Lance Surety Bond Associates, Inc.

Arkansas no longer has a surety bond requirement for a proposed insurer to obtain certification from the Insurance Department.  The Department still accepts other forms of security.

Arkansas changed their current law regarding Money Transmitters.  The State eliminated any other form of security besides a surety bond.  Surety Bonds are now a requirement for money transmitters to be in compliance with the state.

Arkansas revised its law for mortgage brokers, bankers, and servicers.  HB 1881 now states that there is no set bond amount.  The Securities Commissioner now determines the bond amount based on the loan activity in the past year of the broker, banker, servicer.  This needs to be of a minimum of $100,000.  These bonds will also cover the employees of the broker, banker or servicer.  Cash or other securities are no longer accepted in lieu of the surety bond.

Arkansas revised their current law for combative sports events which now requests a surety bond in the amount of $1,000.  The combative sports that fall under this category are semi-professional and amateur wrestling, kick-boxing, boxing and martial arts.

Effective on March 25, 2009, Arkansas now requires performance bonds, or more specifically lottery bonds (or lotto bonds), from vendors to stay in accordance with the Arkansas Lottery Commission.  The Commission will determine the bond amount for each specific vendor.  Retailers must also place a lottery bond in the amount equal to two billing periods’ average ticket sales.

Surety bonds must also be obtained for Arkansas Lottery Commission employees who handle lottery revenue or the Commission’s funds.  The Commission will determine the bond amount necessary for these employees.

Arkansas Mortgage Brokers and Mortgage Lenders have a minimum surety bond requirement of $100,000. The specific bond amount for each company/individual will be set by the state’s regulations.

As of July 1, 2009, HB 1359 established an increase in the license bond amount required for all exterminators of termites and structural pests operating in the state of Arkansas. The license bond amount doubled from $50,000 to $100,000. However, HB 1350 did not increase the surety bond amount required for Arkansas

Effective upon the March 25, 2009 enactment of HB 1002/SB 26, all vendors in the state of Arkansas are now required to either obtain a lottery and lotto bond (type of surety bond), a letter of credit, or securities for contracts with the Arkansas Lottery Commission. All surety bond amounts shall be determined by the Commission.

Additionally, lottery retailers in Arkansas must also post a lottery and lotto bond for an amount no greater than the average tickets sales for two of the retailer