Arkansas Administrative Code
Agency 006 - Department of Finance and Administration
Division 05 - Division of Revenues
Rule 006.05.93-010 - Regulation 1993-7 Bonded All-Terrain Vehicle Regulation
Universal Citation: AR Admin Rules 006.05.93-010
Current through Register Vol. 49, No. 9, September, 2024
Pursuant to authority given the Commissioner of Revenues by subsection (b) of section 20 of Act 142 of 1949 [Ark Code Ann 27-14-403(b) ], after the effective date of this regulation Cash bonds, corporate surety bonds, certificates of "depasit with assignment, irrevocable letters of credit and personal bonds which. meet the requirements of this regulation may be accepted under those circumstances where a bond is authorized under the provisions of Act 1308 of 1993 [Ark. Code Ann. § 27-20-202 ].
(1) Definitions:
(A) "Bond" means any cash bond, corporate
surety bond, certificate of deposit with an assignment, or irrevocable letter
of credit or personal bond approved by the Commissioner and given for the
purpose of indemnifying any prior owner or lienholder and any subsequent
purchaser of an all-terrain 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 all-terrain 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 all-terrain vehicle.
(B) "Bonded Title" means a certificate of
title for a three (3) or four (4) wheeled all-terrain cycle issued upon the
condition that a bond is filed with the Commissioner of Revenues pursuant to
Act 1308 of 1993 [Ark. Code Ann. §
27-20-202
].
(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)
"All-terrain vehicle" means any three (3) or four (4) wheeled all-terrain
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) All-terrain 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.;
(ii) Stolen all-terrain
vehicles;
(iii) All-terrain
vehicles involved in ownership litigation.
(E) "Statement of fact" means a form
prescribed by the Commissioner, to be completed by the applicant for bonded
title 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
title granting approval to file a bond and apply for registration and issuance
of a bonded title, and establishing the amount of the bond to be
filed.
(2) After the effective date of this regulation, any bond filed pursuant to Act 1308 of 1993 [Ark. Code Ann. § 27-20-202] must guarantee payment, for a period of three (3) years from its effective date, to any prior owner or lienholder and any subsequent purchaser of an all-terrain 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 all-terrain 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 all-terrain vehicle.
(3) A bond filed pursuant to Act 1308 of 1993 [Ark. Code Ann. § 27-20-202] shall not be accepted unless it is a cash bond, corporate surety bond, certificate of deposit with assignment, or an irrevocable letter of credit or personal bond filed with the Commissioner within thirty (30) days from its effective date, for an amount equal to one and one half (1%) times the value of the all-terrain vehicle as determined by the Commissioner, and meets the following requirements:
(A)
Cash
Bond.
A cash bond shall:
(i)
be cash in U. S. Currency;
(ii) be
delivered to the Commissioner for a period of three (3) years, and accompanied
by:
(a) an application for registration to the
all-terrain vehicle signed by the owner;
(b) a letter from the Commissioner granting
authorization to apply a bonded title;
(c) any additional documentation otherwise
necessary to comply with specific statutory requirements for registration and
issuance of a certificate of title to an all-terrain vehicle;
(d) the payment of all requisite fees and
taxes for the registration and issuance of a certificate of title to an
all-terrain vehicle.
(B)
Corporate Surety Bond.
A corporate surety bond shall:
(i) be on forms approved by the
Commissioner;
(ii) be issued by an
insurer;
(iii) be irrevocable for a
period three (3) years;
(iv) be
signed by the all-terrain vehicle owner (applicant for bonded title to an
all-terrain vehicle), and payable to the State of Arkansas upon presentation of
a judgement issued by a court of competent jurisdiction as a result of the
issuance of a bonded title;
(v) be
signed by the insurer or its licensed agent or broker with power of attorney to
act on behalf of the insurer and countersigned as otherwise required by
law;
(vi) be delivered to the
Commissioner, and accompanied by:
(a) an
application for registration and issuance of a certificate of title to the
all-terrain vehicle signed by the all-terrain vehicle owner;
(b) a letter from the Commissioner granting
authorization to apply for a bonded title;
(c) the original power of attorney of the
person executing on the behalf of the insurer, if applicable;
(d) any additional documentation otherwise
necessary to comply with, specific statutory requirements for registration and
issuance of a certificate of title to an all-terrain vehicle;
(e) the payment of all requisite fees and
taxes for the registration and issuance of a certificate of title to an
all-terrain vehicle.
