§88B‑17. Bond required for private cosmetic art schools.
(a) Each privatecosmetic art school shall provide a guaranty bond unless the school has alreadyprovided a bond or an alternative to a bond under G.S. 115D‑95. The Boardmay restrict, suspend, revoke, or refuse to renew or reinstate the license of aschool that fails to maintain a bond or an alternative to a bond pursuant tothis section or G.S. 115D‑95.
(b) (1) Theapplicant shall file the guaranty bond with the clerk of superior court in thecounty in which the school is located. The bond shall be in favor of thestudents. The bond shall be executed by the applicant as principal and by abonding company authorized to do business in this State. The bond shall beconditioned to provide indemnification to any student or the student's parentor guardian who has suffered loss of tuition or any fees by reason of thefailure of the school to offer or complete student instruction, academicservices, or other goods and services as related to course enrollment for anyreason, including suspension, revocation, or nonrenewal of a school's approval,bankruptcy, foreclosure, or the school's ceasing to operate.
(2) The bond amountshall be at least equal to the maximum amount of prepaid tuition held at anytime by the school during the last fiscal year, but in no case shall be lessthan ten thousand dollars ($10,000). Each application for license or licenserenewal shall include a letter signed by an authorized representative of theschool showing the calculations made and the method of computing the amount ofthe bond in accordance with rules prescribed by the Board. If the Board findsthat the calculations made and the method of computing the amount of the bondare inaccurate or that the amount of the bond is otherwise inadequate toprovide indemnification under the terms of the bond, the Board may require theapplicant to provide an additional bond.
(3) The bond shallremain in force and effect until canceled by the guarantor. The guarantor maycancel the bond upon 30 days' notice to the Board. Cancellation of the bondshall not affect any liability incurred or accrued prior to the termination ofthe notice period.
(c) An applicant who isunable to secure a bond may seek from the Board a waiver of the guaranty bondrequirement and approval of one of the guaranty bond alternatives set forth inthis subsection. With the approval of the Board, an applicant may file one ofthe following instead of a bond with the clerk of court in the county in whichthe school is located:
(1) An assignment of asavings account in an amount equal to the bond required that is in a formacceptable to the Board, and is executed by the applicant and a state orfederal savings and loan association, state bank, or national bank that isdoing business in this State and whose accounts are insured by a federaldepositor's corporation, and access to the account is subject to the sameconditions as those for a bond in subsection (b) of this section.
(2) A certificate ofdeposit that is executed by a state or federal savings and loan association,state bank, or national bank that is doing business in this State and whoseaccounts are insured by a federal depositor's corporation and access to thecertificate of deposit is subject to the same conditions as those for a bond insubsection (b) of this section. (1989 (Reg. Sess., 1990), c.824, s. 4; 1991, c. 636, s. 5; 1998‑230, s. 2.)
§88B‑17. Bond required for private cosmetic art schools.
(a) Each privatecosmetic art school shall provide a guaranty bond unless the school has alreadyprovided a bond or an alternative to a bond under G.S. 115D‑95. The Boardmay restrict, suspend, revoke, or refuse to renew or reinstate the license of aschool that fails to maintain a bond or an alternative to a bond pursuant tothis section or G.S. 115D‑95.
(b) (1) Theapplicant shall file the guaranty bond with the clerk of superior court in thecounty in which the school is located. The bond shall be in favor of thestudents. The bond shall be executed by the applicant as principal and by abonding company authorized to do business in this State. The bond shall beconditioned to provide indemnification to any student or the student's parentor guardian who has suffered loss of tuition or any fees by reason of thefailure of the school to offer or complete student instruction, academicservices, or other goods and services as related to course enrollment for anyreason, including suspension, revocation, or nonrenewal of a school's approval,bankruptcy, foreclosure, or the school's ceasing to operate.
(2) The bond amountshall be at least equal to the maximum amount of prepaid tuition held at anytime by the school during the last fiscal year, but in no case shall be lessthan ten thousand dollars ($10,000). Each application for license or licenserenewal shall include a letter signed by an authorized representative of theschool showing the calculations made and the method of computing the amount ofthe bond in accordance with rules prescribed by the Board. If the Board findsthat the calculations made and the method of computing the amount of the bondare inaccurate or that the amount of the bond is otherwise inadequate toprovide indemnification under the terms of the bond, the Board may require theapplicant to provide an additional bond.
