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 47 - BANK POWERS - SUBSIDIARIES (§§ 23-47-101 — 23-47-906) › Subchapter 5 - LOANS (§§ 23-47-501 — 23-47-510) › Section 23-47-506 - Sale of certain mortgage loans

Notwithstanding any other provision of law, any state bank which has as one (1) of its principal purposes the making or purchasing of loans secured by real estate mortgages is authorized to:
(1)
Sell the mortgage loans to the Federal National Mortgage Association, the Federal Home Loan Mortgage Corporation, the Government National Mortgage Association, or any other corporation chartered by an act of Congress for such purposes, or any successor thereof;
(2)
In connection therewith, make payments of any capital contributions required pursuant to law in the nature of subscriptions for stock of the entities described in subdivision (1) of this section;
(3)
Receive stock evidencing such capital contributions; and
(4)
Hold or dispose of such stock.
Acts 1997, No. 89, § 1.
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 47 - BANK POWERS - SUBSIDIARIES (§§ 23-47-101 — 23-47-906) › Subchapter 5 - LOANS (§§ 23-47-501 — 23-47-510) › Section 23-47-507 - Power to hold and sell collateral

(a)
A state bank may hold and sell all kinds of property that may come into its possession as collateral security for loans or any ordinary collection of debts in the manner provided by law.
(b)
Any personal property coming into its possession in this manner and which is not otherwise authorized for state banks to own as an asset shall be disposed of as soon as possible and after twelve (12) months from the date of acquisition shall cease to be considered as a part of its assets.
Acts 1997, No. 89, § 1.
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 47 - BANK POWERS - SUBSIDIARIES (§§ 23-47-101 — 23-47-906) › Subchapter 5 - LOANS (§§ 23-47-501 — 23-47-510) › Section 23-47-508 - Disposition of real estate acquired through debt collection

(a)
Except as provided in subsection (b) of this section, real estate acquired through the collection of debts previously contracted in the ordinary course of business shall not be held by the state bank as an asset for a longer period than five (5) years.
(b)
The Bank Commissioner is authorized to grant an extension of the holding period not to exceed five (5) additional years, or for shorter periods as circumstances warrant, based upon his or her discretion.
(c)
Real estate held pursuant to this section shall be considered an asset of the bank. The value of the asset shall be based upon fair market value supported by an appraisal or appropriate evaluation when the bank acquires ownership of the property or as established by rule of the commissioner.
Amended by Act 2019, No. 315,§ 2533, eff. 7/24/2019.
Acts 1997, No. 89, § 1; 2001, No. 62, § 2.
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 47 - BANK POWERS - SUBSIDIARIES (§§ 23-47-101 — 23-47-906) › Subchapter 5 - LOANS (§§ 23-47-501 — 23-47-510) › Section 23-47-509 - Loans to minors

Whenever a minor borrows money from a bank for the purpose of defraying the expenses of his or her higher education or for necessaries, any contract, promissory note, loan agreement, or other loan instrument entered into by and between the bank and the minor shall constitute a valid contract between the bank and the minor and shall be binding upon the minor with like effect as if he or she were of full age and legal capacity.
Acts 1997, No. 89, § 1.
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 47 - BANK POWERS - SUBSIDIARIES (§§ 23-47-101 — 23-47-906) › Subchapter 5 - LOANS (§§ 23-47-501 — 23-47-510) › Section 23-47-510 - Casualty insurance - Replacement cost coverage

(a)
A state bank, when making a mortgage loan, may not require, as a condition or term of the mortgage, that the mortgagor purchase casualty insurance on property which is the subject of the mortgage in an amount in excess of the fair market value of the buildings or appurtenances on the mortgaged premises.
(b)
This section shall not be construed as limiting the right of the mortgagor to purchase replacement cost coverage on the property which is the subject of the mortgage.
Acts 1997, No. 89, § 1.
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 47 - BANK POWERS - SUBSIDIARIES (§§ 23-47-101 — 23-47-906) › Subchapter 6 - SUBSIDIARIES (§§ 23-47-601 — 23-47-608) › Section 23-47-601 - Operating subsidiaries

