SECTION 565:10-9-1. Bond requirement and amount

(a)   Bond requirements. Before the OBPVS issues a license to a school or a Solicitor the school shall have filed an acceptable surety bond using the Bond form supplied by the OBPVS. The bond shall cover the main school and all branches operated by the private school, and shall reflect dates of coverage that are congruent with the yearly licensing period of July 1 through June 30 of the following year. The bond shall be a blanket type document covering all activities of the school, its officials, and its Solicitors. Properly executed bond continuances or riders may be used in lieu of an annual, original replacement bond. The bond shall inure to any student of a school who suffers loss by reason of any unlawful act of the school.

(b)   Bond amount.

(1)   For an entirely new main or branch School, the minimum Bond amount is Five Thousand Dollars ($5,000.00).

(2)   The maximum Bond amount shall be equal to ten percent (10%) of the projected, aggregate tuition plus student fee revenue for the first twelve (12) months following licensure.

(3)   At the due date for annual relicensing, the amount of the bond shall be conditional upon the school faithfully meeting its obligations under the agreements and contracts with its students

(4)   Each subsequent amount of a school's required surety bond shall be based on ten percent (10%) of the amount of student payments collected by the school during the reporting year, rounded upwards to the nearest thousand dollars, as long as the school meets the financial stability requirements at 565:10-27-2 and is in compliance with the other minimum standards to operate a school.

(5)   The maximum bond amounts shall be Fifty Thousand Dollars ($50,000.00).

(6)   Determination of the required bond amount for each school will be based on the total amount of main and branch(es) student payments contained in the school's financial statement of the last fiscal year, submitted for relicensing.

(7)   If the school does not meet the standards for financial stability in 565:10-27-2, the Board may increase the amount of the surety bond required by the school to a maximum of Two Hundred Fifty Thousand Dollars ($250,000.00) for each main school, the main and branch(es) combined, or each separate branch(es).

(c)   Signature of surety. The Bond shall be issued by a solvent surety company authorized to do business in Oklahoma and shall be made payable to the State of Oklahoma.

[Source: Amended at 19 Ok Reg 2835, eff 7-2-02 (emergency); Amended at 20 Ok Reg 2489, eff 7-11-03; Amended at 32 Ok Reg 2149, eff 9-11-15; Amended at 33 Ok Reg 1796, eff 9-12-16]