Section 22-4.1-21-16 - Bond amount; determination; contributions to fund(a) Subject to subsections (b), (d), and (e), the department shall determine the penal sum of each surety bond required under section 15 of this chapter based upon the following guidelines: (1) A postsecondary proprietary educational institution that has no annual gross tuition charges assessed for the previous year shall secure a surety bond in the amount of twenty-five thousand dollars ($25,000).(2) If at any time the postsecondary proprietary educational institution's projected annual gross tuition charges are more than two hundred fifty thousand dollars ($250,000), the institution shall secure a surety bond in the amount of fifty thousand dollars ($50,000).(b) After June 30, 2006, and except as provided in: (1) section 19 of this chapter; and(2) subsection (e); and upon the fund achieving at least an initial one million dollar ($1,000,000) balance, a postsecondary proprietary educational institution that contributes to the fund when the initial quarterly contribution is required under this chapter after the fund's establishment is not required to make contributions to the fund or submit a surety bond.
(c) The department shall determine the number of quarterly contributions required for the fund to initially accumulate one million dollars ($1,000,000).(d) Except as provided in section 19 of this chapter and subsection (e), a postsecondary proprietary educational institution that begins making contributions to the fund after the initial quarterly contribution as required under this chapter is required to make contributions to the fund for the same number of quarters as determined by the department under subsection (c).(e) If, after the fund acquires one million dollars ($1,000,000), the balance in the fund becomes less than five hundred thousand dollars ($500,000), all postsecondary proprietary educational institutions not required to make contributions to the fund as described in subsection (b) or (d) shall make contributions to the fund for the number of quarters necessary for the fund to accumulate one million dollars ($1,000,000).Amended by P.L. 178-2016, SEC. 10, eff. 3/23/2016.Added by P.L. 107-2012, SEC. 61, eff. 7/1/2012.