(a)
(1)
With the prior approval of the Bank Commissioner, and subject to such conditions as may be prescribed by him or her, a state bank may engage in any activities which are a part of the business of banking or incidental thereto by means of an operating subsidiary and other activities permissible for state banks or their subsidiaries under statutory authority or as authorized by rules of the State Banking Board.
(2)
For purposes of this section, an operating subsidiary in which a state bank may invest includes a corporation, limited liability company, or similar entity if the parent bank owns more than fifty percent (50%) of the voting, or similar type of controlling, interest of the subsidiary; or the parent bank otherwise controls the subsidiary and no other party controls more than fifty percent (50%) of the voting, or similar type of controlling interest, of the subsidiary.
(3)
Subsidiaries which are not subject to this section are:
(A)
A subsidiary in which the state bank's investment is made and limited pursuant to specific authorization in a statute or by rule; and
(B)
A subsidiary, in which the state bank has acquired, in good faith, shares through foreclosure on collateral, by way of compromise of a doubtful claim, or to avoid loss in connection with a debt previously contracted.
(b)
The total of each state bank's loans and investments in any single operating subsidiary and the total of each state bank's loans and investments in all subsidiaries, and bank service companies, will be considered by the commissioner and may be limited according to the commissioner's discretion, for safety and soundness purposes.
Amended by Act 2019, No. 315,§ 2538, eff. 7/24/2019.
Acts 1997, No. 89, § 1; 1999, No. 112, § 2.
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 47 - BANK POWERS - SUBSIDIARIES (§§ 23-47-101 — 23-47-906) › Subchapter 6 - SUBSIDIARIES (§§ 23-47-601 — 23-47-608) › Section 23-47-602 - Real estate subsidiaries

(a)
A state bank acting through an operating subsidiary or a bank holding company acting, directly or through a subsidiary, may, with the prior approval of the Bank Commissioner, engage in real estate investment and development, including without limitation:
(1)
Development of subdivisions or additions;
(2)
Construction of improvements;
(3)
Acquisition of stock or equity interests in any entity created primarily for the purpose of owning and developing real estate, including those activities authorized for community development corporations pursuant to §
23-47-605
; and
(4)
Any other activities necessary and proper in connection with real estate investment and development.
(b)
A state bank's investment in real estate and in real estate subsidiaries, excluding its bank premises, shall not exceed one hundred fifty percent (150%) of its capital base.
(c)
A state bank acting through an operating subsidiary or a bank holding company acting directly or through a subsidiary may carry out any one (1) or more of the purposes, activities, and objectives set forth in this section as principal, factor, agent, or otherwise, either alone, through, or in conjunction with any person, including the performance and carrying out of the purposes and objects herein enumerated as a member of a partnership or joint venture.
(d)
Loans to an operating subsidiary engaged in real estate investment and development that are fully secured by securities that the state bank could invest in without limitation pursuant to §
23-47-401
shall not be subject to the limitations of this section.
Acts 1997, No. 89, § 1; 1999, No. 112, § 3.
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 47 - BANK POWERS - SUBSIDIARIES (§§ 23-47-101 — 23-47-906) › Subchapter 6 - SUBSIDIARIES (§§ 23-47-601 — 23-47-608) › Section 23-47-603 - Bank service companies

(a)
As used in this section, unless the context otherwise requires:
(1)
"Bank service company" means a corporation or limited liability company organized for the exclusive purpose of performing bank services for one (1) or more persons, which is owned by one (1) or more state banks and one (1) or more persons; and
(2)
"Bank services" means services such as check and deposit sorting and posting, computation and posting of interest and other credits and charges; preparation and mailing of checks, statements, notices, and similar items; any other clerical, bookkeeping, accounting, statistical, or similar functions performed for a person; or any other activities authorized by the Bank Commissioner.
(b)
(1)
With the prior approval of the commissioner and subject to the conditions that may be prescribed by him or her, a state bank may establish, create, or invest in a bank service company to furnish bank services to owners of the bank service company and other persons.
(2)
The total of a state bank's loans to and investments in a bank service company shall not exceed twenty percent (20%) of the bank's capital base.
(c)
When a state bank becomes the sole owner of a bank service company, it shall become an operating subsidiary of the bank and be governed by §
23-47-601
.
Acts 1997, No. 89, § 1.
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 47 - BANK POWERS - SUBSIDIARIES (§§ 23-47-101 — 23-47-906) › Subchapter 6 - SUBSIDIARIES (§§ 23-47-601 — 23-47-608) › Section 23-47-604 - [Repealed]

Repealed by Act 2017, No. 426,§ 14, eff. 8/1/2017.
Acts 1997, No. 89, § 1; 2003, No. 860, § 15.
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 47 - BANK POWERS - SUBSIDIARIES (§§ 23-47-101 — 23-47-906) › Subchapter 6 - SUBSIDIARIES (§§ 23-47-601 — 23-47-608) › Section 23-47-605 - Community development corporations

