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 may be required to file with the executive director a good and sufficient surety bond with at least a B+ bond rating by a recognized bond rating agency in such sum as determined by the Commission in accordance with the bond amount schedule. As of July 1, 2022, 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 -- 1,000,000.00................................... 250,000.00 

1,000,001.00 -- 2,000,000.00 ............................... 350,000.00 

2,000,001.00 – 5,000,000.00…………...…..…………500,000.00 

5,000,001.00—10,000,000.00…….……...…………...750,000.00 

10,000,001.00 and over…………….…...…………..1,000,000.00* 

*For every $10,000,000.00 of additional gross tuition reported by the
institution, an additional $1,000,000.00 of bonding shall be required.
For example, for an institution reporting $50 million in gross annual
tuition, a $5 million bond would be required.

 

The required bond amounts are subject to change from time to time by commission vote.  

Pursuant to statute and this Policy, the bond must be provided to GNPEC in substantial conformance with such forms as provided by the commission and incorporated herein by reference.

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

4. The Executive Director is authorized, in his or her sole discretion, to require an applicant to file with the commission a surety bond if a financial assessment includes findings or notes raising concern about such applicant’s institutional internal controls or recommends that such applicant be placed on financial monitoring status. 

5. An institution’s failure to maintain a surety bond 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 in accordance with applicable law and agency policies. 

6. In lieu of a bond, the Executive Director may accept an irrevocable bank standby letter of credit from a federally insured financial institution in the amount required to satisfy the bonding requirements set forth by the Commission.

 

 

 

Approved by Commission Vote May 20, 2024.