Which statement about security deposits is true?

Which statement about security deposits is true?

• A. The maximum instrument amount is $70,000
• B. Only cash security deposits are accepted
• C. The minimum required after two years is $10,000
• D. Management Qualifier location must be Anywhere

Answer: (C)

Security deposits are a financial guarantee ARC uses to back an agency’s obligations. The amount tied to an agency’s operating history, so as an agency demonstrates two years of compliant operation, the minimum required deposit drops to 10,000. This recognizes reduced risk from a long track record while still keeping a safety net in place. The other statements don’t fit ARC rules: deposits aren’t limited to cash—other qualified forms are acceptable—and there isn’t a fixed maximum of 70,000. Also, the Management Qualifier location isn’t unrestricted; it has defined requirements, not Anywhere.

Security deposits are a financial guarantee ARC uses to back an agency’s obligations. The amount tied to an agency’s operating history, so as an agency demonstrates two years of compliant operation, the minimum required deposit drops to 10,000. This recognizes reduced risk from a long track record while still keeping a safety net in place. The other statements don’t fit ARC rules: deposits aren’t limited to cash—other qualified forms are acceptable—and there isn’t a fixed maximum of 70,000. Also, the Management Qualifier location isn’t unrestricted; it has defined requirements, not Anywhere.