(C)
Certificate of Deposit with
Assignment.
(i) The certificate of
deposit assignment shall be on forms approved by the Commissioner.
(ii) The certificate of deposit shall:
(a) be signed by the assignor;
(b) be issued by a bank or savings and
loan;
(c) be irrevocable for a
period three (3) years,
(iii) The assignment shall:
(a) be signed by the assignor;
(b) be acknowledged by the financial
institution;
(c) contain an
irrevocable appointment of the Commissioner which allows him to endorse the
certificate of deposit and apply the proceeds to any and all valid claims
against the bonded title, as determined by a court of competent
jurisdiction;
(e) provide the
assignment of the certificate of deposit is to be held by the Commissioner for
a period of three (3) years from the date of delivery to the
Commissioner.
(f) provide the year,
make, model, all-terrain vehicle identification number and body style of the
all-terrain vehicle.
(iv) The certificate of deposit and
assignment shall be delivered to the Commissioner, and accompanied by:
(a) an application for registration and
issuance of a certificate of title to the all-terrain vehicle signed by the
all-terrain vehicle owner;
(b) a
letter from the Commissioner granting authorization to apply for a bonded
title;
(c) any additional
documentation otherwise necessary to comply with specific statutory
requirements for registration and issuance of a certificate of title to an
all-terrain vehicle;
(d) the
payment of all requisite fees and taxes for the registration and issuance of a
certificate of title to an all-terrain vehicle.
(D)
Irrevocable Letter of
Credit.
An irrevocable letter of credit shall:
(i) be in a form as prescribed by the
Commissioner;
(ii) be issued by a
bank or savings and loan;
(iii) be
an irrevocable letter of credit;
(iv) be titled or conspicuously state that it
is an irrevocable letter of credit;
(v) state that it may be drawn against by the
Commissioner to satisfy any judgement issued by a court of competent
jurisdiction as a result of the issuance of a bonded title;
(vi) be irrevocable for a period of three (3)
years from the date it is delivered to the Commissioner;
(vii) be delivered to the Commissioner, and
accompanied by:
(a) an application for
registration and issuance of a certificate of title to the all-terrain vehicle
signed by the all-terrain vehicle owner;
(b) a letter from the Commissioner granting
authorization to apply for a bonded title;
(c) any additional documentation otherwise
necessary to comply with specific statutory requirements for registration and
issuance of a certificate of title to an all-terrain vehicle;
(d) the payment of all requisite fees and
taxes for the registration and issuance of a certificate of title to an
all-terrain vehicle.
(E)
Personal Bond.
A personal bond shall:
(i) be on a form approved by the
Commissioner;
(ii) provide the
year, make, model, all-terrain vehicle identification number and body style of
the all-terrain vehicle;
(iii) be
signed by the applicant for the all-terrain vehicle registration;
(iv) be signed by at least two (2) persons
owning real estate in Arkansas. (each signature must be notarized);
(v) include the following information for the
real estate owned and listed by the persons signing the bond in subpart (iv);
(a) a legal description of the real
estate;
(b) an appraisal done by a
certified appraiser within sixty (60) days preceeding the application for
bonded title; and
(c) an abstract
for the real estate reflecting all liens, mortgages, or other encumbrances and
the outstanding balance owed on each.
(vi) provide that the persons signing the
bond obligate themselves, jointly and severally, and the real estate listed to
satisfy any claim against the bond established by a judgment issued by a court
of competent jurisdiction as a result of the issuance of the bonded
title.
(4) Procedure for applying for issuance of a bonded title: When a bonded title transaction is received by a State Revenue Office, the transaction should be examined to ensure that:
(A) The cash, bond,
corporate surety bond, certificate of deposit with assignment or irrevocable
letter of credit, or personal bond has been issued for an amount equal to or
exceeding the amount determined by the Department.
(B) The bond is effective for a period of
three (3) years from the date of issuance.
(C) The application for bonded title has been
made within 30 days from the effective date of the bond.
(D) An application presented more than 30
days after the effective date of the bond shall not be accepted.
(E) The all-terrain vehicle description
(year, make, model, all-terrain vehicle identification number, body style)
reflected on the application matches the all-terrain vehicle description
reflected on the bond.
Disclaimer: These regulations may not be the most recent version. Arkansas may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.
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