Section 12 AAC 21.090 - Negotiable security in place of surety bond(a) When a negotiable security is filed with the commissioner in place of or in addition to the bond as provided in AS 08.18.071(c), the owner of the security shall execute an assignment of the security to the state which is attached to and becomes a part of the security.(b) The following negotiable securities are acceptable for the purposes of AS 08.18.071(c): (1) for a mechanical or specialty contractor, a time certificate of deposit in the face amount of $10,000, or the amount necessary to bring the total bond amount to $10,000, issued by a bank or trust company authorized to do business in the state, and meeting the requirements of 12 AAC 21.120; (2) for a general contractor, a time certificate of deposit in the face amount of $25,000, or the amount necessary to bring the total bond amount to $25,000, issued by a bank or trust company authorized to do business in the state, and meeting the requirements of 12 AAC 21.120(3) for a general contractor with a residential endorsement, who performs exclusively residential work, a time certificate of deposit in the face amount of $20,000, or the amount necessary to bring the total bond amount to $20,000, issued by a bank or trust company authorized to do business in the state, and meeting the requirements of 12 AAC 21.120; and(4) for a handyman contractor, a time certificate of deposit in the face amount of $5,000, issued by a bank or trust company authorized to do business in the state, and meeting the requirements of 12 AAC 21.120.(c) Negotiable securities other than those listed in this section, filed for the purposes of AS 08.18.071(c), will be considered on a case-by-case basis.(d) The assignment required under (a) of this section must be on a form provided by the department.(e) When either cash or a negotiable security filed in accordance with this section and AS 08.18.071(c) is accepted by the commissioner in the place of the surety bond required by AS 08.18.071, it shall remain filed with and pledged to the state for the purposes of AS 08.18.071 for a period of three years after the(1) effective date of a surety bond in like amount written in compliance with AS 08.18.071;(2) lapse without reinstatement of the certificate of registration; or(3) surrender, suspension, or revocation, without reinstatement of the certificate of registration; or(4) contractor files a notarized statement notifying the department that the contractor is no longer doing business as a contractor in the state.Eff. 7/2/77, Register 62; am 4/3/88, Register 105; am 8/8/2021, Register 239, October 2021Authority:AS 08.01.080
AS 08.18.071