reglab/statecodes huggingface dataset:
Arkansas Code of 1987 (2023) › Title 23 - PUBLIC UTILITIES AND REGULATED INDUSTRIES (§§ 23-1-101 — 23-119-105) › Subtitle 2 - FINANCIAL INSTITUTIONS AND SECURITIES (§§ 23-30-101 — 23-55-1007) › Chapter 51 - ARKANSAS TRUST INSTITUTIONS ACT (§§ 23-51-101 — 23-51-200) › Section 23-51-126 - Mutual funds

(a)
A state trust company may invest for its own account in equity securities of an investment company registered under the Investment Company Act of 1940,
15 U.S.C. Sec. 80a-1
et seq., and the Securities Act of 1933,
15 U.S.C. Sec. 77a
et seq., if the portfolio of the investment company consists wholly of investments in which the state trust company could invest directly for its own account.
(b)
If the portfolio of an investment company described in subsection (a) of this section consists wholly of investments in which the state trust company could invest directly without limitation under §
23-51-123(d)
, the state trust company may invest in the investment company without limitation.
(c)
If the portfolio of an investment company described in subsection (a) of this section contains any investment that is subject to the limits of §
23-51-123(c)
, the state trust company may invest in the investment company not more than an amount equal to twenty percent (20%) of the state trust company's capital base. This provision does not apply to a money market fund.
(d)
In evaluating investment limits under this chapter, a state trust company may not be required to combine:
(1)
The state trust company's pro rata share of the securities of an issuer in the portfolio of an investment company with the state trust company's pro rata share of the securities of that issuer held by another investment company in which the state trust company has invested; or
(2)
The state trust company's own direct investment in the securities of an issuer with the state trust company's pro rata share of the securities of that issuer held by each investment company in which the state trust company has invested under this section.
Acts 1997, No. 940, § 26.
Arkansas Code of 1987 (2023) › Title 23 - PUBLIC UTILITIES AND REGULATED INDUSTRIES (§§ 23-1-101 — 23-119-105) › Subtitle 2 - FINANCIAL INSTITUTIONS AND SECURITIES (§§ 23-30-101 — 23-55-1007) › Chapter 51 - ARKANSAS TRUST INSTITUTIONS ACT (§§ 23-51-101 — 23-51-200) › Section 23-51-127 - Engaging in commerce prohibited

Except as otherwise provided by this chapter or rules adopted under this chapter, a state trust company may not invest its funds in trade or commerce by buying, selling, or otherwise dealing in goods or by owning or operating a business not part of the state trust business, except as necessary to fulfil a fiduciary obligation to a client.
Amended by Act 2019, No. 315,§ 2584, eff. 7/24/2019.
Acts 1997, No. 940, § 27.
Arkansas Code of 1987 (2023) › Title 23 - PUBLIC UTILITIES AND REGULATED INDUSTRIES (§§ 23-1-101 — 23-119-105) › Subtitle 2 - FINANCIAL INSTITUTIONS AND SECURITIES (§§ 23-30-101 — 23-55-1007) › Chapter 51 - ARKANSAS TRUST INSTITUTIONS ACT (§§ 23-51-101 — 23-51-200) › Section 23-51-128 - Lending limits

(a)
A state trust company's total outstanding loans and extensions of credit to a person other than an insider may not exceed an amount equal to twenty percent (20%) of the state trust company's capital base.
(b)
The aggregate loans and extensions of credit outstanding at any time to insiders of the state trust company may not exceed an amount equal to twenty percent (20%) of the state trust company's capital base. All covered transactions between an insider and a state trust company must be engaged in only on terms and under circumstances, including credit standards, that are substantially the same as those for comparable transactions with a non-insider.
(c)
The Bank Commissioner may adopt rules to administer and carry out this section, including rules to establish limits, requirements, or exemptions other than those specified by this section for particular classes or categories of loans or extensions of credit, and establish collective lending and investment limits.
(d)
The commissioner may determine whether a loan or extension of credit putatively made to a person will be attributed to another person for purposes of this section.
(e)
A state trust company may not lend trust deposits, except that a trustee may make a loan to a beneficiary of the trust if the loan is expressly authorized or directed by the instrument or transaction establishing the trust.
(f)
An officer, director, or employee of a state trust company who approves or participates in the approval of a loan with actual knowledge that the loan violates this section is jointly and severally liable to the state trust company for the lesser of the amount by which the loan exceeded applicable lending limits or the state trust company's actual loss and remains liable for that amount until the loan and all prior indebtedness of the borrower to the state trust company have been fully repaid. The state trust company may initiate a proceeding to collect an amount due under this subsection at any time before the date the borrower defaults on the subject loan or any prior indebtedness or before the fourth anniversary of that date. A person that is liable for and pays amounts to the state trust company under this subsection is entitled to an assignment of the state trust company's claim against the borrower to the extent of the payments. For purposes of this subsection, an officer, director, or employee of a state trust company is presumed to know the amount of the state trust company's lending limit under subsection (a) of this section and the amount of the borrower's aggregate outstanding indebtedness to the state trust company immediately before a new loan or extension of credit to that borrower.
Amended by Act 2019, No. 315,§ 2585, eff. 7/24/2019.
Acts 1997, No. 940, § 28.
Arkansas Code of 1987 (2023) › Title 23 - PUBLIC UTILITIES AND REGULATED INDUSTRIES (§§ 23-1-101 — 23-119-105) › Subtitle 2 - FINANCIAL INSTITUTIONS AND SECURITIES (§§ 23-30-101 — 23-55-1007) › Chapter 51 - ARKANSAS TRUST INSTITUTIONS ACT (§§ 23-51-101 — 23-51-200) › Section 23-51-129 - Lease financing transactions

