Ark. Code Ann. § 23-101-113 — AR Code / Title 23 / Chapter 101 / Section 23-101-113
Disclosures to debtor
Status: in_force

(a) A creditor shall not impose charges, including premium costs and related interest and finance charges, on a debtor for creditor-placed insurance coverage unless adequate disclosure of the requirement to maintain insurance has been made to the debtor. Adequate disclosure is accomplished if the following occurs: (1) The credit agreement sets forth the requirement that the debtor must maintain insurance on the collateral as provided for in § 23-101-111 ; (2) The creditor makes reasonable efforts to notify the debtor of the requirement to maintain insurance and allows a reasonable time for compliance with this requirement; (3) A final notice as required by this chapter is sent to the debtor; and (4) If creditor-placed insurance coverage is issued, a copy of the policy or certificate is sent to the debtor as provided for in § 23-101-107 . (b) (1) After adequate disclosure of the request to maintain insurance has been made to the debtor as required by this section, a creditor may proceed to impose charges for creditor-placed insurance if the debtor fails to provide evidence of insurance. (2) A creditor may impose charges no earlier than ten (10) calendar days after sending the final notice. (c) Reasonable efforts to notify the debtor are accomplished if: (1) The creditor mails a notice by first class mail to the debtor's last known address as contained in the creditor's records, stating that the creditor intends to charge the debtor for creditor-placed insurance coverage on the collateral if the debtor fails to provide evidence of the property insurance to the creditor; (2) The creditor allows the debtor at least twenty (20) calendar days to respond to the notice and provide evidence of acceptable insurance coverage before sending a final notice; and (3) (A) The creditor sends a final notice in compliance with this section by first class mail to the debtor's last known address as contained in the creditor's records at least ten (10) calendar days before the cost of insurance is charged to the debtor by the creditor. (B) Proof of the mailing of the final notice shall be retained for at least three (3) years following the expiration or termination of the coverage or as otherwise required by law. (d) The initial notice shall be in a form determined by the creditor to remind the debtor of the requirement to maintain insurance on the collateral. The final notice shall be as complete as the following notice, printed in not less than 12-point type, and modified when necessary to fit the nature of the credit transaction: Click here to view form. (e) (1) All creditor-placed insurance shall be set forth in an individual policy or certificate of insurance. (2) Not earlier than the sending of the final notice nor fifteen (15) days after a charge is made to the debtor for creditor-placed insurance coverage, the creditor shall cause a copy of the individual policy, certificate, or other evidence of insurance coverage evidencing the creditor-placed insurance coverage to be sent, first class mail, to the debtor's last known address. (f) A creditor's compliance with or failure to comply with this chapter shall not be construed to require the creditor to purchase insurance coverage on the collateral, and the creditor shall not be liable to the debtor or a third party as a result of its failure to purchase the insurance. Acts 1997, No. 930, § 13.

(a) A creditor shall not impose charges, including premium costs and related interest and finance charges, on a debtor for creditor-placed insurance coverage unless adequate disclosure of the requirement to maintain insurance has been made to the debtor. Adequate disclosure is accomplished if the following occurs: (1) The credit agreement sets forth the requirement that the debtor must maintain insurance on the collateral as provided for in § 23-101-111 ; (2) The creditor makes reasonable efforts to notify the debtor of the requirement to maintain insurance and allows a reasonable time for compliance with this requirement; (3) A final notice as required by this chapter is sent to the debtor; and (4) If creditor-placed insurance coverage is issued, a copy of the policy or certificate is sent to the debtor as provided for in § 23-101-107 .

(1) The credit agreement sets forth the requirement that the debtor must maintain insurance on the collateral as provided for in § 23-101-111 ;

(2) The creditor makes reasonable efforts to notify the debtor of the requirement to maintain insurance and allows a reasonable time for compliance with this requirement;

(3) A final notice as required by this chapter is sent to the debtor; and

(4) If creditor-placed insurance coverage is issued, a copy of the policy or certificate is sent to the debtor as provided for in § 23-101-107 .

(b) (1) After adequate disclosure of the request to maintain insurance has been made to the debtor as required by this section, a creditor may proceed to impose charges for creditor-placed insurance if the debtor fails to provide evidence of insurance. (2) A creditor may impose charges no earlier than ten (10) calendar days after sending the final notice.

(1) After adequate disclosure of the request to maintain insurance has been made to the debtor as required by this section, a creditor may proceed to impose charges for creditor-placed insurance if the debtor fails to provide evidence of insurance.

(2) A creditor may impose charges no earlier than ten (10) calendar days after sending the final notice.

(c) Reasonable efforts to notify the debtor are accomplished if: (1) The creditor mails a notice by first class mail to the debtor's last known address as contained in the creditor's records, stating that the creditor intends to charge the debtor for creditor-placed insurance coverage on the collateral if the debtor fails to provide evidence of the property insurance to the creditor; (2) The creditor allows the debtor at least twenty (20) calendar days to respond to the notice and provide evidence of acceptable insurance coverage before sending a final notice; and (3) (A) The creditor sends a final notice in compliance with this section by first class mail to the debtor's last known address as contained in the creditor's records at least ten (10) calendar days before the cost of insurance is charged to the debtor by the creditor. (B) Proof of the mailing of the final notice shall be retained for at least three (3) years following the expiration or termination of the coverage or as otherwise required by law.

(1) The creditor mails a notice by first class mail to the debtor's last known address as contained in the creditor's records, stating that the creditor intends to charge the debtor for creditor-placed insurance coverage on the collateral if the debtor fails to provide evidence of the property insurance to the creditor;

(2) The creditor allows the debtor at least twenty (20) calendar days to respond to the notice and provide evidence of acceptable insurance coverage before sending a final notice; and

(3) (A) The creditor sends a final notice in compliance with this section by first class mail to the debtor's last known address as contained in the creditor's records at least ten (10) calendar days before the cost of insurance is charged to the debtor by the creditor. (B) Proof of the mailing of the final notice shall be retained for at least three (3) years following the expiration or termination of the coverage or as otherwise required by law.

(A) The creditor sends a final notice in compliance with this section by first class mail to the debtor's last known address as contained in the creditor's records at least ten (10) calendar days before the cost of insurance is charged to the debtor by the creditor.

(B) Proof of the mailing of the final notice shall be retained for at least three (3) years following the expiration or termination of the coverage or as otherwise required by law.

(d) The initial notice shall be in a form determined by the creditor to remind the debtor of the requirement to maintain insurance on the collateral. The final notice shall be as complete as the following notice, printed in not less than 12-point type, and modified when necessary to fit the nature of the credit transaction: Click here to view form.

Click here to view form.

(e) (1) All creditor-placed insurance shall be set forth in an individual policy or certificate of insurance. (2) Not earlier than the sending of the final notice nor fifteen (15) days after a charge is made to the debtor for creditor-placed insurance coverage, the creditor shall cause a copy of the individual policy, certificate, or other evidence of insurance coverage evidencing the creditor-placed insurance coverage to be sent, first class mail, to the debtor's last known address.

(1) All creditor-placed insurance shall be set forth in an individual policy or certificate of insurance.

(2) Not earlier than the sending of the final notice nor fifteen (15) days after a charge is made to the debtor for creditor-placed insurance coverage, the creditor shall cause a copy of the individual policy, certificate, or other evidence of insurance coverage evidencing the creditor-placed insurance coverage to be sent, first class mail, to the debtor's last known address.

(f) A creditor's compliance with or failure to comply with this chapter shall not be construed to require the creditor to purchase insurance coverage on the collateral, and the creditor shall not be liable to the debtor or a third party as a result of its failure to purchase the insurance.

Acts 1997, No. 930, § 13.

101_113_1 - Attachment
Ark. Code Ann. § 23-94-213 — AR Code / Title 23 / Chapter 94 / Subchapter 2 / Section 23-94-213
Duty of agents or brokers to obtain license
Status: in_force

(a) Risk Retention Group Agents. Any person acting, or offering to act, as an agent or broker for a registered risk retention group which solicits members, sells insurance coverage, or otherwise does business in this state shall, before commencing any such activity, obtain a resident or nonresident risk retention group agent license from the commissioner upon completion of the licensing provisions as to resident and nonresident agents or brokers under § 23-64-101 et seq., §§ 23-64-201 - 23-64-205 , 23-64-207 , 23-64-209 , 23-64-210 , 23-64-214 - 23-64-221 , 23-64-223 - 23-64-227 , and the Producer Licensing Model Act, § 23-64-501 et seq., except as they conflict with the provisions of the Liability Risk Retention Act of 1986. (b) Purchasing Group Brokers. (1) Any person acting, or offering to act, as an agent or broker for a registered purchasing group which solicits members, sells insurance coverage, purchases coverage for its members located within the state, or otherwise doing business in this state shall, before commencing any such activity, obtain a resident or nonresident purchasing group broker license from the commissioner upon completion of the licensing provisions as to resident and nonresident agents or brokers under § 23-64-101 et seq., §§ 23-64-201 - 23-64-205 , 23-64-207 , 23-64-209 , 23-64-210 , 23-64-214 - 23-64-221 , 23-64-223 - 23-64-227 , and the Producer Licensing Model Act, § 23-64-501 et seq., except as they conflict with the provisions of the Liability Risk Retention Act of 1986, before securing the purchasing group's coverage with an authorized insurer or a registered risk retention group. This requirement shall not be applicable to property and casualty agents or brokers duly licensed by this state as to the authorized insurer or risk retention group issuing the purchasing group's coverage, so long as these licenses comply with other provisions of this subchapter. (2) Any person acting, or offering to act, as an agent or broker for a purchasing group registered in Arkansas and procuring insurance from an approved nonadmitted surplus lines insurer shall either: (A) First obtain a property and casualty agent or broker's license or purchasing group broker's license from this state, prior to placing the purchasing group's coverage through a surplus lines broker duly licensed by the State of Arkansas; or (B) First obtain a resident Arkansas surplus lines broker's license, or a nonresident Arkansas surplus lines broker's license, prior to placing the group's coverage with the surplus lines insurer. (3) The provisions of this section shall be in conformity with the provisions of this subchapter, § 23-64-101 et seq., §§ 23-64-201 - 23-64-205 , 23-64-207 , 23-64-209 , 23-64-210 , 23-64-214 - 23-64-221 , 23-64-223 - 23-64-227 , the Producer Licensing Model Act, § 23-64-501 et seq., and the Surplus Lines Insurance Law, § 23-65-301 et seq., except as they conflict with the provisions of the Liability Risk Retention Act of 1986. Acts 1995, No. 623, § 1; 2001, No. 580, § 24; 2001, No. 1555, § 18.

(a) Risk Retention Group Agents. Any person acting, or offering to act, as an agent or broker for a registered risk retention group which solicits members, sells insurance coverage, or otherwise does business in this state shall, before commencing any such activity, obtain a resident or nonresident risk retention group agent license from the commissioner upon completion of the licensing provisions as to resident and nonresident agents or brokers under § 23-64-101 et seq., §§ 23-64-201 - 23-64-205 , 23-64-207 , 23-64-209 , 23-64-210 , 23-64-214 - 23-64-221 , 23-64-223 - 23-64-227 , and the Producer Licensing Model Act, § 23-64-501 et seq., except as they conflict with the provisions of the Liability Risk Retention Act of 1986.

(b) Purchasing Group Brokers. (1) Any person acting, or offering to act, as an agent or broker for a registered purchasing group which solicits members, sells insurance coverage, purchases coverage for its members located within the state, or otherwise doing business in this state shall, before commencing any such activity, obtain a resident or nonresident purchasing group broker license from the commissioner upon completion of the licensing provisions as to resident and nonresident agents or brokers under § 23-64-101 et seq., §§ 23-64-201 - 23-64-205 , 23-64-207 , 23-64-209 , 23-64-210 , 23-64-214 - 23-64-221 , 23-64-223 - 23-64-227 , and the Producer Licensing Model Act, § 23-64-501 et seq., except as they conflict with the provisions of the Liability Risk Retention Act of 1986, before securing the purchasing group's coverage with an authorized insurer or a registered risk retention group. This requirement shall not be applicable to property and casualty agents or brokers duly licensed by this state as to the authorized insurer or risk retention group issuing the purchasing group's coverage, so long as these licenses comply with other provisions of this subchapter. (2) Any person acting, or offering to act, as an agent or broker for a purchasing group registered in Arkansas and procuring insurance from an approved nonadmitted surplus lines insurer shall either: (A) First obtain a property and casualty agent or broker's license or purchasing group broker's license from this state, prior to placing the purchasing group's coverage through a surplus lines broker duly licensed by the State of Arkansas; or (B) First obtain a resident Arkansas surplus lines broker's license, or a nonresident Arkansas surplus lines broker's license, prior to placing the group's coverage with the surplus lines insurer. (3) The provisions of this section shall be in conformity with the provisions of this subchapter, § 23-64-101 et seq., §§ 23-64-201 - 23-64-205 , 23-64-207 , 23-64-209 , 23-64-210 , 23-64-214 - 23-64-221 , 23-64-223 - 23-64-227 , the Producer Licensing Model Act, § 23-64-501 et seq., and the Surplus Lines Insurance Law, § 23-65-301 et seq., except as they conflict with the provisions of the Liability Risk Retention Act of 1986.

(1) Any person acting, or offering to act, as an agent or broker for a registered purchasing group which solicits members, sells insurance coverage, purchases coverage for its members located within the state, or otherwise doing business in this state shall, before commencing any such activity, obtain a resident or nonresident purchasing group broker license from the commissioner upon completion of the licensing provisions as to resident and nonresident agents or brokers under § 23-64-101 et seq., §§ 23-64-201 - 23-64-205 , 23-64-207 , 23-64-209 , 23-64-210 , 23-64-214 - 23-64-221 , 23-64-223 - 23-64-227 , and the Producer Licensing Model Act, § 23-64-501 et seq., except as they conflict with the provisions of the Liability Risk Retention Act of 1986, before securing the purchasing group's coverage with an authorized insurer or a registered risk retention group. This requirement shall not be applicable to property and casualty agents or brokers duly licensed by this state as to the authorized insurer or risk retention group issuing the purchasing group's coverage, so long as these licenses comply with other provisions of this subchapter.

(2) Any person acting, or offering to act, as an agent or broker for a purchasing group registered in Arkansas and procuring insurance from an approved nonadmitted surplus lines insurer shall either: (A) First obtain a property and casualty agent or broker's license or purchasing group broker's license from this state, prior to placing the purchasing group's coverage through a surplus lines broker duly licensed by the State of Arkansas; or (B) First obtain a resident Arkansas surplus lines broker's license, or a nonresident Arkansas surplus lines broker's license, prior to placing the group's coverage with the surplus lines insurer.

(A) First obtain a property and casualty agent or broker's license or purchasing group broker's license from this state, prior to placing the purchasing group's coverage through a surplus lines broker duly licensed by the State of Arkansas; or

(B) First obtain a resident Arkansas surplus lines broker's license, or a nonresident Arkansas surplus lines broker's license, prior to placing the group's coverage with the surplus lines insurer.

(3) The provisions of this section shall be in conformity with the provisions of this subchapter, § 23-64-101 et seq., §§ 23-64-201 - 23-64-205 , 23-64-207 , 23-64-209 , 23-64-210 , 23-64-214 - 23-64-221 , 23-64-223 - 23-64-227 , the Producer Licensing Model Act, § 23-64-501 et seq., and the Surplus Lines Insurance Law, § 23-65-301 et seq., except as they conflict with the provisions of the Liability Risk Retention Act of 1986.

Acts 1995, No. 623, § 1; 2001, No. 580, § 24; 2001, No. 1555, § 18.
Ark. Code Ann. § 23-35-402 — AR Code / Title 23 / Chapter 35 / Subchapter 4 / Section 23-35-402
Nonliability of members
Status: in_force

The members of the credit union shall not be personally or individually liable for the payment of debts of the credit union. Acts 1971, No. 132, § 19; A.S.A. 1947, § 67-919.

The members of the credit union shall not be personally or individually liable for the payment of debts of the credit union.

Acts 1971, No. 132, § 19; A.S.A. 1947, § 67-919.
Ark. Code Ann. § 23-11-501 — AR Code / Title 23 / Chapter 11 / Subchapter 5 / Section 23-11-501
Grants for purpose of aiding in construction of railroads
Status: in_force

(a) Any person or corporation, public or private, who may wish to donate, grant, or devise any lands or other property for the purpose of aiding in the construction, building, or running of any railroad within this state, under the provisions of this act, may, by deed or otherwise, convey the lands or other property to the state for that purpose. The property shall then be held by the state for that purpose solely. (b) The donor, grantor, or devisor may, at his or her discretion, designate the railroad company or association to which the lands or other property shall be appropriated. (c) If the road or corporation is not completed within the time fixed by law, the land or property so donated shall revert back to the donor, grantor, or devisor. Acts 1868, No. 71, § 41, p. 290; C. & M. Dig., §§ 8453, 8454; Pope's Dig., §§ 11027, 11028; A.S.A. 1947, §§ 73-501, 73-502.

(a) Any person or corporation, public or private, who may wish to donate, grant, or devise any lands or other property for the purpose of aiding in the construction, building, or running of any railroad within this state, under the provisions of this act, may, by deed or otherwise, convey the lands or other property to the state for that purpose. The property shall then be held by the state for that purpose solely.

(b) The donor, grantor, or devisor may, at his or her discretion, designate the railroad company or association to which the lands or other property shall be appropriated.

(c) If the road or corporation is not completed within the time fixed by law, the land or property so donated shall revert back to the donor, grantor, or devisor.

Acts 1868, No. 71, § 41, p. 290; C. & M. Dig., §§ 8453, 8454; Pope's Dig., §§ 11027, 11028; A.S.A. 1947, §§ 73-501, 73-502.
Ark. Code Ann. § 23-48-301 — AR Code / Title 23 / Chapter 48 / Subchapter 3 / Section 23-48-301
Application for incorporation
Status: in_force

(a) Any one (1) or more natural persons, eighteen (18) years of age or older, a majority of whom shall be bona fide residents of this state, who may desire to associate themselves by articles of incorporation for the purpose of establishing any state bank, may apply to the Bank Commissioner to be incorporated. (b) (1) An application for authority to organize a state bank shall be submitted to the commissioner in the form that the commissioner may prescribe and shall include the following information: (A) The name, citizenship, residence, and occupation of each incorporator, and of each of the initial directors, and the name and address of each stock subscriber, and the amount of stock paid for by each; (B) The name and address of an individual within the state to whom notice to all incorporators may be sent; (C) The total initial capital and the number of shares of each class of the capital stock to be authorized; (D) The corporate name; (E) The proposed location of the main banking office; (F) If known, the name and residence of the proposed president or chief executive officer, operations officer, and, if applicable, the name and address of the proposed trust officer; (G) The names of the natural persons who propose to own or control more than five percent (5%) of the capital stock; (H) The past and present connection with any depository institution, financial institution, or national trust company, other than as a customer on terms generally available to the public, of each proposed director and each subscriber to more than five percent (5%) of the capital stock; (I) Evidence of the character, financial responsibility, and ability of the incorporators and proposed directors; (J) A brief statement of the purposes for which the state bank is incorporated, and whether it shall operate a trust department; (K) The term for which the state bank is to exist, which shall be perpetual unless otherwise limited; (L) A statement signed and verified by the incorporators that the capital stock has been fully subscribed and the purchase price therefor has been paid into an escrow account approved by the commissioner and that the requirements of § 23-48-310 have been met; (M) Proof that application for federal deposit insurance has been made; (N) Recitation of the need for and advisability of the approval to organize; (O) Any information required under subdivision (b)(2) of this section not otherwise listed in this subdivision (b)(1); and (P) Any additional information that the commissioner may require. (2) The proposed articles of incorporation shall contain the following information: (A) The name of the proposed institution; (B) The town or city in which the proposed institution is to be located; (C) The amount of capital stock authorized, the number of shares of each class, the relative preferences, powers, and rights of each class, and the amount of paid-in surplus; (D) The names and places of residence of the stockholders and the number of shares held by each; (E) A statement whether voting for directors shall or shall not be cumulative and the extent, if any, of the preemptive rights of stockholders; (F) The term of the proposed institution's existence, which shall be perpetual unless otherwise limited; (G) The names of the initial board of directors composed of no fewer than three (3) natural persons who shall serve until the next annual meeting or until their successors are regularly elected and qualified; (H) Other information that the State Bank Department may require; and (I) Other proper provisions that the incorporators may choose to insert for the regulation of the internal affairs and business of the state bank. (3) (A) Five (5) copies of the proposed articles of incorporation and proposed bylaws shall be filed with the application under subdivision (b)(1) of this section. (B) The application and articles of incorporation shall be signed by each of the incorporators and shall be accompanied by a nonrefundable filing fee of not more than fifteen thousand dollars ($15,000) as set by department rules. (c) All persons purporting to act as or on behalf of a state bank knowing there was no incorporation under this chapter are jointly and severally liable for all liabilities created while so acting. Amended by Act 2019, No. 315,§ 2543, eff. 7/24/2019. Amended by Act 2019, No. 391,§ 5, eff. 7/24/2019. Amended by Act 2017, No. 198,§ 4, eff. 8/1/2017. Acts 1997, No. 89, § 1.

