85-2425.

Release of bond or other security agreement.

(1) Until the Guaranty Recovery Cash Fund initially reaches the minimum fund level prescribed in section 85-2423, the bond or other security agreement of an institution provided for in section 85-2424 shall cover the period of the recurrent authorization to operate except when a surety is released as provided in this section.

(2) A bond or other security agreement filed under section 85-2424 may be released after such surety serves written notice on the commission thirty days prior to the release. Such release shall not discharge or otherwise affect any claim previously or subsequently filed by a student or enrollee or his or her parent or guardian provided for in section 85-2426 for the termination of operations by the for-profit postsecondary institution during the term for which tuition has been paid while the bond or agreement was in force.

(3) During the term of the bond or agreement and upon forfeiture of the bond or agreement, the commission retains a property interest in the surety’s guarantee of payment under the bond or agreement which is not affected by the bankruptcy, insolvency, or other financial incapacity of the operator or principal on the bond or agreement.