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Yes, the agent must inform ARC when the agent sell or purchase an ARC accredited agency.
The ARC Agent
Reporting Agreement (ARA) may not be assigned or transferred
by the Agent, nor may 30% or more of the shares of stock, cumulative,
of the Agent be sold or otherwise transferred without ARC approval. Possession
of ARC traffic documents by a new owner prior to ARC approval will
be subject to appropriate action by ARC. Until such time
as ARC enters into an Agent Reporting Agreement with a new Agent (new owner) of an existing Agency location, the
Agent of record (existing owner) remains responsible for all obligations
that accrue through actions taken at or related to that location.
What type of Ownership Change
Application should I use?
Here is a brief description of five (5) ownership change application types:
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Type I applies only to EXISTING Corporations redistributing 30% or more shares among EXISTING shareholders.
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Type II applies only to EXISTING Corporations redistributing 30% or more shares and involving NEW shareholders.
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Type III applies only to entities changing structure, WITHOUT ADDING NEW OWNERS.
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Type IV applies only to an EXISTING ARC approved independent location or branch being acquired as a branch of another EXISTING ARC approved entity.
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Type V applies when BOTH a new entity AND new owners are involved.
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Where can I get an Ownership Change Application?
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I just had an ownership change approved. Why didn't I receive my Letter of Credit back?
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If a type II or V ownership Change occurs, the old owner's Letter of Credit is held for 100 days after the effective date of the approval.
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I need to withdraw my application. Can I fax a letter?
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All withdrawals must be done with an original letter signed by an owner of the agency.
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I want to do a location change along with an ownership change. Is this possible?
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If the location change is going to occur at the same time the ownership change is approved, there is no charge for the location change. If the location change must occur before the ownership change is approved, the location change fee must be paid in addition to the Ownership Change application fee. Either case, Form 608 must be attached to the Ownership Change application.
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Specific information and for replicas of bond and letter of credit documents that are acceptable to ARC are available in the Bond and Letters of Credit section of the forms catalog.
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