(a)
Subject to rules adopted under this chapter, a state trust company may become the owner and lessor of tangible personal property for lease financing transactions on a net lease basis on the specific request and for the use of a client. Without the written approval of the Bank Commissioner to continue holding property acquired for leasing purposes under this subsection, the state trust company may not hold the property more than six (6) months after the date of expiration of the original or any extended or renewed lease period agreed to by the client for whom the property was acquired or by a subsequent lessee.
(b)
Rental payments received by the trust company in a lease financing transaction under this section are considered to be rent and not interest or compensation for the use, forbearance, or detention of money. However, a lease financing transaction is considered to be a loan or extension of credit for purposes of §
23-51-128
.
Amended by Act 2019, No. 315,§ 2586, eff. 7/24/2019.
Acts 1997, No. 940, § 29.
Arkansas Code of 1987 (2023) › Title 23 - PUBLIC UTILITIES AND REGULATED INDUSTRIES (§§ 23-1-101 — 23-119-105) › Subtitle 2 - FINANCIAL INSTITUTIONS AND SECURITIES (§§ 23-30-101 — 23-55-1007) › Chapter 51 - ARKANSAS TRUST INSTITUTIONS ACT (§§ 23-51-101 — 23-51-200) › Section 23-51-130 - Trust deposit

(a)
A state trust company may deposit trust funds with itself as an investment if authorized by the settlor or the beneficiary, provided:
(1)
It maintains as security for the deposits a separate fund of securities, legal for trust investments, under control of a federal reserve bank or other entity approved by the Bank Commissioner, either in this state or elsewhere;
(2)
The total market value of the security is at all times at least equal to the amount of the deposit;
(3)
The separate fund is designated as such; and
(4)
The separate fund is maintained under the control of another trust institution, bank or government agency.
(b)
A state trust company may make periodic withdrawals from or additions to the securities fund required by subsection (a) of this section as long as the required value is maintained. Income from the securities in the fund belongs to the state trust company.
(c)
Security for a deposit under this section is not required for a deposit under subsection (a) of this section to the extent the deposit is insured by the Federal Deposit Insurance Corporation or its successor.
Acts 1997, No. 940, § 30.
Arkansas Code of 1987 (2023) › Title 23 - PUBLIC UTILITIES AND REGULATED INDUSTRIES (§§ 23-1-101 — 23-119-105) › Subtitle 2 - FINANCIAL INSTITUTIONS AND SECURITIES (§§ 23-30-101 — 23-55-1007) › Chapter 51 - ARKANSAS TRUST INSTITUTIONS ACT (§§ 23-51-101 — 23-51-200) › Section 23-51-131 - Common investment funds

(a)
A state trust company may establish common trust funds to provide investment to itself as a fiduciary.
(b)
The Bank Commissioner may adopt rules to administer and carry out this section, including but not limited to rules to establish investment and participation limitations, disclosure of fees, audit requirements, limit or expand investment authority for particular classes or categories of securities or other property, advertising, exemptions, and other requirements that may be necessary to carry out this section.
Amended by Act 2019, No. 315,§ 2587, eff. 7/24/2019.
Acts 1997, No. 940, § 31.
Arkansas Code of 1987 (2023) › Title 23 - PUBLIC UTILITIES AND REGULATED INDUSTRIES (§§ 23-1-101 — 23-119-105) › Subtitle 2 - FINANCIAL INSTITUTIONS AND SECURITIES (§§ 23-30-101 — 23-55-1007) › Chapter 51 - ARKANSAS TRUST INSTITUTIONS ACT (§§ 23-51-101 — 23-51-200) › Section 23-51-132 - Borrowing limit

Except with the prior written approval of the Bank Commissioner, a state trust company may not have liabilities outstanding exceeding an amount equal to three times its capital base.
Acts 1997, No. 940, § 32.
Arkansas Code of 1987 (2023) › Title 23 - PUBLIC UTILITIES AND REGULATED INDUSTRIES (§§ 23-1-101 — 23-119-105) › Subtitle 2 - FINANCIAL INSTITUTIONS AND SECURITIES (§§ 23-30-101 — 23-55-1007) › Chapter 51 - ARKANSAS TRUST INSTITUTIONS ACT (§§ 23-51-101 — 23-51-200) › Section 23-51-133 - Pledge of assets

A state trust company may not pledge or create a lien on any of its assets except to secure the repayment of money borrowed or as specifically authorized or required by §
23-51-130
, or by rules adopted under this chapter. An act, deed, conveyance, pledge, or contract in violation of this section is void.
Amended by Act 2019, No. 315,§ 2588, eff. 7/24/2019.
Acts 1997, No. 940, § 33.
Arkansas Code of 1987 (2023) › Title 23 - PUBLIC UTILITIES AND REGULATED INDUSTRIES (§§ 23-1-101 — 23-119-105) › Subtitle 2 - FINANCIAL INSTITUTIONS AND SECURITIES (§§ 23-30-101 — 23-55-1007) › Chapter 51 - ARKANSAS TRUST INSTITUTIONS ACT (§§ 23-51-101 — 23-51-200) › Section 23-51-134 - Acquisition of control

(a)
Except as expressly otherwise permitted, a person may not without the prior written approval of the Bank Commissioner directly or indirectly acquire control of a state trust company through a change in a legal or beneficial interest in voting securities of a state trust company or a corporation or other entity owning voting securities of a state trust company.
(b)
This chapter does not prohibit a person from negotiating to acquire, but not acquiring, control of a state trust company or a person that controls a state trust company.
(c)
This section does not apply to:
(1)
The acquisition of securities in connection with the exercise of a security interest or otherwise in full or partial satisfaction of a debt previously contracted for in good faith if the acquiring person files written notice of acquisition with the commissioner before the person votes the securities acquired;
(2)
The acquisition of voting securities in any class or series by a controlling person who has previously complied with and received approval under this chapter or who was identified as a controlling person in a prior application filed with and approved by the commissioner;
(3)
An acquisition or transfer by operation of law, will, or intestate succession if the acquiring person files written notice of acquisition with the commissioner before the person votes the securities acquired;
(4)
A transaction exempted by the commissioner by rule or order because the transaction is not within the purposes of this chapter or the rule of which is not necessary or appropriate to achieve the objectives of this chapter.
Amended by Act 2019, No. 315,§ 2589, eff. 7/24/2019.
Acts 1997, No. 940, § 34.
Arkansas Code of 1987 (2023) › Title 23 - PUBLIC UTILITIES AND REGULATED INDUSTRIES (§§ 23-1-101 — 23-119-105) › Subtitle 2 - FINANCIAL INSTITUTIONS AND SECURITIES (§§ 23-30-101 — 23-55-1007) › Chapter 51 - ARKANSAS TRUST INSTITUTIONS ACT (§§ 23-51-101 — 23-51-200) › Section 23-51-135 - Application regarding acquisition of control