(a)
As used in this section, the term "public welfare" means developing housing, fostering economic growth and revitalization, creating small businesses, including minority-owned businesses, and supporting other community development initiatives approved by the Bank Commissioner.
(b)
A state bank may make investments designed primarily to promote the public welfare, either directly or by purchasing interests in an entity primarily engaged in making the investments.
(c)
A state bank shall not make any investment if the investment would expose the bank to unlimited liability.
(d)
The commissioner may limit a state bank's investments in any one (1) project and a bank's aggregate investments under this section.
(e)
In no case shall a state bank's aggregate investments under this section exceed ten percent (10%) of the bank's capital base.
Acts 1997, No. 89, § 1.
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 47 - BANK POWERS - SUBSIDIARIES (§§ 23-47-101 — 23-47-906) › Subchapter 6 - SUBSIDIARIES (§§ 23-47-601 — 23-47-608) › Section 23-47-606 - Small business investment companies

(a)
A state bank may purchase up to one hundred percent (100%) of the capital stock of small business investment companies and minority enterprise small business investment companies as defined by the Small Business Investment Act of 1958.
(b)
However, in no event may any state bank acquire shares of any small business investment company or minority enterprise small business investment company if, upon the making of that acquisition, the aggregate amount of shares in small business investment companies or minority enterprise small business investment companies then held by the bank would exceed ten percent (10%) of the bank's capital base.
Acts 1997, No. 89, § 1.
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 47 - BANK POWERS - SUBSIDIARIES (§§ 23-47-101 — 23-47-906) › Subchapter 6 - SUBSIDIARIES (§§ 23-47-601 — 23-47-608) › Section 23-47-607 - Investment in stock of certain banks authorized to do foreign banking

(a)
Any state bank may purchase up to one hundred percent (100%) of the capital stock of any corporation organized and existing under the Edge Act, and any amendments thereto.
(b)
However, in no event may any state bank acquire shares of any such corporation if, upon the making of that acquisition, the aggregate amount of shares of all corporations organized and existing under the Edge Act then held by the bank would exceed ten percent (10%) of the bank's capital base.
Acts 1997, No. 89, § 1.
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 47 - BANK POWERS - SUBSIDIARIES (§§ 23-47-101 — 23-47-906) › Subchapter 6 - SUBSIDIARIES (§§ 23-47-601 — 23-47-608) › Section 23-47-608 - Authority to act through subsidiaries

With prior notice to the Bank Commissioner and in accordance with the state and federal law, state banks are authorized to engage in activities through financial subsidiaries.
Acts 2001, No. 62, § 1.
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 47 - BANK POWERS - SUBSIDIARIES (§§ 23-47-101 — 23-47-906) › Subchapter 7 - TRUST POWERS (§§ 23-47-701 — 23-47-710) › Section 23-47-701 - Authority of Bank Commissioner

The Bank Commissioner shall be authorized and empowered to grant to state banks applying therefor the right to operate a trust department to act as trustee, executor, administrator, custodian, registrar, paying agent or transfer agent of stocks and bonds, guardian of estates, assignee, or receiver or to act in any other fiduciary capacity in which national banks, subsidiary trust companies, national trust companies, or other corporations which come into competition with state banks are permitted to act.
Acts 1997, No. 89, § 1.
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 47 - BANK POWERS - SUBSIDIARIES (§§ 23-47-101 — 23-47-906) › Subchapter 7 - TRUST POWERS (§§ 23-47-701 — 23-47-710) › Section 23-47-702 - Considerations determinative of grant or denial of applications

In determining whether to grant an application by a state bank for permission to operate a trust department to exercise the powers enumerated in this subchapter, the Bank Commissioner may take into consideration the sufficiency of the capital base of the applying state bank, the needs of the community to be served, and any other facts and circumstances that seem to him or her proper, and may grant or refuse the application accordingly.
Acts 1997, No. 89, § 1.
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 47 - BANK POWERS - SUBSIDIARIES (§§ 23-47-101 — 23-47-906) › Subchapter 7 - TRUST POWERS (§§ 23-47-701 — 23-47-710) › Section 23-47-703 - Grant and exercise of powers deemed not in contravention of Arkansas law

The granting and exercise of such powers as are authorized by this subchapter shall not be deemed to be in contravention of any other provision of Arkansas law.
Acts 1997, No. 89, § 1.
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 47 - BANK POWERS - SUBSIDIARIES (§§ 23-47-101 — 23-47-906) › Subchapter 7 - TRUST POWERS (§§ 23-47-701 — 23-47-710) › Section 23-47-704 - Segregation of fiduciary and general assets - Separate books and records

State banks exercising any or all of the powers enumerated in this subchapter shall segregate all assets held in its trust department from the general assets of the bank and shall keep a separate set of books and records showing in proper detail all transactions engaged in under authority of this subchapter.
Acts 1997, No. 89, § 1.
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 47 - BANK POWERS - SUBSIDIARIES (§§ 23-47-101 — 23-47-906) › Subchapter 7 - TRUST POWERS (§§ 23-47-701 — 23-47-710) › Section 23-47-705 - Prohibited operations - Separate investment account - Collateral for certain funds used in conduct of business - Lien and claim upon state bank failure

