What is an Kentucky Proprietary School Bond?
Kentucky Proprietary School Bond's are required by Kentucky's Board of Education to obtain your Kentucky Proprietary School Bond. The Kentucky Proprietary School Bond amount is set at $20,000.
The State requires a Proprietary School bond for :
a $20,000 surety bond
Different parts of a bond:
There are 3 parts to a Proprietary School surety bond. The Principal "YOU", The Surety Company, and the Obligee. The Principal is the business or individual applying for the Proprietary School Surety Bond. The Obligee is the individual or entity requiring the Surety Bond and the Surety Company is the company who provides the Surety Bond coverage.
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Kentucky Proprietary School Bond Information and Requirements:
KNOW ALL MEN BY THESE PRESENTS: that the school listed above, as Principal and the insurance company listed above as Surety,
are held and firmly bound unto the KENTUCKY COMMISSION ON PROPRIETARY EDUCATION, Commonwealth of Kentucky, 300
Sower Boulevard, Frankfort, KY 40601, in the penal sum of the amount listed above, which is no less than $20,000 as required by KRS
165A.360, in lawful money of the United States, for the payment of which, well and truly to be made, we hereby bind ourselves, our heirs,
executors, administrators, successors, and assigns, jointly and severally, firmly by those presents, under the terms and conditions as
required by KRS 165A.
WHEREAS, the above bonded Principal has made application for a Certificate of Approval as a school, pursuant to KRS 165A.360 for
the term listed above and in accordance with the provisions of KRS 165A.
NOW THEREFORE, the conditions of the herein described obligations are as follows:
A. Pursuant to KRS 165A, the Principal shall indemnify any student, or enrollee, or the parents or guardian of any such student or
enrollee suffering a loss or damage as the result of
1. Any fraud or misrepresentation used in procuring an enrollment; or
2. Any fraud or misrepresentation as represented by the application for the Certificate of Approval; or
3. A student being unable to complete the course or courses because said School, the herein named Principal, ceased
B. Such indemnification by the Principal shall in no case exceed the advanced tuition paid, or to be paid, by said student or students
or any such parent or guardian as defined in KRS 165A.360, and as defined in the Administrative Regulations of the Kentucky
Commission on Proprietary Education, and regardless of the number of years that said school's bond is enforced, the aggregate
liability of the Surety bond shall in no event exceed the above stated penal sum of the bond.
C. The Surety on said bond may be released therefrom after said Surety shall have made written notice thereof directed to the
Commission at 300 Sower Boulevard, Frankfort, Kentucky 40601, at least thirty (30) days prior to said release, but shall
remain liable, as described in KRS 165A, for any verified complaints made by students within said thirty (30) day period or prior
D. If after the hearing, as described in KRS 165A.360(3) (b), in which the Commission has determined the claim to be correct and
due to claimant, then thereafter the Commission has made written demand upon the Principal and payment of the claim has
not been made within ten (10) days of the mailing of said demand, then and in that event, the Surety shall indemnify the
student or enrollee or the parents or guardian of any such student or enrollee, upon written demand by the Commission;
however, if the Principal shall make the indemnification described above to the student or enrollee or the parents or guardian
of any such student or enrollee, this obligation shall be void, otherwise indemnification of the Surety shall remain in full force and
effect. PE-26 2017
E. The bonded Principal shall indemnify the Surety against all losses, costs, expenses or damage to or caused by said Principal's
noncompliance with or breach of any laws, statutes, ordinances, rules or regulations, pertaining to such licensure issued to the
Principal, which said breach or noncompliance shall occur during the aforementioned term of said licensing.
F. The herein described bond may be continuous, and may be so continued from year to year upon the issuance of a continuation
certificate by the Surety, and delivery to the Commission; provided however, regardless of the number of years this bond
remains in force, the aggregate liability of the Surety for any and all claims shall in no event exceed the penal sum of the bond
as described above.
G. The Surety shall be responsible for reimbursement of all attorney fees, costs and expenses, incurred by the Commission,
resulting from the Surety's failure to release the bond upon proper demand in accordance with KRS 165A.360(3)(a).
H. This bond shall be construed in accordance with the laws of the Commonwealth of Kentucky, and in particular KRS 165A, and
the rules and regulations of the Kentucky Commission on Proprietary Education, said statutes, rules and regulations being
incorporated herein by reference.