(a)
The proposed transferee seeking approval to acquire control of a state trust company or a person that controls a state trust company must file with the Bank Commissioner:
(1)
An application in the form prescribed by the commissioner;
(2)
The filing fee in an amount not less than one thousand five hundred dollars ($1,500) and not more than three thousand dollars ($3,000), as set by rules issued by the commissioner; and
(3)
All information required by rule or that the commissioner requires in a particular application as necessary to an informed decision to approve or reject the proposed acquisition.
(b)
If the proposed transferee includes any group of individuals or entities acting in concert, the information required by the commissioner may be required of each member of the group.
(c)
If the proposed transferee is not an Arkansas resident, an Arkansas company, or an out-of-state company qualified to do business in this state, a written consent to service of process on a resident of this state in any action or suit arising out of or connected with the proposed acquisition.
(d)
The proposed transferee must give public notice of the application, its date of filing, and the identity of each participant, in the form specified by the commissioner, through publication by one (1) insertion in a newspaper published in the City of Little Rock and having a general and substantially statewide circulation, promptly after the commissioner accepts the application as complete.
Amended by Act 2019, No. 315,§ 2590, eff. 7/24/2019.
Acts 1997, No. 940, § 35.
Arkansas Code of 1987 (2023) › Title 23 - PUBLIC UTILITIES AND REGULATED INDUSTRIES (§§ 23-1-101 — 23-119-105) › Subtitle 2 - FINANCIAL INSTITUTIONS AND SECURITIES (§§ 23-30-101 — 23-55-1007) › Chapter 51 - ARKANSAS TRUST INSTITUTIONS ACT (§§ 23-51-101 — 23-51-200) › Section 23-51-136 - Hearing and decision on acquisition of control

(a)
Not later than sixty (60) days after the application is officially filed, the Bank Commissioner may approve the application or set the application for hearing. If the commissioner sets a hearing, the commissioner shall conduct a hearing as he or she considers advisable and consistent with governing statutes and rules.
(b)
Based on the record, the commissioner may issue an order denying an application if:
(1)
The acquisition would substantially lessen competition, be in restraint of trade, result in a monopoly, or be in furtherance of a combination or conspiracy to monopolize or attempt to monopolize the trust industry in any part of this state, unless:
(A)
The anticompetitive effects of the proposed acquisition are clearly outweighed in the public interest by the probable effect of acquisition in meeting the convenience and needs of the community to be served; and
(B)
The proposed acquisition is not in violation of law of this state or the United States;
(2)
The financial condition of the proposed transferee, or any member of a group composing the proposed transferee, might jeopardize the financial stability of the state trust company being acquired;
(3)
Plans or proposals to operate, liquidate, or sell the state trust company or its assets are not in the best interests of the state trust company;
(4)
The experience, ability, standing, competence, trustworthiness, and integrity of the proposed transferee, or any member of a group comprising the proposed transferee, are insufficient to justify a belief that the state trust company will be free from improper or unlawful influence or interference with respect to the state trust company's operation in compliance with law;
(5)
The state trust company will be insolvent, in a hazardous condition, not have adequate capitalization, or not be in compliance with the laws of this state after the acquisition;
(6)
The proposed transferee has failed to furnish all information pertinent to the application reasonably required by the commissioner; or
(7)
The proposed transferee is not acting in good faith.
(c)
If an application filed under this section is approved by the commissioner, the transaction may be consummated. Any written commitment from the proposed transferee offered to and accepted by the commissioner as a condition that the application will be approved is enforceable against the state trust company and the transferee and is considered for all purposes an agreement under this chapter.
Amended by Act 2019, No. 315,§ 2591, eff. 7/24/2019.
Acts 1997, No. 940, § 36.
Arkansas Code of 1987 (2023) › Title 23 - PUBLIC UTILITIES AND REGULATED INDUSTRIES (§§ 23-1-101 — 23-119-105) › Subtitle 2 - FINANCIAL INSTITUTIONS AND SECURITIES (§§ 23-30-101 — 23-55-1007) › Chapter 51 - ARKANSAS TRUST INSTITUTIONS ACT (§§ 23-51-101 — 23-51-200) › Section 23-51-137 - Appeal from adverse decision

(a)
(1)
If a hearing has been held, the Bank Commissioner has entered an order denying the application, and the order has become final, the proposed transferee may appeal the final order by filing a petition for judicial review under the Arkansas Administrative Procedure Act, §
25-15-201
et seq.
(2)
The time for filing such a petition for judicial review shall run from the date the final decision of the commissioner is mailed or delivered, in written form, to the parties desiring to appeal.
(3)
The hearing of such a petition for review will be advanced on the docket of each reviewing court as a matter of public interest.
(b)
The filing of an appeal under this section does not stay the order of the commissioner.
Acts 1997, No. 940, § 37.
Arkansas Code of 1987 (2023) › Title 23 - PUBLIC UTILITIES AND REGULATED INDUSTRIES (§§ 23-1-101 — 23-119-105) › Subtitle 2 - FINANCIAL INSTITUTIONS AND SECURITIES (§§ 23-30-101 — 23-55-1007) › Chapter 51 - ARKANSAS TRUST INSTITUTIONS ACT (§§ 23-51-101 — 23-51-200) › Section 23-51-138 - Objection to other transfer

