13B.05.01.12

.12 Continuous Financial Guarantees of For-Profit Institutions.

A. In this regulation, the following terms have the meanings indicated.

(1) “Adjusted gross tuition and fees” means all revenues received on a cash or accrual accounting basis, less any refunds paid to students, for tuition and fees for all instructional programs or courses enrolled in by students, except for charges for materials, supplies, and books that have been purchased by, and are the property of, a student.

(2) “Non-Title IV adjusted gross tuition and fees” means an institution’s adjusted gross tuition and fees minus the amount of Title IV federal financial aid received by the institution on behalf of its students.

B. A for-profit institution seeking or renewing registration under this chapter shall provide to the Secretary an irrevocable letter of credit or performance bond, as required by Education Article, §11-203, Annotated Code of Maryland, conditioned that the institution shall:

(1) Perform faithfully all agreements or contracts it makes with its students; and

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

C. The irrevocable letter of credit or performance bond shall be in the form and amount prescribed by the Secretary and shall conform to the requirements of paragraph D of this regulation.

D. The amount provided for in the irrevocable letter of credit or performance bond shall, unless a higher amount is required by the Secretary, be:

(1) If the institution is renewing its registration, an amount equal to the institution’s non-Title IV adjusted gross tuition and fees for Maryland students for the prior July 1 through June 30; or

(2) If the institution is seeking initial registration, an amount equal to the institution’s non-Title IV adjusted gross tuition and fees for the students of its principal campus for the prior July 1 through June 30.

E. The irrevocable letter of credit or performance bond shall be between the surety and the Commission.

F. The irrevocable letter of credit or performance bond required by this regulation, and each annual application to renew a for-profit institution’s registration under this chapter, shall be accompanied by a report, in a form prescribed by the Secretary:

(1) Certifying the for-profit institution’s:

(a) Total number of Maryland students enrolled in the institution or, if the institution is seeking initial registration, total number of students enrolled in the institution’s principal campus;

(b) Total amount of adjusted tuition and fees from the enrollment of Maryland students or, if the institution is seeking initial registration, total amount of adjusted tuition and fees from the enrollment of students in the institution’s principal campus;

(c) Total amount of non-Title IV adjusted gross tuition and fees from the enrollment of Maryland students or, if the institution is seeking initial registration, total amount of non-Title-IV adjusted tuition and fees from the enrollment of students in the institution’s principal campus; and

(2) Enclosing a declaration signed and dated by the chief executive officer of the school, under penalty of perjury, that the information in the report and any attachments to the report are true and correct.