SAN FRANCISCO -- A bonding company in North Carolina stepped forward to underwrite $50,000 bonds for non-ARC agents who need a bond to comply with the new Nevada Seller of Travel law.

Bob Buchanan, president of ARC Bonding and Insurance Agency in Littleton, N.C., said his firm is offering bonds that meet Nevada's requirements at a price ranging from $500 to $1,750 a year, depending on the applicant's financial statements and credit reports.

Major trade groups had warned officials in Nevada that it would be difficult, if not impossible, to find a company willing to underwrite a bond that would comply with the law, which goes into effect Oct. 1.

Under the law, the bond must cover consumers hurt as a result of travel agent fraud or misrepresentation, bankruptcy and breach of contract.

The law also gives non-ARC travel sellers the option of putting up $50,000 in the form of a certificate of deposit or letter of credit.

Buchanan said, "[ARC Bonding writes] bonds for sellers of travel in 13 different states that require bonds, and the fact is that actual losses in the past few years have not been very much at all."

He said application forms can be downloaded from his firm's Web site, at www.arcbonds.com.

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