New Mexico Administrative Code
Title 5 - POST-SECONDARY EDUCATION
Chapter 100 - PRIVATE INSTITUTIONS OF HIGHER LEARNING
Part 6 - REGISTRATION UNDER THE POST-SECONDARY EDUCATIONAL INSTITUTION ACT
Section 5.100.6.17 - SURETY BOND

Universal Citation: 5 NM Admin Code 5.100.6.17

Current through Register Vol. 35, No. 18, September 24, 2024

A. Each institution registered by the department shall maintain in force a surety bond or alternative surety accepted by the department, in an amount set by the department, and payable to the department. The institution must have and adhere to the following requirements:

(1) the amount of the bond or alternative surety shall be sufficient to indemnify any student damaged as a result of fraud or misrepresentation by a registered institution or as a result of the institution ceasing operation prior to its students having completed the programs for which they have contracted. If a registered institution closes, the department may draw upon the bond to pay costs associated with preservation of student records;

(2) the bond required for each institution shall be twenty percent of the institution's projected or actual gross annual tuition and fees revenue in New Mexico, which takes into consideration the size, number of students and total income and assets of an institution. In no case shall the bond be less than $5,000;

(3) bonds provided by institutions must be accompanied by the name, office address and phone number of the issuing company representative; and

(4) if an institution seeks to cancel a surety bond, written notice must be delivered to the department. The institution may not cancel the surety bond until provided with written release by the department. The institution shall provide the department with a like surety or acceptable alternative in order to maintain registration status.

B. Alternative forms of surety. An institution may request a waiver from the bond requirement and provide to the department an explanation of the alternative form for which they are seeking approval. The department has the authority to accept or reject any request. Such alternative may be a cash deposit escrow account, irrevocable letter or credit, or similar alternative payable to the department in the amount equal to the bond requirement.

Disclaimer: These regulations may not be the most recent version. New Mexico may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.
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