(a) Any one (1) or more natural persons, eighteen (18) years of age or older, a majority of whom shall be bona fide residents of this state, who may desire to associate themselves by articles of incorporation for the purpose of establishing any state bank, may apply to the Bank Commissioner to be incorporated.

(b) (1) An application for authority to organize a state bank shall be submitted to the commissioner in the form that the commissioner may prescribe and shall include the following information: (A) The name, citizenship, residence, and occupation of each incorporator, and of each of the initial directors, and the name and address of each stock subscriber, and the amount of stock paid for by each; (B) The name and address of an individual within the state to whom notice to all incorporators may be sent; (C) The total initial capital and the number of shares of each class of the capital stock to be authorized; (D) The corporate name; (E) The proposed location of the main banking office; (F) If known, the name and residence of the proposed president or chief executive officer, operations officer, and, if applicable, the name and address of the proposed trust officer; (G) The names of the natural persons who propose to own or control more than five percent (5%) of the capital stock; (H) The past and present connection with any depository institution, financial institution, or national trust company, other than as a customer on terms generally available to the public, of each proposed director and each subscriber to more than five percent (5%) of the capital stock; (I) Evidence of the character, financial responsibility, and ability of the incorporators and proposed directors; (J) A brief statement of the purposes for which the state bank is incorporated, and whether it shall operate a trust department; (K) The term for which the state bank is to exist, which shall be perpetual unless otherwise limited; (L) A statement signed and verified by the incorporators that the capital stock has been fully subscribed and the purchase price therefor has been paid into an escrow account approved by the commissioner and that the requirements of § 23-48-310 have been met; (M) Proof that application for federal deposit insurance has been made; (N) Recitation of the need for and advisability of the approval to organize; (O) Any information required under subdivision (b)(2) of this section not otherwise listed in this subdivision (b)(1); and (P) Any additional information that the commissioner may require. (2) The proposed articles of incorporation shall contain the following information: (A) The name of the proposed institution; (B) The town or city in which the proposed institution is to be located; (C) The amount of capital stock authorized, the number of shares of each class, the relative preferences, powers, and rights of each class, and the amount of paid-in surplus; (D) The names and places of residence of the stockholders and the number of shares held by each; (E) A statement whether voting for directors shall or shall not be cumulative and the extent, if any, of the preemptive rights of stockholders; (F) The term of the proposed institution's existence, which shall be perpetual unless otherwise limited; (G) The names of the initial board of directors composed of no fewer than three (3) natural persons who shall serve until the next annual meeting or until their successors are regularly elected and qualified; (H) Other information that the State Bank Department may require; and (I) Other proper provisions that the incorporators may choose to insert for the regulation of the internal affairs and business of the state bank. (3) (A) Five (5) copies of the proposed articles of incorporation and proposed bylaws shall be filed with the application under subdivision (b)(1) of this section. (B) The application and articles of incorporation shall be signed by each of the incorporators and shall be accompanied by a nonrefundable filing fee of not more than fifteen thousand dollars ($15,000) as set by department rules.

(1) An application for authority to organize a state bank shall be submitted to the commissioner in the form that the commissioner may prescribe and shall include the following information: (A) The name, citizenship, residence, and occupation of each incorporator, and of each of the initial directors, and the name and address of each stock subscriber, and the amount of stock paid for by each; (B) The name and address of an individual within the state to whom notice to all incorporators may be sent; (C) The total initial capital and the number of shares of each class of the capital stock to be authorized; (D) The corporate name; (E) The proposed location of the main banking office; (F) If known, the name and residence of the proposed president or chief executive officer, operations officer, and, if applicable, the name and address of the proposed trust officer; (G) The names of the natural persons who propose to own or control more than five percent (5%) of the capital stock; (H) The past and present connection with any depository institution, financial institution, or national trust company, other than as a customer on terms generally available to the public, of each proposed director and each subscriber to more than five percent (5%) of the capital stock; (I) Evidence of the character, financial responsibility, and ability of the incorporators and proposed directors; (J) A brief statement of the purposes for which the state bank is incorporated, and whether it shall operate a trust department; (K) The term for which the state bank is to exist, which shall be perpetual unless otherwise limited; (L) A statement signed and verified by the incorporators that the capital stock has been fully subscribed and the purchase price therefor has been paid into an escrow account approved by the commissioner and that the requirements of § 23-48-310 have been met; (M) Proof that application for federal deposit insurance has been made; (N) Recitation of the need for and advisability of the approval to organize; (O) Any information required under subdivision (b)(2) of this section not otherwise listed in this subdivision (b)(1); and (P) Any additional information that the commissioner may require.

(A) The name, citizenship, residence, and occupation of each incorporator, and of each of the initial directors, and the name and address of each stock subscriber, and the amount of stock paid for by each;

(B) The name and address of an individual within the state to whom notice to all incorporators may be sent;

(C) The total initial capital and the number of shares of each class of the capital stock to be authorized;

(D) The corporate name;

(E) The proposed location of the main banking office;

(F) If known, the name and residence of the proposed president or chief executive officer, operations officer, and, if applicable, the name and address of the proposed trust officer;

(G) The names of the natural persons who propose to own or control more than five percent (5%) of the capital stock;

(H) The past and present connection with any depository institution, financial institution, or national trust company, other than as a customer on terms generally available to the public, of each proposed director and each subscriber to more than five percent (5%) of the capital stock;

(I) Evidence of the character, financial responsibility, and ability of the incorporators and proposed directors;

(J) A brief statement of the purposes for which the state bank is incorporated, and whether it shall operate a trust department;

(K) The term for which the state bank is to exist, which shall be perpetual unless otherwise limited;

(L) A statement signed and verified by the incorporators that the capital stock has been fully subscribed and the purchase price therefor has been paid into an escrow account approved by the commissioner and that the requirements of § 23-48-310 have been met;

(M) Proof that application for federal deposit insurance has been made;

(N) Recitation of the need for and advisability of the approval to organize;

(O) Any information required under subdivision (b)(2) of this section not otherwise listed in this subdivision (b)(1); and

(P) Any additional information that the commissioner may require.

(2) The proposed articles of incorporation shall contain the following information: (A) The name of the proposed institution; (B) The town or city in which the proposed institution is to be located; (C) The amount of capital stock authorized, the number of shares of each class, the relative preferences, powers, and rights of each class, and the amount of paid-in surplus; (D) The names and places of residence of the stockholders and the number of shares held by each; (E) A statement whether voting for directors shall or shall not be cumulative and the extent, if any, of the preemptive rights of stockholders; (F) The term of the proposed institution's existence, which shall be perpetual unless otherwise limited; (G) The names of the initial board of directors composed of no fewer than three (3) natural persons who shall serve until the next annual meeting or until their successors are regularly elected and qualified; (H) Other information that the State Bank Department may require; and (I) Other proper provisions that the incorporators may choose to insert for the regulation of the internal affairs and business of the state bank.

(A) The name of the proposed institution;

(B) The town or city in which the proposed institution is to be located;

(C) The amount of capital stock authorized, the number of shares of each class, the relative preferences, powers, and rights of each class, and the amount of paid-in surplus;

(D) The names and places of residence of the stockholders and the number of shares held by each;

(E) A statement whether voting for directors shall or shall not be cumulative and the extent, if any, of the preemptive rights of stockholders;

(F) The term of the proposed institution's existence, which shall be perpetual unless otherwise limited;

(G) The names of the initial board of directors composed of no fewer than three (3) natural persons who shall serve until the next annual meeting or until their successors are regularly elected and qualified;

(H) Other information that the State Bank Department may require; and

(I) Other proper provisions that the incorporators may choose to insert for the regulation of the internal affairs and business of the state bank.

(3) (A) Five (5) copies of the proposed articles of incorporation and proposed bylaws shall be filed with the application under subdivision (b)(1) of this section. (B) The application and articles of incorporation shall be signed by each of the incorporators and shall be accompanied by a nonrefundable filing fee of not more than fifteen thousand dollars ($15,000) as set by department rules.

(A) Five (5) copies of the proposed articles of incorporation and proposed bylaws shall be filed with the application under subdivision (b)(1) of this section.

(B) The application and articles of incorporation shall be signed by each of the incorporators and shall be accompanied by a nonrefundable filing fee of not more than fifteen thousand dollars ($15,000) as set by department rules.

(c) All persons purporting to act as or on behalf of a state bank knowing there was no incorporation under this chapter are jointly and severally liable for all liabilities created while so acting.

Amended by Act 2019, No. 315,§ 2543, eff. 7/24/2019.

Amended by Act 2019, No. 391,§ 5, eff. 7/24/2019.

Amended by Act 2017, No. 198,§ 4, eff. 8/1/2017.

Acts 1997, No. 89, § 1.
Ark. Code Ann. § 23-90-122 — AR Code / Title 23 / Chapter 90 / Section 23-90-122
Rules
Status: in_force

The State Insurance Department is authorized and directed to issue such reasonable rules as may be necessary to carry out the various purposes and provisions of this chapter, and in augmentation thereof. Amended by Act 2019, No. 315,§ 2768, eff. 7/24/2019. Acts 1977, No. 871, § 17; A.S.A. 1947, § 66-5517.

The State Insurance Department is authorized and directed to issue such reasonable rules as may be necessary to carry out the various purposes and provisions of this chapter, and in augmentation thereof.

Amended by Act 2019, No. 315,§ 2768, eff. 7/24/2019.

Acts 1977, No. 871, § 17; A.S.A. 1947, § 66-5517.
Ark. Code Ann. § 23-48-310 — AR Code / Title 23 / Chapter 48 / Subchapter 3 / Section 23-48-310
Minimum capital requirements generally
Status: in_force

(a) For all state banks chartered after May 30, 1997, the fully paid-up capital shall not be less than one million dollars ($1,000,000). For all state banks, regardless of the dates of their charters, the following capital requirements shall apply: (1) The minimum "capital base" shall be determined by the Bank Commissioner; and (2) The capital requirements for any state bank must also satisfy the requirements for deposit insurance of the Federal Deposit Insurance Corporation or its successor. (b) (1) The commissioner may increase the minimum capital requirement of any state bank, regardless of the date of its charter when, in the commissioner's judgment, conditions within the state bank or the state bank's service area warrant such an increase. (2) In the event the commissioner orders an increase in a state bank's capital requirement, the state bank shall have at least thirty (30) days from the date of the order to comply with the order, or such longer period as the commissioner may allow. (3) In the event a state bank disagrees with the commissioner's judgment in ordering an increase in its minimum capital requirement, it may appeal the commissioner's decision to the State Banking Board. An appeal may be had by following the procedures specified by the board. (c) Shares of a newly chartered state bank may be issued only for cash in an amount sufficient to meet the capitalization requirements set by the commissioner which shall be at least the aggregate par value of the shares plus the amounts, if any, necessary to assure that after issuance of the shares the bank will have the minimum capital base required by the commissioner under this section and the expense fund required by § 23-48-302 . Acts 1997, No. 89, § 1.

(a) For all state banks chartered after May 30, 1997, the fully paid-up capital shall not be less than one million dollars ($1,000,000). For all state banks, regardless of the dates of their charters, the following capital requirements shall apply: (1) The minimum "capital base" shall be determined by the Bank Commissioner; and (2) The capital requirements for any state bank must also satisfy the requirements for deposit insurance of the Federal Deposit Insurance Corporation or its successor.

(1) The minimum "capital base" shall be determined by the Bank Commissioner; and

(2) The capital requirements for any state bank must also satisfy the requirements for deposit insurance of the Federal Deposit Insurance Corporation or its successor.

(b) (1) The commissioner may increase the minimum capital requirement of any state bank, regardless of the date of its charter when, in the commissioner's judgment, conditions within the state bank or the state bank's service area warrant such an increase. (2) In the event the commissioner orders an increase in a state bank's capital requirement, the state bank shall have at least thirty (30) days from the date of the order to comply with the order, or such longer period as the commissioner may allow. (3) In the event a state bank disagrees with the commissioner's judgment in ordering an increase in its minimum capital requirement, it may appeal the commissioner's decision to the State Banking Board. An appeal may be had by following the procedures specified by the board.

(1) The commissioner may increase the minimum capital requirement of any state bank, regardless of the date of its charter when, in the commissioner's judgment, conditions within the state bank or the state bank's service area warrant such an increase.

(2) In the event the commissioner orders an increase in a state bank's capital requirement, the state bank shall have at least thirty (30) days from the date of the order to comply with the order, or such longer period as the commissioner may allow.

(3) In the event a state bank disagrees with the commissioner's judgment in ordering an increase in its minimum capital requirement, it may appeal the commissioner's decision to the State Banking Board. An appeal may be had by following the procedures specified by the board.

(c) Shares of a newly chartered state bank may be issued only for cash in an amount sufficient to meet the capitalization requirements set by the commissioner which shall be at least the aggregate par value of the shares plus the amounts, if any, necessary to assure that after issuance of the shares the bank will have the minimum capital base required by the commissioner under this section and the expense fund required by § 23-48-302 .

Acts 1997, No. 89, § 1.
Ark. Code Ann. § 23-18-321 — AR Code / Title 23 / Chapter 18 / Subchapter 3 / Section 23-18-321
Board of directors
Status: in_force

(a) (1) The business and affairs of a corporation shall be managed by a board of directors, not fewer than three (3) in number, which shall exercise all the powers of the corporation, except such as are conferred upon the members by this subchapter, by the articles of incorporation, or by the bylaws of the corporation. (2) A director shall discharge his or her duties as a director, including his or her duties as a member of a committee: (A) In good faith; (B) With the care an ordinarily prudent person in a like position would exercise under similar circumstances; and (C) In a manner he or she reasonably believes to be in the best interests of the corporation. (3) In discharging his or her duties, a director is entitled to rely on information, opinions, reports, or statements, including financial statements and other financial data, if prepared or presented by: (A) One (1) or more officers or employees of the corporation whom the director reasonably believes to be reliable and competent in the matters presented; (B) Legal counsel, public accountants, engineers, or other persons as to matters the director reasonably believes are within the person's professional or expert competence; or (C) A committee of the board of directors of which he or she is not a member if the director reasonably believes the committee merits confidence. (4) A director is not acting in good faith if he or she has knowledge concerning the matter in question that makes reliance otherwise permitted by subdivision (a)(3) of this section unwarranted. (5) A director is not liable for any action taken as a director, or any failure to take any action, if he or she performed the duties of his or her office in compliance with this section. (b) The bylaws may prescribe qualifications for directors. (c) The directors shall be members of the corporation and shall be entitled to such compensation and reimbursement for expenses actually and necessarily incurred by them as may be provided in the bylaws. (d) The directors, other than those named in the certificate of incorporation to serve until the first annual meeting of members, shall be elected annually, or as otherwise provided in the bylaws, by the members. (e) Any vacancy occurring in the board and any directorship to be filled shall be filled, as provided in the bylaws, by persons who shall serve until directors may be regularly elected as provided for in this subchapter. (f) (1) Meetings of the board, regular or special, shall be held at such place and upon such notice as the bylaws may prescribe. (2) Attendance of a director at any meeting shall constitute a waiver of notice of the meeting, except where a director attends a meeting for the express purpose of objecting to the transaction of any business because the meeting is not lawfully called or convened. (3) Neither the business to be transacted at nor the purpose of any regular or special meeting of the board of directors need be specified in the notice or waiver of notice of such a meeting. (4) Unless the articles of incorporation or bylaws provide otherwise, action required or permitted by this chapter to be taken at a board of directors' meeting may be taken without a meeting if the action is taken by all members of the board. The action must be evidenced by one (1) or more written consents describing the action taken, signed by each director, and included in the minutes or filed with the corporate records reflecting the action taken. (5) Action taken under this section is effective when the last director signs the consent, unless the consent specifies a different effective date. A consent signed under this section has the effect of a meeting vote and may be described as such in any document. (g) (1) A majority of the board shall constitute a quorum for the transaction of business unless a greater number is required by the articles of incorporation or the bylaws. (2) The act of the majority of the directors present at a meeting at which a quorum is present shall be the act of the board unless the act of a greater number is required by the articles of incorporation or the bylaws. (h) (1) (A) A conflict-of-interest transaction is a transaction with the corporation in which a director of the corporation has direct or indirect interest. (B) A conflict-of-interest transaction is not voidable by the corporation solely because of the director's interest in the transaction if any one (1) of the following is true: (i) The material facts of the transaction and the director's interest were disclosed or known to the board of directors or a committee of the board of directors and the board of directors or committee authorized, approved, or ratified the transaction; (ii) The material facts of the transaction and the director's interest were disclosed or known to the members entitled to vote and they authorized, approved, or ratified the transaction; or (iii) The transaction was fair to the corporation. (2) For purposes of this section, a director of the corporation has an indirect interest in a transaction and it should be considered by the board of directors of the corporation if: (A) Another entity in which he or she has a material financial interest of, in which he or she is a general partner, is a party to the transaction; or (B) Another entity of which he or she is a director, officer, or trustee, is a party to the transaction. (3) For purposes of subdivision (h)(1)(A) of this section, a conflict-of-interest transaction is authorized, approved, or ratified if it receives the affirmative vote of a majority of the directors on the board of directors or on the committee who have no direct or indirect interest in the transaction, but a transaction may not be authorized, approved, or ratified under this section by a single director. If a majority of the directors who have no direct or indirect interest in the transaction vote to authorize, approve, or ratify the transaction, a quorum is present for the purpose of taking action under this subsection. The presence of, or a vote cast by, a director with a direct or indirect interest in the transaction does not affect the validity of any action taken under subdivision (h)(1)(A) of this section if the transaction is otherwise authorized, approved, or ratified as provided in this subsection. (4) For purposes of subdivision (h)(1)(B) of this section, a conflict-of-interest transaction is authorized, approved, or ratified if it receives the vote of a majority of the members entitled to vote under this subsection. Proxies voted under the control of a director who has a direct or indirect interest in the transaction, and proxies voted under the control of an entity described in subdivision (h)(2)(A) of this section may not be counted in a vote of members to determine whether to authorize, approve, or ratify a conflict-of-interest transaction under subdivision (h)(1)(B) of this section. The vote of those members, however, is counted in determining whether the transaction is approved under other sections of this chapter. A majority of the members, whether or not present, that are entitled to vote on the transaction under this subsection constitutes a quorum for the purpose of taking action under this section. Acts 1937, No. 342, §§ 18-22; Pope's Dig., §§ 2332-2336; A.S.A. 1947, §§ 77-1118 -- 77-1122; Acts 1989, No. 287, § 1.

