Trade school blanket bond cost
The State of Maine’s Department of Education requires private business, trade and technical schools to post blanket surety bonds in amounts equal to 10% of the school’s gross receipts from tuition in the 12 months prior to issuance or $20,000, whichever is greater. Applicants should verify their required bond amount with the department prior to bonding.
These bonds are subject to underwriting, so the price you’ll pay for your bond depends not only on your required amount of bond coverage but also on a review of your personal credit report. Because these bonds are school-related, most surety underwriting companies require current business financials and a personal financial statement during the underwriting process.
Why this bond
Maine occupational school bonds are put in place to ensure that principals (school operators) and their solicitors faithfully perform their contracts and agreements with students. The bond protects students from financial loss that occurs as a result of the principal’s acts of fraud or misrepresentation, including the school’s failure to provide contracted services that have already been paid for by students.
Maine technical school, trade school and/or private business schools bonds remain in full force until canceled by the principal or the surety. Cancellation becomes effective 60 days after the Commissioner of Education receives written notice of such cancellation.
it’s important to have some information handy so that our experts can help you get the surety bond you need quickly, easily and accurately. We need to know:
- what type of services the school offers
- number of estimated students
- how tuition payments will be accepted
- cost of tuition
Start an occupational school
Posting a technical school, trade school and/or private business school surety bond in Maine is simply the first step toward becoming a licensed occupational school in the state. The following documents must accompany a license application:
- proof that the school meets health and fire standards
- notarized financial statements
- evidence of accreditation
- copy of school’s calendar for a completed year
- copy of all advertisements, catalogs and contracts
- list of all solicitors authorized by the school
- copy of the school’s refund policy
- and more
Apply for your surety bond
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- State of Maine Department of Education Blanket Bond – Private Business, Trade or Technical School (Word Doc)
- State of Maine Application Private Business, Trade and Technical School Certificate of License
- Maine Department of Education Licensure Procedures
- Maine Revised Statutes, Title 20-A, Part 4, Subpart 3, Chapter 323: Private Business, Trade and Technical Schools
- Maine Revised Statutes Title 20-A: Education