1. (a)

   1. (1) Any lessor employing unit desiring to post a bond with the Division of Workforce Services in accordance with Arkansas Code § 11-10-717(e), shall:

      1. (A) Also execute a surety bond prepared or approved by the division; and
      2. (B) Provide the division with any information necessary to prepare this bond.
   2. (2) Any bond not prepared by the division shall be submitted to the division for approval prior to its being executed.

2. (b)

   1. (1) Any lessor employing unit depositing cash or securities with the division in accordance with said Arkansas Code § 11-10-717(e) shall:

      1. (A) Also execute an assignment and escrow agreement prepared by the division; and
      2. (B) Provide the division with any information necessary to prepare the agreement.
   2. (2) This agreement shall contain a provision which the lessor employing unit consents to an audit of its records prior to the release or cancellation of the securities tendered with the agreement.

3. (c)

   1. (1) Any securities deposited with the division pursuant to said Arkansas Code § 11-10-717(e) shall be accompanied by the signed statement of a licensed broker identifying each security and setting forth its current market value.

   2. (2) Thereafter, on or before the tenth day of each month, the lessor employing unit shall submit:

      1. (A) A statement signed by a licensed broker setting forth the market value on the first business day of that month of each security so deposited; and
      2. (B) An attestation by said broker stating that he or she has no interest in and is not affiliated in any way with the lessor employer or the corporations that issued the stocks included in the said market value statement.
   3. (3) Should the combined value of those deposited securities be less than the required amount, the lessor employing unit shall immediately deposit additional securities to raise the value to the required amount.
4. (d) By the end of February each year, the Director of the Division of Workforce Services shall notify any lessor employing unit that has posted a corporate surety bond or deposited marketable securities with the division of the dollar amount required for that year to comply with the provisions of said Arkansas Code § 11-10-717(e).

5. (e)

   1. (1) The obligation for payment, and/or the bond securing payment, of unemployment contributions pursuant to Arkansas Code § 11-10-717(e) shall not be released until the division is satisfied, either by audit or otherwise, that all contributions liability on account of the bond has been paid.

   2. (2) This subsection (e) of this section shall not be construed to:

      1. (A) Increase the liability of the surety in excess of the face amount of the bond regardless of the period of time the bond remains in effect; nor
      2. (B) Affect the right of any surety to terminate the bond in accordance with the terms of the bond.

Codification Notes: This section as promulgated prior to codification into the Code of Arkansas Rules provided as follows: "Rule No. 20" "The following Rule is hereby promulgated and adopted by the Director, Arkansas Department of Workforce Services pursuant to Arkansas Code 11-10-717(e):" "This Rule shall be in full force and effect on and after January 1, 1998."