(a) (1) The business and affairs of a corporation shall be managed by a board of directors, not fewer than three (3) in number, which shall exercise all the powers of the corporation, except such as are conferred upon the members by this subchapter, by the articles of incorporation, or by the bylaws of the corporation. (2) A director shall discharge his or her duties as a director, including his or her duties as a member of a committee: (A) In good faith; (B) With the care an ordinarily prudent person in a like position would exercise under similar circumstances; and (C) In a manner he or she reasonably believes to be in the best interests of the corporation. (3) In discharging his or her duties, a director is entitled to rely on information, opinions, reports, or statements, including financial statements and other financial data, if prepared or presented by: (A) One (1) or more officers or employees of the corporation whom the director reasonably believes to be reliable and competent in the matters presented; (B) Legal counsel, public accountants, engineers, or other persons as to matters the director reasonably believes are within the person's professional or expert competence; or (C) A committee of the board of directors of which he or she is not a member if the director reasonably believes the committee merits confidence. (4) A director is not acting in good faith if he or she has knowledge concerning the matter in question that makes reliance otherwise permitted by subdivision (a)(3) of this section unwarranted. (5) A director is not liable for any action taken as a director, or any failure to take any action, if he or she performed the duties of his or her office in compliance with this section.

(1) The business and affairs of a corporation shall be managed by a board of directors, not fewer than three (3) in number, which shall exercise all the powers of the corporation, except such as are conferred upon the members by this subchapter, by the articles of incorporation, or by the bylaws of the corporation.

(2) A director shall discharge his or her duties as a director, including his or her duties as a member of a committee: (A) In good faith; (B) With the care an ordinarily prudent person in a like position would exercise under similar circumstances; and (C) In a manner he or she reasonably believes to be in the best interests of the corporation.

(A) In good faith;

(B) With the care an ordinarily prudent person in a like position would exercise under similar circumstances; and

(C) In a manner he or she reasonably believes to be in the best interests of the corporation.

(3) In discharging his or her duties, a director is entitled to rely on information, opinions, reports, or statements, including financial statements and other financial data, if prepared or presented by: (A) One (1) or more officers or employees of the corporation whom the director reasonably believes to be reliable and competent in the matters presented; (B) Legal counsel, public accountants, engineers, or other persons as to matters the director reasonably believes are within the person's professional or expert competence; or (C) A committee of the board of directors of which he or she is not a member if the director reasonably believes the committee merits confidence.

(A) One (1) or more officers or employees of the corporation whom the director reasonably believes to be reliable and competent in the matters presented;

(B) Legal counsel, public accountants, engineers, or other persons as to matters the director reasonably believes are within the person's professional or expert competence; or

(C) A committee of the board of directors of which he or she is not a member if the director reasonably believes the committee merits confidence.

(4) A director is not acting in good faith if he or she has knowledge concerning the matter in question that makes reliance otherwise permitted by subdivision (a)(3) of this section unwarranted.

(5) A director is not liable for any action taken as a director, or any failure to take any action, if he or she performed the duties of his or her office in compliance with this section.

(b) The bylaws may prescribe qualifications for directors.

(c) The directors shall be members of the corporation and shall be entitled to such compensation and reimbursement for expenses actually and necessarily incurred by them as may be provided in the bylaws.

(d) The directors, other than those named in the certificate of incorporation to serve until the first annual meeting of members, shall be elected annually, or as otherwise provided in the bylaws, by the members.

(e) Any vacancy occurring in the board and any directorship to be filled shall be filled, as provided in the bylaws, by persons who shall serve until directors may be regularly elected as provided for in this subchapter.

(f) (1) Meetings of the board, regular or special, shall be held at such place and upon such notice as the bylaws may prescribe. (2) Attendance of a director at any meeting shall constitute a waiver of notice of the meeting, except where a director attends a meeting for the express purpose of objecting to the transaction of any business because the meeting is not lawfully called or convened. (3) Neither the business to be transacted at nor the purpose of any regular or special meeting of the board of directors need be specified in the notice or waiver of notice of such a meeting. (4) Unless the articles of incorporation or bylaws provide otherwise, action required or permitted by this chapter to be taken at a board of directors' meeting may be taken without a meeting if the action is taken by all members of the board. The action must be evidenced by one (1) or more written consents describing the action taken, signed by each director, and included in the minutes or filed with the corporate records reflecting the action taken. (5) Action taken under this section is effective when the last director signs the consent, unless the consent specifies a different effective date. A consent signed under this section has the effect of a meeting vote and may be described as such in any document.

(1) Meetings of the board, regular or special, shall be held at such place and upon such notice as the bylaws may prescribe.

(2) Attendance of a director at any meeting shall constitute a waiver of notice of the meeting, except where a director attends a meeting for the express purpose of objecting to the transaction of any business because the meeting is not lawfully called or convened.

(3) Neither the business to be transacted at nor the purpose of any regular or special meeting of the board of directors need be specified in the notice or waiver of notice of such a meeting.

(4) Unless the articles of incorporation or bylaws provide otherwise, action required or permitted by this chapter to be taken at a board of directors' meeting may be taken without a meeting if the action is taken by all members of the board. The action must be evidenced by one (1) or more written consents describing the action taken, signed by each director, and included in the minutes or filed with the corporate records reflecting the action taken.

(5) Action taken under this section is effective when the last director signs the consent, unless the consent specifies a different effective date. A consent signed under this section has the effect of a meeting vote and may be described as such in any document.

(g) (1) A majority of the board shall constitute a quorum for the transaction of business unless a greater number is required by the articles of incorporation or the bylaws. (2) The act of the majority of the directors present at a meeting at which a quorum is present shall be the act of the board unless the act of a greater number is required by the articles of incorporation or the bylaws.

(1) A majority of the board shall constitute a quorum for the transaction of business unless a greater number is required by the articles of incorporation or the bylaws.

(2) The act of the majority of the directors present at a meeting at which a quorum is present shall be the act of the board unless the act of a greater number is required by the articles of incorporation or the bylaws.

(h) (1) (A) A conflict-of-interest transaction is a transaction with the corporation in which a director of the corporation has direct or indirect interest. (B) A conflict-of-interest transaction is not voidable by the corporation solely because of the director's interest in the transaction if any one (1) of the following is true: (i) The material facts of the transaction and the director's interest were disclosed or known to the board of directors or a committee of the board of directors and the board of directors or committee authorized, approved, or ratified the transaction; (ii) The material facts of the transaction and the director's interest were disclosed or known to the members entitled to vote and they authorized, approved, or ratified the transaction; or (iii) The transaction was fair to the corporation. (2) For purposes of this section, a director of the corporation has an indirect interest in a transaction and it should be considered by the board of directors of the corporation if: (A) Another entity in which he or she has a material financial interest of, in which he or she is a general partner, is a party to the transaction; or (B) Another entity of which he or she is a director, officer, or trustee, is a party to the transaction. (3) For purposes of subdivision (h)(1)(A) of this section, a conflict-of-interest transaction is authorized, approved, or ratified if it receives the affirmative vote of a majority of the directors on the board of directors or on the committee who have no direct or indirect interest in the transaction, but a transaction may not be authorized, approved, or ratified under this section by a single director. If a majority of the directors who have no direct or indirect interest in the transaction vote to authorize, approve, or ratify the transaction, a quorum is present for the purpose of taking action under this subsection. The presence of, or a vote cast by, a director with a direct or indirect interest in the transaction does not affect the validity of any action taken under subdivision (h)(1)(A) of this section if the transaction is otherwise authorized, approved, or ratified as provided in this subsection. (4) For purposes of subdivision (h)(1)(B) of this section, a conflict-of-interest transaction is authorized, approved, or ratified if it receives the vote of a majority of the members entitled to vote under this subsection. Proxies voted under the control of a director who has a direct or indirect interest in the transaction, and proxies voted under the control of an entity described in subdivision (h)(2)(A) of this section may not be counted in a vote of members to determine whether to authorize, approve, or ratify a conflict-of-interest transaction under subdivision (h)(1)(B) of this section. The vote of those members, however, is counted in determining whether the transaction is approved under other sections of this chapter. A majority of the members, whether or not present, that are entitled to vote on the transaction under this subsection constitutes a quorum for the purpose of taking action under this section.

(1) (A) A conflict-of-interest transaction is a transaction with the corporation in which a director of the corporation has direct or indirect interest. (B) A conflict-of-interest transaction is not voidable by the corporation solely because of the director's interest in the transaction if any one (1) of the following is true: (i) The material facts of the transaction and the director's interest were disclosed or known to the board of directors or a committee of the board of directors and the board of directors or committee authorized, approved, or ratified the transaction; (ii) The material facts of the transaction and the director's interest were disclosed or known to the members entitled to vote and they authorized, approved, or ratified the transaction; or (iii) The transaction was fair to the corporation.

(A) A conflict-of-interest transaction is a transaction with the corporation in which a director of the corporation has direct or indirect interest.

(B) A conflict-of-interest transaction is not voidable by the corporation solely because of the director's interest in the transaction if any one (1) of the following is true: (i) The material facts of the transaction and the director's interest were disclosed or known to the board of directors or a committee of the board of directors and the board of directors or committee authorized, approved, or ratified the transaction; (ii) The material facts of the transaction and the director's interest were disclosed or known to the members entitled to vote and they authorized, approved, or ratified the transaction; or (iii) The transaction was fair to the corporation.

(i) The material facts of the transaction and the director's interest were disclosed or known to the board of directors or a committee of the board of directors and the board of directors or committee authorized, approved, or ratified the transaction;

(ii) The material facts of the transaction and the director's interest were disclosed or known to the members entitled to vote and they authorized, approved, or ratified the transaction; or

(iii) The transaction was fair to the corporation.

(2) For purposes of this section, a director of the corporation has an indirect interest in a transaction and it should be considered by the board of directors of the corporation if: (A) Another entity in which he or she has a material financial interest of, in which he or she is a general partner, is a party to the transaction; or (B) Another entity of which he or she is a director, officer, or trustee, is a party to the transaction.

(A) Another entity in which he or she has a material financial interest of, in which he or she is a general partner, is a party to the transaction; or

(B) Another entity of which he or she is a director, officer, or trustee, is a party to the transaction.

(3) For purposes of subdivision (h)(1)(A) of this section, a conflict-of-interest transaction is authorized, approved, or ratified if it receives the affirmative vote of a majority of the directors on the board of directors or on the committee who have no direct or indirect interest in the transaction, but a transaction may not be authorized, approved, or ratified under this section by a single director. If a majority of the directors who have no direct or indirect interest in the transaction vote to authorize, approve, or ratify the transaction, a quorum is present for the purpose of taking action under this subsection. The presence of, or a vote cast by, a director with a direct or indirect interest in the transaction does not affect the validity of any action taken under subdivision (h)(1)(A) of this section if the transaction is otherwise authorized, approved, or ratified as provided in this subsection.

(4) For purposes of subdivision (h)(1)(B) of this section, a conflict-of-interest transaction is authorized, approved, or ratified if it receives the vote of a majority of the members entitled to vote under this subsection. Proxies voted under the control of a director who has a direct or indirect interest in the transaction, and proxies voted under the control of an entity described in subdivision (h)(2)(A) of this section may not be counted in a vote of members to determine whether to authorize, approve, or ratify a conflict-of-interest transaction under subdivision (h)(1)(B) of this section. The vote of those members, however, is counted in determining whether the transaction is approved under other sections of this chapter. A majority of the members, whether or not present, that are entitled to vote on the transaction under this subsection constitutes a quorum for the purpose of taking action under this section.

Acts 1937, No. 342, §§ 18-22; Pope's Dig., §§ 2332-2336; A.S.A. 1947, §§ 77-1118 -- 77-1122; Acts 1989, No. 287, § 1.
Ark. Code Ann. § 23-12-508 — AR Code / Title 23 / Chapter 12 / Subchapter 5 / Section 23-12-508
Railroads receiving hospital fees to provide hospital facilities in state - Penalty for noncompliance
Status: in_force

(a) (1) Every railroad company or corporation operating railroads in this state that collects or receives hospital fees from their employees shall provide hospital facilities in this state of such capacity and equipment as will be sufficient for the care, needs, and accommodation of their sick or injured employees who are residents of this state. (2) Any employees injured while in the service of any such railroad shall not be taken or sent out of the state for treatment. (b) Any railroad company or corporation operating railroads in this state that shall violate any of the provisions of this section, shall be liable on conviction to a fine of not less than one hundred dollars ($100) nor more than five hundred dollars ($500) for each offense, each day to constitute a separate offense. Acts 1909, No. 299, §§ 1, 2, p. 900; C. & M. Dig., § 7115; Pope's Dig., § 9101; A.S.A. 1947, §§ 73-912, 73-913.

(a) (1) Every railroad company or corporation operating railroads in this state that collects or receives hospital fees from their employees shall provide hospital facilities in this state of such capacity and equipment as will be sufficient for the care, needs, and accommodation of their sick or injured employees who are residents of this state. (2) Any employees injured while in the service of any such railroad shall not be taken or sent out of the state for treatment.

(1) Every railroad company or corporation operating railroads in this state that collects or receives hospital fees from their employees shall provide hospital facilities in this state of such capacity and equipment as will be sufficient for the care, needs, and accommodation of their sick or injured employees who are residents of this state.

(2) Any employees injured while in the service of any such railroad shall not be taken or sent out of the state for treatment.

(b) Any railroad company or corporation operating railroads in this state that shall violate any of the provisions of this section, shall be liable on conviction to a fine of not less than one hundred dollars ($100) nor more than five hundred dollars ($500) for each offense, each day to constitute a separate offense.

Acts 1909, No. 299, §§ 1, 2, p. 900; C. & M. Dig., § 7115; Pope's Dig., § 9101; A.S.A. 1947, §§ 73-912, 73-913.
Ark. Code Ann. § 23-71-101 — AR Code / Title 23 / Chapter 71 / Section 23-71-101
Definition
Status: in_force

As used in the Arkansas Insurance Code, unless the context otherwise requires, a "stipulated premium plan insurer" is one issuing policies or certificates promising money or other benefits to a member or policyholder upon his or her disability or, upon his or her decease, to his or her legal representatives or beneficiaries designated by him or her, which money or benefit is derived from stipulated premiums collected in advance from those members or policyholders and from interest and other accumulations, and which insurer was not required, prior to January 1, 1960, to set aside a fixed policy reserve such as is required of legal reserve insurers. Acts 1959, No. 148, § 541; 1967, No. 393, § 1; A.S.A. 1947, § 66-4402.

As used in the Arkansas Insurance Code, unless the context otherwise requires, a "stipulated premium plan insurer" is one issuing policies or certificates promising money or other benefits to a member or policyholder upon his or her disability or, upon his or her decease, to his or her legal representatives or beneficiaries designated by him or her, which money or benefit is derived from stipulated premiums collected in advance from those members or policyholders and from interest and other accumulations, and which insurer was not required, prior to January 1, 1960, to set aside a fixed policy reserve such as is required of legal reserve insurers.

Acts 1959, No. 148, § 541; 1967, No. 393, § 1; A.S.A. 1947, § 66-4402.
Ark. Code Ann. § 23-71-103 — AR Code / Title 23 / Chapter 71 / Section 23-71-103
Other provisions applicable
Status: in_force

In addition to the provisions contained in this chapter, other chapters and provisions of the Arkansas Insurance Code shall apply to stipulated premium plan insurers, to the extent so applicable, as follows: (1) Sections 23-60-101 - 23-60-108 and 23-60-110 , scope of code; (2) Section 23-61-101 et seq., § 23-61-201 et seq., and § 23-61-301 et seq., the Insurance Commissioner; (3) Sections 23-63-102 - 23-63-104 , 23-63-201 - 23-63-216 , 23-63-301 , 23-63-302 , 23-63-303 , and 23-63-304 , authorization of insurers and general requirements, with the exception of the following sections: (A) Section 23-63-205 , capital funds required; (B) Section 23-63-207 , special surplus requirement; and (C) Section 23-63-206 , bond or deposit requirement; (4) Sections 23-60-102 , 23-61-401 , 23-61-402 , 26-57-601 - 26-57-605 , 26-57-607 , 26-57-608 , and 26-57-610 , fees and taxes; (5) Provisions of § 23-63-601 et seq. as to assets and valuation of assets; (6) Sections 23-63-801 - 23-63-835 , investments; (7) Section 23-64-101 et seq., agents; (8) Section 23-65-101 et seq., unauthorized insurers; (9) Sections 23-66-201 - 23-66-213 , 23-66-301 - 23-66-306 , 23-66-308 - 23-66-311 , 23-66-313 , 23-66-314 , and 23-66-501 - 23-66-513 , trade practices and frauds; (10) Sections 23-79-101 - 23-79-107 , 23-79-109 - 23-79-128 , 23-79-131 - 23-79-134 , and 23-79-202 - 23-79-210 , the insurance contract, except §§ 23-79-131 - 23-79-134 , exemption of proceeds; (11) Sections 23-85-101 - 23-85-131 , accident and health insurance policies; (12) The following provisions of §§ 23-69-101 - 23-69-103 , 23-69-105 - 23-69-141 , 23-69-143 , and 23-69-149 - 23-69-156 , organization and corporate procedures of domestic stock and mutual insurers: (A) Section 23-69-103 , inapplicability of general corporation statutes; (B) Section 23-69-107 , amendment of articles of incorporation; (C) Section 23-69-111 , corporate powers in general; (D) Section 23-69-111 , contributions authorized; (E) Section 23-69-120 , meetings of stockholders or members; (F) Section 23-69-121 , stockholders' voting rights; (G) Section 23-69-122 , proxies; (H) Section 23-69-123 , corrupt practices - penalty; (I) Section 23-69-110 , vacancies; (J) Section 23-69-127 , consideration for stock; (K) Section 23-69-128 , transfer of stock; (L) Section 23-69-129 , dividends to stockholders; (M) Section 23-69-131 , illegal dividends - penalty; (N) Section 23-69-108 , officers; (O) Section 23-69-133 , stockholders' liability; (P) Section 23-69-109 , prohibited pecuniary interest of officials; (Q) Section 23-69-134 , home office and records; penalty for unlawful removal of records; (R) Section 23-69-135 , vouchers for expenditures; (S) Section 23-69-136 , situs of personal property for taxation; (T) Section 23-69-137 , management and exclusive agency contracts; (U) Section 23-69-139 , assessment of stockholders or members; (V) Sections 23-69-151 - 23-69-154 , voluntary dissolution; (W) Section 23-69-156 , extinguishment of unused corporate charters; (13) Section 23-68-101 et seq., rehabilitation and liquidation; and (14) Section 23-62-205 , reinsurance. Amended by Act 2021, No. 367,§ 17, eff. 7/28/2021. Acts 1959, No. 148, § 555; A.S.A. 1947, § 66-4416; Acts 1991, No. 804, § 2; 2001, No. 1566, § 13; 2001, No. 1603, § 30; 2001, No. 1604, §§ 70, 71.

