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 23-51-164 - Application of Arkansas Banking Code of 1997

When the Bank Commissioner, or duly appointed agent, shall take possession of any state trust company under §
23-51-162
or §
23-51-163
, the commissioner or agent shall proceed with the dissolution and liquidation of the state trust company under the procedures established for the dissolution and liquidation of state banks under the Arkansas Banking Code of 1997.
Acts 1997, No. 940, § 64.
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 23-51-165 - Companies authorized to act as fiduciaries

(a)
A company shall not act as a fiduciary in this state except:
(1)
A state trust company;
(2)
A state bank;
(3)
An association organized under the laws of this state and authorized to act as a fiduciary under §
23-37-101
et seq.;
(4)
A national bank having its principal office in this state and authorized by the United States Comptroller of the Currency to act as a fiduciary under
12 U.S.C. § 92a
;
(5)
A federally chartered savings association having its principal office in this state and authorized by its federal chartering authority to act as a fiduciary;
(6)
A subsidiary trust company authorized to act as a fiduciary under §
23-47-801
et seq.;
(7)
An out-of-state bank with a branch in this state established or maintained under the Arkansas Interstate Banking and Branching Act, §
23-48-901
et seq., or a trust office licensed by the Bank Commissioner under this chapter;
(8)
An out-of-state trust company with a trust office licensed by the commissioner under this chapter; or
(9)
A foundation.
(b)
A company shall not engage in an unauthorized trust activity.
Amended by Act 2019, No. 836,§ 4, eff. 7/24/2019.
Acts 1997, No. 940, § 65.
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 23-51-167 - Trust business of state trust institution

(a)
A state trust institution may act as a fiduciary or otherwise engage in a trust business in this or any other state or foreign country, subject to complying with applicable laws of the state or foreign country, at an office established and maintained pursuant to this chapter, at a branch or at any other authorized location other than an office or branch.
(b)
In addition, a state trust institution may conduct any activities at any office outside this state that are permissible for a trust institution chartered by the host state where the office is located, except to the extent such activities are expressly prohibited by the laws of this state or by any rule or order of the Bank Commissioner applicable to the state trust institution. Provided, however, that the commissioner may waive any such prohibition if he or she determines, by order or rule, that the involvement of out-of-state offices of state trust institutions in particular activities would not threaten the safety or soundness of the state trust institutions.
Amended by Act 2019, No. 315,§ 2600, eff. 7/24/2019.
Acts 1997, No. 940, § 67.
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 23-51-168 - Trust business of out-of-state trust institution

An out-of-state trust institution which establishes or maintains one (1) or more offices in this state under this chapter may conduct any activity at each such office which would be authorized under the laws of this state for a state trust institution to conduct at such an office.
Acts 1997, No. 940, § 68.
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 23-51-169 - Name of trust institution

A state trust company or out-of-state trust institution may register any name with the Bank Commissioner in connection with establishing a principal office or trust office in this state pursuant to this chapter, except that the commissioner may determine that a name proposed to be registered is potentially misleading to the public and require the registrant to select a name which is not potentially misleading.
Acts 1997, No. 940, § 69.
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 23-51-170 - Trust business

A state trust company or a state bank may:
(1)
Perform any act as a fiduciary;
(2)
Engage in any trust business;
(3)
Exercise any incidental power that is reasonably necessary to enable it to fully exercise, according to commonly accepted fiduciary customs and usages, a power conferred in this chapter; and
(4)
If a state trust company, exercise any other power authorized by §
23-51-104
.
Acts 1997, No. 940, § 70.
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 23-51-171 - Branches and offices of state trust institutions

(a)
A state trust institution may act as a fiduciary and engage in a trust business at each trust office as permitted by this chapter and at a branch.
(b)
Notwithstanding the foregoing subsection (a) of this section, a state bank or a state trust company may not engage at an out-of-state office in any trust business not permitted to be conducted at such an office by the laws of the host state applicable to trust institutions chartered by the host state.
Acts 1997, No. 940, § 71.
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 23-51-172 - State trust company principal office

