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235.03.1-IV(A). Requirements for registration and initial application

AR ADC 235.03.1-IV(A)Arkansas Administrative CodeEffective: July 10, 2020

West's Arkansas Administrative Code
Title 235. Arkansas Department of Labor and Licensing
Division 3. Arkansas Appraiser Licensing and Certification Board
Rule 1. Appraisal Management Company Rules
Effective: July 10, 2020
Ark. Admin. Code 235.03.1-IV(A)
Formerly cited as AR ADC 151.00.2-IV
235.03.1-IV(A). Requirements for registration and initial application
Currentness
A. Before applying for registration in Arkansas, the appraisal management company must be registered with the Arkansas Secretary of State. For the purpose of this rule, “business name” means an assumed name or the name of a business entity such as a corporation, partnership, limited liability company, or other business entity recognized by law. The appraisal management company must maintain the registered business name with the Arkansas Secretary of State. The appraisal management company must use the registered business name for all transactions in this state.
1. A domestic appraisal management company shall designate an agent for service of process pursuant to A.C.A. § 4-20-105 (a).
2. A foreign appraisal management company shall provide either a certificate of authority issued by the Arkansas Secretary of State or a copy of the company's filing with the Arkansas Secretary of State appointing an agent for service of process.
B. An appraisal management company shall submit to the Board the following information to apply for initial registration.
1. A completed written initial application form. The initial application form is available on the Board's website or from the Board office. Required information includes, but is not limited to:
a. The name, mailing address, website address, and telephone number of the appraisal management company. The name on the application form must match the name registered with the Arkansas Secretary of State.
b. The name, mailing address, email address and telephone contact information of the controlling person or managing principal.
c. The name, mailing address, email address and telephone contact information of any subject individual that owns ten (10) percent or more of the appraisal management company.
d. For all subject individuals, the credential numbers issued by any state to do business as an appraiser.
e. For appraisal management companies, the registration numbers issued by any state to do business as an appraisal management company.
f. If the appraisal management company is not domiciled in Arkansas, the name, mailing address, email address and telephone contact information for the entity's agent for service of process in this state.
g. The application shall be accompanied with a surety bond in the amount of $20,000 in a form and format approved by the Board. Cash or securities may, with the Board's approval, be deposited in lieu of a bond.
h. The appraisal management company shall submit with the application the required filing fee stipulated on the form.
i. A completed criminal history report authorization form for all subject individuals.
2. A disclosure and documentation of any administrative disciplinary action must be included with the application, if an appraisal management company, in whole or in part, directly or indirectly, is owned by any person or subject individual, who has had his or her appraiser credential refused, denied, cancelled, surrendered in lieu of revocation, or revoked in any state.
3. The initial application for registration shall include a signed and dated certification attesting to all of the requirements found in A.C.A. § 17-14-405 (a)(6).
4. A signed and dated certification attesting the following.
a. That the appraisal management company maintains for a least five (5) years:
i. A record of each appraisal management services request the company receives and the appraiser who performs the real estate appraisal activity contained in the request;
ii. A copy of each written complaint received by the appraisal management company, along with proof of documentation showing the complaint was forwarded to the appraisal management company's client for the appraisal assignment; and
b. A certification that any employee of the appraisal management company that performs the act or process of developing and communicating a reviewer's own opinion of value as part of the appraisal review for a property located in this state is an Arkansas credentialed real estate appraiser.
c. Maintain a system to verify the competency of appraisers on the appraisal management company's appraiser panel that meets the minimum requirements in A.C.A. § 17-14-405 (6) (E).
5. If the Board finds that there is substantial reason to deny the application for registration, the Board shall notify the applicant that the application has been denied and shall afford the applicant an opportunity for a hearing before the Board to show cause why the application should not be denied. All proceeding concerning the denial of a certificate of registration shall be governed by the Arkansas Administrative Procedures Act, § 25-15-201 et seq.
6. The acceptance by the Board of an application for registration does not constitute the approval of its contents or waive the authority of the Board to take disciplinary action.
7. Initial registrations are issued for a period of twelve (12) months.
8. It is the policy of the Board to mail or send electronically a renewal notice to registrants at the last mailing address or email address on file with the Board at least thirty (30) days prior to the expiration date of the registration. Neither the failure of the Board to send such a notice nor the registrant's failure to receive such a notice shall excuse the requirement to timely renew and pay the renewal fee. Registrants must ensure that the address on file with the Board office is current and that the Board is notified within thirty (30) days of any mailing address or email address change.

Credits

Adopted Jan. 1, 2010. Amended July 10, 2020.
Current with amendments received through February 15, 2024. Some sections may be more current, see credit for details.
Ark. Admin. Code 235.03.1-IV(A), AR ADC 235.03.1-IV(A)
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