In addition to the provisions contained in this chapter, other chapters and provisions of the Arkansas Insurance Code shall apply to stipulated premium plan insurers, to the extent so applicable, as follows:

(1) Sections 23-60-101 - 23-60-108 and 23-60-110 , scope of code;

(2) Section 23-61-101 et seq., § 23-61-201 et seq., and § 23-61-301 et seq., the Insurance Commissioner;

(3) Sections 23-63-102 - 23-63-104 , 23-63-201 - 23-63-216 , 23-63-301 , 23-63-302 , 23-63-303 , and 23-63-304 , authorization of insurers and general requirements, with the exception of the following sections: (A) Section 23-63-205 , capital funds required; (B) Section 23-63-207 , special surplus requirement; and (C) Section 23-63-206 , bond or deposit requirement;

(A) Section 23-63-205 , capital funds required;

(B) Section 23-63-207 , special surplus requirement; and

(C) Section 23-63-206 , bond or deposit requirement;

(4) Sections 23-60-102 , 23-61-401 , 23-61-402 , 26-57-601 - 26-57-605 , 26-57-607 , 26-57-608 , and 26-57-610 , fees and taxes;

(5) Provisions of § 23-63-601 et seq. as to assets and valuation of assets;

(6) Sections 23-63-801 - 23-63-835 , investments;

(7) Section 23-64-101 et seq., agents;

(8) Section 23-65-101 et seq., unauthorized insurers;

(9) Sections 23-66-201 - 23-66-213 , 23-66-301 - 23-66-306 , 23-66-308 - 23-66-311 , 23-66-313 , 23-66-314 , and 23-66-501 - 23-66-513 , trade practices and frauds;

(10) Sections 23-79-101 - 23-79-107 , 23-79-109 - 23-79-128 , 23-79-131 - 23-79-134 , and 23-79-202 - 23-79-210 , the insurance contract, except §§ 23-79-131 - 23-79-134 , exemption of proceeds;

(11) Sections 23-85-101 - 23-85-131 , accident and health insurance policies;

(12) The following provisions of §§ 23-69-101 - 23-69-103 , 23-69-105 - 23-69-141 , 23-69-143 , and 23-69-149 - 23-69-156 , organization and corporate procedures of domestic stock and mutual insurers: (A) Section 23-69-103 , inapplicability of general corporation statutes; (B) Section 23-69-107 , amendment of articles of incorporation; (C) Section 23-69-111 , corporate powers in general; (D) Section 23-69-111 , contributions authorized; (E) Section 23-69-120 , meetings of stockholders or members; (F) Section 23-69-121 , stockholders' voting rights; (G) Section 23-69-122 , proxies; (H) Section 23-69-123 , corrupt practices - penalty; (I) Section 23-69-110 , vacancies; (J) Section 23-69-127 , consideration for stock; (K) Section 23-69-128 , transfer of stock; (L) Section 23-69-129 , dividends to stockholders; (M) Section 23-69-131 , illegal dividends - penalty; (N) Section 23-69-108 , officers; (O) Section 23-69-133 , stockholders' liability; (P) Section 23-69-109 , prohibited pecuniary interest of officials; (Q) Section 23-69-134 , home office and records; penalty for unlawful removal of records; (R) Section 23-69-135 , vouchers for expenditures; (S) Section 23-69-136 , situs of personal property for taxation; (T) Section 23-69-137 , management and exclusive agency contracts; (U) Section 23-69-139 , assessment of stockholders or members; (V) Sections 23-69-151 - 23-69-154 , voluntary dissolution; (W) Section 23-69-156 , extinguishment of unused corporate charters;

(A) Section 23-69-103 , inapplicability of general corporation statutes;

(B) Section 23-69-107 , amendment of articles of incorporation;

(C) Section 23-69-111 , corporate powers in general;

(D) Section 23-69-111 , contributions authorized;

(E) Section 23-69-120 , meetings of stockholders or members;

(F) Section 23-69-121 , stockholders' voting rights;

(G) Section 23-69-122 , proxies;

(H) Section 23-69-123 , corrupt practices - penalty;

(I) Section 23-69-110 , vacancies;

(J) Section 23-69-127 , consideration for stock;

(K) Section 23-69-128 , transfer of stock;

(L) Section 23-69-129 , dividends to stockholders;

(M) Section 23-69-131 , illegal dividends - penalty;

(N) Section 23-69-108 , officers;

(O) Section 23-69-133 , stockholders' liability;

(P) Section 23-69-109 , prohibited pecuniary interest of officials;

(Q) Section 23-69-134 , home office and records; penalty for unlawful removal of records;

(R) Section 23-69-135 , vouchers for expenditures;

(S) Section 23-69-136 , situs of personal property for taxation;

(T) Section 23-69-137 , management and exclusive agency contracts;

(U) Section 23-69-139 , assessment of stockholders or members;

(V) Sections 23-69-151 - 23-69-154 , voluntary dissolution;

(W) Section 23-69-156 , extinguishment of unused corporate charters;

(13) Section 23-68-101 et seq., rehabilitation and liquidation; and

(14) Section 23-62-205 , reinsurance.

Amended by Act 2021, No. 367,§ 17, eff. 7/28/2021.

Acts 1959, No. 148, § 555; A.S.A. 1947, § 66-4416; Acts 1991, No. 804, § 2; 2001, No. 1566, § 13; 2001, No. 1603, § 30; 2001, No. 1604, §§ 70, 71.
Ark. Code Ann. § 23-64-613 — AR Code / Title 23 / Chapter 64 / Subchapter 6 / Section 23-64-613
[See Note] Rules
Status: in_force

(a) The Insurance Commissioner may promulgate rules to implement this subchapter. (b) Rules promulgated under this section shall not conflict with or prevent the application of regulations promulgated by the United States Secretary of Health and Human Services under the federal act. Added by Act 2013, No. 1439,§ 1, eff. when (1) The United States Department of Health and Human Services or other responsible federal agency or federal official notifies the Governor, the Insurance Commissioner, or other responsible state agency or state official pursuant to the federal healthcare laws established by Pub. L. No. 111-148, as amended by Pub. L. No. 111-152, and any amendments thereto, or regulations or guidance issued under those federal statutes; or (2) A health insurance marketplace is initiated and is operable in this state..

(a) The Insurance Commissioner may promulgate rules to implement this subchapter.

(b) Rules promulgated under this section shall not conflict with or prevent the application of regulations promulgated by the United States Secretary of Health and Human Services under the federal act.

Added by Act 2013, No. 1439,§ 1, eff. when (1) The United States Department of Health and Human Services or other responsible federal agency or federal official notifies the Governor, the Insurance Commissioner, or other responsible state agency or state official pursuant to the federal healthcare laws established by Pub. L. No. 111-148, as amended by Pub. L. No. 111-152, and any amendments thereto, or regulations or guidance issued under those federal statutes; or (2) A health insurance marketplace is initiated and is operable in this state..
Ark. Code Ann. § 23-18-1207 — AR Code / Title 23 / Chapter 18 / Subchapter 12 / Section 23-18-1207
Rural Broadband I.D. Expenses Trust Fund Grant Program - Additional funding available
Status: in_force

(a) If an application by a local entity for a federal grant or loan for a broadband development program is made and successfully awarded by the United States Government, then the local entity as grantee shall report and disclose the award received from the United States Government within thirty (30) days of the award notification to the: (1) Institute for Digital Health and Innovation of the University of Arkansas for Medical Sciences; (2) Governor; (3) Legislative Council or, if the General Assembly is in session, the Joint Budget Committee; and (4) Joint Committee on Advanced Communications and Information Technology. (b) (1) If an award is made by the United States Government, additional funds shall be disbursed to the local entity as a grantee or awardee, as the grantee designates, to initiate the broadband development project. (2) The additional awards shall be in the amount of two hundred thousand dollars ($200,000). (3) It is anticipated that funds disbursed under this subsection shall defray expenses related to conclusion of the federal grant or loan, including without limitation the expenses of obtaining a letter of credit, a bankruptcy opinion, or eligible telecommunications carrier application expenses, as required by the federal grant or loan awarded. Added by Act 2023, No. 875,§ 28, eff. 7/1/2023.

(a) If an application by a local entity for a federal grant or loan for a broadband development program is made and successfully awarded by the United States Government, then the local entity as grantee shall report and disclose the award received from the United States Government within thirty (30) days of the award notification to the: (1) Institute for Digital Health and Innovation of the University of Arkansas for Medical Sciences; (2) Governor; (3) Legislative Council or, if the General Assembly is in session, the Joint Budget Committee; and (4) Joint Committee on Advanced Communications and Information Technology.

(1) Institute for Digital Health and Innovation of the University of Arkansas for Medical Sciences;

(2) Governor;

(3) Legislative Council or, if the General Assembly is in session, the Joint Budget Committee; and

(4) Joint Committee on Advanced Communications and Information Technology.

(b) (1) If an award is made by the United States Government, additional funds shall be disbursed to the local entity as a grantee or awardee, as the grantee designates, to initiate the broadband development project. (2) The additional awards shall be in the amount of two hundred thousand dollars ($200,000). (3) It is anticipated that funds disbursed under this subsection shall defray expenses related to conclusion of the federal grant or loan, including without limitation the expenses of obtaining a letter of credit, a bankruptcy opinion, or eligible telecommunications carrier application expenses, as required by the federal grant or loan awarded.

(1) If an award is made by the United States Government, additional funds shall be disbursed to the local entity as a grantee or awardee, as the grantee designates, to initiate the broadband development project.

(2) The additional awards shall be in the amount of two hundred thousand dollars ($200,000).

(3) It is anticipated that funds disbursed under this subsection shall defray expenses related to conclusion of the federal grant or loan, including without limitation the expenses of obtaining a letter of credit, a bankruptcy opinion, or eligible telecommunications carrier application expenses, as required by the federal grant or loan awarded.

Added by Act 2023, No. 875,§ 28, eff. 7/1/2023.
Ark. Code Ann. § 23-39-508 — AR Code / Title 23 / Chapter 39 / Subchapter 5 / Section 23-39-508
Managing principals and branch managers
Status: in_force

(a) (1) Each mortgage broker, mortgage banker, or mortgage servicer licensed under this subchapter shall have a managing principal who operates the business under that person's full charge, control, and supervision. (2) The managing principal shall: (A) Have at least three (3) years of experience in mortgage lending; or (B) Meet the experience and competency requirements prescribed by rule or order of the Securities Commissioner. (b) Any individual licensee who operates as a sole proprietorship shall be considered a managing principal for the purposes of this subchapter. (c) The managing principal for a licensee may also serve as the branch manager of one (1) or more of the licensee's branch offices. (d) (1) Each branch office of a mortgage broker, mortgage banker, or mortgage servicer licensed under this subchapter shall have a designated branch manager who is in charge of and who is responsible for the business operations of a branch office. (2) Each branch manager of a mortgage broker or mortgage banker must be licensed as a loan officer. (e) Each mortgage broker, mortgage banker, or mortgage servicer licensed under this subchapter shall file a form as prescribed by the Securities Commissioner indicating the licensee's designation of managing principal and branch manager for each branch and each individual's acceptance of the responsibility as managing principal or branch manager. (f) Each mortgage broker, mortgage banker, or mortgage servicer licensed under this subchapter shall notify the commissioner within thirty (30) days of any change in its managing principal or branch manager designated for each branch. (g) (1) A mortgage broker, mortgage banker, or mortgage servicer that does not comply with this section shall pay a late fee of two hundred fifty dollars ($250). (2) All or part of the late fee may be waived by the commissioner for good cause. (3) The commissioner may revoke or suspend the license of any mortgage broker, mortgage banker, or mortgage servicer who fails to pay any late fee assessed under subdivision (g)(1) of this section. Acts 2003, No. 554, § 1; 2005, No. 1679, § 1; 2007, No. 748, § 6; 2009, No. 731, § 19.

(a) (1) Each mortgage broker, mortgage banker, or mortgage servicer licensed under this subchapter shall have a managing principal who operates the business under that person's full charge, control, and supervision. (2) The managing principal shall: (A) Have at least three (3) years of experience in mortgage lending; or (B) Meet the experience and competency requirements prescribed by rule or order of the Securities Commissioner.

(1) Each mortgage broker, mortgage banker, or mortgage servicer licensed under this subchapter shall have a managing principal who operates the business under that person's full charge, control, and supervision.

(2) The managing principal shall: (A) Have at least three (3) years of experience in mortgage lending; or (B) Meet the experience and competency requirements prescribed by rule or order of the Securities Commissioner.

(A) Have at least three (3) years of experience in mortgage lending; or

(B) Meet the experience and competency requirements prescribed by rule or order of the Securities Commissioner.

(b) Any individual licensee who operates as a sole proprietorship shall be considered a managing principal for the purposes of this subchapter.

(c) The managing principal for a licensee may also serve as the branch manager of one (1) or more of the licensee's branch offices.

(d) (1) Each branch office of a mortgage broker, mortgage banker, or mortgage servicer licensed under this subchapter shall have a designated branch manager who is in charge of and who is responsible for the business operations of a branch office. (2) Each branch manager of a mortgage broker or mortgage banker must be licensed as a loan officer.

(1) Each branch office of a mortgage broker, mortgage banker, or mortgage servicer licensed under this subchapter shall have a designated branch manager who is in charge of and who is responsible for the business operations of a branch office.

(2) Each branch manager of a mortgage broker or mortgage banker must be licensed as a loan officer.

(e) Each mortgage broker, mortgage banker, or mortgage servicer licensed under this subchapter shall file a form as prescribed by the Securities Commissioner indicating the licensee's designation of managing principal and branch manager for each branch and each individual's acceptance of the responsibility as managing principal or branch manager.

(f) Each mortgage broker, mortgage banker, or mortgage servicer licensed under this subchapter shall notify the commissioner within thirty (30) days of any change in its managing principal or branch manager designated for each branch.

(g) (1) A mortgage broker, mortgage banker, or mortgage servicer that does not comply with this section shall pay a late fee of two hundred fifty dollars ($250). (2) All or part of the late fee may be waived by the commissioner for good cause. (3) The commissioner may revoke or suspend the license of any mortgage broker, mortgage banker, or mortgage servicer who fails to pay any late fee assessed under subdivision (g)(1) of this section.

(1) A mortgage broker, mortgage banker, or mortgage servicer that does not comply with this section shall pay a late fee of two hundred fifty dollars ($250).

(2) All or part of the late fee may be waived by the commissioner for good cause.

(3) The commissioner may revoke or suspend the license of any mortgage broker, mortgage banker, or mortgage servicer who fails to pay any late fee assessed under subdivision (g)(1) of this section.

Acts 2003, No. 554, § 1; 2005, No. 1679, § 1; 2007, No. 748, § 6; 2009, No. 731, § 19.
Ark. Code Ann. § 23-79-148 — AR Code / Title 23 / Chapter 79 / Subchapter 1 / Section 23-79-148
Medical transportation services
Status: in_force

(a) (1) Every insurance policy, other than a policy excluded pursuant to subsection (d) of this section, that provides specific coverage exclusively for medical transportation services, that is sold, delivered, issued for delivery, renewed, or offered for sale in this state by an insurer shall contain a provision providing for direct reimbursement to the provider of covered medical transportation service, if the provider has not received payment for those services from any other source. (2) The service fee charged shall be in accordance with the American Ambulance Association practice guidelines and shall not be more than the normal charge for the services. (b) This section shall not apply if the provider for the medical transportation services has entered into a contract for direct payment with the insurer. (c) (1) For the purpose of this section, "direct reimbursement" means the insurer shall pay the medical transportation service directly, pursuant to a claim filed by the insured, and the medical transportation provider shall not demand payment from the insured until having received payment from the insurer. (2) Upon receiving payment from the insurer, the medical transportation provider may demand payment from the insured for any unpaid portion of the provider's fee. (d) This section shall not apply to any accident and healthcare policy, whether the policy is in the form of a health maintenance organization evidence of coverage or healthcare plan as defined in § 23-76-102(4) and (5) , or an accident and health policy governed by §§ 23-85-101 - 23-85-134 , 23-85-136 , and 23-85-137 , or a group and blanket accident and health insurance policy governed by §§ 23-86-101 - 23-86-104 , 23-86-106 - 23-86-118 , or a Medicare supplement policy, or any other form. Acts 1997, No. 1320, § 1; 2001, No. 1604, § 110.

(a) (1) Every insurance policy, other than a policy excluded pursuant to subsection (d) of this section, that provides specific coverage exclusively for medical transportation services, that is sold, delivered, issued for delivery, renewed, or offered for sale in this state by an insurer shall contain a provision providing for direct reimbursement to the provider of covered medical transportation service, if the provider has not received payment for those services from any other source. (2) The service fee charged shall be in accordance with the American Ambulance Association practice guidelines and shall not be more than the normal charge for the services.

(1) Every insurance policy, other than a policy excluded pursuant to subsection (d) of this section, that provides specific coverage exclusively for medical transportation services, that is sold, delivered, issued for delivery, renewed, or offered for sale in this state by an insurer shall contain a provision providing for direct reimbursement to the provider of covered medical transportation service, if the provider has not received payment for those services from any other source.

(2) The service fee charged shall be in accordance with the American Ambulance Association practice guidelines and shall not be more than the normal charge for the services.

(b) This section shall not apply if the provider for the medical transportation services has entered into a contract for direct payment with the insurer.

(c) (1) For the purpose of this section, "direct reimbursement" means the insurer shall pay the medical transportation service directly, pursuant to a claim filed by the insured, and the medical transportation provider shall not demand payment from the insured until having received payment from the insurer. (2) Upon receiving payment from the insurer, the medical transportation provider may demand payment from the insured for any unpaid portion of the provider's fee.

(1) For the purpose of this section, "direct reimbursement" means the insurer shall pay the medical transportation service directly, pursuant to a claim filed by the insured, and the medical transportation provider shall not demand payment from the insured until having received payment from the insurer.

(2) Upon receiving payment from the insurer, the medical transportation provider may demand payment from the insured for any unpaid portion of the provider's fee.

(d) This section shall not apply to any accident and healthcare policy, whether the policy is in the form of a health maintenance organization evidence of coverage or healthcare plan as defined in § 23-76-102(4) and (5) , or an accident and health policy governed by §§ 23-85-101 - 23-85-134 , 23-85-136 , and 23-85-137 , or a group and blanket accident and health insurance policy governed by §§ 23-86-101 - 23-86-104 , 23-86-106 - 23-86-118 , or a Medicare supplement policy, or any other form.