(a)
Each state trust company must have and continuously maintain a principal office in this state.
(b)
Each executive officer at the principal office is an agent of the state trust company for service of process.
(c)
A state trust company may change its principal office to any location within this state by filing a written notice with the Bank Commissioner setting forth the name of the state trust company, the street address of its principal office before the change, the street address to which the principal office is to be changed, and a copy of the resolution adopted by the board authorizing the change.
(d)
The change of principal office shall take effect thirty (30) days after the date the commissioner receives the notice pursuant to subsection (c) of this section, unless the commissioner establishes another date or unless prior to that day the commissioner notifies the state trust company that it must establish to the satisfaction of the commissioner that the relocation is consistent with the original determination made under §
23-51-106(b)
for the establishment of a state trust company at that location, in which event the change of principal office shall take effect when approved by the commissioner.
Acts 1997, No. 940, § 72.
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 23-51-173 - Trust office

(a)
A state trust institution may establish or acquire and maintain trust offices anywhere in this state. A state trust institution desiring to establish or acquire and maintain such an office shall file a written notice with the Bank Commissioner setting forth the name of the state trust institution, the location of the proposed additional trust office and a general description of the surrounding area, whether the location will be owned or leased, furnish a copy of the resolution adopted by the board authorizing the additional trust office, general description of the activities to be conducted, an estimate of the cost of the trust office and pay the filing fee, if any, prescribed by the commissioner.
(b)
The notificant may commence business at the additional trust office thirty (30) days after the date the commissioner receives the notice, unless the commissioner specifies another date.
(c)
The thirty-day period of review may be extended by the commissioner on a determination that the written notice raises issues that require additional information or additional time for analysis. If the period of review is extended, the state trust institution may establish the additional office only on prior written approval by the commissioner.
(d)
The commissioner may deny approval of the additional office if the commissioner finds that the notificant lacks sufficient financial resources to undertake the proposed expansion without adversely affecting its safety or soundness or that the proposed office would be contrary to the public interest.
Acts 1997, No. 940, § 73.
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 23-51-174 - Out-of-state offices

(a)
A state bank, a state trust company, or a savings association chartered under the laws of this state may establish and maintain a new trust office or acquire and maintain an office in a state other than this state. Such a trust institution desiring to establish or acquire and maintain an office in another state under this section shall file a notice on a form prescribed by the Bank Commissioner, which shall set forth the name of the trust institution, the location of the proposed office, and a general description of the surrounding area, whether the location will be owned or leased, and whether the laws of the jurisdiction where the office will be located permit the office to be maintained by the trust institution, furnish a copy of the resolution adopted by the board authorizing the out-of-state office, and pay the filing fee, if any, prescribed by the commissioner.
(b)
The notificant may commence business at the additional office thirty (30) days after the date the commissioner receives the notice, unless the commissioner specifies another date.
(c)
The thirty-day period of review may be extended by the commissioner on a determination that the written notice raises issues that require additional information or additional time for analysis. If the period of review is extended, the trust institution may establish the additional office only on prior written approval by the commissioner.
(d)
The commissioner may deny approval of the additional office if the commissioner finds that the notificant lacks sufficient financial resources to undertake the proposed expansion without adversely affecting its safety or soundness or that the proposed office would be contrary to the public interest. In acting on the notice, the commissioner shall consider the views of the appropriate bank supervisory agencies.
Acts 1997, No. 940, § 74.
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 23-51-175 - Trust business at a branch or trust office

An out-of-state trust institution may act as a fiduciary in this state or engage in a trust business at an office in this state only if it maintains a trust office in this state as permitted by this chapter or a branch in this state.
Acts 1997, No. 940, § 75.
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 23-51-176 - Establishing an interstate trust office

(a)
An out-of-state trust institution that does not operate a trust office in this state and that meets the requirements of this chapter may establish and maintain a new trust office in this state.
(b)
An out-of-state trust institution may not establish a new trust office in this state unless a similar institution chartered under the laws of this state to act as a fiduciary, is permitted to establish a new trust office that may engage in activities substantially similar to those permitted to trust offices of out-of-state trust institutions under §
23-51-175
, in the state where the out-of-state trust institution has its principal office.
Acts 1997, No. 940, § 76.
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 23-51-177 - Acquiring an interstate trust office