(3) The bond shallremain in force and effect until canceled by the guarantor. The guarantor maycancel the bond upon 30 days' notice to the Board. Cancellation of the bondshall not affect any liability incurred or accrued prior to the termination ofthe notice period.
(c) An applicant who isunable to secure a bond may seek from the Board a waiver of the guaranty bondrequirement and approval of one of the guaranty bond alternatives set forth inthis subsection. With the approval of the Board, an applicant may file one ofthe following instead of a bond with the clerk of court in the county in whichthe school is located:
(1) An assignment of asavings account in an amount equal to the bond required that is in a formacceptable to the Board, and is executed by the applicant and a state orfederal savings and loan association, state bank, or national bank that isdoing business in this State and whose accounts are insured by a federaldepositor's corporation, and access to the account is subject to the sameconditions as those for a bond in subsection (b) of this section.
(2) A certificate ofdeposit that is executed by a state or federal savings and loan association,state bank, or national bank that is doing business in this State and whoseaccounts are insured by a federal depositor's corporation and access to thecertificate of deposit is subject to the same conditions as those for a bond insubsection (b) of this section. (1989 (Reg. Sess., 1990), c.824, s. 4; 1991, c. 636, s. 5; 1998‑230, s. 2.)
§88B‑17. Bond required for private cosmetic art schools.
(a) Each privatecosmetic art school shall provide a guaranty bond unless the school has alreadyprovided a bond or an alternative to a bond under G.S. 115D‑95. The Boardmay restrict, suspend, revoke, or refuse to renew or reinstate the license of aschool that fails to maintain a bond or an alternative to a bond pursuant tothis section or G.S. 115D‑95.
(b) (1) Theapplicant shall file the guaranty bond with the clerk of superior court in thecounty in which the school is located. The bond shall be in favor of thestudents. The bond shall be executed by the applicant as principal and by abonding company authorized to do business in this State. The bond shall beconditioned to provide indemnification to any student or the student's parentor guardian who has suffered loss of tuition or any fees by reason of thefailure of the school to offer or complete student instruction, academicservices, or other goods and services as related to course enrollment for anyreason, including suspension, revocation, or nonrenewal of a school's approval,bankruptcy, foreclosure, or the school's ceasing to operate.
(2) The bond amountshall be at least equal to the maximum amount of prepaid tuition held at anytime by the school during the last fiscal year, but in no case shall be lessthan ten thousand dollars ($10,000). Each application for license or licenserenewal shall include a letter signed by an authorized representative of theschool showing the calculations made and the method of computing the amount ofthe bond in accordance with rules prescribed by the Board. If the Board findsthat the calculations made and the method of computing the amount of the bondare inaccurate or that the amount of the bond is otherwise inadequate toprovide indemnification under the terms of the bond, the Board may require theapplicant to provide an additional bond.
(3) The bond shallremain in force and effect until canceled by the guarantor. The guarantor maycancel the bond upon 30 days' notice to the Board. Cancellation of the bondshall not affect any liability incurred or accrued prior to the termination ofthe notice period.
(c) An applicant who isunable to secure a bond may seek from the Board a waiver of the guaranty bondrequirement and approval of one of the guaranty bond alternatives set forth inthis subsection. With the approval of the Board, an applicant may file one ofthe following instead of a bond with the clerk of court in the county in whichthe school is located:
(1) An assignment of asavings account in an amount equal to the bond required that is in a formacceptable to the Board, and is executed by the applicant and a state orfederal savings and loan association, state bank, or national bank that isdoing business in this State and whose accounts are insured by a federaldepositor's corporation, and access to the account is subject to the sameconditions as those for a bond in subsection (b) of this section.
(2) A certificate ofdeposit that is executed by a state or federal savings and loan association,state bank, or national bank that is doing business in this State and whoseaccounts are insured by a federal depositor's corporation and access to thecertificate of deposit is subject to the same conditions as those for a bond insubsection (b) of this section. (1989 (Reg. Sess., 1990), c.824, s. 4; 1991, c. 636, s. 5; 1998‑230, s. 2.)