Acts 1997, No. 1320, § 1; 2001, No. 1604, § 110.
Ark. Code Ann. § 23-42-103 — AR Code / Title 23 / Chapter 42 / Subchapter 1 / Section 23-42-103
Applicability
Status: in_force

(a) (1) Sections 23-42-106 , 23-42-108 , 23-42-109 , 23-42-212 , 23-42-301(a) , 23-42-501 , and 23-42-507 apply to persons who sell or offer to sell when: (A) An offer to sell is made in this state; or (B) An offer to buy is made and accepted in this state. (2) Sections 23-42-212 , 23-42-301(a) , and 23-42-507 apply to persons who buy or offer to buy when: (A) An offer to buy is made in this state; or (B) An offer to sell is made and accepted in this state. (3) For the purpose of this section, an offer to sell or to buy is made in this state, whether or not either party is then present in this state, when the offer: (A) Originates from this state; or (B) Is directed by the offeror to this state and received at the place to which it is directed or at any post office in this state in the case of a mailed offer. (4) (A) For the purpose of this section, an offer to buy or to sell is accepted in this state when acceptance: (i) Is communicated to the offeror in this state; and (ii) Has not previously been communicated to the offeror, orally or in writing, outside this state. (B) Acceptance is communicated to the offeror in this state, whether or not either party is then present in this state, when the offeree directs it to the offeror in this state reasonably believing the offeror to be in this state and it is received at the place to which it is directed or at any post office in this state in the case of a mailed acceptance. (5) An offer to sell or to buy is not made in this state when: (A) The publisher circulates, or there is circulated on his or her behalf, in this state any bona fide newspaper or other publication of general, regular, and paid circulation which is not published in this state, or which is published in this state but has had more than two-thirds (2/3) of its circulation outside this state during the past twelve (12) months; or (B) A radio or television program originating outside this state is received in this state. (b) Sections 23-42-307 , 23-42-301(c) , as well as § 23-42-212 , so far as investment advisers are concerned, apply when any act instrumental in effecting prohibited conduct is done in this state, whether or not either party is then present in this state. Acts 1959, No. 254, § 26; 1983, No. 836, § 21; A.S.A. 1947, § 67-1260; Acts 1999, No. 363, § 1.

(a) (1) Sections 23-42-106 , 23-42-108 , 23-42-109 , 23-42-212 , 23-42-301(a) , 23-42-501 , and 23-42-507 apply to persons who sell or offer to sell when: (A) An offer to sell is made in this state; or (B) An offer to buy is made and accepted in this state. (2) Sections 23-42-212 , 23-42-301(a) , and 23-42-507 apply to persons who buy or offer to buy when: (A) An offer to buy is made in this state; or (B) An offer to sell is made and accepted in this state. (3) For the purpose of this section, an offer to sell or to buy is made in this state, whether or not either party is then present in this state, when the offer: (A) Originates from this state; or (B) Is directed by the offeror to this state and received at the place to which it is directed or at any post office in this state in the case of a mailed offer. (4) (A) For the purpose of this section, an offer to buy or to sell is accepted in this state when acceptance: (i) Is communicated to the offeror in this state; and (ii) Has not previously been communicated to the offeror, orally or in writing, outside this state. (B) Acceptance is communicated to the offeror in this state, whether or not either party is then present in this state, when the offeree directs it to the offeror in this state reasonably believing the offeror to be in this state and it is received at the place to which it is directed or at any post office in this state in the case of a mailed acceptance. (5) An offer to sell or to buy is not made in this state when: (A) The publisher circulates, or there is circulated on his or her behalf, in this state any bona fide newspaper or other publication of general, regular, and paid circulation which is not published in this state, or which is published in this state but has had more than two-thirds (2/3) of its circulation outside this state during the past twelve (12) months; or (B) A radio or television program originating outside this state is received in this state.

(1) Sections 23-42-106 , 23-42-108 , 23-42-109 , 23-42-212 , 23-42-301(a) , 23-42-501 , and 23-42-507 apply to persons who sell or offer to sell when: (A) An offer to sell is made in this state; or (B) An offer to buy is made and accepted in this state.

(A) An offer to sell is made in this state; or

(B) An offer to buy is made and accepted in this state.

(2) Sections 23-42-212 , 23-42-301(a) , and 23-42-507 apply to persons who buy or offer to buy when: (A) An offer to buy is made in this state; or (B) An offer to sell is made and accepted in this state.

(A) An offer to buy is made in this state; or

(B) An offer to sell is made and accepted in this state.

(3) For the purpose of this section, an offer to sell or to buy is made in this state, whether or not either party is then present in this state, when the offer: (A) Originates from this state; or (B) Is directed by the offeror to this state and received at the place to which it is directed or at any post office in this state in the case of a mailed offer.

(A) Originates from this state; or

(B) Is directed by the offeror to this state and received at the place to which it is directed or at any post office in this state in the case of a mailed offer.

(4) (A) For the purpose of this section, an offer to buy or to sell is accepted in this state when acceptance: (i) Is communicated to the offeror in this state; and (ii) Has not previously been communicated to the offeror, orally or in writing, outside this state. (B) Acceptance is communicated to the offeror in this state, whether or not either party is then present in this state, when the offeree directs it to the offeror in this state reasonably believing the offeror to be in this state and it is received at the place to which it is directed or at any post office in this state in the case of a mailed acceptance.

(A) For the purpose of this section, an offer to buy or to sell is accepted in this state when acceptance: (i) Is communicated to the offeror in this state; and (ii) Has not previously been communicated to the offeror, orally or in writing, outside this state.

(i) Is communicated to the offeror in this state; and

(ii) Has not previously been communicated to the offeror, orally or in writing, outside this state.

(B) Acceptance is communicated to the offeror in this state, whether or not either party is then present in this state, when the offeree directs it to the offeror in this state reasonably believing the offeror to be in this state and it is received at the place to which it is directed or at any post office in this state in the case of a mailed acceptance.

(5) An offer to sell or to buy is not made in this state when: (A) The publisher circulates, or there is circulated on his or her behalf, in this state any bona fide newspaper or other publication of general, regular, and paid circulation which is not published in this state, or which is published in this state but has had more than two-thirds (2/3) of its circulation outside this state during the past twelve (12) months; or (B) A radio or television program originating outside this state is received in this state.

(A) The publisher circulates, or there is circulated on his or her behalf, in this state any bona fide newspaper or other publication of general, regular, and paid circulation which is not published in this state, or which is published in this state but has had more than two-thirds (2/3) of its circulation outside this state during the past twelve (12) months; or

(B) A radio or television program originating outside this state is received in this state.

(b) Sections 23-42-307 , 23-42-301(c) , as well as § 23-42-212 , so far as investment advisers are concerned, apply when any act instrumental in effecting prohibited conduct is done in this state, whether or not either party is then present in this state.

Acts 1959, No. 254, § 26; 1983, No. 836, § 21; A.S.A. 1947, § 67-1260; Acts 1999, No. 363, § 1.
Ark. Code Ann. § 23-69-407 — AR Code / Title 23 / Chapter 69 / Subchapter 4 / Section 23-69-407
Exemption - Applicability
Status: in_force

(a) An insurer is exempt from this subchapter if: (1) The insurer has annual direct written and unaffiliated assumed premiums, including international direct and assumed premiums, but excluding premiums reinsured with the Federal Crop Insurance Corporation and National Flood Insurance Program, of less than five hundred million dollars ($500,000,000); and (2) The insurance group of which the insurer is a member has annual direct written and unaffiliated assumed premiums, including international direct and assumed premiums, but excluding premiums reinsured with the Federal Crop Insurance Corporation and National Flood Insurance Program, of less than one billion dollars ($1,000,000,000). (b) (1) If an insurer qualifies for an exemption under subdivision (a)(1) of this section and the insurance group of which the insurer is a member does not qualify for an exemption under subdivision (a)(2) of this section, then an own risk and solvency assessment summary report required under § 23-69-406 shall include every insurer that is a member of the insurance group. (2) In order to meet the requirement under subdivision (b)(1) of this section, an insurer may submit more than one (1) own risk and solvency assessment summary report for any combination of insurers if any combination of own risk and solvency assessment summary reports includes every insurer within the insurance group. (c) If an insurer does not qualify for an exemption under subdivision (a)(1) of this section and the insurance group of which the insurer is a member does qualify for an exemption under subdivision (a)(2) of this section, then only an own risk and solvency assessment summary report applicable to the insurer is required under § 23-69-406 . (d) (1) An insurer that does not qualify for an exemption under subdivision (a)(1) of this section may request a waiver from the Insurance Commissioner of the reporting requirements under this subchapter due to unique circumstances. (2) In determining whether to grant a waiver to an insurer under subdivision (d)(1) of this section, the Insurance Commissioner may: (A) Consider the insurer's type and volume of business written, ownership and organizational structure, and any other factors the commissioner considers relevant to the insurer or insurance group of which the insurer is a member; or (B) Coordinate with the insurance group's lead state commissioner and other domiciliary commissioners if the insurer is a member of an insurance group with insurers domiciled in more than one (1) state, to determine whether or not to grant the insurer's waiver request. (e) Notwithstanding an exemption under this section, the Insurance Commissioner may require that an insurer: (1) Maintain a risk management framework, conduct an own risk and solvency assessment, and file an own risk and solvency assessment summary report based on an insurer's unique circumstances, including without limitation the type and volume of business written, ownership and organizational structure, federal agency requests, and international supervisor requests; or (2) Maintain a risk management framework, conduct an own risk and solvency assessment, and file an own risk and solvency assessment summary report if the insurer: (A) Has risk-based capital for a company action level event under § 23-63-1304 or § 23-63-1503 ; or (B) Meets at least one (1) of the standards of an insurer deemed to be in a hazardous financial condition, as defined in State Insurance Department Rule 53, or otherwise exhibits qualities of a troubled insurer as determined by the Insurance Commissioner. (f) If an insurer has qualified for an exemption under subsection (a) of this section and subsequently no longer qualifies for that exemption due to changes in premiums as reflected in the insurer's most recent annual statement or in the most recent annual statements of the insurers within the insurance group of which the insurer is a member, then the insurer shall have one (1) year following the year the threshold is exceeded to comply with this subchapter. (g) A domiciled insurer shall be subject to this subchapter unless the insurer is exempt under this section. Added by Act 2015, No. 1223,§ 31, eff. 7/22/2015.

(a) An insurer is exempt from this subchapter if: (1) The insurer has annual direct written and unaffiliated assumed premiums, including international direct and assumed premiums, but excluding premiums reinsured with the Federal Crop Insurance Corporation and National Flood Insurance Program, of less than five hundred million dollars ($500,000,000); and (2) The insurance group of which the insurer is a member has annual direct written and unaffiliated assumed premiums, including international direct and assumed premiums, but excluding premiums reinsured with the Federal Crop Insurance Corporation and National Flood Insurance Program, of less than one billion dollars ($1,000,000,000).

(1) The insurer has annual direct written and unaffiliated assumed premiums, including international direct and assumed premiums, but excluding premiums reinsured with the Federal Crop Insurance Corporation and National Flood Insurance Program, of less than five hundred million dollars ($500,000,000); and

(2) The insurance group of which the insurer is a member has annual direct written and unaffiliated assumed premiums, including international direct and assumed premiums, but excluding premiums reinsured with the Federal Crop Insurance Corporation and National Flood Insurance Program, of less than one billion dollars ($1,000,000,000).

(b) (1) If an insurer qualifies for an exemption under subdivision (a)(1) of this section and the insurance group of which the insurer is a member does not qualify for an exemption under subdivision (a)(2) of this section, then an own risk and solvency assessment summary report required under § 23-69-406 shall include every insurer that is a member of the insurance group. (2) In order to meet the requirement under subdivision (b)(1) of this section, an insurer may submit more than one (1) own risk and solvency assessment summary report for any combination of insurers if any combination of own risk and solvency assessment summary reports includes every insurer within the insurance group.

(1) If an insurer qualifies for an exemption under subdivision (a)(1) of this section and the insurance group of which the insurer is a member does not qualify for an exemption under subdivision (a)(2) of this section, then an own risk and solvency assessment summary report required under § 23-69-406 shall include every insurer that is a member of the insurance group.

(2) In order to meet the requirement under subdivision (b)(1) of this section, an insurer may submit more than one (1) own risk and solvency assessment summary report for any combination of insurers if any combination of own risk and solvency assessment summary reports includes every insurer within the insurance group.

(c) If an insurer does not qualify for an exemption under subdivision (a)(1) of this section and the insurance group of which the insurer is a member does qualify for an exemption under subdivision (a)(2) of this section, then only an own risk and solvency assessment summary report applicable to the insurer is required under § 23-69-406 .

(d) (1) An insurer that does not qualify for an exemption under subdivision (a)(1) of this section may request a waiver from the Insurance Commissioner of the reporting requirements under this subchapter due to unique circumstances. (2) In determining whether to grant a waiver to an insurer under subdivision (d)(1) of this section, the Insurance Commissioner may: (A) Consider the insurer's type and volume of business written, ownership and organizational structure, and any other factors the commissioner considers relevant to the insurer or insurance group of which the insurer is a member; or (B) Coordinate with the insurance group's lead state commissioner and other domiciliary commissioners if the insurer is a member of an insurance group with insurers domiciled in more than one (1) state, to determine whether or not to grant the insurer's waiver request.

(1) An insurer that does not qualify for an exemption under subdivision (a)(1) of this section may request a waiver from the Insurance Commissioner of the reporting requirements under this subchapter due to unique circumstances.

(2) In determining whether to grant a waiver to an insurer under subdivision (d)(1) of this section, the Insurance Commissioner may: (A) Consider the insurer's type and volume of business written, ownership and organizational structure, and any other factors the commissioner considers relevant to the insurer or insurance group of which the insurer is a member; or (B) Coordinate with the insurance group's lead state commissioner and other domiciliary commissioners if the insurer is a member of an insurance group with insurers domiciled in more than one (1) state, to determine whether or not to grant the insurer's waiver request.

(A) Consider the insurer's type and volume of business written, ownership and organizational structure, and any other factors the commissioner considers relevant to the insurer or insurance group of which the insurer is a member; or

(B) Coordinate with the insurance group's lead state commissioner and other domiciliary commissioners if the insurer is a member of an insurance group with insurers domiciled in more than one (1) state, to determine whether or not to grant the insurer's waiver request.

(e) Notwithstanding an exemption under this section, the Insurance Commissioner may require that an insurer: (1) Maintain a risk management framework, conduct an own risk and solvency assessment, and file an own risk and solvency assessment summary report based on an insurer's unique circumstances, including without limitation the type and volume of business written, ownership and organizational structure, federal agency requests, and international supervisor requests; or (2) Maintain a risk management framework, conduct an own risk and solvency assessment, and file an own risk and solvency assessment summary report if the insurer: (A) Has risk-based capital for a company action level event under § 23-63-1304 or § 23-63-1503 ; or (B) Meets at least one (1) of the standards of an insurer deemed to be in a hazardous financial condition, as defined in State Insurance Department Rule 53, or otherwise exhibits qualities of a troubled insurer as determined by the Insurance Commissioner.

(1) Maintain a risk management framework, conduct an own risk and solvency assessment, and file an own risk and solvency assessment summary report based on an insurer's unique circumstances, including without limitation the type and volume of business written, ownership and organizational structure, federal agency requests, and international supervisor requests; or

(2) Maintain a risk management framework, conduct an own risk and solvency assessment, and file an own risk and solvency assessment summary report if the insurer: (A) Has risk-based capital for a company action level event under § 23-63-1304 or § 23-63-1503 ; or (B) Meets at least one (1) of the standards of an insurer deemed to be in a hazardous financial condition, as defined in State Insurance Department Rule 53, or otherwise exhibits qualities of a troubled insurer as determined by the Insurance Commissioner.

(A) Has risk-based capital for a company action level event under § 23-63-1304 or § 23-63-1503 ; or

(B) Meets at least one (1) of the standards of an insurer deemed to be in a hazardous financial condition, as defined in State Insurance Department Rule 53, or otherwise exhibits qualities of a troubled insurer as determined by the Insurance Commissioner.

(f) If an insurer has qualified for an exemption under subsection (a) of this section and subsequently no longer qualifies for that exemption due to changes in premiums as reflected in the insurer's most recent annual statement or in the most recent annual statements of the insurers within the insurance group of which the insurer is a member, then the insurer shall have one (1) year following the year the threshold is exceeded to comply with this subchapter.

(g) A domiciled insurer shall be subject to this subchapter unless the insurer is exempt under this section.

Added by Act 2015, No. 1223,§ 31, eff. 7/22/2015.
Ark. Code Ann. § 23-111-105 — AR Code / Title 23 / Chapter 111 / Subchapter 1 / Section 23-111-105
Racing passes
Status: in_force

(a) The Secretary of the Department of Finance and Administration shall set a maximum number of racing passes to be printed and issued annually, and it shall not be fewer than the number printed in 1990. (b) (1) Racing passes provided to and accepted by members of the General Assembly and constitutional officers are to be distributed by them to their constituents in order to provide for a statewide distribution of the racing passes and to persons residing outside the State of Arkansas in order to promote tourism and advance the economic interests of the state. (2) The passes provided to the members of the General Assembly and constitutional officers are not for their personal use but are for redistribution as provided in this section and, therefore, do not constitute gifts or compensation to members of the General Assembly and constitutional officers for the purposes of any law of this state. (3) This section does not prohibit members of the General Assembly and constitutional officers from redistributing racing passes to other members of the General Assembly or other state constitutional officers. Amended by Act 2019, No. 910,§ 3515, eff. 7/1/2019. Acts 1991, No. 1117, § 5; 1993, No. 341, § 5; 1995, No. 7, § 6; 1997, No. 73, § 6; 2001, No. 408, § 1.

(a) The Secretary of the Department of Finance and Administration shall set a maximum number of racing passes to be printed and issued annually, and it shall not be fewer than the number printed in 1990.

(b) (1) Racing passes provided to and accepted by members of the General Assembly and constitutional officers are to be distributed by them to their constituents in order to provide for a statewide distribution of the racing passes and to persons residing outside the State of Arkansas in order to promote tourism and advance the economic interests of the state. (2) The passes provided to the members of the General Assembly and constitutional officers are not for their personal use but are for redistribution as provided in this section and, therefore, do not constitute gifts or compensation to members of the General Assembly and constitutional officers for the purposes of any law of this state. (3) This section does not prohibit members of the General Assembly and constitutional officers from redistributing racing passes to other members of the General Assembly or other state constitutional officers.

(1) Racing passes provided to and accepted by members of the General Assembly and constitutional officers are to be distributed by them to their constituents in order to provide for a statewide distribution of the racing passes and to persons residing outside the State of Arkansas in order to promote tourism and advance the economic interests of the state.

(2) The passes provided to the members of the General Assembly and constitutional officers are not for their personal use but are for redistribution as provided in this section and, therefore, do not constitute gifts or compensation to members of the General Assembly and constitutional officers for the purposes of any law of this state.

(3) This section does not prohibit members of the General Assembly and constitutional officers from redistributing racing passes to other members of the General Assembly or other state constitutional officers.

Amended by Act 2019, No. 910,§ 3515, eff. 7/1/2019.

Acts 1991, No. 1117, § 5; 1993, No. 341, § 5; 1995, No. 7, § 6; 1997, No. 73, § 6; 2001, No. 408, § 1.
Ark. Code Ann. § 23-49-113 — AR Code / Title 23 / Chapter 49 / Section 23-49-113
Subrogation of federal deposit insurance agency to rights of depositors
Status: in_force

Whenever a federal deposit insurance agency pays or makes available for payment the insured deposit liabilities of a closed institution, the federal deposit insurance agency, whether or not it acts as receiver, shall be subrogated by operation of law to all rights of depositors against the closed institution relating to claims for deposits so paid by the federal deposit insurance agency to the extent necessary to enable the federal deposit insurance agency, under federal law, to make insurance payments available to depositors of closed institutions. Acts 1997, No. 89, § 1.

