Bond or surety requirement; Mayor to issue rules.

The Mayor may promulgate rules, subject to review by the Council as provided in § 38-1306(a), to establish a bond or surety requirement not to exceed $250,000 per institution based on the number of students and cost of instruction and $3,000 per agent. The bond or security for the institution shall be for the purpose of protecting students should an institution breach its contract with its students, declare bankruptcy or otherwise terminate its educational program without providing adequate student refunds. The bond or security for the agent shall be for the purpose of protecting students from misrepresentation of the education or credentials to be received. The rules may allow the Commission to waive the surety requirement for a financially sound, nonprofit institution that has been licensed for 5 consecutive years.