Delaware Private Business and Trade School Bonds
Delaware Private Business and Trade School Bond Information
A surety bond may be required as a condition of the grant of a Certificate of Approval by the State of Delaware for the operation of Private Business and Trade Schools. The bond ensures operation in the manner required both in accordance with the express contracts with its students as well as by the provisions of the laws of the State of Delaware and the rules and regulations of the Delaware Department of Education. The surety bond is for the benefit and protection of the students of the school that may be financially harmed upon violation of any contract, or the suspension, revocation, or any other termination of the Certificate of Approval.
What Does a Private School Bond Protect Against?
The bond requires that the principal observe the provisions of all contracts with students and the provisions of all the laws of this State and the rules and regulations set out by the Delaware Department of Education pertaining to the operation of Private Business and Trade Schools. Upon any action in a court of bankruptcy, an assignment for the benefit of creditors, the insolvency of the principal, or the closing of the school, the full amount of this bond will be due and payable to the State of Delaware, Department of Education for distribution pro rata to all students having valid claims against the principal.