A new Tennessee postsecondary educational institutions bond went into effect August 31. Section 49-7-2008 of the Tennessee Code Annotated now requires each in-state postsecondary institution to post a $10,000 surety bond. Each out-of-state postsecondary institution must post a $20,000 surety bond.
The Tennessee post secondary educational institutions bond ensures that each school of higher learning has obtained a state-issued certificate as required by the Tennessee Code Annotated. The bond’s penal sum indemnifies any student, guardian or class that suffers loss or damage if an institution violates the code.
Additionally, out-of-state institutions must secure a separate $5,000 surety bond for each agent before he or she can begin recruiting prospective students.
Directors of authorized institutions must keep a copy of all current bonds on site.
The Tennessee Higher Education Commission’s Division of Postsecondary School Authorization oversees the state’s institutions of higher learning.