After two years on the Agency List, what is the minimum amount of the Bond, Letter of Credit or Cash Security Deposit that must be maintained by each ARC accredited agency?

After two years on the Agency List, what is the minimum amount of the Bond, Letter of Credit or Cash Security Deposit that must be maintained by each ARC accredited agency?

• A. $5,000
• B. $15,000
• C. $10,000
• D. $20,000

Answer: (C)

ARC requires that after an accredited agency has spent two years on the Agency List, it must maintain a security deposit—whether as a Bond, a Letter of Credit, or Cash—at a minimum level. This amount is ten thousand dollars. The purpose is to provide ARC with a funded cushion to cover any potential liabilities or unremitted funds, while recognizing the agency’s proven reliability at that stage. The level is chosen to balance risk protection with reasonable ongoing requirements for agencies that have demonstrated stability. Lower figures would not adequately secure possible defaults, while higher figures would place an unnecessary burden on agencies still considered reliable.

ARC requires that after an accredited agency has spent two years on the Agency List, it must maintain a security deposit—whether as a Bond, a Letter of Credit, or Cash—at a minimum level. This amount is ten thousand dollars. The purpose is to provide ARC with a funded cushion to cover any potential liabilities or unremitted funds, while recognizing the agency’s proven reliability at that stage. The level is chosen to balance risk protection with reasonable ongoing requirements for agencies that have demonstrated stability. Lower figures would not adequately secure possible defaults, while higher figures would place an unnecessary burden on agencies still considered reliable.