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The state of Arkansas has a unique law pertaining to the bonding of church construction projects. It provides that "no contract in any sum exceeding $1,000 providing for the repair, alteration, or erection of any building … shall be entered into by any church or religious organization … unless the contractor shall furnish to the party letting the contract a bond in a sum equal to the amount of the contract." A state appeals court recently ruled that "the bonding of a church construction job is mandatory" under Arkansas law. General Electric Supply Co. v. Downtown Church of Christ, 746 S.W.2d 386 (Ark. App. 1988).

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  • September 1, 1988