When Act 304 became law and went into effect Southern Development Corporation promptly completed the required registration and deposit to get authorized as a Notary Public Corporation. At that time almost all of the Notary Public bonds had been issued by a bond company located in another state for a premium of $50.
Because of the competition in the Notary Public Bond business as a result of this legislation and since SDC began issuing Notary Public Bonds for $35, over a million dollars has been saved by people of Arkansas being able to get their bonds for a lower price.
Also, unlike that out-of-state bond company, all of the profits from the bond business of Southern Development Corporation are spent in Arkansas, thereby contributing to the improvement of the economy of the state.
Akansas Code Title 21 Chapter 14 Subchapter 1 Section 101 Amended effective 2006 (21-14-101), outlines the requirements a prospective Notary Public must meet in order to be commissioned by the Secretary of State.
Paragraph (d)(2) gives the Insurance Commission the power to authorize Arkansas Corporations in good standing to issue the requitred Notary Public Bond.
(d) Every notary public shall file in the office of the recorder of deeds for the county where the notary public resides or in the case of a resident of an adjoining state, in the county in Arkansas where employed, either:
(1) A surety bond executed by a surety insurer authorized to do business in Arkansas to the state for the faithful discharge of the notary public's duties in the sum of seven thousand five hundred dollars ($7,500), to be approved by the Secretary of State; or
(2) A surety contract guaranteeing the notary public's faithful discharge of his or her duties executed to the State of Arkansas for not more than an aggregate seven thousand five hundred dollars ($7,500), issued by a general business corporation validly organized and formed under the laws of this state pertaining to domestic corporations and which:
(A) Has previously registered with the Insurance Commissioner on forms prescribed by the commissioner evidencing the corporation's purpose to issue only surety contracts for notaries public pursuant to the provisions of this section;
(B) Has previously deposited and thereafter maintains with the commissioner securities in the sum of not less than ten thousand dollars ($10,000) executed to the State of Arkansas that are issued by a nonaffiliated corporate entity and are approved by the commissioner; and
(C) Is not otherwise transacting any insurance business in this state that requires compliance with the provisions of the Arkansas Insurance Code.