85-1639 Bond or security agreement; filed; when; requirements. - Nebraska Statutes

85-1639. Bond or security agreement; filed; when; requirements.Until the Tuition Recovery Cash Fund initially reaches the minimum fund level prescribed in section 85-1656, when an application is made for authorization to operate, the department may require the private postsecondary career school making such application to file with the department a good and sufficient surety bond in the penal sum of twenty thousand dollars or other security agreement deemed satisfactory by the department. Such bond or other security shall cover 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 this 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 as a result of any act or practice which is a violation of the Private Postsecondary Career School Act by the school and that 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. SourceLaws 1977, LB 486, § 42; Laws 1982, LB 370, § 8; Laws 1990, LB 488, § 38; Laws 1993, LB 348, § 59; R.S.1943, (1994), § 79-2842; Laws 1995, LB 4, § 39.