Whenever a federal deposit insurance agency pays or makes available for payment the insured deposit liabilities of a closed institution, the federal deposit insurance agency, whether or not it acts as receiver, shall be subrogated by operation of law to all rights of depositors against the closed institution relating to claims for deposits so paid by the federal deposit insurance agency to the extent necessary to enable the federal deposit insurance agency, under federal law, to make insurance payments available to depositors of closed institutions.

Acts 1997, No. 89, § 1.
Ark. Code Ann. § 23-81-816 — AR Code / Title 23 / Chapter 81 / Subchapter 8 / Section 23-81-816
Penalties
Status: in_force

(a) It is a violation of this subchapter for any person, provider, broker, or any other party related to the business of life settlements to commit a fraudulent life settlement act. (b) For criminal liability purposes, a person that commits a fraudulent life settlement act is guilty of committing insurance fraud and shall be subject to the penalty provisions under § 23-66-512 . Acts 2009, No. 796, § 1.

(a) It is a violation of this subchapter for any person, provider, broker, or any other party related to the business of life settlements to commit a fraudulent life settlement act.

(b) For criminal liability purposes, a person that commits a fraudulent life settlement act is guilty of committing insurance fraud and shall be subject to the penalty provisions under § 23-66-512 .

Acts 2009, No. 796, § 1.
Ark. Code Ann. § 23-17-241 — AR Code / Title 23 / Chapter 17 / Subchapter 2 / Section 23-17-241
Opting out of underground damage coverage
Status: in_force

(a) Any cooperative established under this subchapter may opt out of coverage under the Arkansas Underground Facilities Damage Prevention Act, § 14-271-101 et seq., by providing written notice to the Arkansas Public Service Commission by first class mail. (b) Any references in this section and §§ 23-17-201 - 23-17-240 and 23-17-242 to "this subchapter" and any references in § 23-17-101 et seq. to "this chapter" shall be deemed to also reference this section. Acts 1997, No. 316, § 15; 1999, No. 946, § 18.

(a) Any cooperative established under this subchapter may opt out of coverage under the Arkansas Underground Facilities Damage Prevention Act, § 14-271-101 et seq., by providing written notice to the Arkansas Public Service Commission by first class mail.

(b) Any references in this section and §§ 23-17-201 - 23-17-240 and 23-17-242 to "this subchapter" and any references in § 23-17-101 et seq. to "this chapter" shall be deemed to also reference this section.

Acts 1997, No. 316, § 15; 1999, No. 946, § 18.
Ark. Code Ann. § 23-49-119 — AR Code / Title 23 / Chapter 49 / Section 23-49-119
Voluntary liquidation
Status: in_force

(a) (1) An application for approval to voluntarily liquidate the affairs of an institution shall be submitted to the Bank Commissioner in the manner and form that the commissioner may prescribe, shall include the information set forth in subsection (b) of this section, and shall contain such additional information which the commissioner may require. (2) The application shall include duplicate copies of a resolution authorizing the dissolution and duplicate copies of a certificate, verified by the applicant's president or chief executive officer or a vice president, stating the facts pertaining to the resolution and that the applicant's liabilities have been paid in full. (b) Each duplicate certificate shall have annexed thereto, over the official signatures, evidence showing: (1) The date on which the resolution was authorized by the affirmative vote of the holders of at least a simple majority of the outstanding shares entitled to vote thereon; (2) The number of shares of each class entitled to vote on the resolution which were outstanding on the date of the stockholders' meeting; (3) The number of shares of each class entitled to vote on the resolution whose owners were present in person or by proxy; (4) The number of shares of each class voted for and against the resolution; and (5) The manner in which the meeting was called and the time and manner of giving notice, with a certification that the meeting was lawfully called and held. (c) (1) Upon receipt of the application, the commissioner shall investigate its merits. (2) If the commissioner is satisfied that the application is complete and that all applicable provisions of law have been complied with, he or she shall cause an examination to be made of the applicant institution for the purpose of verifying the payment of all of its liabilities. (3) If the examination satisfies the commissioner that all of the applicant's liabilities have been paid, he or she shall endorse one (1) copy of the certificate with his or her statement that the institution is voluntarily liquidating. (d) The return of the endorsed copy of the certificate shall operate to free the institution from further examination and to authorize it, under its original corporate name, to sue and be sued, to execute conveyances and other instruments, to take, hold, and own property, and to do all such other things as may be necessary to realize upon its remaining assets for the pro rata benefit of its stockholders, but not to engage or continue in any new or other business under its charter or otherwise. (e) The liquidation shall proceed as expeditiously as possible, and at the conclusion thereof, the institution shall surrender its charter. (f) In lieu of continuing the liquidation under the original corporate name, the institution may transfer the remaining assets to a trustee agreed upon by the stockholders by a majority vote and shall thereupon surrender its charter. (g) Each application for approval of a voluntary dissolution shall be accompanied by a fee as shall be set by State Bank Department rules and shall be paid to the department. Amended by Act 2019, No. 315,§ 2558, eff. 7/24/2019. Amended by Act 2017, No. 198,§ 14, eff. 8/1/2017. Acts 1997, No. 89, § 1.

(a) (1) An application for approval to voluntarily liquidate the affairs of an institution shall be submitted to the Bank Commissioner in the manner and form that the commissioner may prescribe, shall include the information set forth in subsection (b) of this section, and shall contain such additional information which the commissioner may require. (2) The application shall include duplicate copies of a resolution authorizing the dissolution and duplicate copies of a certificate, verified by the applicant's president or chief executive officer or a vice president, stating the facts pertaining to the resolution and that the applicant's liabilities have been paid in full.

(1) An application for approval to voluntarily liquidate the affairs of an institution shall be submitted to the Bank Commissioner in the manner and form that the commissioner may prescribe, shall include the information set forth in subsection (b) of this section, and shall contain such additional information which the commissioner may require.

(2) The application shall include duplicate copies of a resolution authorizing the dissolution and duplicate copies of a certificate, verified by the applicant's president or chief executive officer or a vice president, stating the facts pertaining to the resolution and that the applicant's liabilities have been paid in full.

(b) Each duplicate certificate shall have annexed thereto, over the official signatures, evidence showing: (1) The date on which the resolution was authorized by the affirmative vote of the holders of at least a simple majority of the outstanding shares entitled to vote thereon; (2) The number of shares of each class entitled to vote on the resolution which were outstanding on the date of the stockholders' meeting; (3) The number of shares of each class entitled to vote on the resolution whose owners were present in person or by proxy; (4) The number of shares of each class voted for and against the resolution; and (5) The manner in which the meeting was called and the time and manner of giving notice, with a certification that the meeting was lawfully called and held.

(1) The date on which the resolution was authorized by the affirmative vote of the holders of at least a simple majority of the outstanding shares entitled to vote thereon;

(2) The number of shares of each class entitled to vote on the resolution which were outstanding on the date of the stockholders' meeting;

(3) The number of shares of each class entitled to vote on the resolution whose owners were present in person or by proxy;

(4) The number of shares of each class voted for and against the resolution; and

(5) The manner in which the meeting was called and the time and manner of giving notice, with a certification that the meeting was lawfully called and held.

(c) (1) Upon receipt of the application, the commissioner shall investigate its merits. (2) If the commissioner is satisfied that the application is complete and that all applicable provisions of law have been complied with, he or she shall cause an examination to be made of the applicant institution for the purpose of verifying the payment of all of its liabilities. (3) If the examination satisfies the commissioner that all of the applicant's liabilities have been paid, he or she shall endorse one (1) copy of the certificate with his or her statement that the institution is voluntarily liquidating.

(1) Upon receipt of the application, the commissioner shall investigate its merits.

(2) If the commissioner is satisfied that the application is complete and that all applicable provisions of law have been complied with, he or she shall cause an examination to be made of the applicant institution for the purpose of verifying the payment of all of its liabilities.

(3) If the examination satisfies the commissioner that all of the applicant's liabilities have been paid, he or she shall endorse one (1) copy of the certificate with his or her statement that the institution is voluntarily liquidating.

(d) The return of the endorsed copy of the certificate shall operate to free the institution from further examination and to authorize it, under its original corporate name, to sue and be sued, to execute conveyances and other instruments, to take, hold, and own property, and to do all such other things as may be necessary to realize upon its remaining assets for the pro rata benefit of its stockholders, but not to engage or continue in any new or other business under its charter or otherwise.

(e) The liquidation shall proceed as expeditiously as possible, and at the conclusion thereof, the institution shall surrender its charter.

(f) In lieu of continuing the liquidation under the original corporate name, the institution may transfer the remaining assets to a trustee agreed upon by the stockholders by a majority vote and shall thereupon surrender its charter.

(g) Each application for approval of a voluntary dissolution shall be accompanied by a fee as shall be set by State Bank Department rules and shall be paid to the department.

Amended by Act 2019, No. 315,§ 2558, eff. 7/24/2019.

Amended by Act 2017, No. 198,§ 14, eff. 8/1/2017.

Acts 1997, No. 89, § 1.
Ark. Code Ann. § 23-42-308 — AR Code / Title 23 / Chapter 42 / Subchapter 3 / Section 23-42-308
Denial, suspension, revocation, or withdrawal of registration, and other penalties
Status: in_force

(a) The Securities Commissioner may by order deny, suspend, make conditional or probationary, or revoke any registration if he or she finds that: (1) The order is in the public interest; and (2) The applicant or registrant or, in the case of a broker-dealer or investment adviser, any partner, officer, or director; any person occupying a similar status or performing similar functions; or any person directly or indirectly controlling the broker-dealer or investment adviser: (A) Has filed an application for registration, which as of its effective date, or as of any date after filing in the case of an order denying effectiveness, was incomplete in any material respect or contained any statement which was, in light of the circumstances under which it was made, false or misleading with respect to any material fact; (B) Has willfully violated or willfully failed to comply with any provision of this chapter or a predecessor act or any rule or order under this chapter or a predecessor act; (C) Has: (i) Been convicted of or pled guilty or nolo contendere in a domestic, foreign, or military court to: (a) A felony; or (b) Within the previous ten (10) years, a misdemeanor involving: (1) A security, a commodity future or option contract, or any aspect of a business involving securities, commodities, investments, franchises, insurance, banking, or finance; or (2) Fraud, false statements or omissions, wrongful taking of property, bribery, perjury, forgery, counterfeiting, extortion, or a conspiracy to commit any of the offenses under this subdivision (a)(2)(C)(i) (b)(2) ; or (ii) Pending against him or her a charge of unlawful conduct involving securities or any aspect of the securities business; (D) Is permanently or temporarily enjoined by any court of competent jurisdiction from engaging in or continuing any conduct or practice involving any aspect of the securities business; (E) Is the subject of an order of the commissioner, including without limitation an order denying, suspending, revoking, or making conditional or probationary a registration as a broker-dealer, agent, investment adviser, or representative; (F) (i) Is the subject of any of the following orders entered within the past five (5) years: (a) An order entered by: (1) The securities administrator of any other state; (2) Any national securities, commodities, or banking agency or jurisdiction; (3) Any national securities or commodities exchange; (4) Any securities or commodities self-regulatory organization; (5) Any registered securities association or clearing agency denying, revoking, suspending, or expelling him or her from registration as a broker-dealer, agent, investment adviser, or representative, or the substantial equivalent of those terms; or (6) The insurance administrator of any state; or (b) A United States postal fraud order. (ii) However, the commissioner shall not: (a) Institute a revocation or suspension proceeding under this subdivision (a)(2)(F) more than five (5) years from the date of the order relied on; or (b) Enter an order under this subdivision (a)(2)(F) on the basis of an order under another state act, unless that order was based on facts that would currently constitute a ground for an order under this section; (G) Has engaged in dishonest or unethical practices in the securities business; (H) Is insolvent, either in the sense that his or her liabilities exceed his or her assets or in the sense that he or she cannot meet his or her obligations as they mature, but the commissioner may not enter an order against a broker-dealer or investment adviser under this subdivision (a)(2)(H) without a finding of insolvency as to the broker-dealer or investment adviser; (I) Is not qualified on the basis of such factors as training, experience, and knowledge of the securities business, except that: (i) The commissioner shall not enter an order against a broker-dealer on the basis of the lack of qualification of any person other than the broker-dealer himself or herself, if he or she is an individual, or an agent of the broker-dealer; (ii) The commissioner shall not enter an order against an investment adviser on the basis of the lack of qualification of any person other than the investment adviser himself or herself, if he or she is an individual, or any other person who represents the investment adviser in doing any of the acts which make him or her an investment adviser; (iii) The commissioner shall not enter an order solely on the basis of lack of experience if the applicant or registrant is qualified by training or knowledge, or both; (iv) The commissioner shall consider that an agent who will work under the supervision of a registered broker-dealer need not have the same qualifications as a broker-dealer; and (v) The commissioner shall consider that an investment adviser or representative is not necessarily qualified solely on the basis of experience as a broker-dealer or agent; (J) Has failed reasonably to supervise the agents or employees of the broker-dealer or the representatives or employees of the investment adviser; or (K) Has failed to pay the proper filing fee, but the commissioner may enter only a denial order under this subdivision (a)(2)(K), and he or she shall vacate the order when the deficiency has been corrected. (b) The commissioner may not institute a suspension or revocation proceeding solely on the basis of a final judicial or administrative order known to him or her when registration became effective, unless the proceeding is instituted within one hundred eighty (180) days after registration or unless the applicant or registrant waives the time limitation. For the purpose of this provision, a final judicial or administrative order shall not include an order that is stayed or subject to further review or appeal. This provision shall not apply to renewal registration. (c) (1) The commissioner may by order summarily postpone or suspend a registration pending final determination of any proceeding under this section. (2) Upon the entry of the order, the commissioner shall promptly notify the applicant or registrant, as well as the employer or prospective employer, if the applicant or registrant is an agent or representative, that the order has been entered, and of the reasons therefor, and that within fifteen (15) days after the receipt of a written request the matter will be set down for hearing. (3) If no hearing is requested and none is ordered by the commissioner, the order will remain in effect until it is modified or vacated by the commissioner. If a hearing is requested or ordered, the commissioner, after notice of and opportunity for hearing, may modify or vacate the order or extend it until final determination. (d) The commissioner may by summary order cancel a registration or application if he or she finds that any registrant or applicant: (1) Is no longer in existence; (2) Has ceased to do business as a broker-dealer, agent, investment adviser, or representative; or (3) Is subject to an adjudication of mental incompetence or to the control of a committee, conservator, or guardian or cannot be located after a reasonable search. (e) (1) Withdrawal from registration as a broker-dealer, agent, investment adviser, or representative becomes effective thirty (30) days after receipt of an application to withdraw, or within such shorter period of time as the commissioner may determine, unless a revocation or suspension proceeding is pending when the application to withdraw is filed or a proceeding to deny, revoke, or suspend or to impose conditions upon the withdrawal is instituted within thirty (30) days after the application to withdraw is filed. (2) If a proceeding is pending or instituted, then withdrawal becomes effective at such time and upon such conditions as the commissioner by order determines. (3) If no proceeding is pending or instituted and withdrawal automatically becomes effective, the commissioner may nevertheless institute a revocation or suspension proceeding under subdivision (a)(2)(B) of this section within one (1) year after withdrawal became effective and may enter a revocation or suspension order as of the last date on which registration was effective. (f) No order may be entered under any part of this section, except under subdivision (c)(1) of this section, without: (1) Appropriate prior notice to the applicant or registrant and to the employer or prospective employer if the applicant or registrant is an agent or representative; (2) Opportunity for hearing; and (3) Written findings of fact and conclusions of law. (g) In addition to the authority granted in subsections (a)-(e) of this section, upon notice and opportunity for hearing as provided in subsection (f) of this section, the commissioner may for each violation of this chapter fine any broker-dealer, agent, investment adviser, or representative not to exceed: (1) Ten thousand dollars ($10,000) or an amount equal to the total amount of money received in connection with each separate violation; or (2) If a victim of a violation is sixty-five (65) years of age or older: (A) Twenty thousand dollars ($20,000) for each violation; or (B) Two (2) times the amount of money received in connection with each violation. (h) Nothing in this section shall prohibit or restrict the informal disposition of a proceeding or allegations which might give rise to a proceeding by stipulation, settlement, consent, or default, in lieu of a formal or informal hearing on the allegations or in lieu of the sanctions authorized by this section. Amended by Act 2023, No. 324,§ 1, eff. 8/1/2023. Amended by Act 2021, No. 533,§ 3, eff. 7/28/2021. Amended by Act 2019, No. 391,§ 4, eff. 7/24/2019. Amended by Act 2017, No. 668,§ 20, eff. 8/1/2017. Amended by Act 2017, No. 668,§ 19, eff. 8/1/2017. Amended by Act 2013, No. 460,§ 12, eff. 8/16/2013. Amended by Act 2013, No. 460,§ 11, eff. 8/16/2013. Acts 1959, No. 254, § 6; 1961, No. 248, § 4; 1983, No. 836, §§ 10-12; A.S.A. 1947, § 67-1240; Acts 1995, No. 845, § 19; 2009, No. 534, §§ 9, 10; 2011, No. 339, §§ 6, 7.

(a) The Securities Commissioner may by order deny, suspend, make conditional or probationary, or revoke any registration if he or she finds that: (1) The order is in the public interest; and (2) The applicant or registrant or, in the case of a broker-dealer or investment adviser, any partner, officer, or director; any person occupying a similar status or performing similar functions; or any person directly or indirectly controlling the broker-dealer or investment adviser: (A) Has filed an application for registration, which as of its effective date, or as of any date after filing in the case of an order denying effectiveness, was incomplete in any material respect or contained any statement which was, in light of the circumstances under which it was made, false or misleading with respect to any material fact; (B) Has willfully violated or willfully failed to comply with any provision of this chapter or a predecessor act or any rule or order under this chapter or a predecessor act; (C) Has: (i) Been convicted of or pled guilty or nolo contendere in a domestic, foreign, or military court to: (a) A felony; or (b) Within the previous ten (10) years, a misdemeanor involving: (1) A security, a commodity future or option contract, or any aspect of a business involving securities, commodities, investments, franchises, insurance, banking, or finance; or (2) Fraud, false statements or omissions, wrongful taking of property, bribery, perjury, forgery, counterfeiting, extortion, or a conspiracy to commit any of the offenses under this subdivision (a)(2)(C)(i) (b)(2) ; or (ii) Pending against him or her a charge of unlawful conduct involving securities or any aspect of the securities business; (D) Is permanently or temporarily enjoined by any court of competent jurisdiction from engaging in or continuing any conduct or practice involving any aspect of the securities business; (E) Is the subject of an order of the commissioner, including without limitation an order denying, suspending, revoking, or making conditional or probationary a registration as a broker-dealer, agent, investment adviser, or representative; (F) (i) Is the subject of any of the following orders entered within the past five (5) years: (a) An order entered by: (1) The securities administrator of any other state; (2) Any national securities, commodities, or banking agency or jurisdiction; (3) Any national securities or commodities exchange; (4) Any securities or commodities self-regulatory organization; (5) Any registered securities association or clearing agency denying, revoking, suspending, or expelling him or her from registration as a broker-dealer, agent, investment adviser, or representative, or the substantial equivalent of those terms; or (6) The insurance administrator of any state; or (b) A United States postal fraud order. (ii) However, the commissioner shall not: (a) Institute a revocation or suspension proceeding under this subdivision (a)(2)(F) more than five (5) years from the date of the order relied on; or (b) Enter an order under this subdivision (a)(2)(F) on the basis of an order under another state act, unless that order was based on facts that would currently constitute a ground for an order under this section; (G) Has engaged in dishonest or unethical practices in the securities business; (H) Is insolvent, either in the sense that his or her liabilities exceed his or her assets or in the sense that he or she cannot meet his or her obligations as they mature, but the commissioner may not enter an order against a broker-dealer or investment adviser under this subdivision (a)(2)(H) without a finding of insolvency as to the broker-dealer or investment adviser; (I) Is not qualified on the basis of such factors as training, experience, and knowledge of the securities business, except that: (i) The commissioner shall not enter an order against a broker-dealer on the basis of the lack of qualification of any person other than the broker-dealer himself or herself, if he or she is an individual, or an agent of the broker-dealer; (ii) The commissioner shall not enter an order against an investment adviser on the basis of the lack of qualification of any person other than the investment adviser himself or herself, if he or she is an individual, or any other person who represents the investment adviser in doing any of the acts which make him or her an investment adviser; (iii) The commissioner shall not enter an order solely on the basis of lack of experience if the applicant or registrant is qualified by training or knowledge, or both; (iv) The commissioner shall consider that an agent who will work under the supervision of a registered broker-dealer need not have the same qualifications as a broker-dealer; and (v) The commissioner shall consider that an investment adviser or representative is not necessarily qualified solely on the basis of experience as a broker-dealer or agent; (J) Has failed reasonably to supervise the agents or employees of the broker-dealer or the representatives or employees of the investment adviser; or (K) Has failed to pay the proper filing fee, but the commissioner may enter only a denial order under this subdivision (a)(2)(K), and he or she shall vacate the order when the deficiency has been corrected.

