13B.02.06.06

.06 Requirements for the Financial Guarantee.

A. Subject to §E of this regulation, each school annually shall provide the financial guarantee described in §§B and C of this regulation.

B. A financial guarantee:

(1) Shall be in the form and amount the Secretary requires, which shall be no less than the amount described in §C of this regulation, and may be greater than the amount described in §C of this regulation;

(2) Shall be between the Commission and the surety;

(3) Shall be made payable to the Secretary on behalf of the Commission; and

(4) Shall be made under the terms and conditions determined by the Secretary, including the conditions that the institution will:

(a) Faithfully comply with all agreements and contracts that it makes with a student; and

(b) Comply with Education Article, Annotated Code of Maryland.

C. Amount of Guarantee.

(1) By each October 1, a school shall provide to the Commission a financial guarantee in an amount equal to the school’s non-Title IV adjusted gross tuition and fees for the prior July 1 through June 30.

(2) The Secretary may require a school to increase the amount of the school’s financial guarantee pursuant to Education Article, §11-203, Annotated Code of Maryland.