(a)
(1)
No state bank shall receive in its trust department deposits of current funds subject to check or the deposit of checks, drafts, bills of exchange, or other items for collection or exchange purposes.
(2)
Funds deposited or held in trust by the state bank awaiting investment shall be carried in a separate account and shall not be used by the bank in the conduct of its business unless it shall secure the funds deposited or held in trust with investments in which a state bank may invest without limitation pursuant to §
23-47-401
.
(3)
No security shall be required to the extent the funds so deposited or held in trust are insured under the provisions of the Federal Deposit Insurance Act.
(b)
In the event of the failure of the state bank, the owners of the funds held in trust for investment shall have a first priority lien on the bonds or other securities so set apart in addition to their claim against the estate of the bank.
Acts 1997, No. 89, § 1.
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 47 - BANK POWERS - SUBSIDIARIES (§§ 23-47-101 — 23-47-906) › Subchapter 7 - TRUST POWERS (§§ 23-47-701 — 23-47-710) › Section 23-47-706 - Official's oath or affidavit

If Arkansas law requires that a corporation acting as trustee, executor, administrator, or in any capacity specified in this subchapter shall take an oath or make an affidavit, the president or chief executive officer, a vice president, or a trust officer of a state bank may take the necessary oath or execute the necessary affidavit.
Amended by Act 2017, No. 198,§ 3, eff. 8/1/2017.
Acts 1997, No. 89, § 1.
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 47 - BANK POWERS - SUBSIDIARIES (§§ 23-47-101 — 23-47-906) › Subchapter 7 - TRUST POWERS (§§ 23-47-701 — 23-47-710) › Section 23-47-707 - Loans of trust funds to officers and employees prohibited - Penalties

(a)
It shall be unlawful for any state bank to lend to any officer, director, or employee any funds held in trust under the powers conferred by this subchapter, or to sell assets held in trust to any such persons, without the prior written approval of the Bank Commissioner.
(b)
In the absence of the prior written approval of the commissioner, any officer, director, or employee making the loan or sale, or to whom the loan or sale is made is guilty of a Class D felony.
Acts 1997, No. 89, § 1.
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 47 - BANK POWERS - SUBSIDIARIES (§§ 23-47-101 — 23-47-906) › Subchapter 7 - TRUST POWERS (§§ 23-47-701 — 23-47-710) › Section 23-47-708 - Surrender of authorization - Board resolution - Commissioner certification - Activities affected

(a)
(1)
Any state bank desiring to surrender its right to operate a trust department and to exercise the powers granted under this subchapter, in order to relieve itself of the necessity of complying with the requirements of this subchapter, or to have returned to it any securities which it may have deposited with the state and local authorities for the protection of private or court trusts, or for any other purpose, may file with the Bank Commissioner a certified copy of a resolution of its board of directors signifying the desire.
(2)
Upon receipt of the resolution, the commissioner, after satisfying himself or herself that the bank has been relieved in accordance with Arkansas law of all duties as trustee, executor, administrator, custodian, registrar, paying agent or transfer agent of stocks or bonds, guardian of estates, assignee, receiver, or other fiduciary, under court, private, or other appointments previously accepted under authority of this subchapter may, in his or her discretion, issue to the bank a certificate certifying that the bank is no longer authorized to operate a trust department and exercise the powers granted by this subchapter.
(b)
Upon the issuance of a certificate by the commissioner certifying that a state bank is no longer authorized to operate a trust department, the bank:
(1)
Shall no longer operate a trust department or be subject to the provisions of this subchapter or State Bank Department rules made pursuant thereto;
(2)
Shall be entitled to have returned to it any securities which it may have deposited with state or local authorities for the protection of private or court trusts; and
(3)
Shall not operate a trust department or exercise thereafter any of the powers granted by this subchapter without first applying for and obtaining a new permit to operate a trust department to exercise such powers pursuant to the provisions of this subchapter.
Amended by Act 2019, No. 315,§ 2539, eff. 7/24/2019.
Acts 1997, No. 89, § 1.
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 47 - BANK POWERS - SUBSIDIARIES (§§ 23-47-101 — 23-47-906) › Subchapter 7 - TRUST POWERS (§§ 23-47-701 — 23-47-710) › Section 23-47-709 - Revocation - Procedures available

