-
(a)
-
(1) At the time of execution of a major procurement contract between the Office of the Arkansas Lottery and a vendor, the vendor shall post a performance bond or letter of credit from a bank or credit provider acceptable to the office in an amount deemed necessary by the office to assure the performance of the major procurement contract.
-
(2) In lieu of the bond, the vendor may deposit and maintain with the office securities acceptable to the office that are:
-
(A) Interest bearing or accruing; and
-
(B) Rated in one (1) of the three (3) highest classifications by an established, nationally recognized investment rating service.
-
-
(3) Securities eligible under this section are limited to:
-
(A) Certificates of deposit in an amount fully insured by the Federal Deposit Insurance Corporation issued by solvent banks or savings associations, if the solvent banks or savings associations are:
-
(i) Approved by the office; and
-
(ii) Organized and existing under the laws of this state or under the laws of the United States;
-
-
(B) United States Government bonds, notes, and bills for which the full faith and credit of the United States Government is pledged for the payment of principal and interest;
-
(C) Federal agency securities by an agency or instrumentality of the United States Government; and
-
(D)
-
(i) Corporate bonds approved by the office.
-
(ii) The entity that issued the bonds shall not be an affiliate or subsidiary of the depositor.
-
-
-
(4) The securities shall be held in trust and shall at all times be in an amount as deemed necessary by the office for the major procurement contract.
-
-
(b)
-
(1) Each vendor shall be qualified to do business in this state and shall file appropriate tax returns as provided by the laws of this state.
-
(2) A major procurement contract under this section shall be governed by the laws of this state except as provided in this chapter.
-