This chapter may not be construed to prevent the Bank Commissioner from investigating, commenting on, or seeking to enjoin or set aside a transfer of voting securities that evidence a direct or indirect interest in a state trust company, regardless of whether the transfer is included within this chapter, if the commissioner considers the transfer to be against the public interest.
Acts 1997, No. 940, § 38.
Arkansas Code of 1987 (2023) › Title 23 - PUBLIC UTILITIES AND REGULATED INDUSTRIES (§§ 23-1-101 — 23-119-105) › Subtitle 2 - FINANCIAL INSTITUTIONS AND SECURITIES (§§ 23-30-101 — 23-55-1007) › Chapter 51 - ARKANSAS TRUST INSTITUTIONS ACT (§§ 23-51-101 — 23-51-200) › Section 23-51-139 - Civil enforcement - Criminal penalties

(a)
The Bank Commissioner may bring any appropriate civil action against any person who the commissioner believes has committed or is about to commit a violation of this chapter or a rule or order of the commissioner pertaining to this chapter.
(b)
A person who knowingly fails or refuses to file the application required by §
23-51-135
commits an offense. An offense under this subsection is a Class A misdemeanor.
Amended by Act 2019, No. 315,§ 2592, eff. 7/24/2019.
Acts 1997, No. 940, § 39.
Arkansas Code of 1987 (2023) › Title 23 - PUBLIC UTILITIES AND REGULATED INDUSTRIES (§§ 23-1-101 — 23-119-105) › Subtitle 2 - FINANCIAL INSTITUTIONS AND SECURITIES (§§ 23-30-101 — 23-55-1007) › Chapter 51 - ARKANSAS TRUST INSTITUTIONS ACT (§§ 23-51-101 — 23-51-200) › Section 23-51-140 - Voting securities held by state trust company

(a)
Voting securities of a state trust company held by the state trust company in a fiduciary capacity under a will or trust, whether registered in its own name or in the name of its nominee, may not be voted in the election of directors or managers or on a matter affecting the compensation of directors, managers, officers, or employees of the state trust company in that capacity, unless:
(1)
Under the terms of the will or trust, the manner in which the voting securities are to be voted may be determined by a donor or beneficiary of the will or trust and the donor or beneficiary actually makes the determination in the matter at issue;
(2)
The terms of the will or trust expressly direct the manner in which the securities must be voted to the extent that no discretion is vested in the state trust company as fiduciary; or
(3)
The securities are voted solely by a co-fiduciary that is not an affiliate of the state trust company, as if the co-fiduciary were the sole fiduciary.
(b)
Voting securities of a state trust company that cannot be voted under this section are considered to be authorized but unissued for purposes of determining the procedures for and results of the affected vote.
Acts 1997, No. 940, § 40.
Arkansas Code of 1987 (2023) › Title 23 - PUBLIC UTILITIES AND REGULATED INDUSTRIES (§§ 23-1-101 — 23-119-105) › Subtitle 2 - FINANCIAL INSTITUTIONS AND SECURITIES (§§ 23-30-101 — 23-55-1007) › Chapter 51 - ARKANSAS TRUST INSTITUTIONS ACT (§§ 23-51-101 — 23-51-200) › Section 23-51-141 - Bylaws

Each state trust company shall adopt bylaws and may amend its bylaws from time to time for the purposes and in accordance with the procedures set forth in the Arkansas Business Corporation Act, §
4-27-101
et seq.
Acts 1997, No. 940, § 41.
Arkansas Code of 1987 (2023) › Title 23 - PUBLIC UTILITIES AND REGULATED INDUSTRIES (§§ 23-1-101 — 23-119-105) › Subtitle 2 - FINANCIAL INSTITUTIONS AND SECURITIES (§§ 23-30-101 — 23-55-1007) › Chapter 51 - ARKANSAS TRUST INSTITUTIONS ACT (§§ 23-51-101 — 23-51-200) › Section 23-51-143 - Officers

The board shall annually elect the officers of the state trust company, who serve at the pleasure of the board. The state trust company must have a principal executive officer primarily responsible for the execution of board policies and operation of the state trust company and an officer responsible for the maintenance and storage of all corporate books and records of the state trust company and for required attestation of signatures. The board may appoint other officers of the state trust company as the board considers necessary. The duties of any two or more officers may be combined by the board and held by one person.
Acts 1997, No. 940, § 43.
Arkansas Code of 1987 (2023) › Title 23 - PUBLIC UTILITIES AND REGULATED INDUSTRIES (§§ 23-1-101 — 23-119-105) › Subtitle 2 - FINANCIAL INSTITUTIONS AND SECURITIES (§§ 23-30-101 — 23-55-1007) › Chapter 51 - ARKANSAS TRUST INSTITUTIONS ACT (§§ 23-51-101 — 23-51-200) › Section 23-51-144 - Certain criminal offenses

(a)
An officer, director, employee or shareholder of a state trust company commits an offense if the person knowingly:
(1)
Conceals information or a fact, or removes, destroys, or conceals a book or record of the state trust company for the purpose of concealing information or a fact from the Bank Commissioner or an agent of the commissioner; or
(2)
For the purpose of concealing, removes or destroys any book or record of the state trust company that is material to a pending or anticipated legal or administrative proceeding.
(b)
An officer, director or employee of a state trust company commits an offense if the person knowingly makes a false entry in the books or records or in any report or statement of the state trust company.
(c)
An offense under this section is a Class D felony.
Acts 1997, No. 940, § 44.
Arkansas Code of 1987 (2023) › Title 23 - PUBLIC UTILITIES AND REGULATED INDUSTRIES (§§ 23-1-101 — 23-119-105) › Subtitle 2 - FINANCIAL INSTITUTIONS AND SECURITIES (§§ 23-30-101 — 23-55-1007) › Chapter 51 - ARKANSAS TRUST INSTITUTIONS ACT (§§ 23-51-101 — 23-51-200) › Section 23-51-145 - Transactions with management and affiliates