(a)
(1)
In addition to the authority conferred by any other law, if, in the opinion of the Bank Commissioner, a state bank is unlawfully or unsoundly operating a trust department or exercising, or has unlawfully or unsoundly operated or exercised, or has failed for a period of five (5) consecutive years to operate a trust department or exercise the powers granted by this subchapter, or otherwise fails or has failed to comply with the requirements of this subchapter, the commissioner may issue and serve upon the bank a notice of intent to revoke the authority of the bank to operate its trust department and exercise the powers granted by this subchapter.
(2)
The notice shall contain a statement of the facts constituting the alleged unlawful or unsound operation or exercise of powers, or failure to operate or exercise powers, or failure to comply, and shall fix a time and place at which a hearing will be held to determine whether an order revoking the authority to exercise the powers should issue against the bank.
(b)
The hearing shall be conducted in accordance with the provisions of the Arkansas Administrative Procedure Act, §
25-15-201
et seq., and shall be fixed for a date not earlier than thirty (30) days nor later than sixty (60) days after service of the notice unless an earlier or later date is set by the commissioner at the request of any state bank so served.
(c)
(1)
Unless the state bank so served shall appear at the hearing by an authorized representative, it shall be deemed to have consented to the issuance of the revocation order.
(2)
In the event of consent, or if upon the record made at the hearing, the commissioner shall find that any allegation specified in the notice of charges has been established, the commissioner may issue and serve upon the state bank an order prohibiting it from accepting any new or additional trust accounts and revoking authority to operate its trust department and exercise any and all powers granted by this subchapter, except that the order shall permit the bank to continue to service all previously accepted trust accounts pending their expeditious divestiture or termination.
(d)
A revocation order shall become effective not earlier than the expiration of thirty (30) days after service of the order upon the state bank so served, except in the case of a revocation order issued upon consent, which shall become effective at the time specified therein, and shall remain effective and enforceable, except to the extent that it is stayed, modified, terminated, or set aside by action of the commissioner or a reviewing court.
Acts 1997, No. 89, § 1.
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 47 - BANK POWERS - SUBSIDIARIES (§§ 23-47-101 — 23-47-906) › Subchapter 7 - TRUST POWERS (§§ 23-47-701 — 23-47-710) › Section 23-47-710 - Services provided by affiliates

(a)
Any bank, subsidiary trust company, or national trust company qualified to act as a fiduciary in this state is hereby specifically authorized to utilize its respective affiliates to provide services for any trust or estate for which the bank, subsidiary trust company, or national trust company acts as a trustee or other fiduciary, provided the bank, subsidiary trust company, or national trust company believes, in the exercise of the standard of care described in §
28-71-105
, that the services are reasonably necessary and that its affiliate can render the services, including, but not limited to, securities brokerage services, computer services, and banking services to the trust or estate as competently as similar services rendered by nonaffiliates and for compensation equal to or less than that charged by nonaffiliates.
(b)
Provided the foregoing requirements are met, an affiliate may be utilized by the bank, subsidiary trust company, or national trust company without the approval or consent of any person or specific authorization in the trust instrument, unless the power is expressly withheld in the trust instrument.
Acts 1997, No. 89, § 1; 1997, No. 408, § 6.
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 47 - BANK POWERS - SUBSIDIARIES (§§ 23-47-101 — 23-47-906) › Subchapter 8 - SUBSIDIARY TRUST COMPANIES (§§ 23-47-801 — 23-47-807) › Section 23-47-801 - Definitions

For purposes of this subchapter, "affiliated bank" means a bank, having authority to conduct trust business and business incidental to trust business within this state, more than fifty percent (50%) of the voting stock of which is owned directly or indirectly by:
(1)
The same bank holding company that owns, directly or indirectly, more than fifty percent (50%) of the voting stock of a subsidiary trust company or national trust company; or
(2)
The same five (5) or fewer persons who are individuals, estates, or trusts that own directly or indirectly more than fifty percent (50%) of the voting stock of the bank holding company described in subdivision (1) of this section, taking into account the stock ownership of each such person only to the extent the ownership is identical with respect to each of the bank and the bank holding company.
Acts 1997, No. 89, § 1; 1997, No. 408, § 7.
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 47 - BANK POWERS - SUBSIDIARIES (§§ 23-47-101 — 23-47-906) › Subchapter 8 - SUBSIDIARY TRUST COMPANIES (§§ 23-47-801 — 23-47-807) › Section 23-47-802 - Subsidiary trust companies - Creation, formation, etc. - Powers - Location

