NOTARY BOND SURETY CORPORATION

Instructions for Posting

Security Deposit as Required Under Act 304 of 1989

Ark. Code Ann. Sec. 21-14-101, as amended by Act 304 of 1989, requires applicants for registration to file a security deposit in the amount of $10,000. Either a surety bond executed by an admitted insurance company or a security deposit posted with the Insurance Commissioner may be used to satisfy this requirement.

I. Should you elect to post the security deposit, the following procedure must be followed:

1. The $10,000 security deposit must be deposited with an approved Arkansas Bank of your choice, a listing of Approved Custodial Banks is enclosed along with a list of acceptable securities. If a certificate of deposit is purchased it must be for a term of not less than one year with automatic renewal thereafter, and must be issued in the exact corporate name.

2. Enclosed are forms I-40SC Detached Assignment, and I-43SC Board Resolution, to be completed for attachment to the new security (only if the security will be sent in physical form), or certificate of deposit. Please refer to the enclosed instructions when completing these forms.

3. ** Note that the form I-43SC must be signed by an officer other than the two officers signing the form I-40SC. ***

4. If a certificate of deposit is purchased, the enclosed Certificate of Pledge form must be completed and signed by an officer of the Corporation and by an officer of the Bank issuing the Certificate of Deposit. Also the attached certificate of Deposit Agreement form must be completed & signed by a Corporate Officer. These form should be returned to the Arkansas Insurance Department, to the attention of the Securities Administrator.

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Notary Bond

(deposit instructions)

II. Should you elect to post a surety bond, the following procedures must be followed:

1. The enclosed Surety Bond must be used.

2. The surety Bond must be issued by a surety insurer holding an Arkansas Certificate of Authority to transact surety insurance in this State.

3. Duly authorized corporate officer or Attorney-in-Fact for the Principal and Surety must sign, date, and seal the bond.

4. The surety insurer should attach its executed and numbered power of attorney to the bond before it is filed with the Arkansas Insurance Department.