298

LAWS OF MARYLAND

Ch. 22

The only changes are in style.
12-204. BONDS OF INSTITUTION.

(A)   MAY BE REQUIRED.

THE STATE BOARD FOR HIGHER EDUCATION MAY REQUIRE ANY

INSTITUTION THAT IS REQUIRED TO OBTAIN A CERTIFICATE OF

APPROVAL TO FURNISH A PERFORMANCE BOND TO THIS STATE
CONDITIONED THAT THE INSTITUTION WILL:

(1)    PERFORM FAITHFULLY ALL AGREEMENTS OR
CONTRACTS IT MAKES WITH ITS STUDENTS; AND

(2)   COMPLY WITH THIS ARTICLE.

(B)   FORM AND CONTENT.

ANY BOND REQUIRED UNDER THIS SECTION SHALL BE IN THE
FORM AND AMOUNT THE COMMISSIONER OF HIGHER EDUCATION
REQUIRES.

(C)   LIABILITY OF SURETY; PAYMENT.

(1)    THE TOTAL LIABILITY OF A SURETY ON A BOND
UNDER THIS SECTION MAY NOT EXCEED THE AMOUNT OF THE BOND.

(2)   IF THE TOTAL AMOUNT OF CLAIMS FILED AGAINST
A BOND EXCEEDS THE AMOUNT OF THE BOND, THE SURETY SHALL PAY
THE AMOUNT OF THE BOND TO THE COMMISSIONER OF HIGHER
EDUCATION FOR DISTRIBUTION BY HIM TO THE CLAIMANTS.

REVISOR'S NOTE: This section is new language derived
without substantive change from Art. 77A,
§32(h) .

The only changes are in style.

It should be noted that subsection (c) of this
section does not provide any mechanism for
determining whether claims made against an
institution are meritorious, or for determining
the amount to be paid to each claimant.

12-205. ISSUANCE OF CERTIFICATE.

AN INSTITUTION OF POSTSECONDARY EDUCATION MAY NOT ISSUE
ANY CERTIFICATE, DIPLOMA, OR DEGREE WITHOUT THE APPROVAL OF
THE STATE BOARD FOR HIGHER EDUCATION OF THE CONDITIONS OF
ENTRANCE, SCHOLARSHIP, AND RESIDENCE UNDER WHICH THE
CERTIFICATE, DIPLOMA, OR DEGREE IS ISSUED.

REVISOR'S NOTE: This section presently appears as the
last sentence of Art. 77A, §32A(b).

The only charges are in style.