HAR §16-99-54. Changes in school's owners

(a) Any change in the ownership status of a school shall be approved by the commission. §16-99-56 99-33 (b) A change in partners shall be deemed a change in ownership. Any change in ownership of fifty per cent or more of a corporation's outstanding capital stock or any change in ownership of any number of shares of stock which results in the transferee thereof becoming the owner of fifty per cent or more of the outstanding capital stock, shall be deemed a change in ownership. (c) The new owner shall submit written evidence to the commission that, as of the effective date of the change in ownership, the new owner shall: (1) Assume liability for all or substantially all of the school's outstanding debts incurred as a direct result of the school's educational activities; and (2) Honor all student contracts that were signed or approved by the school's authorities before the effective date of the change in ownership. [Eff and comp 3/3/84; comp 11/3/90; comp 2/25/91; comp 5/21/01; comp 12/19/16] (Auth: HRS §§467-4, 467-25.5) (Imp: HRS §467-25.5)