Prior to license approval, a school shall file with the Division a continuous "cash" or "surety" bond written by a company licensed to do business in North Carolina in the amount of twenty thousand dollars ($20,000) to indemnify any student against loss or damage arising out of the school's breach of contract between the school and the student (Form SBTS-606).

A certificate of deposit may be executed and filed in lieu of a bond (Form SBTS-607). The certificate shall be in the principal sum of the bond it stands in lieu of as provided in Rule .0701 of this Section