(a)
Notwithstanding the provisions of §
23-48-405
, bank holding companies that own, directly or indirectly, an affiliated bank are authorized and empowered by the provisions of this subchapter to apply to the Bank Commissioner for authority to:
(1)
Create, form, and establish subsidiary trust companies under this subchapter for the purpose of combining the trust operations of their affiliated banks into a single trust operation; and
(2)
Create, form, and establish national trust companies under the laws of the United States.
(b)
In determining whether to grant an application for permission to establish a subsidiary trust company, the commissioner shall take into consideration the sufficiency of the capital base of the applying bank holding company, the needs of the communities to be served, and any other facts and circumstances that seem to him or her proper, and may grant or refuse the application accordingly.
(c)
The subsidiary trust company shall be formed as a business corporation under the Arkansas Business Corporation Act, §
4-27-101
et seq. The newly formed subsidiary trust company shall only have the ability to conduct trust business that could be conducted by the individual trust departments combined from the affiliated banks to create the subsidiary trust company.
(d)
Offices of a subsidiary trust company may be located only in:
(1)
Communities where its affiliated banks are located or in communities where their branches are or could be located; or
(2)
Communities where it would be authorized to have an office if it were a national trust company.
(e)
A subsidiary trust company shall be fully subject to the provisions of §
23-50-101
et seq.
Acts 1997, No. 89, § 1.
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 47 - BANK POWERS - SUBSIDIARIES (§§ 23-47-101 — 23-47-906) › Subchapter 8 - SUBSIDIARY TRUST COMPANIES (§§ 23-47-801 — 23-47-807) › Section 23-47-804 - Removal of accounts from operation of substitution agreement - Denial of substitution

(a)
A fiduciary account may be removed from the operation of the agreement by an amendment to the agreement filed with the Bank Commissioner before the effective date stated in the agreement.
(b)
The substitution of a subsidiary trust company or national trust company as fiduciary of an account may be denied if the court having jurisdiction, on notice and hearing, determines that the substitution of fiduciary is a material detriment to the account or to the beneficiaries of the account.
(c)
Subsection (b) of this section is cumulative to any applicable provision for removal of a fiduciary or appointment of a successor fiduciary under Arkansas law or in the instrument creating the fiduciary relationship.
(d)
In any proceeding under this section, the court may award costs and reasonable and necessary attorney's fees as the court considers equitable and just.
Acts 1997, No. 89, § 1.
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 47 - BANK POWERS - SUBSIDIARIES (§§ 23-47-101 — 23-47-906) › Subchapter 8 - SUBSIDIARY TRUST COMPANIES (§§ 23-47-801 — 23-47-807) › Section 23-47-805 - Deposits

(a)
A subsidiary trust company or national trust company may deposit with an affiliated bank fiduciary funds that are being held pending investment, distribution, or payment of debts.
(b)
A subsidiary trust company or national trust company may deposit with an affiliated bank fiduciary funds as a permanent investment if authorized by the settlor in the instrument creating the trust or if authorized in a writing delivered to the trustee by a beneficiary currently eligible to receive distributions from a trust.
Acts 1997, No. 89, § 1.
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 47 - BANK POWERS - SUBSIDIARIES (§§ 23-47-101 — 23-47-906) › Subchapter 8 - SUBSIDIARY TRUST COMPANIES (§§ 23-47-801 — 23-47-807) › Section 23-47-806 - Responsibility for acts and omissions

(a)
The bank holding company owning a subsidiary trust company or national trust company shall file with the Bank Commissioner an irrevocable undertaking to be fully responsible for the existing and future fiduciary acts and omissions of its subsidiary trust company or national trust company.
(b)
If an affiliated bank has given bond to secure performance of its duties and the subsidiary trust company or national trust company qualifies as successor fiduciary, the subsidiary trust company or national trust company shall give bond to secure performance of its duties in the same manner.
Acts 1997, No. 89, § 1.
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 47 - BANK POWERS - SUBSIDIARIES (§§ 23-47-101 — 23-47-906) › Subchapter 8 - SUBSIDIARY TRUST COMPANIES (§§ 23-47-801 — 23-47-807) › Section 23-47-807 - Qualification as successor fiduciary

For the purposes of qualification as successor fiduciary under any requirements contained in any document creating a fiduciary account or any statute of this state relating to fiduciary accounts, the subsidiary trust company or national trust company:
(1)
Is considered to have capital and surplus equal to its capital and surplus plus the capital and surplus of its owning bank holding company; and
(2)
Shall be treated as a national bank, unless:
(A)
It is not a national bank under federal law relating to national banks; and
(B)
It has not entered into a substitution agreement with an affiliated bank that is a national bank under federal law relating to national banks.
Acts 1997, No. 89, § 1.
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 47 - BANK POWERS - SUBSIDIARIES (§§ 23-47-101 — 23-47-906) › Subchapter 9 - SAFE-DEPOSIT FACILITIES (§§ 23-47-901 — 23-47-906) › Section 23-47-901 - Safe deposit facilities - Liability of lessor