(a)
Without the prior approval of a disinterested majority of the board recorded in the minutes, or if a disinterested majority cannot be obtained the prior written approval of a majority of the disinterested directors and the Bank Commissioner, a state trust company may not directly or indirectly:
(1)
Sell or lease an asset of the state trust company to an officer, director, or principal shareholder of the state trust company or an affiliate of the state trust company;
(2)
Purchase or lease an asset in which an officer, director or principal shareholder of the state trust company or an affiliate of the state trust company has an interest; or
(3)
Subject to §
23-51-128
, extend credit to an officer, director, or principal shareholder of the state trust company or an affiliate of the state trust company.
(b)
Notwithstanding subsection (a) of this section, a lease transaction described in subdivision (a)(2) of this section involving real property may not be consummated, renewed, or extended without the prior written approval of the commissioner. For purposes of this subsection only, an affiliate of the state trust company does not include a subsidiary of the state trust company.
(c)
Subject to §
23-51-128
, a state trust company may not directly or indirectly extend credit to an employee, officer, director or principal shareholder of the state trust company or an affiliate of the state trust company, unless the extension of credit:
(1)
Is made on substantially the same terms, including interest rates and collateral, as those prevailing at the time for comparable transactions by the state trust company with persons who are not employees, officers, directors, principal shareholders, or affiliates of the state trust company;
(2)
Does not involve more than the normal risk of repayment or present other unfavorable features; and
(3)
The state trust company follows credit underwriting procedures that are not less stringent than those applicable to comparable transactions by the state trust company with persons who are not employees, officers, directors, principal shareholders or affiliates of the state trust company.
(d)
An officer or director of the state trust company who knowingly participates in or knowingly permits a violation of this section shall be guilty of a Class D felony.
(e)
The commissioner may adopt rules to administer and carry out this section, including rules to establish limits, requirements, or exemptions other than those specified by this section for particular categories of transactions.
Amended by Act 2019, No. 315,§ 2593, eff. 7/24/2019.
Acts 1997, No. 940, § 45.
Arkansas Code of 1987 (2023) › Title 23 - PUBLIC UTILITIES AND REGULATED INDUSTRIES (§§ 23-1-101 — 23-119-105) › Subtitle 2 - FINANCIAL INSTITUTIONS AND SECURITIES (§§ 23-30-101 — 23-55-1007) › Chapter 51 - ARKANSAS TRUST INSTITUTIONS ACT (§§ 23-51-101 — 23-51-200) › Section 23-51-146 - Fiduciary responsibility

The board of a state trust company is responsible for the proper exercise of fiduciary powers by the state trust company and each matter pertinent to the exercise of fiduciary powers, including:
(1)
The determination of policies;
(2)
The investment and disposition of property held in a fiduciary capacity; and
(3)
The direction and review of the actions of each officer, employee, and committee used by the state trust company in the exercise of its fiduciary powers.
Acts 1997, No. 940, § 46.
Arkansas Code of 1987 (2023) › Title 23 - PUBLIC UTILITIES AND REGULATED INDUSTRIES (§§ 23-1-101 — 23-119-105) › Subtitle 2 - FINANCIAL INSTITUTIONS AND SECURITIES (§§ 23-30-101 — 23-55-1007) › Chapter 51 - ARKANSAS TRUST INSTITUTIONS ACT (§§ 23-51-101 — 23-51-200) › Section 23-51-147 - Recordkeeping

A state trust company shall keep its fiduciary records separate and distinct from other records of the state trust company. The fiduciary records must contain all material information relative to each account as appropriate under the circumstances.
Acts 1997, No. 940, § 47.
Arkansas Code of 1987 (2023) › Title 23 - PUBLIC UTILITIES AND REGULATED INDUSTRIES (§§ 23-1-101 — 23-119-105) › Subtitle 2 - FINANCIAL INSTITUTIONS AND SECURITIES (§§ 23-30-101 — 23-55-1007) › Chapter 51 - ARKANSAS TRUST INSTITUTIONS ACT (§§ 23-51-101 — 23-51-200) › Section 23-51-148 - Bonding requirements

(a)
The board of a state trust company shall require protection and indemnity for clients in reasonable amounts established by rules adopted under this chapter, against dishonesty, fraud, defalcation, forgery, theft, and other similar insurable losses, with corporate insurance or surety companies:
(1)
Authorized to do business in this state; or
(2)
Acceptable to the Bank Commissioner and otherwise lawfully permitted to issue the coverage against those losses in this state.
(b)
Except as otherwise provided by rule, coverage required under subsection (a) of this section must include each director, officer, and employee of the state trust company without regard to whether the person receives salary or other compensation.
(c)
A state trust company may apply to the commissioner for permission to eliminate the bonding requirement of this section for a particular individual. The commissioner shall approve the application if the commissioner finds that the bonding requirement is unnecessary or burdensome. Unless the application presents novel or unusual questions, the commissioner shall approve the application or set the application for hearing not later than sixty (60) days after the date the commissioner considers the application complete and accepted for filing.
Amended by Act 2019, No. 315,§ 2594, eff. 7/24/2019.
Acts 1997, No. 940, § 48.
Arkansas Code of 1987 (2023) › Title 23 - PUBLIC UTILITIES AND REGULATED INDUSTRIES (§§ 23-1-101 — 23-119-105) › Subtitle 2 - FINANCIAL INSTITUTIONS AND SECURITIES (§§ 23-30-101 — 23-55-1007) › Chapter 51 - ARKANSAS TRUST INSTITUTIONS ACT (§§ 23-51-101 — 23-51-200) › Section 23-51-149 - Reports of apparent crime

