What is the maximum amount of Bond, Irrevocable Letter of Credit (LOC), or ARC Cash Security Deposit that an ARC accredited agency may maintain?

What is the maximum amount of Bond, Irrevocable Letter of Credit (LOC), or ARC Cash Security Deposit that an ARC accredited agency may maintain?

• A. 50,000
• B. 70,000
• C. 100,000
• D. 150,000

Answer: (B)

ARC uses security deposits to protect against potential liabilities and ensure agencies meet their obligations. For an ARC accredited agency, the maximum amount that may be maintained as Bond, an irrevocable letter of credit, or ARC cash security deposit is seventy thousand dollars. This cap is designed to provide a reliable safety net for ARC while keeping funds available for the agency’s normal operations. The deposit can be supplied in any combination of the eligible instruments, but the total must not exceed the limit. Choosing a lower amount would reduce ARC’s protection, while a higher amount would place an unnecessary burden on the agency.

ARC uses security deposits to protect against potential liabilities and ensure agencies meet their obligations. For an ARC accredited agency, the maximum amount that may be maintained as Bond, an irrevocable letter of credit, or ARC cash security deposit is seventy thousand dollars. This cap is designed to provide a reliable safety net for ARC while keeping funds available for the agency’s normal operations. The deposit can be supplied in any combination of the eligible instruments, but the total must not exceed the limit. Choosing a lower amount would reduce ARC’s protection, while a higher amount would place an unnecessary burden on the agency.