Deposit of moneys — Bond — Checks

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  1. (a) All moneys derived from the operation of utilities under this subchapter shall be deposited in some solvent bank whose deposits are insured by the Federal Deposit Insurance Corporation to the credit of the board. In the event any sums in excess of the amount of the insurance shall be deposited therein, the board shall require of the bank ample security for same, either in the form of United States Bonds of an amount equal to the excess or by a bond in like amount executed by some surety company authorized to do business in the State of Arkansas.

  2. (b) The secretary and treasurer of the board shall give bond in some surety company authorized to do business in the State of Arkansas in an amount double the amount of any funds in his hands, and the bond shall be subject to the approval of all the members of the board. Before accepting the bonds herein mentioned, the chairman of the board shall investigate as to the solvency of the surety company issuing the bonds and its qualifications to do business in the State of Arkansas and shall file and incorporate in the minutes of the board the result of his findings with a resume of the evidence upon which such findings are based.

  3. (c) All checks drawn upon the funds of the board shall be countersigned by the chairman. The checks shall be of the voucher form and shall state the purpose and consideration for which they are given.


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