A trust company that is the victim of a robbery, has a shortage of corporate or fiduciary funds in excess of five thousand dollars ($5,000), or is the victim of an apparent or suspected misapplication of its corporate or fiduciary funds or property in any amount by a director, officer, or employee shall report the robbery, shortages or apparent or suspected misapplication to the Bank Commissioner within forty-eight (48) hours after the time it is discovered. The initial report may be oral if the report is promptly confirmed in writing. The trust company or a director, officer, employee, or agent is not subject to liability for defamation or another charge resulting from information supplied in the report.
Acts 1997, No. 940, § 49.
Arkansas Code of 1987 (2023) › Title 23 - PUBLIC UTILITIES AND REGULATED INDUSTRIES (§§ 23-1-101 — 23-119-105) › Subtitle 2 - FINANCIAL INSTITUTIONS AND SECURITIES (§§ 23-30-101 — 23-55-1007) › Chapter 51 - ARKANSAS TRUST INSTITUTIONS ACT (§§ 23-51-101 — 23-51-200) › Section 23-51-150 - Merger authority

(a)
With the prior written approval of the Bank Commissioner, a state trust company may merge or consolidate with a state bank to the same extent as a state bank under the Arkansas Banking Code of 1997 or with another person to the same extent as a business corporation under the Arkansas Business Corporation Act of 1987, §
4-27-101
et seq., subject to this chapter.
(b)
Implementation of a plan of merger by a trust company and a state bank, approval of the board, and shareholders of the parties must be made or obtained as provided by the Arkansas Banking Code of 1997 as if the state trust company were a state bank, except as otherwise provided by rules adopted under this chapter.
(c)
Implementation of the plan of merger with a person other than a state bank, approval of the board and shareholders of the parties must be made or obtained as provided by the Arkansas Business Corporation Act of 1987, §
4-27-101
et seq., as if the state trust company were a domestic corporation and all other parties to the merger were foreign corporations and other entities, except as otherwise provided by rules adopted under this chapter.
Amended by Act 2019, No. 315,§ 2595, eff. 7/24/2019.
Acts 1997, No. 940, § 50.
Arkansas Code of 1987 (2023) › Title 23 - PUBLIC UTILITIES AND REGULATED INDUSTRIES (§§ 23-1-101 — 23-119-105) › Subtitle 2 - FINANCIAL INSTITUTIONS AND SECURITIES (§§ 23-30-101 — 23-55-1007) › Chapter 51 - ARKANSAS TRUST INSTITUTIONS ACT (§§ 23-51-101 — 23-51-200) › Section 23-51-151 - Merger application

(a)
The original articles of merger, a number of copies of the articles of merger equal to the number of surviving, new, and acquiring entities, and an application in the form required by the Bank Commissioner must be filed with the commissioner. The commissioner shall investigate the condition of the merging parties. The commissioner may require the submission of additional information as considered necessary to an informed decision.
(b)
The commissioner may approve the merger if:
(1)
Each resulting state trust company will be solvent and have adequate capitalization for its business and location;
(2)
Each resulting state trust company has in all respects complied with the statutes and rules relative to the organization of a state trust company;
(3)
All fiduciary obligations and liabilities of each state trust company that is a party to the merger have been properly discharged or otherwise lawfully assumed or retained by a state trust company or other fiduciary;
(4)
Each surviving, new, or acquiring person that is not authorized to engage in the trust business will not engage in the trust business and has in all respects complied with the laws of this state; and
(5)
All conditions imposed by the commissioner have been satisfied or otherwise resolved.
Amended by Act 2019, No. 315,§ 2596, eff. 7/24/2019.
Acts 1997, No. 940, § 51.
Arkansas Code of 1987 (2023) › Title 23 - PUBLIC UTILITIES AND REGULATED INDUSTRIES (§§ 23-1-101 — 23-119-105) › Subtitle 2 - FINANCIAL INSTITUTIONS AND SECURITIES (§§ 23-30-101 — 23-55-1007) › Chapter 51 - ARKANSAS TRUST INSTITUTIONS ACT (§§ 23-51-101 — 23-51-200) › Section 23-51-152 - Approval of commissioner

(a)
If the Bank Commissioner approves the merger and finds that all required filing fees and investigative costs have been paid, the commissioner shall:
(1)
Endorse the face of the original and each copy with the date of approval and the word "Approved";
(2)
File the original in the State Bank Department's records; and
(3)
Deliver a certified copy of the articles of merger to each surviving, new, or acquiring entity.
(b)
A merger is effective on the date of approval, unless the merger agreement provides and the commissioner consents to a different effective date.
Acts 1997, No. 940, § 52.
Arkansas Code of 1987 (2023) › Title 23 - PUBLIC UTILITIES AND REGULATED INDUSTRIES (§§ 23-1-101 — 23-119-105) › Subtitle 2 - FINANCIAL INSTITUTIONS AND SECURITIES (§§ 23-30-101 — 23-55-1007) › Chapter 51 - ARKANSAS TRUST INSTITUTIONS ACT (§§ 23-51-101 — 23-51-200) › Section 23-51-153 - Rights of dissenters to mergers

A shareholder may dissent from the merger to the extent and by following the procedure provided by the Arkansas Business Corporation Act of 1987, §
4-27-101
et seq., or rules adopted under this chapter.
Amended by Act 2019, No. 315,§ 2597, eff. 7/24/2019.
Acts 1997, No. 940, § 53.
Arkansas Code of 1987 (2023) › Title 23 - PUBLIC UTILITIES AND REGULATED INDUSTRIES (§§ 23-1-101 — 23-119-105) › Subtitle 2 - FINANCIAL INSTITUTIONS AND SECURITIES (§§ 23-30-101 — 23-55-1007) › Chapter 51 - ARKANSAS TRUST INSTITUTIONS ACT (§§ 23-51-101 — 23-51-200) › Section 23-51-154 - Authority to purchase assets of another trust institution

