.03 Initial Application.

A. An institution seeking an exemption as a religious educational institution shall submit to the Secretary:

(1) An application and a financial statement, both in the form required by the Secretary;

(2) The accompanying documentation required by the Secretary, including the proposed catalog of courses, and evidence from the State Department of Assessments and Taxation that the institution is in good standing; and

(3) An application fee in the amount of $250.

B. Adequate Financial Resources.

(1) An institution seeking an exemption as a religious educational institution shall demonstrate that it possesses adequate financial resources to support the institution's educational program.

(2) An institution shall submit a financial statement for the most recent calendar year, or if possible, the 2 most recent calendar years, compiled by an independent accountant, showing, at a minimum, that:

(a) The institution holds at least $250,000 in total assets in Maryland; and

(b) The total assets of the institution exceed its total liabilities.

C. If the Secretary is satisfied on the basis of the materials submitted that the institution qualifies for exemption from the approval authority of the Commission, the Secretary shall grant the institution an exemption as a religious educational institution.

D. An exemption is valid for 2 years.

E. Upon granting an institution an exemption under this regulation, the Secretary shall designate the date on which the institutionís first renewal application required by Regulation .04 of this chapter shall be submitted to the Secretary.

F. An exempt religious educational institution shall promptly notify the Secretary of any address change.