Ark. Code Ann. § 4-74-107: Bond

(a) The application shall also be accompanied by a cash bond or a corporate surety bond in the amount of two thousand dollars ($2,000) or five percent (5%) of the wholesale value of the goods proposed to be offered at the sale, whichever is lesser, and shall be in favor of the State of Arkansas.

(b) The proceeds of the bond shall be available to assure compliance with the provisions of this chapter and the payment of any and all taxes due the State of Arkansas or any political subdivision of the state as the result of the sale and shall also be available to satisfy any judgment which may be rendered against the merchant in favor of any purchaser of goods, wares, or merchandise at the sale based upon the sale of such merchandise, and which judgment is rendered pursuant to an action which is filed within one (1) year after the date on which the going-out-of-business sale is completed.

(c) The bond shall be maintained for at least one (1) year and shall be released by the clerk only upon proof being submitted by the licensee that the licensee has complied with all provisions of this chapter, has paid all taxes and penalties due the State of Arkansas or any political subdivision thereof, and that all judgments, if any, rendered against the applicant as a result of the sale have been paid and that no action is pending against the licensee as a result of the sale.