Bonds

(1) Institutions, other than public institutions, must, on forms provided by the Commission, secure, from a surety company qualified and authorized to do business in Tennessee, a continuous surety bond in the amount of ten thousand dollars ($10,000). (2) Institutions must provide a bond for each authorized location. (3) Subject to Commission staff approval, an irrevocable letter of credit secured by a certificate of deposit or a cash deposit with a bank may be accepted in lieu of the bond. Such deposits are subject to the same terms and conditions provided for in the surety bond form. (4) Commission staff shall provide the institution at least thirty (30) calendar days written notice that authorization shall be made conditional, subject to revocation, by operation of law when the institution is no longer covered by a surety bond. Absent exceptional circumstances, a postsecondary educational institution shall not continue to engage in activities or operations without a surety bond for more than ninety (90) calendar days.