A bond filed pursuant to Acts 1993, No. 1308, Arkansas Code § 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 Secretary of the Department of Finance and Administration 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 all-terrain vehicle as determined by the secretary, and meets the following requirements:

1. (1) Cash bond. A cash bond shall be:

   1. (A) Cash in United States currency; and

   2. (B) Delivered to the secretary for a period of three (3) years and accompanied by:

      1. (i) An application for registration to the all-terrain vehicle signed by the owner;
      2. (ii) A letter from the secretary granting authorization to apply a bonded title;
      3. (iii) 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; and
      4. (iv) The payment of all requisite fees and taxes for the registration and issuance of a certificate of title to an all-terrain vehicle;

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

   1. (A) On forms approved by the secretary;
   2. (B) Issued by an insurer;
   3. (C) Irrevocable for a period three (3) years;
   4. (D) 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 judgment issued by a court of competent jurisdiction as a result of the issuance of a bonded title;
   5. (E) 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

   6. (F) Delivered to the secretary and accompanied by:

      1. (i) An application for registration and issuance of a certificate of title to the all-terrain vehicle signed by the all-terrain vehicle owner;
      2. (ii) A letter from the secretary granting authorization to apply for a bonded title;
      3. (iii) The original power of attorney of the person executing on the behalf of the insurer, if applicable;
      4. (iv) 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; and
      5. (v) The payment of all requisite fees and taxes for the registration and issuance of a certificate of title to an all-terrain vehicle;

3. (3) Certificate of deposit with assignment.

   1. (A) The certificate of deposit assignment shall be on forms approved by the secretary.

   2. (B) The certificate of deposit shall be:

      1. (i) Signed by the assignor;
      2. (ii) Issued by a bank or savings and loan; and
      3. (iii) Irrevocable for a period of three (3) years.

   3. (C) The assignment shall:

      1. (i) Be signed by the assignor;
      2. (ii) Be acknowledged by the financial institution;

      3. (iii) Contain an irrevocable appointment of the secretary which allows him or her to:

         1. (a) (a) Endorse the certificate of deposit; and
         2. (b) (b) Apply the proceeds to any and all valid claims against the bonded title, as determined by a court of competent jurisdiction;
      4. (iv) Provide the assignment of the certificate of deposit is to be held by the secretary for a period of three (3) years from the date of delivery to the secretary; and
      5. (v) Provide the year, make, model, all-terrain vehicle identification number, and body style of the all-terrain vehicle.

   4. (D) The certificate of deposit and assignment shall be delivered to the secretary and accompanied by:

      1. (i) An application for registration and issuance of a certificate of title to the all-terrain vehicle signed by the all-terrain vehicle owner;
      2. (ii) A letter from the secretary granting authorization to apply for a bonded title;
      3. (iii) 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; and
      4. (iv) The payment of all requisite fees and taxes for the registration and issuance of a certificate of title to an all-terrain vehicle.

4. (4) Irrevocable letter of credit. An irrevocable letter of credit shall:

   1. (A) Be in a form as prescribed by the secretary;
   2. (B) Be issued by a bank or savings and loan;
   3. (C) Be an irrevocable letter of credit;
   4. (D) Be titled or conspicuously state that it is an irrevocable letter of credit;
   5. (E) State that it may be drawn against by the secretary to satisfy any judgment issued by a court of competent jurisdiction as a result of the issuance of a bonded title;
   6. (F) Be irrevocable for a period of three (3) years from the date it is delivered to the secretary; and

   7. (G) Be delivered to the secretary and accompanied by:

      1. (i) An application for registration and issuance of a certificate of title to the all-terrain vehicle signed by the all-terrain vehicle owner;
      2. (ii) A letter from the secretary granting authorization to apply for a bonded title;
      3. (iii) 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; and
      4. (iv) The payment of all requisite fees and taxes for the registration and issuance of a certificate of title to an all-terrain vehicle; and

5. (5) Personal bond. A personal bond shall:

   1. (A) Be on a form approved by the secretary;
   2. (B) Provide the year, make, model, all-terrain vehicle identification number, and body style of the all-terrain vehicle;
   3. (C) Be signed by the applicant for the all-terrain vehicle registration;

   4. (D)

      1. (i) Be signed by at least two (2) persons owning real estate in Arkansas.
      2. (ii) Each signature must be notarized;

   5. (E) Include the following information for the real estate owned and listed by the persons signing the bond in subdivision (5)(D) of this section:

      1. (i) A legal description of the real estate;
      2. (ii) An appraisal done by a certified appraiser within sixty (60) days preceding the application for bonded title; and
      3. (iii) An abstract for the real estate reflecting all liens, mortgages, or other encumbrances and the outstanding balance owed on each; and
   6. (F) 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.