(a)
Subject to the provisions of this section, a state trust company may purchase assets of another state trust company or trust-related assets of another trust institution, including the right to control accounts established with the trust institution. Except as otherwise expressly provided by this chapter or any other applicable statutes, the purchase of all or part of the assets of the trust institution does not make the purchasing state trust company responsible for any liability or obligation of the selling trust institution that is not expressly assumed by the purchasing state trust company. Except as otherwise provided by this chapter, this chapter does not govern or prohibit the purchase by a trust institution of all or part of the assets of a corporation or other entity that is not a trust institution.
(b)
An application in the form required by the Bank Commissioner must be filed with the commissioner for any acquisition of all or substantially all of (i) the assets of a state trust company or (ii) the trust assets of another trust institution by a state trust company. The commissioner shall investigate the condition of the purchaser and seller and may require the submission of additional information as considered necessary to make an informed decision. The commissioner shall approve the purchase if:
(1)
The acquiring state trust company will be solvent, not in a hazardous condition and have sufficient capitalization for its business and location;
(2)
The acquiring state trust company has complied with all applicable statutes and rules, including without limitation any applicable requirements of §§
23-51-178
and
23-51-179
;
(3)
All fiduciary obligations and liabilities of the parties have been properly discharged or otherwise assumed by the acquiring state trust company;
(4)
All conditions imposed by the commissioner have been satisfied or otherwise resolved; and
(5)
All fees and costs have been paid.
(c)
A purchase requiring an application pursuant to subsection (b) of this section is effective on the date of approval, unless the purchase agreement provides for, and the commissioner consents to, a different effective date.
(d)
The acquiring state trust company shall succeed by operation of law to all of the rights, privileges and obligations of the selling trust institution under each account included in the assets acquired.
Amended by Act 2019, No. 315,§ 2598, eff. 7/24/2019.
Acts 1997, No. 940, § 54.
Arkansas Code of 1987 (2023) › Title 23 - PUBLIC UTILITIES AND REGULATED INDUSTRIES (§§ 23-1-101 — 23-119-105) › Subtitle 2 - FINANCIAL INSTITUTIONS AND SECURITIES (§§ 23-30-101 — 23-55-1007) › Chapter 51 - ARKANSAS TRUST INSTITUTIONS ACT (§§ 23-51-101 — 23-51-200) › Section 23-51-155 - Sale of assets

(a)
The board of a state trust company, with the Bank Commissioner's approval, may cause a state trust company to sell all or substantially all of its assets, including the right to control accounts established with the trust company, without shareholder approval if the commissioner finds:
(1)
The interests of the state trust company's clients, depositors, and creditors are jeopardized because of insolvency or imminent insolvency of the state trust company;
(2)
The sale is in the best interest of the state trust company's clients and creditors; and
(3)
The Federal Deposit Insurance Corporation or its successor approves the transaction unless the deposits of the state trust company are not insured.
(b)
A sale under this section must include an assumption and promise by the buyer to pay or otherwise discharge:
(1)
All of the state trust company's liabilities to clients and depositors;
(2)
All of the state trust company's liabilities for salaries of the state trust company's employees incurred before the date of the sale;
(3)
Obligations incurred by the commissioner arising out of the supervision or sale of the state trust company; and
(4)
Fees and assessments due the State Bank Department.
(c)
This section does not limit the incidental power of a state trust company to buy and sell assets in the ordinary course of business.
(d)
This section does not affect the commissioner's right to take action under any other law. The sale by a trust company of all or substantially all of its assets with shareholder approval is deemed a voluntary dissolution and liquidation and shall be governed by §
23-49-119
.
Acts 1997, No. 940, § 55.
Arkansas Code of 1987 (2023) › Title 23 - PUBLIC UTILITIES AND REGULATED INDUSTRIES (§§ 23-1-101 — 23-119-105) › Subtitle 2 - FINANCIAL INSTITUTIONS AND SECURITIES (§§ 23-30-101 — 23-55-1007) › Chapter 51 - ARKANSAS TRUST INSTITUTIONS ACT (§§ 23-51-101 — 23-51-200) › Section 23-51-156 - Required vote of shareholders

A state trust company may go into voluntary liquidation and be closed, and may surrender its charter and franchise as a corporation of this state by the affirmative votes of its shareholders owning a majority of its voting stock.
Acts 1997, No. 940, § 56.
Arkansas Code of 1987 (2023) › Title 23 - PUBLIC UTILITIES AND REGULATED INDUSTRIES (§§ 23-1-101 — 23-119-105) › Subtitle 2 - FINANCIAL INSTITUTIONS AND SECURITIES (§§ 23-30-101 — 23-55-1007) › Chapter 51 - ARKANSAS TRUST INSTITUTIONS ACT (§§ 23-51-101 — 23-51-200) › Section 23-51-157 - Corporate procedure

Shareholder action to liquidate a state trust company shall be taken at a meeting of the shareholders duly called by resolution of the board of directors, written notice of which, stating the purpose of the meeting, shall be mailed to each shareholder, or in case of a shareholder's death, to the shareholder's legal representative, addressed to the shareholder's last known residence not less than ten (10) days prior to the date of the meeting. If stockholders shall, by the required vote, elect to liquidate a trust company, a certified copy of all proceedings of the meeting at which such an action shall have been taken, attested by an officer of the trust company, shall be transmitted to the Bank Commissioner for approval.
Acts 1997, No. 940, § 57.
Arkansas Code of 1987 (2023) › Title 23 - PUBLIC UTILITIES AND REGULATED INDUSTRIES (§§ 23-1-101 — 23-119-105) › Subtitle 2 - FINANCIAL INSTITUTIONS AND SECURITIES (§§ 23-30-101 — 23-55-1007) › Chapter 51 - ARKANSAS TRUST INSTITUTIONS ACT (§§ 23-51-101 — 23-51-200) › Section 23-51-158 - Authority to liquidate - Publication