(1) The order is in the public interest; and

(2) The applicant or registrant or, in the case of a broker-dealer or investment adviser, any partner, officer, or director; any person occupying a similar status or performing similar functions; or any person directly or indirectly controlling the broker-dealer or investment adviser: (A) Has filed an application for registration, which as of its effective date, or as of any date after filing in the case of an order denying effectiveness, was incomplete in any material respect or contained any statement which was, in light of the circumstances under which it was made, false or misleading with respect to any material fact; (B) Has willfully violated or willfully failed to comply with any provision of this chapter or a predecessor act or any rule or order under this chapter or a predecessor act; (C) Has: (i) Been convicted of or pled guilty or nolo contendere in a domestic, foreign, or military court to: (a) A felony; or (b) Within the previous ten (10) years, a misdemeanor involving: (1) A security, a commodity future or option contract, or any aspect of a business involving securities, commodities, investments, franchises, insurance, banking, or finance; or (2) Fraud, false statements or omissions, wrongful taking of property, bribery, perjury, forgery, counterfeiting, extortion, or a conspiracy to commit any of the offenses under this subdivision (a)(2)(C)(i) (b)(2) ; or (ii) Pending against him or her a charge of unlawful conduct involving securities or any aspect of the securities business; (D) Is permanently or temporarily enjoined by any court of competent jurisdiction from engaging in or continuing any conduct or practice involving any aspect of the securities business; (E) Is the subject of an order of the commissioner, including without limitation an order denying, suspending, revoking, or making conditional or probationary a registration as a broker-dealer, agent, investment adviser, or representative; (F) (i) Is the subject of any of the following orders entered within the past five (5) years: (a) An order entered by: (1) The securities administrator of any other state; (2) Any national securities, commodities, or banking agency or jurisdiction; (3) Any national securities or commodities exchange; (4) Any securities or commodities self-regulatory organization; (5) Any registered securities association or clearing agency denying, revoking, suspending, or expelling him or her from registration as a broker-dealer, agent, investment adviser, or representative, or the substantial equivalent of those terms; or (6) The insurance administrator of any state; or (b) A United States postal fraud order. (ii) However, the commissioner shall not: (a) Institute a revocation or suspension proceeding under this subdivision (a)(2)(F) more than five (5) years from the date of the order relied on; or (b) Enter an order under this subdivision (a)(2)(F) on the basis of an order under another state act, unless that order was based on facts that would currently constitute a ground for an order under this section; (G) Has engaged in dishonest or unethical practices in the securities business; (H) Is insolvent, either in the sense that his or her liabilities exceed his or her assets or in the sense that he or she cannot meet his or her obligations as they mature, but the commissioner may not enter an order against a broker-dealer or investment adviser under this subdivision (a)(2)(H) without a finding of insolvency as to the broker-dealer or investment adviser; (I) Is not qualified on the basis of such factors as training, experience, and knowledge of the securities business, except that: (i) The commissioner shall not enter an order against a broker-dealer on the basis of the lack of qualification of any person other than the broker-dealer himself or herself, if he or she is an individual, or an agent of the broker-dealer; (ii) The commissioner shall not enter an order against an investment adviser on the basis of the lack of qualification of any person other than the investment adviser himself or herself, if he or she is an individual, or any other person who represents the investment adviser in doing any of the acts which make him or her an investment adviser; (iii) The commissioner shall not enter an order solely on the basis of lack of experience if the applicant or registrant is qualified by training or knowledge, or both; (iv) The commissioner shall consider that an agent who will work under the supervision of a registered broker-dealer need not have the same qualifications as a broker-dealer; and (v) The commissioner shall consider that an investment adviser or representative is not necessarily qualified solely on the basis of experience as a broker-dealer or agent; (J) Has failed reasonably to supervise the agents or employees of the broker-dealer or the representatives or employees of the investment adviser; or (K) Has failed to pay the proper filing fee, but the commissioner may enter only a denial order under this subdivision (a)(2)(K), and he or she shall vacate the order when the deficiency has been corrected.

(A) Has filed an application for registration, which as of its effective date, or as of any date after filing in the case of an order denying effectiveness, was incomplete in any material respect or contained any statement which was, in light of the circumstances under which it was made, false or misleading with respect to any material fact;

(B) Has willfully violated or willfully failed to comply with any provision of this chapter or a predecessor act or any rule or order under this chapter or a predecessor act;

(C) Has: (i) Been convicted of or pled guilty or nolo contendere in a domestic, foreign, or military court to: (a) A felony; or (b) Within the previous ten (10) years, a misdemeanor involving: (1) A security, a commodity future or option contract, or any aspect of a business involving securities, commodities, investments, franchises, insurance, banking, or finance; or (2) Fraud, false statements or omissions, wrongful taking of property, bribery, perjury, forgery, counterfeiting, extortion, or a conspiracy to commit any of the offenses under this subdivision (a)(2)(C)(i) (b)(2) ; or (ii) Pending against him or her a charge of unlawful conduct involving securities or any aspect of the securities business;

(i) Been convicted of or pled guilty or nolo contendere in a domestic, foreign, or military court to: (a) A felony; or (b) Within the previous ten (10) years, a misdemeanor involving: (1) A security, a commodity future or option contract, or any aspect of a business involving securities, commodities, investments, franchises, insurance, banking, or finance; or (2) Fraud, false statements or omissions, wrongful taking of property, bribery, perjury, forgery, counterfeiting, extortion, or a conspiracy to commit any of the offenses under this subdivision (a)(2)(C)(i) (b)(2) ; or

(a) A felony; or

(b) Within the previous ten (10) years, a misdemeanor involving: (1) A security, a commodity future or option contract, or any aspect of a business involving securities, commodities, investments, franchises, insurance, banking, or finance; or (2) Fraud, false statements or omissions, wrongful taking of property, bribery, perjury, forgery, counterfeiting, extortion, or a conspiracy to commit any of the offenses under this subdivision (a)(2)(C)(i) (b)(2) ; or

(1) A security, a commodity future or option contract, or any aspect of a business involving securities, commodities, investments, franchises, insurance, banking, or finance; or

(2) Fraud, false statements or omissions, wrongful taking of property, bribery, perjury, forgery, counterfeiting, extortion, or a conspiracy to commit any of the offenses under this subdivision (a)(2)(C)(i) (b)(2) ; or

(ii) Pending against him or her a charge of unlawful conduct involving securities or any aspect of the securities business;

(D) Is permanently or temporarily enjoined by any court of competent jurisdiction from engaging in or continuing any conduct or practice involving any aspect of the securities business;

(E) Is the subject of an order of the commissioner, including without limitation an order denying, suspending, revoking, or making conditional or probationary a registration as a broker-dealer, agent, investment adviser, or representative;

(F) (i) Is the subject of any of the following orders entered within the past five (5) years: (a) An order entered by: (1) The securities administrator of any other state; (2) Any national securities, commodities, or banking agency or jurisdiction; (3) Any national securities or commodities exchange; (4) Any securities or commodities self-regulatory organization; (5) Any registered securities association or clearing agency denying, revoking, suspending, or expelling him or her from registration as a broker-dealer, agent, investment adviser, or representative, or the substantial equivalent of those terms; or (6) The insurance administrator of any state; or (b) A United States postal fraud order. (ii) However, the commissioner shall not: (a) Institute a revocation or suspension proceeding under this subdivision (a)(2)(F) more than five (5) years from the date of the order relied on; or (b) Enter an order under this subdivision (a)(2)(F) on the basis of an order under another state act, unless that order was based on facts that would currently constitute a ground for an order under this section;

(i) Is the subject of any of the following orders entered within the past five (5) years: (a) An order entered by: (1) The securities administrator of any other state; (2) Any national securities, commodities, or banking agency or jurisdiction; (3) Any national securities or commodities exchange; (4) Any securities or commodities self-regulatory organization; (5) Any registered securities association or clearing agency denying, revoking, suspending, or expelling him or her from registration as a broker-dealer, agent, investment adviser, or representative, or the substantial equivalent of those terms; or (6) The insurance administrator of any state; or (b) A United States postal fraud order.

(a) An order entered by: (1) The securities administrator of any other state; (2) Any national securities, commodities, or banking agency or jurisdiction; (3) Any national securities or commodities exchange; (4) Any securities or commodities self-regulatory organization; (5) Any registered securities association or clearing agency denying, revoking, suspending, or expelling him or her from registration as a broker-dealer, agent, investment adviser, or representative, or the substantial equivalent of those terms; or (6) The insurance administrator of any state; or

(1) The securities administrator of any other state;

(2) Any national securities, commodities, or banking agency or jurisdiction;

(3) Any national securities or commodities exchange;

(4) Any securities or commodities self-regulatory organization;

(5) Any registered securities association or clearing agency denying, revoking, suspending, or expelling him or her from registration as a broker-dealer, agent, investment adviser, or representative, or the substantial equivalent of those terms; or

(6) The insurance administrator of any state; or

(b) A United States postal fraud order.

(ii) However, the commissioner shall not: (a) Institute a revocation or suspension proceeding under this subdivision (a)(2)(F) more than five (5) years from the date of the order relied on; or (b) Enter an order under this subdivision (a)(2)(F) on the basis of an order under another state act, unless that order was based on facts that would currently constitute a ground for an order under this section;

(a) Institute a revocation or suspension proceeding under this subdivision (a)(2)(F) more than five (5) years from the date of the order relied on; or

(b) Enter an order under this subdivision (a)(2)(F) on the basis of an order under another state act, unless that order was based on facts that would currently constitute a ground for an order under this section;

(G) Has engaged in dishonest or unethical practices in the securities business;

(H) Is insolvent, either in the sense that his or her liabilities exceed his or her assets or in the sense that he or she cannot meet his or her obligations as they mature, but the commissioner may not enter an order against a broker-dealer or investment adviser under this subdivision (a)(2)(H) without a finding of insolvency as to the broker-dealer or investment adviser;

(I) Is not qualified on the basis of such factors as training, experience, and knowledge of the securities business, except that: (i) The commissioner shall not enter an order against a broker-dealer on the basis of the lack of qualification of any person other than the broker-dealer himself or herself, if he or she is an individual, or an agent of the broker-dealer; (ii) The commissioner shall not enter an order against an investment adviser on the basis of the lack of qualification of any person other than the investment adviser himself or herself, if he or she is an individual, or any other person who represents the investment adviser in doing any of the acts which make him or her an investment adviser; (iii) The commissioner shall not enter an order solely on the basis of lack of experience if the applicant or registrant is qualified by training or knowledge, or both; (iv) The commissioner shall consider that an agent who will work under the supervision of a registered broker-dealer need not have the same qualifications as a broker-dealer; and (v) The commissioner shall consider that an investment adviser or representative is not necessarily qualified solely on the basis of experience as a broker-dealer or agent;

(i) The commissioner shall not enter an order against a broker-dealer on the basis of the lack of qualification of any person other than the broker-dealer himself or herself, if he or she is an individual, or an agent of the broker-dealer;

(ii) The commissioner shall not enter an order against an investment adviser on the basis of the lack of qualification of any person other than the investment adviser himself or herself, if he or she is an individual, or any other person who represents the investment adviser in doing any of the acts which make him or her an investment adviser;

(iii) The commissioner shall not enter an order solely on the basis of lack of experience if the applicant or registrant is qualified by training or knowledge, or both;

(iv) The commissioner shall consider that an agent who will work under the supervision of a registered broker-dealer need not have the same qualifications as a broker-dealer; and

(v) The commissioner shall consider that an investment adviser or representative is not necessarily qualified solely on the basis of experience as a broker-dealer or agent;

(J) Has failed reasonably to supervise the agents or employees of the broker-dealer or the representatives or employees of the investment adviser; or

(K) Has failed to pay the proper filing fee, but the commissioner may enter only a denial order under this subdivision (a)(2)(K), and he or she shall vacate the order when the deficiency has been corrected.

(b) The commissioner may not institute a suspension or revocation proceeding solely on the basis of a final judicial or administrative order known to him or her when registration became effective, unless the proceeding is instituted within one hundred eighty (180) days after registration or unless the applicant or registrant waives the time limitation. For the purpose of this provision, a final judicial or administrative order shall not include an order that is stayed or subject to further review or appeal. This provision shall not apply to renewal registration.

(c) (1) The commissioner may by order summarily postpone or suspend a registration pending final determination of any proceeding under this section. (2) Upon the entry of the order, the commissioner shall promptly notify the applicant or registrant, as well as the employer or prospective employer, if the applicant or registrant is an agent or representative, that the order has been entered, and of the reasons therefor, and that within fifteen (15) days after the receipt of a written request the matter will be set down for hearing. (3) If no hearing is requested and none is ordered by the commissioner, the order will remain in effect until it is modified or vacated by the commissioner. If a hearing is requested or ordered, the commissioner, after notice of and opportunity for hearing, may modify or vacate the order or extend it until final determination.

(1) The commissioner may by order summarily postpone or suspend a registration pending final determination of any proceeding under this section.

(2) Upon the entry of the order, the commissioner shall promptly notify the applicant or registrant, as well as the employer or prospective employer, if the applicant or registrant is an agent or representative, that the order has been entered, and of the reasons therefor, and that within fifteen (15) days after the receipt of a written request the matter will be set down for hearing.

(3) If no hearing is requested and none is ordered by the commissioner, the order will remain in effect until it is modified or vacated by the commissioner. If a hearing is requested or ordered, the commissioner, after notice of and opportunity for hearing, may modify or vacate the order or extend it until final determination.

(d) The commissioner may by summary order cancel a registration or application if he or she finds that any registrant or applicant: (1) Is no longer in existence; (2) Has ceased to do business as a broker-dealer, agent, investment adviser, or representative; or (3) Is subject to an adjudication of mental incompetence or to the control of a committee, conservator, or guardian or cannot be located after a reasonable search.

(1) Is no longer in existence;

(2) Has ceased to do business as a broker-dealer, agent, investment adviser, or representative; or

(3) Is subject to an adjudication of mental incompetence or to the control of a committee, conservator, or guardian or cannot be located after a reasonable search.

(e) (1) Withdrawal from registration as a broker-dealer, agent, investment adviser, or representative becomes effective thirty (30) days after receipt of an application to withdraw, or within such shorter period of time as the commissioner may determine, unless a revocation or suspension proceeding is pending when the application to withdraw is filed or a proceeding to deny, revoke, or suspend or to impose conditions upon the withdrawal is instituted within thirty (30) days after the application to withdraw is filed. (2) If a proceeding is pending or instituted, then withdrawal becomes effective at such time and upon such conditions as the commissioner by order determines. (3) If no proceeding is pending or instituted and withdrawal automatically becomes effective, the commissioner may nevertheless institute a revocation or suspension proceeding under subdivision (a)(2)(B) of this section within one (1) year after withdrawal became effective and may enter a revocation or suspension order as of the last date on which registration was effective.

(1) Withdrawal from registration as a broker-dealer, agent, investment adviser, or representative becomes effective thirty (30) days after receipt of an application to withdraw, or within such shorter period of time as the commissioner may determine, unless a revocation or suspension proceeding is pending when the application to withdraw is filed or a proceeding to deny, revoke, or suspend or to impose conditions upon the withdrawal is instituted within thirty (30) days after the application to withdraw is filed.

(2) If a proceeding is pending or instituted, then withdrawal becomes effective at such time and upon such conditions as the commissioner by order determines.

(3) If no proceeding is pending or instituted and withdrawal automatically becomes effective, the commissioner may nevertheless institute a revocation or suspension proceeding under subdivision (a)(2)(B) of this section within one (1) year after withdrawal became effective and may enter a revocation or suspension order as of the last date on which registration was effective.

(f) No order may be entered under any part of this section, except under subdivision (c)(1) of this section, without: (1) Appropriate prior notice to the applicant or registrant and to the employer or prospective employer if the applicant or registrant is an agent or representative; (2) Opportunity for hearing; and (3) Written findings of fact and conclusions of law.

(1) Appropriate prior notice to the applicant or registrant and to the employer or prospective employer if the applicant or registrant is an agent or representative;

(2) Opportunity for hearing; and

(3) Written findings of fact and conclusions of law.

(g) In addition to the authority granted in subsections (a)-(e) of this section, upon notice and opportunity for hearing as provided in subsection (f) of this section, the commissioner may for each violation of this chapter fine any broker-dealer, agent, investment adviser, or representative not to exceed: (1) Ten thousand dollars ($10,000) or an amount equal to the total amount of money received in connection with each separate violation; or (2) If a victim of a violation is sixty-five (65) years of age or older: (A) Twenty thousand dollars ($20,000) for each violation; or (B) Two (2) times the amount of money received in connection with each violation.

(1) Ten thousand dollars ($10,000) or an amount equal to the total amount of money received in connection with each separate violation; or

(2) If a victim of a violation is sixty-five (65) years of age or older: (A) Twenty thousand dollars ($20,000) for each violation; or (B) Two (2) times the amount of money received in connection with each violation.

(A) Twenty thousand dollars ($20,000) for each violation; or

(B) Two (2) times the amount of money received in connection with each violation.

(h) Nothing in this section shall prohibit or restrict the informal disposition of a proceeding or allegations which might give rise to a proceeding by stipulation, settlement, consent, or default, in lieu of a formal or informal hearing on the allegations or in lieu of the sanctions authorized by this section.

Amended by Act 2023, No. 324,§ 1, eff. 8/1/2023.

Amended by Act 2021, No. 533,§ 3, eff. 7/28/2021.

Amended by Act 2019, No. 391,§ 4, eff. 7/24/2019.

Amended by Act 2017, No. 668,§ 20, eff. 8/1/2017.

Amended by Act 2017, No. 668,§ 19, eff. 8/1/2017.

Amended by Act 2013, No. 460,§ 12, eff. 8/16/2013.

Amended by Act 2013, No. 460,§ 11, eff. 8/16/2013.

