocable letter of credit to reach the amount required by Subsection R152-34-5(3)(a).(d) The division may, at its discretion, determine whether a surety bond, certificate of deposit, or irrevocable letter of credit maintained by the postsecondary school, but that is not payable to the division, satisfies, in whole or in part, the requirements of Sections 13-34-202 and R152-34-5.(4) A postsecondary school that submits pro forma financial projections in accordance with Subsection R152-34-4(2)(c)(iv) shall provide a surety bond, certificate of deposit, or irrevocable letter of credit for an amount:(a) based on the postsecondary school's projected gross tuition revenue for its first 12 months of operation; and(b) consistent with Subsection R152-34-5(3)(a).Utah Admin. Code R152-34-5
Amended by Utah State Bulletin Number 2014-24, effective 11/24/2014Adopted by Utah State Bulletin Number 2024-01, effective 1/1/2024Amended by Utah State Bulletin Number 2024-13, effective 6/21/2024