44-1797.03. Cash deposit in lieu of bond
207 words·~1 min read·
/az/title-44/44-1797-03A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
A. In lieu of furnishing the bond as required by section 44-1797.01, the seller may deposit with the state treasurer a cash deposit in a like amount or by any of the following:
1. Certificates of deposit issued by banks doing business in this state and insured by the federal deposit insurance corporation.
2. Investment certificates for share accounts issued by a savings and loan association or credit union doing business in this state and insured by the federal savings and loan insurance corporation or the national credit union administration, whichever appropriate.
3. Bearer bonds issued by the United States government or by this state.
B. The financial instruments cited in the foregoing paragraphs shall be assigned to the state treasurer for the principal amount with any interest earned assigned to the depositor.
C. The state treasurer shall maintain cash deposited pursuant to this section in an interest bearing trust account on behalf of the depositor. Deposits plus accrued interest may be withdrawn, if there are no outstanding claims against them, two years after the discount buying organization ceases to do business as such in this state. Deposits may be withdrawn sixty days after the filing of a surety bond as a replacement to the cash deposit.