Arkansas Administrative Code › Agency 006 - Department of Finance and Administration › Division 05 - Division of Revenues › Rule 006.05.93-005 - Regulation 1993-3 Bonded Title Regulation

Current through Register Vol. 49, No. 6, June, 2024
Pursuant to authority given the Commissioner of Revenues by
				subsection of Section 200 Act 142 of 1949 (Ark. Code Ann. §§
								27-14-403(b)
				), after the effective date This regulation, corporate surety bonds,
				certificates of deposit with assignment and irrevocable which meet the
				requirements of this regulation may be accepted under those circumstances where
				a bond is authorized under the provisions of subsection (c) of section 1 of Act
				1013 of 1993 [Ark. Code Ann. §§
								27-14-409(c)
				].
(1) Definitions:
(A) "Bond" means any corporate surety bond,
			 certificate of deposit or irrevocable letter of credit approved by the
			 Commissioner and given for the purpose of indemnifying any prior owner or
			 lienholder and any subsequent purchaser of a vehicle, or person acquiring any
			 security interest in it, and their respective successors in interest, heirs, or
			 assigns, against any expense, loss or damage, including reasonable attorney's
			 fees, by reason of the issuance of the certificate of title to the vehicle or
			 on account of any defect in or undisclosed security interest upon the right,
			 title and interest of the applicant in and to the vehicle.
(B) "Bonded Title" means a certificate of
			 title to a vehicle issued upon the condition that a bond is filed with the
			 Commissioner of Revenues pursuant to Act 1013 of 1993 [Ark. Code Ann. §§
									27-14-409(c)
			 ].
(C) "Insurer" means any person
			 with a valid certificate of authority, issued by the Arkansas Insurance
			 Commissioner which certificate grants the authority to become surety on
			 contracts in the State of Arkansas, or any other guarantor approved by the
			 Commissioner of Revenues.
(D)
			 "Vehicle" means any vehicle of a type required to be registered and titled in
			 Arkansas, and which is in the possession of and legally controlled by the
			 applicant for bonded title. This definition shall specifically exclude the
			 following:
(i) Vehicles issued a junking
			 certificate, or similarly branded certificate of title, as referenced in
			 subsection (c) of section 2. of Act 614 of 1993;
(ii) Vehicles for which a person holds a
			 storage or mechanic's lien under the provisions of Act 1000 of 1993, [Arkansas
			 Code Annotated §
										27-50-1201, et.
			 seq.], or Arkansas Code Annotated §
										18-45-201,
			 et. seq.;
(iii) Stolen
			 vehicles;
(iv) Vehicles involved in
			 ownership litigation.
(E) "Statement of fact" means a form
			 prescribed by the Commissioner, to be completed by the applicant for bonded
			 tide and filed with the Commissioner prior to the filing of a bond, so that a
			 determination can be made as to the eligibility of the applicant for issuance
			 of a bonded title.
(F) "Letter of
			 approval" means a letter issued by the Commissioner to the applicant for bonded
			 tide granting approval to file a bond and apply for registration and issuance
			 of a bonded tide, and establishing the amount of the bond to be
			 filed.