An institution of postsecondary education may obtain an exemption as a religious educational institution and operate without a certificate of approval from the Commission if the institution: Is established for religious educational purposes; Provides educational programs only for religious vocations or purposes; Offers only sectarian instruction designed for and aimed at individuals who hold or seek to learn the particular religious faiths or beliefs taught by the institution; and States on the certificate or diploma the religious nature of the award. An institution that applies for exemption and that, at the time of application, does not hold a certificate of approval from the Commission may not operate, do business, or offer instruction unless and until the Commission grants the institution an exemption under this chapter. A religious educational institution that is accredited by an accrediting body recognized by the United States Department of Education may not operate without a certificate of approval from the Commission.