Section R20-5-207. Posting of Securities in Lieu of Guaranty Bond; Registration; Deposit

A.      In lieu of posting a guaranty bond as provided in R20-5-206, the self-insurer may deposit with the Commission for transmit- tal to the State Treasurer bonds of the United States.

B.       Any securities deposited with the State Treasurer shall be reg- istered to: “The Industrial Commission of Arizona, in trust for the fulfillment by -------- of its obligations under the Arizona Workers’ Compensation Laws. The securities shall be held by the State Treasurer, as custodian subject to the order of, and in trust for, The Industrial Commission of Arizona, with the power in the Commission to collect or order collection of the principal as it becomes due, to sell or order the sale of these securities or any part of these securities, and to apply or order the application of the proceeds to the payment of any award rendered against the self-insurer in the event of the default in the payment of its obligations. The interest coupons on such securities shall be remitted by the Commission to the self- insurer upon request as they mature.

C.      The securities deposited in compliance with subsections (A) and (B) shall have a face value at maturity in the amount spec- ified by the Commission.

Historical Note

Former Rule VII. Section repealed, new Section adopted effective July 6, 1993 (Supp. 93-3). R20-5-207 recodified from R4-13-207 (Supp. 95-1).