Acts 1959, No. 254, § 6; 1961, No. 248, § 4; 1983, No. 836, §§ 10-12; A.S.A. 1947, § 67-1240; Acts 1995, No. 845, § 19; 2009, No. 534, §§ 9, 10; 2011, No. 339, §§ 6, 7.
Ark. Code Ann. § 23-74-607 — AR Code / Title 23 / Chapter 74 / Subchapter 6 / Section 23-74-607
Suspension, revocation, or refusal of license of foreign or alien society
Status: in_force

(a) When the Insurance Commissioner upon investigation finds that a foreign or alien society transacting or applying to transact business in this state: (1) Has exceeded its powers; (2) Has failed to comply with any of the provisions of this chapter; (3) Is not fulfilling its contracts in good faith; or (4) Is conducting its business fraudulently or in a manner hazardous to its members or creditors or the public, the commissioner shall notify the society of the deficiency or deficiencies and state in writing the reasons for his or her dissatisfaction. The commissioner shall at once issue a written notice to the society requiring that the deficiency or deficiencies which exist be corrected. After the notice, the society shall have a thirty-day period in which to comply with the commissioner's request for correction, and if the society fails to comply, the commissioner shall notify the society of such findings of noncompliance and require the society to show cause on a date named why its license should not be suspended, revoked, or refused. If on such a date the society does not present good and sufficient reason why its authority to do business in this state should not be suspended, revoked, or refused, the commissioner may suspend or refuse the license of the society to do business in this state until satisfactory evidence is furnished to the commissioner that the suspension or refusal should be withdrawn or the commissioner may revoke the authority of the society to do business in this state. (b) Nothing contained in this section shall be taken or construed as preventing any such society from continuing in good faith all contracts made in this state during the time the society was legally authorized to transact business as provided in this chapter. Acts 1989, No. 881, § 1.

(a) When the Insurance Commissioner upon investigation finds that a foreign or alien society transacting or applying to transact business in this state: (1) Has exceeded its powers; (2) Has failed to comply with any of the provisions of this chapter; (3) Is not fulfilling its contracts in good faith; or (4) Is conducting its business fraudulently or in a manner hazardous to its members or creditors or the public, the commissioner shall notify the society of the deficiency or deficiencies and state in writing the reasons for his or her dissatisfaction. The commissioner shall at once issue a written notice to the society requiring that the deficiency or deficiencies which exist be corrected. After the notice, the society shall have a thirty-day period in which to comply with the commissioner's request for correction, and if the society fails to comply, the commissioner shall notify the society of such findings of noncompliance and require the society to show cause on a date named why its license should not be suspended, revoked, or refused. If on such a date the society does not present good and sufficient reason why its authority to do business in this state should not be suspended, revoked, or refused, the commissioner may suspend or refuse the license of the society to do business in this state until satisfactory evidence is furnished to the commissioner that the suspension or refusal should be withdrawn or the commissioner may revoke the authority of the society to do business in this state.

(1) Has exceeded its powers;

(2) Has failed to comply with any of the provisions of this chapter;

(3) Is not fulfilling its contracts in good faith; or

(4) Is conducting its business fraudulently or in a manner hazardous to its members or creditors or the public, the commissioner shall notify the society of the deficiency or deficiencies and state in writing the reasons for his or her dissatisfaction. The commissioner shall at once issue a written notice to the society requiring that the deficiency or deficiencies which exist be corrected. After the notice, the society shall have a thirty-day period in which to comply with the commissioner's request for correction, and if the society fails to comply, the commissioner shall notify the society of such findings of noncompliance and require the society to show cause on a date named why its license should not be suspended, revoked, or refused. If on such a date the society does not present good and sufficient reason why its authority to do business in this state should not be suspended, revoked, or refused, the commissioner may suspend or refuse the license of the society to do business in this state until satisfactory evidence is furnished to the commissioner that the suspension or refusal should be withdrawn or the commissioner may revoke the authority of the society to do business in this state.

the commissioner shall notify the society of the deficiency or deficiencies and state in writing the reasons for his or her dissatisfaction. The commissioner shall at once issue a written notice to the society requiring that the deficiency or deficiencies which exist be corrected. After the notice, the society shall have a thirty-day period in which to comply with the commissioner's request for correction, and if the society fails to comply, the commissioner shall notify the society of such findings of noncompliance and require the society to show cause on a date named why its license should not be suspended, revoked, or refused. If on such a date the society does not present good and sufficient reason why its authority to do business in this state should not be suspended, revoked, or refused, the commissioner may suspend or refuse the license of the society to do business in this state until satisfactory evidence is furnished to the commissioner that the suspension or refusal should be withdrawn or the commissioner may revoke the authority of the society to do business in this state.

(b) Nothing contained in this section shall be taken or construed as preventing any such society from continuing in good faith all contracts made in this state during the time the society was legally authorized to transact business as provided in this chapter.

Acts 1989, No. 881, § 1.
Ark. Code Ann. § 23-32-207 — AR Code / Title 23 / Chapter 32 / Subchapter 2 / Section 23-32-207
Deposits and withdrawals - Accounts and certificates of deposit in two or more names
Status: in_force

Checking accounts and savings accounts may be opened and certificates of deposit may be issued by any federally or state-chartered savings and loan association, in the names of two (2) or more persons, either minor or adult, or a combination of minor and adult. Checking accounts, savings accounts, and certificates of deposit shall be held and payable as follows: (1) (A) Unless a written designation to the contrary is made to the federally or state-chartered savings and loan association, when a deposit has been made or a certificate of deposit purchased in the names of two (2) or more persons and in form to be paid to any of the persons so named, or the survivors of them, the deposit or certificate of deposit and any additions thereto made by any of the persons named in the account shall become the property of those persons as joint tenants with the right of survivorship. (B) The deposit or certificate of deposit, together with all interest thereon, shall be held for the exclusive use of the persons so named and may be paid to any of those persons or to the survivors after the death of any of those persons. The payment shall be a valid and sufficient release and discharge of the federally or state-chartered savings and loan association for all payments made on account of the deposit or certificate of deposit; (2) (A) If the person opening the account or purchasing the certificate of deposit designates in writing to the federally or state-chartered savings and loan association that the account or the certificate of deposit is to be held in joint tenancy or in joint tenancy with right of survivorship, or that the account or certificate of deposit shall be payable to the survivor or survivors of the persons named in the account or certificate of deposit, then the account or certificate of deposit and all additions thereto shall be the property of those persons as joint tenants with right of survivorship. (B) The account or certificate of deposit may be paid to or on the order of any one (1) of those persons during their lifetime unless a contrary written designation is given to the federally or state-chartered savings and loan association, or to or on the order of any one (1) of the survivors of them after the death of any one (1) or more of them. (C) The opening of the account or the purchase of the certificate of deposit in this form shall be conclusive evidence in any action or proceeding to which either the federally or state-chartered savings and loan association or the surviving party is a party of the intention of all of the parties to the account or certificate of deposit to vest title to the account or certificate of deposit, and the additions thereto, in the survivor. (D) The payment shall be a valid and sufficient release of the federally or state-chartered savings and loan association for all payments made on account of the deposit or certificate of deposit; (3) If an account is opened or a certificate of deposit is purchased in the names of persons who denominate themselves to the federally or state-chartered savings and loan association as husband and wife, whether or not they are at that time husband and wife, then the account or certificate of deposit and all additions thereto shall be the property of those persons as tenants by the entirety. Upon the death of one (1) of those persons, the account shall be payable to the survivor; (4) (A) If persons open or hold an account or a certificate of deposit in a form indicating that the account or certificate of deposit is a tenants in common account or certificate of deposit, then the account or certificate of deposit and all additions thereto shall be the property of those persons as tenants in common. The federally or state-chartered savings and loan association, upon receipt of a specific written notice addressed to it of the death of either party, shall pay upon the written order of the survivor, to the survivor, his or her pro rata part of the account or certificate and to the estate of the deceased owner, the deceased's pro rata part of the account or certificate. (B) However, the federally or state-chartered savings and loan association may pay the entire account or certificate of deposit and all additions thereto upon the receipt or acquittance of either party to the account or certificate, prior to receipt of a specific written notice of death, unless there has been filed with the federally or state-chartered savings and loan association a written designation that more than one (1) signature is required to deal with the account. (C) In the absence of any written designation to the contrary filed with the federally or state-chartered savings and loan association, all tenants in common accounts shall be deemed to be owned pro rata by the persons named in the account; (5) If an account is opened or a certificate of deposit is purchased in the name of two (2) or more persons, whether as joint tenants, tenants by the entirety, tenants in common, or otherwise, a federally or state-chartered savings and loan association shall pay withdrawal requests, accept pledges of the account or certificate of deposit, and otherwise deal in any manner with the account or certificate of deposit. This may be done upon the direction of any one (1) of the persons named therein, whether the other persons named in the account or certificate of deposit are living or not, unless one (1) of the persons named therein shall, by written instructions delivered to the federally or state-chartered savings and loan association, designate that the signature of more than one (1) person shall be required to deal with the account or certificate of deposit; (6) (A) If a person opens or holds an account or certificate of deposit in a form indicating that, on the death of the person named as holder, the account or certificate of deposit shall be paid to or held by another person, then the account or certificate of deposit and any balance thereof which exists from time to time shall be held as a payment on death account or certificate of deposit unless otherwise agreed between the person opening the account or purchasing the certificate of deposit and the federally or state-chartered savings and loan association. (B) The payment shall be a valid and sufficient release and discharge of the federally or state-chartered savings and loan association for all payments made on account of the account or certificate of deposit; (7) Upon the death of the holder of the account or certificate of deposit, the persons designated by him or her and who have survived him or her shall be the owners of the account or certificate as joint tenants with right of survivorship if more than one (1). Any payment made by the federally or state-chartered savings and loan association to any of those persons shall be a complete discharge of the federally or state-chartered savings and loan association as to the amount paid; (8) No federally or state-chartered savings and loan association paying any survivor in accordance with the provisions of this section shall thereby be liable for any estate, inheritance, or succession taxes which may be due this state; (9) During his or her lifetime, the person to whom such an account or certificate of deposit is issued may change the designation of any of the persons who are to be holders at his or her death, by a written direction accepted by the federally or state-chartered savings and loan association; and (10) The terms "designate in writing", "written designation", "designate", "designates", "designation", or "designated" shall not be construed to require that the depositor or purchaser affix his or her signature to an instrument. Acts 1997, No. 78, § 1.

Checking accounts and savings accounts may be opened and certificates of deposit may be issued by any federally or state-chartered savings and loan association, in the names of two (2) or more persons, either minor or adult, or a combination of minor and adult. Checking accounts, savings accounts, and certificates of deposit shall be held and payable as follows:

(1) (A) Unless a written designation to the contrary is made to the federally or state-chartered savings and loan association, when a deposit has been made or a certificate of deposit purchased in the names of two (2) or more persons and in form to be paid to any of the persons so named, or the survivors of them, the deposit or certificate of deposit and any additions thereto made by any of the persons named in the account shall become the property of those persons as joint tenants with the right of survivorship. (B) The deposit or certificate of deposit, together with all interest thereon, shall be held for the exclusive use of the persons so named and may be paid to any of those persons or to the survivors after the death of any of those persons. The payment shall be a valid and sufficient release and discharge of the federally or state-chartered savings and loan association for all payments made on account of the deposit or certificate of deposit;

(A) Unless a written designation to the contrary is made to the federally or state-chartered savings and loan association, when a deposit has been made or a certificate of deposit purchased in the names of two (2) or more persons and in form to be paid to any of the persons so named, or the survivors of them, the deposit or certificate of deposit and any additions thereto made by any of the persons named in the account shall become the property of those persons as joint tenants with the right of survivorship.

(B) The deposit or certificate of deposit, together with all interest thereon, shall be held for the exclusive use of the persons so named and may be paid to any of those persons or to the survivors after the death of any of those persons. The payment shall be a valid and sufficient release and discharge of the federally or state-chartered savings and loan association for all payments made on account of the deposit or certificate of deposit;

(2) (A) If the person opening the account or purchasing the certificate of deposit designates in writing to the federally or state-chartered savings and loan association that the account or the certificate of deposit is to be held in joint tenancy or in joint tenancy with right of survivorship, or that the account or certificate of deposit shall be payable to the survivor or survivors of the persons named in the account or certificate of deposit, then the account or certificate of deposit and all additions thereto shall be the property of those persons as joint tenants with right of survivorship. (B) The account or certificate of deposit may be paid to or on the order of any one (1) of those persons during their lifetime unless a contrary written designation is given to the federally or state-chartered savings and loan association, or to or on the order of any one (1) of the survivors of them after the death of any one (1) or more of them. (C) The opening of the account or the purchase of the certificate of deposit in this form shall be conclusive evidence in any action or proceeding to which either the federally or state-chartered savings and loan association or the surviving party is a party of the intention of all of the parties to the account or certificate of deposit to vest title to the account or certificate of deposit, and the additions thereto, in the survivor. (D) The payment shall be a valid and sufficient release of the federally or state-chartered savings and loan association for all payments made on account of the deposit or certificate of deposit;

(A) If the person opening the account or purchasing the certificate of deposit designates in writing to the federally or state-chartered savings and loan association that the account or the certificate of deposit is to be held in joint tenancy or in joint tenancy with right of survivorship, or that the account or certificate of deposit shall be payable to the survivor or survivors of the persons named in the account or certificate of deposit, then the account or certificate of deposit and all additions thereto shall be the property of those persons as joint tenants with right of survivorship.

(B) The account or certificate of deposit may be paid to or on the order of any one (1) of those persons during their lifetime unless a contrary written designation is given to the federally or state-chartered savings and loan association, or to or on the order of any one (1) of the survivors of them after the death of any one (1) or more of them.

(C) The opening of the account or the purchase of the certificate of deposit in this form shall be conclusive evidence in any action or proceeding to which either the federally or state-chartered savings and loan association or the surviving party is a party of the intention of all of the parties to the account or certificate of deposit to vest title to the account or certificate of deposit, and the additions thereto, in the survivor.

(D) The payment shall be a valid and sufficient release of the federally or state-chartered savings and loan association for all payments made on account of the deposit or certificate of deposit;

(3) If an account is opened or a certificate of deposit is purchased in the names of persons who denominate themselves to the federally or state-chartered savings and loan association as husband and wife, whether or not they are at that time husband and wife, then the account or certificate of deposit and all additions thereto shall be the property of those persons as tenants by the entirety. Upon the death of one (1) of those persons, the account shall be payable to the survivor;

(4) (A) If persons open or hold an account or a certificate of deposit in a form indicating that the account or certificate of deposit is a tenants in common account or certificate of deposit, then the account or certificate of deposit and all additions thereto shall be the property of those persons as tenants in common. The federally or state-chartered savings and loan association, upon receipt of a specific written notice addressed to it of the death of either party, shall pay upon the written order of the survivor, to the survivor, his or her pro rata part of the account or certificate and to the estate of the deceased owner, the deceased's pro rata part of the account or certificate. (B) However, the federally or state-chartered savings and loan association may pay the entire account or certificate of deposit and all additions thereto upon the receipt or acquittance of either party to the account or certificate, prior to receipt of a specific written notice of death, unless there has been filed with the federally or state-chartered savings and loan association a written designation that more than one (1) signature is required to deal with the account. (C) In the absence of any written designation to the contrary filed with the federally or state-chartered savings and loan association, all tenants in common accounts shall be deemed to be owned pro rata by the persons named in the account;

(A) If persons open or hold an account or a certificate of deposit in a form indicating that the account or certificate of deposit is a tenants in common account or certificate of deposit, then the account or certificate of deposit and all additions thereto shall be the property of those persons as tenants in common. The federally or state-chartered savings and loan association, upon receipt of a specific written notice addressed to it of the death of either party, shall pay upon the written order of the survivor, to the survivor, his or her pro rata part of the account or certificate and to the estate of the deceased owner, the deceased's pro rata part of the account or certificate.

(B) However, the federally or state-chartered savings and loan association may pay the entire account or certificate of deposit and all additions thereto upon the receipt or acquittance of either party to the account or certificate, prior to receipt of a specific written notice of death, unless there has been filed with the federally or state-chartered savings and loan association a written designation that more than one (1) signature is required to deal with the account.

(C) In the absence of any written designation to the contrary filed with the federally or state-chartered savings and loan association, all tenants in common accounts shall be deemed to be owned pro rata by the persons named in the account;

(5) If an account is opened or a certificate of deposit is purchased in the name of two (2) or more persons, whether as joint tenants, tenants by the entirety, tenants in common, or otherwise, a federally or state-chartered savings and loan association shall pay withdrawal requests, accept pledges of the account or certificate of deposit, and otherwise deal in any manner with the account or certificate of deposit. This may be done upon the direction of any one (1) of the persons named therein, whether the other persons named in the account or certificate of deposit are living or not, unless one (1) of the persons named therein shall, by written instructions delivered to the federally or state-chartered savings and loan association, designate that the signature of more than one (1) person shall be required to deal with the account or certificate of deposit;

(6) (A) If a person opens or holds an account or certificate of deposit in a form indicating that, on the death of the person named as holder, the account or certificate of deposit shall be paid to or held by another person, then the account or certificate of deposit and any balance thereof which exists from time to time shall be held as a payment on death account or certificate of deposit unless otherwise agreed between the person opening the account or purchasing the certificate of deposit and the federally or state-chartered savings and loan association. (B) The payment shall be a valid and sufficient release and discharge of the federally or state-chartered savings and loan association for all payments made on account of the account or certificate of deposit;

(A) If a person opens or holds an account or certificate of deposit in a form indicating that, on the death of the person named as holder, the account or certificate of deposit shall be paid to or held by another person, then the account or certificate of deposit and any balance thereof which exists from time to time shall be held as a payment on death account or certificate of deposit unless otherwise agreed between the person opening the account or purchasing the certificate of deposit and the federally or state-chartered savings and loan association.

(B) The payment shall be a valid and sufficient release and discharge of the federally or state-chartered savings and loan association for all payments made on account of the account or certificate of deposit;

(7) Upon the death of the holder of the account or certificate of deposit, the persons designated by him or her and who have survived him or her shall be the owners of the account or certificate as joint tenants with right of survivorship if more than one (1). Any payment made by the federally or state-chartered savings and loan association to any of those persons shall be a complete discharge of the federally or state-chartered savings and loan association as to the amount paid;

(8) No federally or state-chartered savings and loan association paying any survivor in accordance with the provisions of this section shall thereby be liable for any estate, inheritance, or succession taxes which may be due this state;

(9) During his or her lifetime, the person to whom such an account or certificate of deposit is issued may change the designation of any of the persons who are to be holders at his or her death, by a written direction accepted by the federally or state-chartered savings and loan association; and

(10) The terms "designate in writing", "written designation", "designate", "designates", "designation", or "designated" shall not be construed to require that the depositor or purchaser affix his or her signature to an instrument.

Acts 1997, No. 78, § 1.
Ark. Code Ann. § 23-82-103 — AR Code / Title 23 / Chapter 82 / Section 23-82-103
Application to term and specified insurance
Status: in_force

Any of the provisions required by §§ 23-82-105 - 23-82-117 or any portion thereof which are not applicable to single premium or term policies or to policies issued or granted pursuant to nonforfeiture provisions shall to that extent not be incorporated therein. Acts 1959, No. 148, § 362; A.S.A. 1947, § 66-3417.

Any of the provisions required by §§ 23-82-105 - 23-82-117 or any portion thereof which are not applicable to single premium or term policies or to policies issued or granted pursuant to nonforfeiture provisions shall to that extent not be incorporated therein.

Acts 1959, No. 148, § 362; A.S.A. 1947, § 66-3417.