W. Va. Code R. § 135-35-7

Current through Register Vol. XLI, No. 50, December 13, 2024

Section 135-35-7 - Surety Bond Requirements

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.

W. Va. Code R. § 135-35-7