Arizona Laws 44-1797.03. Cash deposit in lieu of bond
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:
Terms Used In Arizona Laws 44-1797.03
- Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
- National Credit Union Administration: The federal regulatory agency that charters and supervises federal credit unions. (NCUA also administers the National Credit Union Share Insurance Fund, which insures the deposits of federal credit unions.) Source: OCC
- organization: means a person, corporation, unincorporated association or other organization that, for a consideration, provides or purports to provide its clients or the clients or members of any other discount buying organization with the ability to purchase goods or services at discount prices, except that such organization does not include:
(a) A discount buying organization in which the total consideration paid by each client or member in any manner whatsoever for the purchase of discount buying services from such organization does not exceed a one-time fee of fifty dollars or an annual fee of fifty dollars to be paid on a yearly basis. See Arizona Laws 44-1797
- Trust account: A general term that covers all types of accounts in a trust department, such as estates, guardianships, and agencies. Source: OCC
- United States: includes the District of Columbia and the territories. See Arizona Laws 1-215
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 Deposits plus accrued interest may be withdrawn, if there are no outstanding claims against them, two years after the discount buying organization ceases to do business as such in this state.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.