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.
WHEREAS, the Principal has applied for a license under R.S.17:3141.5.D. to establish a
NOW, THEREFORE, the condition of this obligation is such that if the Principal shall
indemnify any person suffering a loss or damage from the acts of any and all persons engaged as
agents of the Principal as a result of:
1. Any fraud of misrepresentation used in procurement of such person's enrollment in
Principal's school or course; or
2. The failure on the part of the Principal to carry out and comply with each and every
contract and agreement made and entered into by said Principal, acting by and
through its officers, agents, or representatives with any student or enrollee; or
3. The inability of the student to complete the course or courses because the school
ceased operation or failed to furnish the facilities advertised or included in the
contracted agreement; and shall faithfully comply with all the terms, conditions,
provisions and requirements of the aforesaid Act and the regulations adopted by the
Board of Regents and shall save the State of Louisiana harmless from any wrongful
act arising out of the operation of the school, then this obligation shall be void,
otherwise to remain in full force and effect.
4. The failure on the part of the school to adequately maintain all student records, which
shall include the failure to transfer such records in accordance with the provisions of
R.S. 17:3141.16(D)(3) and (4).
PROVIDED, however, that the liability of the Surety shall in no event exceed the sum of Ten
Thousand Dollars ($10,000) in the aggregate for any and all claims hereunder.
The Surety may be released from the bond or may terminate the bond by full compliance
with the procedures for such action set out in R.S.17:3141.5 E and subject to the conditions therein.