Lance Surety Bond Associates, Inc.

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ARC Bonds

ARC Bonds are types of surety bonds required by the Airline Reporting Commission (hence the acronym "ARC") in order to ensure that any payment collected by a travel agent will be sent to the proper airline company.

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Current Market for ARC Bonds: A majority of bonding companies will only be willing to write ARC Bonds if sufficient collateral is provided. On the other hand, there are some bonding companies that may be willing to waive that requirement for those principals who qualify, and write ARC Bonds with no collateral. While good rates can be obtained in standard surety bond markets, ARC Bond rates are usually higher than other types of commercial bonds on the market. This is due in large part to the typically higher claim ratios associated with ARC Bonds.