§ 23-48-106 — Exemption from posting bond in certain transactions

Arkansas § 23-48-106

• Jurisdiction: Arkansas
• Title: 23

Text

(a) Except when the dollar amount of responsibility assumed exceeds its capital base, no bank chartered or licensed to do business in this state shall be required to furnish fidelity, surety, or performance bond, in business transactions involving: (1) Garnishment; (2) Replevin; (3) Foreclosure; or (4) Forcible entry and detainer. (b) At the beginning of any proceeding in all such business transactions, the bank shall, upon request, furnish to each party to the transaction a copy of its most recent statement of financial condition. (c) Nothing in this section shall be construed to: (1) Prevent a bank from electing or agreeing to furnish bond at its own cost; (2) Prevent any other party of interest desiring protection in a business transaction with a bank from electing to secure and pay for a bond covering the bank to the benefit of the party to the transaction; or (3) Amend or repeal any law pertaining to: (A) Corporate surety or indemnity bonds covering directors, officers, or employees of the bank; (B) Foreign corporations, associations, or persons not authorized to do business in this state; (C) Actions available against the bank for injury or damage; or (D) Bonding requirements involving fiduciary activities.

Legislative History

Acts 1997, No. 89, § 1.