(a)
A bank may lease safe-deposit boxes for the keeping of property on terms as may be agreed to by the parties.
(b)
No bank shall be liable for any loss of the property in a safe-deposit box by theft, robbery, fire, or other cause.
Acts 1997, No. 89, § 1; 1997, No. 408, § 8.
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 47 - BANK POWERS - SUBSIDIARIES (§§ 23-47-101 — 23-47-906) › Subchapter 9 - SAFE-DEPOSIT FACILITIES (§§ 23-47-901 — 23-47-906) › Section 23-47-902 - Multiple-party leases

(a)
If a safe-deposit box is held in the name of two (2) or more persons, any one (1) of such persons shall be entitled to access the safe-deposit box and shall be permitted to remove the contents thereof, and the bank shall not be responsible for any damage arising by reason of such access or removal by one (1) of the persons.
(b)
The death of one (1) holder of a safe-deposit box held in the name of two (2) or more persons does not affect the right of any other holder of the safe-deposit box to have access to and to remove contents from the safe-deposit box.
Acts 1997, No. 89, § 1.
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 47 - BANK POWERS - SUBSIDIARIES (§§ 23-47-101 — 23-47-906) › Subchapter 9 - SAFE-DEPOSIT FACILITIES (§§ 23-47-901 — 23-47-906) › Section 23-47-903 - Lease to a minor

A bank may lease a safe-deposit box to a minor and in connection therewith, deal with him or her to the same effect as if leasing to and dealing with a person of full legal capacity.
Acts 1997, No. 89, § 1.
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 47 - BANK POWERS - SUBSIDIARIES (§§ 23-47-101 — 23-47-906) › Subchapter 9 - SAFE-DEPOSIT FACILITIES (§§ 23-47-901 — 23-47-906) › Section 23-47-904 - Limiting right of access for failure to comply with security procedures

If any lessee is unwilling or unable to comply with any of the bank's normal requirements or procedures in connection with access to a safe-deposit box relating to security, safety, or protection, the bank has the right to limit or deny access to the safe-deposit box by that lessee unless all lessees of the safe-deposit box take such action as is necessary to ensure reasonable compliance with the security, safety, or protection requirements or procedures.
Acts 1997, No. 89, § 1.
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 47 - BANK POWERS - SUBSIDIARIES (§§ 23-47-101 — 23-47-906) › Subchapter 9 - SAFE-DEPOSIT FACILITIES (§§ 23-47-901 — 23-47-906) › Section 23-47-905 - Adverse claims to contents of safe-deposit box

Notice to a bank of an adverse claim to the contents of a safe-deposit box shall not be sufficient to require the bank to deny access to its lessee unless the adverse claimant also procures a restraining order, injunction, or other process, which has become final and not further appealable, issued in an action by a court of competent jurisdiction in which the lessee is served with process and named as a party.
Acts 1997, No. 89, § 1.
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 47 - BANK POWERS - SUBSIDIARIES (§§ 23-47-101 — 23-47-906) › Subchapter 9 - SAFE-DEPOSIT FACILITIES (§§ 23-47-901 — 23-47-906) › Section 23-47-906 - Remedies and procedures for nonpayment of rent

(a)
If the safe-deposit box rental is delinquent for six (6) months, the bank, after at least thirty (30) days' notice by certified mail, return receipt requested, addressed to the lessee at the lessee's last known address on the books of the bank, may, if the rent is not paid within the time specified in the notice, open the safe-deposit box in the presence of a notary public and two (2) employees, at least one (1) of whom is an officer of the bank.
(b)
The bank shall inventory the contents of the safe-deposit box in detail and place the contents of the safe-deposit box in a sealed envelope or container bearing the name of the lessee.
(c)
(1)
The bank shall hold the contents of the safe-deposit box subject to a lien for its rental, the cost of opening the safe-deposit box, and the damages in connection therewith.
(2)
If the rental, cost, damages, and any other lawful charges for the use of the safe-deposit box or the holding of the contents of the safe-deposit box are not paid within two (2) years from the date of opening of the safe-deposit box, the bank may sell at that time or at any time before the period of time established by §
18-28-203
from the date the safe-deposit box lease expired, any of the contents of the safe-deposit box at public auction in the manner and upon the notice as is prescribed for the sale of real property under mortgage or deed of trust.
(3)
Any unauctioned contents of safe-deposit boxes and any excess proceeds from the sale shall be remitted to the Auditor of State under the procedures prescribed by §
18-28-201
et seq.
Amended by Act 2019, No. 63,§ 1, eff. 7/24/2019.
Acts 1997, No. 89, § 1.
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 48 - ORGANIZATION AND OPERATION (§§ 23-48-101 — 23-48-1011) › Subchapter 1 - GENERAL PROVISIONS (§§ 23-48-101 — 23-48-106) › Section 23-48-101 - Banks subject to gross receipts and compensating use taxes

