What form of bond must each organization furnish?

In the context of funeral service organizations in Oklahoma, the correct form of bond that must be furnished is a cash bond. This requirement ensures that the organization has a financial guarantee in place, which may be utilized for various purposes such as protecting consumers and complying with state regulations regarding the handling of pre-need funeral contracts and other fiduciary responsibilities.

A cash bond requires the organization to deposit a specified amount of cash with a designated financial institution, which serves as collateral. This arrangement assures that funds are readily available should the organization fail to meet its obligations to clients. The use of a cash bond is particularly relevant in the funeral industry, as it helps to instill trust and security in the transactions involving pre-need services or arrangements.

Other forms of bonding, while potentially valid in different contexts, do not meet the specific requirements outlined in Oklahoma funeral law. For instance, a surety bond involves a third-party guarantee and might not be favored due to the necessity for immediate availability of funds. A letter of credit is another financial instrument, but it does not provide the same level of direct assurance to consumers as a cash bond. Likewise, a fidelity bond primarily protects against employee dishonesty rather than providing security for the organization’s obligations to its clients. Therefore, the