As used in this part:

1. (1) “Bond” means any corporate surety bond, certificate of deposit, or irrevocable letter of credit:

   1. (A) Approved by the Secretary of the Department of Finance and Administration; and
   2. (B) 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;
2. (2) “Bonded title” means a certificate of title to a vehicle issued upon the condition that a bond is filed with the Secretary of the Department of Finance and Administration pursuant to Acts 1993, No. 1013, Arkansas Code § 27-14-409(c);

3. (3) “Insurer” means any:

   1. (A) Person with a valid certificate of authority issued by the Insurance Commissioner which certificate grants the authority to become surety on contracts in the State of Arkansas; or
   2. (B) Other guarantor approved by the Secretary of the Department of Finance and Administration;

4. (4) “Letter of approval” means a letter issued by the Commissioner to the applicant for bonded title:

   1. (A) Granting approval to:

      1. (i) File a bond; and
      2. (ii) Apply for registration and issuance of a bonded title; and
   2. (B) Establishing the amount of the bond to be filed;
5. (5) “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; and

6. (6)

   1. (A) “Vehicle” means any vehicle:

      1. (i) Of a type required to be registered and titled in Arkansas; and
      2. (ii) Which is in the possession of and legally controlled by the applicant for bonded title.

   2. (B) This definition shall specifically exclude the following:

      1. (i) Vehicles issued a junking certificate, or similarly branded certificate of title, as referenced in Acts 1993, No. 614, § 2(c);
      2. (ii) Vehicles for which a person holds a storage or mechanic’s lien under the provisions of Acts 1993, No. 1000, Arkansas Code § 27-50-1201 et seq., or Arkansas Code § 18-45-201 et seq.;
      3. (iii) Stolen vehicles; and
      4. (iv) Vehicles involved in ownership litigation.