AR Code § 28-65-311 (2020)
2020 Arkansas Code|Title 28 - Wills, Estates, and Fiduciary Relationships|Subtitle 5 - Fiduciary Relationships|Chapter 65 - Guardians Generally|Subchapter 3 - Powers and Duties|§ 28-65-311. Investments

 (a) The guardian of the estate may, and when ordered by the court shall, deposit as a fiduciary, the funds of the ward in a financial institution of this state, as a general deposit, either in a checking account or a savings account.  (b) The guardian shall invest the funds of the ward not reasonably needed for the ward's care, maintenance, or education in securities selected by the guardian from among the following categories:  (1) Bonds, notes, or certificates of indebtedness which are the direct obligations of, or the principal and income of which are unconditionally guaranteed by, the United States;  (2) Bonds or notes issued by the State of Arkansas;  (3) Arkansas State Board of Education bonds issued under Acts 1937, No. 162 [repealed];  (4) Bonds issued by a county, city, incorporated town, or improvement district of the State of Arkansas, whether the bonds are the general obligation of the issuer or are payable out of a special fund, as long as the bonds are negotiable instruments under the law;  (5) Bonds issued by a school district of the State of Arkansas;  (6)  (A) Shares, share accounts, or accounts of any building and loan association organized under the laws of the State of Arkansas, of any federal savings and loan association domiciled in the State of Arkansas which are insured by the Savings Association Insurance Fund, or of any credit union in Arkansas, for their eligible members, which are insured by the National Credit Union Administration.  (B) However, no such investment shall exceed the amounts so insured.  (C) Provided, nothing herein shall be construed to expand the field of membership of any credit union;    (7) Notes, bonds, debentures, or other similar obligations issued by federal land banks, federal intermediate credit banks, or banks for cooperatives, or any other obligations issued pursuant to the provisions of an Act of Congress of the United States known as the Farm Credit Act of 1971 and acts amendatory thereto;  (8) Bonds issued by a national mortgage association;  (9) Notes or bonds secured by mortgage or deed of trust which the Federal Housing Administration has insured or has made a commitment to insure;  (10) Notes or bonds secured fully as to principal and interest by a first mortgage or deed of trust upon improved or timbered real property located in the State of Arkansas in which provision is made for regular periodic payments on the principal, at least annually, sufficient in amount to amortize the indebtedness during a period not exceeding fifteen (15) years. These notes or bonds are to be in an amount not exceeding sixty-five percent (65%) of the value of the real property security as determined by an appraisal thereof approved by the court;  (11) Bonds, notes, debentures, or other direct obligations of a state, county, or city located without the State of Arkansas but within the United States, or of a corporation incorporated under the laws of the United States or of any state of the United States or of the District of Columbia which, at the time of the purchase, shall be rated in either the highest or next-highest classification established by at least two (2) nationally recognized standard financial rating services;  (12) Shares of any open-end or closed-end management-type investment company or investment trust registered under the Investment Company Act of 1940, as amended, the portfolio of which is limited to the securities described in subdivisions (b)(1)-(11) of this section and to repurchase agreements fully collateralized by such securities, provided that the investment company or investment trust takes delivery of the collateral either directly or through an authorized custodian;  (13) Contracts for annuities or for life, health, or accident insurance on the person of the ward, or of another in whom the ward has an insurable interest, or a combination of any such contracts, if the contract is payable to the ward or to his or her estate, is in the usual form, and is issued by an insurance company authorized to do business in the State of Arkansas. Any such contract shall reserve the right in the ward to change the beneficiary thereof after the termination of his or her incompetency;  (14) Shares or interests in any common trust fund investing in common stocks or preferred stocks listed on a national securities exchange maintained by a guardian which is a state or national bank or trust company authorized by the provisions of §§ 28-69-201 — 28-69-204 to establish and maintain common trust funds; or  (15) Shares, securities, or other interests in an open-end or closed-end management-type investment company or investment trust registered under the Investment Company Act of 1940, 15 U.S.C. § 80a-1 et seq., as it existed on January 1, 2015, or an exchange-traded fund listed on a national securities exchange.    (c)  (1) Without prior order of the court, no investment shall be made, other than an investment in:  (A) Direct obligations of, or obligations unconditionally guaranteed as to principal and income by, the United States;  (B) Bonds issued by the State of Arkansas;  (C) Shares of any investment company or investment trust described in subdivision (b)(12) of this section, the portfolio of which is limited to the securities described in subdivisions (c)(1)(A) and (B) of this section and to repurchase agreements fully collateralized by such securities, provided that the investment company or investment trust takes delivery of the collateral either directly or through an authorized custodian;  (D) Bonds issued by a school district in this state;  (E) Notes, bonds, debentures, or other similar obligations issued by a federal land bank, a federal intermediate credit bank, a bank for a cooperative, or any other obligation issued under the Farm Credit Act of 1971, 12 U.S.C. § 2001 et seq., as it existed on January 1, 2019;  (F) Bonds issued by a national mortgage association;  (G)  (i) A certificate of deposit or another interest-bearing deposit account of a bank domiciled in this state that is insured by the Federal Deposit Insurance Corporation.  (ii) However, an investment in a certificate of deposit or an interest-bearing deposit account shall not exceed the amount insured; or    (H)  (i) Shares, share certificates, share accounts, or accounts of a:  (a) Building and loan association organized under the laws of this state;  (b) Federal savings and loan association domiciled in this state and insured by the Savings Association Insurance Fund; or  (c)  (1) Credit union in this state for eligible members that is insured by the National Credit Union Administration.  (2) Subdivision (c)(1)(H)(i)(c)(1) of this section does not expand the field of membership of a credit union.      (ii) However, an investment in shares, share certificates, share accounts, or accounts listed in subdivision (c)(1)(H)(i) of this section shall not exceed the amount insured.      (2) The court shall not approve an investment in an issue of securities which has been in default for a period exceeding one hundred twenty (120) days during the five (5) years next preceding the investment.    (d) If the guardian of the estate is a state or national bank or trust company authorized by the provisions of §§ 28-69-201 — 28-69-204 to establish and maintain common trust funds, the guardian may invest the ward's funds without prior order of the court in:  (1) Participation in the common trust fund which, by the terms of the instrument creating it, limits the purchase of investments for such funds to investments authorized in this chapter;  (2) Shares, securities, or other interests of any open-end or closed-end management-type investment company or investment trust registered under the Investment Company Act of 1940, 15 U.S.C. § 80a-1 et seq., as it existed on January 1, 2015; or  (3) An exchange-traded fund listed on a national securities exchange, the portfolio of which is limited to the securities authorized in this chapter.