Arkansas Code of 1987 (2023)
Title 23 - PUBLIC UTILITIES AND REGULATED INDUSTRIES (§§ 23-1-101 — 23-119-105)
Subtitle 4 - MISCELLANEOUS REGULATED INDUSTRIES (§§ 23-110-101 — 23-119-105)
Chapter 115 - ARKANSAS SCHOLARSHIP LOTTERY ACT (§§ 23-115-101 — 23-115-1102)
Subchapter 5 - VENDORS (§§ 23-115-501 — 23-115-504)
Section 23-115-502 - Vendor - Performance bond or letter of credit

Universal Citation:
AR Code § 23-115-502 (2023)
Learn more This media-neutral citation is based on the American Association of Law Libraries Universal Citation Guide and is not necessarily the official citation.

  • (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 laws of this state.
    • (2) A major procurement contract under this section shall be governed by the laws of this state except as provided in this chapter.

Amended by Act 2015, No. 218,§ 25, eff. 2/26/2015.

Acts 2009, No. 605, § 1; 2009, No. 606, § 1; 2009, No. 1405, § 40.


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