Arkansas Code § 26-55-226 - Bonds -- Release or Discharge of Surety

(a) (1) Any surety on any bond furnished by a distributor as provided in §§ 26-55-222 -- 26-55-225 shall be released and discharged from any and all liability to the State of Arkansas accruing on the bond after the expiration of sixty (60) days from the date upon which the surety shall have lodged with the Director of the Department of Finance and Administration written request to be released and discharged.

(2) However, the request shall not operate to relieve, release, or discharge the surety from any liability already accrued, or which shall accrue, before the expiration of the sixty-day period.

(b) (1) The director shall promptly on receipt of notice of the request notify the distributor who furnished the bond, and unless the distributor on or before the expiration of the sixty-day period files with the director a new bond with a surety company satisfactory to the director in the amount and form provided in § 26-55-222, the director shall immediately cancel the license of the distributor.

(2) If the new bond is furnished by the distributor as provided above, the director shall cancel and surrender the bond of the distributor for which the new bond shall be substituted.

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Last modified: November 15, 2016