1. Pursuant to Code Section 20-3-250.8(a) Each nonpublic postsecondary educational institution desiring to operate or conduct postsecondary activities in this state shall make application to the commission, upon forms to be provided by the commission. 

2. In accordance with O.C.G.A. 20-3-250.10, an initial or renewing applicant for authorization to operate must file with the executive director a good and sufficient surety bond in such sum as determined by subsection (b) of that Code section as may be amended from time to time.   The bond is based on the gross tuition of the nonpublic postsecondary educational institution during the previous year or on the estimated gross tuition for the current year, whichever is larger.  As of July 27, 2020, required bond amounts are as follows:

Gross Tuition                                                    Minimum Bond

$ 0.00 -- $ 50,000.00........................................... $ 20,000.00

50,001.00 -- 100,000.00......................................... 30,000.00

100,001.00 -- 200,000.00....................................... 50,000.00

200,001.00 -- 300,000.00....................................... 75,000.00

300,001.00 -- 400,000.00...................................... 100,000.00

400,001.00 -- 500,000.00...................................... 150,000.00

500,001.00 and over.............................................. 200,000.00

The required bond amounts are subject to change from time to time by statute.  In the event of a conflict between the authorizing statute and this regulation, the statute shall control.

Pursuant to statute and this Policy, the bond must be provided to GNPEC in substantial conformance with the form attached hereto as Exhibit “A,” and incorporated herein by reference.

3. For situations where a nonpublic postsecondary educational institution is unable to secure a bond amount provided for by this subsection, a bank standby letter of credit secured from a federally insured financial institution shall be accepted in accordance with this Policy.

Pursuant to statute and this Policy, the standby letter of credit must be provided to GNPEC in substantial conformance with the form attached hereto as Exhibit “B,” and incorporated herein by reference.

4. These forms may be updated from time to time by the Commission to reflect revisions to statute and to make administrative revisions.

5. The Executive Director is authorized, in his sole discretion, to issue waivers regarding certain provisions within a bond or standby letter of credit, but does not have authority to issue waivers regarding the requirement that institutions post a bond or standby letter of credit.

6. An institution’s failure to maintain a surety bond or letter of credit as set forth herein will result in suspension and/or termination of its authorization to operate, in accordance with O.C.G.A. 20-3-250.10 and a determination by the Executive Director.

 

Exhibit A

Bond Form Image

Exhibit B

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LOC Page 2

Approved by Commission Vote July 27, 2020