What is a Minnesota Private School Bond?
Private Schools in the State of Minnesota are mandated by the Minnesota Office of Higher Education to procure a surety bond as part of the licensure requirement. This requirement is adopted from § 136A.822 of the Minnesota Statutes.
The purpose of the bond is to ensure that the duties of the private school will be properly fulfilled. The bond will also act as a protection for all the students enrolled in the licensed private school.
What is the bond amount?
The bond amount should be 10% of the private school’s gross income from student tuition, fees, and other institutional charges from the previous year.
The minimum bond amount should be $10,000, while the maximum bond amount is $250,000.
Private schools that have more than one location may combine all the locations’ gross income from the previous year to determine the required bond amount.
Those who have excellent credit scores may qualify for a very low bond premium! Bond premium starts at $100.
Find out what you need to pay by getting your FREE quote HERE!
What are the Private School bond conditions?
- The bond should be issued by a corporate surety who is authorized to conduct business in the State of Minnesota such as Surety Bond Authority
- The surety bond should be made payable to the State of Minnesota
- The licensed Private School is obligated to abide by § 136A.822 of the Minnesota Statutes, the rules and regulations of the Minnesota Office of Higher Education, and all the other applicable rules that govern private schools in Minnesota
- If the licensed Private School commits a valid violation, the aggrieved party will be eligible to file a claim on the surety bond
- In case of cancellation, a 60-day notice is required
How can I obtain this type of bond?
To secure this type of bond, the Money Transmitter license applicant or licensee must seek the assistance of a surety bond company.
You will be asked to apply for this bond.
Once the application is received, the surety bond company will immediately process it. In our case, one of our expert surety bond agents will guide you through the whole process from the time you applied for the bond. We will make sure that you understand all the conditions before we issue the bond.
An underwriter will then evaluate the following:
- Your financial strength
- Your business performance history
- Your credit score
Once the prequalification process is fulfilled, we will execute the bond and send it to you!
Are you ready to start on this bond? Call HERE!