(a) A bond filed pursuant to Acts 1993, No. 1013, Arkansas Code § 27-14-409(c), shall not be accepted unless it:

1. (1) Is a corporate surety bond, certificate of deposit with assignment, or an irrevocable letter of credit filed with the Commissioner within thirty (30) days from its effective date for an amount equal to one and one-half (1 1/2) times the value of the vehicle as determined by the Commissioner; and

2. (2) Meets the following requirements:

   1. (A) Corporate surety bond. A corporate surety bond shall be:

(i) On forms approved by the Commissioner;

1. (ii) Issued by an insurer;

   1. (iii) Irrevocable for a period of three (3) years;

      1. (iv) Signed by the vehicle owner (applicant for bonded title to a vehicle) and payable to the State of Arkansas upon presentation of a judgment issued by a court of competent jurisdiction as a result of the issuance of a bonded title;
      2. (v) 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; and
      3. (vi) Delivered to the Commissioner, and accompanied by:

(b) (b) A letter from the commissioner granting authorization to apply for a bonded title;

1. (c) (c) The original power of attorney of the person executing on the behalf of the insurer, if applicable;

   1. (d) (d) Any additional documentation otherwise necessary to comply with specific statutory requirements for registration and issuance of a certificate of title to a vehicle; and

(e) (e) The payment of all requisite fees and taxes for the registration and issuance of a certificate of title to a vehicle;

1. (B) Certificate of deposit with assignment.

   1. (i) The certificate of deposit and assignment shall both be on forms approved by the commissioner.

      1. (ii) The certificate of deposit shall be:

(b) (b) Issued by a bank or savings and loan; and

1. (c) (c) Irrevocable for a period of three (3) years.

   1. (iii) The assignment shall:

(b) (b) Be acknowledged by the financial institution;

1. (c) (c) Contain an irrevocable appointment of the commissioner which allows him or her to:
2. (1) (1) Endorse the certificate of deposit; and

3. (2) (2) Apply the proceeds to any and all valid claims against the bonded title, as determined by a court of competent jurisdiction; and

   1. (d) (d) Provide that 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;

      1. (iv) The certificate of deposit and assignment shall be:

(b) (b) Accompanied by:

1. (1) (1) An application for registration and issuance of a certificate of title to the vehicle signed by the vehicle owner;
2. (2) (2) A letter from the commissioner granting authorization to apply for a bonded title;
3. (3) (3) Any additional documentation otherwise necessary to comply with specific statutory requirements for registration and issuance of a certificate of title to a vehicle; and

4. (4) (4) The payment of all requisite fees and taxes for the registration and issuance of a certificate of title to a vehicle; and

   1. (C) Irrevocable letter of credit. An irrevocable letter of credit shall:

      1. (i) Be in a form as prescribed by the commissioner;
      2. (ii) Be issued by a bank or savings and loan;
      3. (iii) Be an irrevocable letter of credit;
      4. (iv) Be titled or conspicuously state that it is an irrevocable letter of credit;
      5. (v) State that it may be drawn against to satisfy any judgment issued by a court of competent jurisdiction as a result of the issuance of a bonded title;
      6. (vi) State that any draft drawn by the commissioner against the letter of credit is payable upon presentation of a judgment issued by a court of competent jurisdiction as a result of the issuance of a bonded title;
      7. (vii) Be irrevocable for a period of three (3) years from the date it is delivered to the commissioner; and
      8. (viii) Be delivered to the commissioner and accompanied by:

(b) (b) A letter from the commissioner granting authorization to apply for a bonded title;

1. (c) (c) Any additional documentation otherwise necessary to comply with specific statutory requirements for registration and issuance of a certificate of title to a vehicle; and

   1. (d) (d) The payment of all requisite fees and taxes for the registration and issuance of a certificate of title to a vehicle.