An institution operating in Washington shall:

(1) Be accredited by an accrediting association recognized by the council and the Secretary of the U.S. Department of Education; or

(2) Have applied for accreditation to an accrediting association recognized by the council and the Secretary of the U.S. Department of Education and such application is pending before the accrediting association; or

(3) Have been granted a temporary waiver by the council of the requirement for accreditation based upon submission of a plan for accreditation as outlined in the initial authorization application; or

(4) Have been granted an exemption by the council of the requirement for accreditation based upon the following condition: The institution has filed, and kept current with appropriate amendments, at the council an affidavit by each president of two separate accredited colleges or universities accredited by an accrediting association recognized by the council and the Secretary of the U.S. Department of Education stating that the majority of course credits offered by the unaccredited institution are generally acceptable or transferable to the accredited college or university which each president represents.