If a flight school accepts prepaid amounts equal to or exceeding $1,000, what must it file with the Michigan Aeronautics Commission?

When a flight school accepts prepaid amounts of $1,000 or more, it is required to file a corporate surety bond with the Michigan Aeronautics Commission. This requirement is in place to protect the interests of the students, ensuring that their prepaid funds are secured. A surety bond acts as a financial guarantee that the school will fulfill its obligations to the students, including providing the promised training or returning the funds if the school fails to operate.

The corporate surety bond serves as a form of insurance, providing students with a safety net in the event that the flight school encounters financial difficulties, goes out of business, or cannot provide the services for which the prepaid fees were paid. By requiring this bond, regulators aim to add a layer of financial accountability to flight schools, thereby enhancing consumer protection within the aviation training industry.

In contrast, the other options like a financial statement, lease agreement, or insurance certificate do not specifically address the need for financial safeguarding of prepaid amounts in the same way a corporate surety bond does. While each of those documents may be relevant to the operations of a flight school, they do not fulfill the primary purpose of guaranteeing the security of student funds in this context.