8 Va. Admin. Code § 20-671-230

Current through Register Vol. 41, No. 8, December 2, 2024

Section 8VAC20-671-230 - Protection of contractual rights

In compliance with § 22.1-324 of the Code of Virginia, provisions for the protection of contractual rights shall include the following:

1. With each application, the applicant shall submit and maintain a guaranty instrument payable to the Commonwealth of Virginia to protect the contractual rights of students and other contracting parties.

2. The guaranty instrument shall be based on the school's approved capacity. A guaranty of $10,000 for up to 25 students and $5,000 for each additional 25 students shall apply.

3. In the event a guaranty instrument is terminated, the license to operate will terminate within 30 calendar days if a replacement bond or other instrument is not filed with the department .

4. If a school collects no advance tuition other than equal monthly installments or receives payment after services have been rendered, the school may apply to the department for exemption from the guaranty requirements.

8 Va. Admin. Code § 20-671-230

Derived From Virginia Register Volume 31, Issue 24, eff. 8/26/2015.

Statutory Authority: §§ 22.1-16 and 22.1-321 of the Code of Virginia.