23-115-502. Vendor — Performance bond or letter of credit.

Arkansas Code — all titles (historical 2020) · legal_authorities

23-115-502. Vendor — Performance bond or letter of credit.

23-115-502. Vendor — Performance bond or letter of credit. (a)(1) At the time of execution of a major procurement contract between the Office of the Arkansas Lottery and a vendor, the vendor shall post a performance bond or letter of credit from a bank or credit provider acceptable to the office in an amount deemed necessary by the office to assure the performance of the major procurement contract. (2) In lieu of the bond, the vendor may deposit and maintain with the office securities acceptable to the office that are: (A) Interest bearing or accruing; and (B) Rated in one (1) of the three (3) highest classifications by an established, nationally recognized investment rating service. (3) Securities eligible under this section are limited to: (A) Certificates of deposit in an amount fully insured by the Federal Deposit Insurance Corporation issued by solvent banks or savings associations, if the solvent banks or savings associations are: (i) Approved by the office; and (ii) Organized and existing under the laws of this state or under the laws of the United States; (B) United States Government bonds, notes, and bills for which the full faith and credit of the United States Government is pledged for the payment of principal and interest; (C) Federal agency securities by an agency or instrumentality of the United States Government; and (D)(i) Corporate bonds approved by the office. (ii) The entity that issued the bonds shall not be an affiliate or subsidiary of the depositor. (4) The securities shall be held in trust and shall at all times be in an amount as deemed necessary by the office for the major procurement contract. (b)(1) Each vendor shall be qualified to do business in this state and shall file appropriate tax returns as provided by the

Source: Arkansas Code — historical release 78 (November 6, 2020) · 23-115-502

Stored review status: Historical 2020-11-06 source release; later amendments not reconciled; machine-extracted, not independently legally reviewed; source heading status: text_in_historical_source. A text match is a research starting point; applicability is not established.