85-2424.

Bond or other security agreement.

Until the Guaranty Recovery Cash Fund initially reaches the minimum fund level prescribed in section 85-2423, when an application is made for an initial recurrent authorization to operate, the commission may require any for-profit postsecondary institution making such application to file with the commission a good and sufficient surety bond or other security agreement in a penal amount deemed satisfactory by the commission. Such bond or other security shall cover both principal and branch facilities. The bond or agreement shall be executed by the applicant as principal and by a surety company qualified and authorized to do business in the state. The bond or agreement shall be conditioned to provide indemnification to any student or enrollee or his or her parent or guardian determined to have suffered loss or damage by the termination of operations by the for-profit postsecondary institution. The surety shall pay any final judgment rendered by any court of this state having jurisdiction upon receipt of written notification of the judgment. Regardless of the number of years that such bond or agreement is in force, the aggregate liability of the surety thereon shall in no event exceed the penal sum of the bond or agreement. The bond or agreement may be continuous.