Under Section 395.102b of the Proprietary Schools Act, a solicitor for a private trade school must furnish evidence of an active surety bond.
AmeriPro Surety Bonds offers this bond as both a new (first time) and renewal surety bond.
The Michigan private trade school solicitor bond is a $5,000 surety bond required by the State Board of Education.
According to Section 395.102b, the bond has an expiry date of June 30th following the date that the bond is issued. The same statute advises that evidence of a new and active surety bond must be submitted before the June 30th expiration.
This $5000 surety bond will likely cost you just several percentage amounts of the bond’s value, annually.
You qualify for this bond by a brief application, and in some cases, a credit check. Once purchased, the bond is mailed to you by the same or the following business day for filing with the state.
While the solicitor bond is required of your as a prerequisite for licensing, its benefit and protections are for your students.
Specifically, the bond is required to protect students against any acts of fraud, theft, or criminal misrepresentation in convincing students to enroll in trade school.
The bond’s existence allows students who can demonstrate fraud or misrepresentation to file a claim against your bond. However, as the bond’s principal, you are legally liable should a claim be paid against your bond to reimburse it entirely.
The total amount that would be paid on a claim would be $5000, the amount of the bond. It is not per claimant.
AmeriPro Surety Bonds is a surety bonds-only agency. We provide license and permit, contractor, court and fiduciary bonds throughout Michigan.
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