§ 4-25-102 - Corporate security or surety bonds. - Arkansas Statutes

4-25-102. Corporate security or surety bonds.

(a) Except as provided in 23-37-314, 23-37-511, 23-37-603, 23-39-505, 23-42-305, or 23-55-204, if the laws of this state provide for the furnishing of a corporate security or surety bond to assure financial responsibility, the person, firm, or corporation required to provide the bond , in lieu of providing the corporate security or surety bond, may furnish the principal amount of at least the amount of the bond to be provided in the form of:

(1) Certificates of deposit issued by Arkansas banks and savings and loan associations; or

(2) Direct general obligation securities issued by:

(A) The State of Arkansas;

(B) An agency or instrumentality of the State of Arkansas;

(C) A political subdivision of this state;

(D) The United States; or

(E) An agency of the United States.

(b) It is not the intention of this section to prohibit the furnishing of personal bond or the furnishing of a property or other bond in any other such manner as is now provided by law.

(c) This section shall not apply to banks, savings and loan associations, any case where federal law requires a corporate surety bond, or in any case where performance of contractual obligations is required on the part of the person required to provide bond.

(d) Every governmental agency affected by this section is authorized and directed to issue such rules and regulations as are necessary and appropriate for the carrying out of this section.