All banks shall be subject to the Arkansas Gross Receipts Act, §
26-52-101
et seq., and the Arkansas Compensating Tax Act, §
26-53-101
et seq.
Acts 1997, No. 89, § 1.
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 48 - ORGANIZATION AND OPERATION (§§ 23-48-101 — 23-48-1011) › Subchapter 1 - GENERAL PROVISIONS (§§ 23-48-101 — 23-48-106) › Section 23-48-102 - Trust companies no longer subject to banking laws

(a)
All trust companies, other than national trust companies and subsidiary trust companies, in existence on May 30, 1997, must cease operations as a trust company.
(b)
Trust companies, other than subsidiary trust companies and national trust companies, which have not become banks by May 31, 1997, by complying with the provisions of law for the formation of a bank, shall no longer act as or be authorized to act as a fiduciary, nor shall they be subject to laws governing banks or trust companies, or exercise or be authorized to exercise any powers granted banks or trust companies by those laws, but instead will automatically become business corporations and be subject to the Arkansas Business Corporation Act, §
4-27-101
et seq., and the Bank Commissioner shall deliver certified copies of the articles of incorporation, all amendments thereto, and all other corporate filings of those trust companies to the Secretary of State for inclusion in his or her official records of filings of business corporations.
Acts 1997, No. 89, § 1.
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 48 - ORGANIZATION AND OPERATION (§§ 23-48-101 — 23-48-1011) › Subchapter 1 - GENERAL PROVISIONS (§§ 23-48-101 — 23-48-106) › Section 23-48-103 - Bank holidays - Definition

(a)
(1)
Any bank, subsidiary trust company, or national trust company doing business in this state may close its office for the transaction of business upon any day which has been or may hereafter be set apart or designated under the laws of this state or of the United States as a legal holiday.
(2)
All acts omitted or done by any bank, subsidiary trust company, or national trust company upon any such day shall have the same consequence and effect as if omitted or done upon the next succeeding business day.
(b)
(1)
Any bank, subsidiary trust company, or national trust company transacting business in the State of Arkansas may close on any one (1) business day of each week unless a temporary interruption in service is authorized under subsection (d) of this section.
(2)
Any day upon which a bank, subsidiary trust company, or national trust company may elect to close shall, with respect to the institution, be deemed a holiday for all purposes and not a business day.
(3)
All acts omitted or done by a bank, subsidiary trust company, or national trust company upon any such day shall have the same consequence and effect as if omitted or done upon the next succeeding business day.
(c)
Any act authorized, required, or permitted to be performed at or with respect to any such bank, subsidiary trust company, or national trust company on the days closed may be performed on the next succeeding business day, and no liability or loss of rights of any kind shall result from the delay.
(d)
(1)
If a bank is required to temporarily close a branch office due to an event beyond a bank's control, then upon written permission by the Bank Commissioner, the bank may close a branch office temporarily if the services at the site are expected to be restored in a timely manner.
(2)
A branch office shall not be closed for more than three (3) consecutive business days due to a temporary interruption in service under subdivision (d)(1) of this section.
(3)
The commissioner may grant an extension for a bank to close a branch office temporarily for an additional two (2) business days if the bank submits a written request that demonstrates the necessity for a longer closure period.
(e)
As used in this section, "business day" means Monday through Saturday, except for a state or federal holiday.
Amended by Act 2023, No. 298,§ 2, eff. 8/1/2023.
Acts 1997, No. 89, § 1.
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 48 - ORGANIZATION AND OPERATION (§§ 23-48-101 — 23-48-1011) › Subchapter 1 - GENERAL PROVISIONS (§§ 23-48-101 — 23-48-106) › Section 23-48-104 - Dealings with agents, fiduciaries, etc

A bank dealing, whether to its own benefit or otherwise, with, through, or under any person who is or may be an officer, employee, member, agent, trustee, representative, or other fiduciary of another person shall not be deemed to have notice of nor be obligated to inquire as to any lack of or limitation upon the power of the person solely by reason either of:
(1)
The fact that the person has executed in his or her representative capacity and is himself or herself the payee or endorsee of any check, bill, note, or other promise or order; or
(2)
The use of descriptive words in connection with his or her deposit account or accounts, any transfer, certificate, or memorandum thereof, or in connection with any signature or endorsement of the person.
Acts 1997, No. 89, § 1.