If the Bank Commissioner shall approve the liquidation, the commissioner shall issue to the state trust company under the commissioner's seal, a permit for that purpose. No such permit shall be issued by the commissioner until the commissioner shall be satisfied that provision has been made by the state trust company to satisfy and pay off all creditors. If not so satisfied, the commissioner shall refuse to issue a permit, and shall be authorized to take possession of the state trust company and its assets and business, and hold the same and liquidate the state trust company in the manner provided in this chapter. When the commissioner shall approve the voluntary liquidation of a state trust company, the directors of said state trust company shall cause to be published in a newspaper with a substantially statewide circulation published in the City of Little Rock a notice that the state trust company is closing down its affairs and going into liquidation, and notify its creditors to present their claims for payment. The notice shall be published once a week for four consecutive weeks.
Acts 1997, No. 940, § 58.
Arkansas Code of 1987 (2023) › Title 23 - PUBLIC UTILITIES AND REGULATED INDUSTRIES (§§ 23-1-101 — 23-119-105) › Subtitle 2 - FINANCIAL INSTITUTIONS AND SECURITIES (§§ 23-30-101 — 23-55-1007) › Chapter 51 - ARKANSAS TRUST INSTITUTIONS ACT (§§ 23-51-101 — 23-51-200) › Section 23-51-159 - Examination and reports

When any state trust company shall be in process of voluntary liquidation, it shall be subject to examination by the Bank Commissioner, and shall furnish such reports from time to time as may be called for by the commissioner.
Acts 1997, No. 940, § 59.
Arkansas Code of 1987 (2023) › Title 23 - PUBLIC UTILITIES AND REGULATED INDUSTRIES (§§ 23-1-101 — 23-119-105) › Subtitle 2 - FINANCIAL INSTITUTIONS AND SECURITIES (§§ 23-30-101 — 23-55-1007) › Chapter 51 - ARKANSAS TRUST INSTITUTIONS ACT (§§ 23-51-101 — 23-51-200) › Section 23-51-160 - Unclaimed property

All unclaimed property remaining in the hands of a liquidated state trust company shall be subject to the provisions of the Uniform Disposition of Unclaimed Property Act, §
18-28-201
et seq.
Acts 1997, No. 940, § 60.
Arkansas Code of 1987 (2023) › Title 23 - PUBLIC UTILITIES AND REGULATED INDUSTRIES (§§ 23-1-101 — 23-119-105) › Subtitle 2 - FINANCIAL INSTITUTIONS AND SECURITIES (§§ 23-30-101 — 23-55-1007) › Chapter 51 - ARKANSAS TRUST INSTITUTIONS ACT (§§ 23-51-101 — 23-51-200) › Section 23-51-161 - Sale or transfer of property

Upon the approval of the Bank Commissioner, any state trust company may sell and transfer to any other trust institution, whether state or federally chartered, all of its assets of every kind upon such terms as may be agreed upon and approved by the commissioner and by a majority vote of its board of directors. A certified copy of the minutes of any meeting at which such an action is taken, attested by an officer of the trust company, together with a copy of the contract of sale and transfer, shall be filed with the commissioner. Whenever voluntary liquidation shall be approved by the commissioner or the sale and transfer of the assets of any state trust company shall be approved by the commissioner, the charter of the state trust company shall be canceled, subject, however, to its continued existence, as provided by this chapter and the general law relative to corporations.
Acts 1997, No. 940, § 61.
Arkansas Code of 1987 (2023) › Title 23 - PUBLIC UTILITIES AND REGULATED INDUSTRIES (§§ 23-1-101 — 23-119-105) › Subtitle 2 - FINANCIAL INSTITUTIONS AND SECURITIES (§§ 23-30-101 — 23-55-1007) › Chapter 51 - ARKANSAS TRUST INSTITUTIONS ACT (§§ 23-51-101 — 23-51-200) › Section 23-51-162 - When commissioner may take charge

The Bank Commissioner may forthwith take possession of the business and property of any state trust company to which this chapter is applicable whenever it shall appear that the state trust company:
(1)
Has violated its charter or any laws applicable thereto;
(2)
Is conducting its business in an unauthorized or unsafe manner;
(3)
Is in an unsafe or unsound condition to transact its business;
(4)
Has an impairment of its capital;
(5)
Is in a hazardous condition;
(6)
Has become otherwise insolvent;
(7)
Has neglected or refused to comply with the terms of a duly issued lawful order of the commissioner;
(8)
Has refused, upon proper demand, to submit its records, affairs, and concerns for inspection and examination of a duly appointed or authorized examiner of the commissioner;
(9)
Is employing officers who have refused to be examined upon oath regarding its affairs; or
(10)
Has made a voluntary assignment of its assets to trustees.
Acts 1997, No. 940, § 62.
Arkansas Code of 1987 (2023) › Title 23 - PUBLIC UTILITIES AND REGULATED INDUSTRIES (§§ 23-1-101 — 23-119-105) › Subtitle 2 - FINANCIAL INSTITUTIONS AND SECURITIES (§§ 23-30-101 — 23-55-1007) › Chapter 51 - ARKANSAS TRUST INSTITUTIONS ACT (§§ 23-51-101 — 23-51-200) › Section 23-51-163 - Directors may act

Any state trust company may place its assets and business under the control of the Bank Commissioner for liquidation by a resolution of a majority of its directors or members upon notice to the commissioner, and, upon taking possession of the state trust company, the commissioner, or duly appointed agent, shall retain possession thereof until the state trust company shall be authorized by the commissioner to resume business or until the affairs of the state trust company shall be fully liquidated as herein provided. No state trust company shall make any general assignment for the benefit of its creditors except by surrendering possession of its assets to the commissioner, as herein provided. Whenever any state trust company for any reason shall suspend operations for any length of time, the state trust company shall, immediately upon the suspension of operations, be deemed in the possession of the commissioner and subject to liquidation hereunder.
Acts 1997, No. 940, § 63.