(a)
An out-of-state trust institution that does not operate a trust office in this state and that meets the requirements of this chapter may acquire and maintain a trust office in this state.
(b)
No out-of-state trust institution may maintain a trust office in this state unless a similar institution chartered under the laws of this state to act as a fiduciary is permitted to acquire and maintain a trust office through an acquisition of a trust office in the state where the out-of-state trust institution has its principal office and may engage in activities substantially similar to those permitted to trust offices of out-of-state trust institutions under §
23-51-175
, in the state where the out-of-state trust institution has its principal office.
Acts 1997, No. 940, § 77.
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 23-51-178 - Requirement of notice

An out-of-state trust institution desiring to establish and maintain a new trust office or acquire and maintain a trust office in this state pursuant to this chapter shall provide, or cause its home state regulator to provide, written notice of the proposed transaction to the Bank Commissioner on or after the date on which the out-of-state trust institution applies to the home state regulator for approval to establish and maintain or acquire the trust office. The filing of the notice shall be preceded or accompanied by a copy of the resolution adopted by the board authorizing the additional office and the filing fee, if any, prescribed by the commissioner.
Acts 1997, No. 940, § 78.
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 23-51-179 - Conditions for approval

(a)
No trust office of an out-of-state trust institution may be acquired or established in this state under this chapter unless:
(1)
The out-of-state trust institution shall have confirmed in writing to the Bank Commissioner that for as long as it maintains a trust office in this state, it will comply with all applicable laws of this state;
(2)
The notificant shall have provided satisfactory evidence to the commissioner of compliance with any applicable requirements of §
4-27-1501
et seq. and the applicable requirements of its home state regulator for acquiring or establishing and maintaining the office;
(3)
The commissioner, acting within sixty (60) days after receiving notice under §
23-51-178
, shall have certified to the home state regulator that the requirements of this chapter have been met and the notice has been approved or, if applicable, that any conditions imposed by the commissioner pursuant to subsection (b) of this section have been satisfied.
(b)
The out-of-state trust institution may commence business at the trust office sixty (60) days after the date the commissioner receives the notice unless the commissioner specifies another date, provided, with respect to an out-of-state trust institution that is not a depository institution and for which the commissioner shall have conditioned such approval on the satisfaction by the notificant of any requirement applicable to a state trust company pursuant to §
23-51-106(b)
or §
23-51-110
, the institution shall have satisfied such conditions and provided to the commissioner satisfactory evidence thereof.
(c)
The sixty-day period of review may be extended by the commissioner on a determination that the written notice raises issues that require additional information or additional time for analysis. If the period of review is extended, the out-of-state trust institution may establish the office only on prior written approval by the commissioner.
(d)
The commissioner may deny approval of the office if the commissioner finds that the notificant lacks sufficient financial resources to undertake the proposed expansion without adversely affecting its safety or soundness or that the proposed office is contrary to the public interest. In acting on the notice, the commissioner shall consider the views of the appropriate bank supervisory agencies.
Acts 1997, No. 940, § 79.
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 23-51-180 - Additional trust offices

An out-of-state trust institution that maintains a trust office in this state under this chapter may establish or acquire additional trust offices or representative trust offices in this state to the same extent that a state trust institution may establish or acquire additional offices in this state pursuant to the procedures for establishing or acquiring such offices set forth in §
23-51-173
.
Acts 1997, No. 940, § 80.
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 23-51-182 - Enforcement

(a)
(1)
Consistent with the Arkansas Administrative Procedure Act, §
25-15-201
et seq., after notice and opportunity for hearing, the Bank Commissioner may determine:
(A)
That an office maintained by an out-of-state trust institution in this state is being operated in violation of any provision of the laws of this state or in an unsafe and unsound manner; or
(B)
That a company is engaged in an unauthorized trust activity
(2)
In either event, the commissioner shall have the authority to take all such enforcement actions as he or she would be empowered to take if the office or the company were a state trust company, including but not limited to issuing an order temporarily or permanently prohibiting the company from engaging in a trust business in this state.
(b)
In cases involving extraordinary circumstances requiring immediate action, the commissioner may take any action permitted by subsection (a) of this section without notice or opportunity for hearing, but shall promptly afford a subsequent hearing upon an application to rescind the action taken. The commissioner shall promptly give notice to the home state regulator of each enforcement action taken against an out-of-state trust institution and, to the extent practicable, shall consult and cooperate with the home state regulator in pursuing and resolving the enforcement action.
Acts 1997, No. 940, § 82.
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 23-51-183 - Notice of subsequent merger, closing, etc

Each out-of-state trust institution that maintains an office in this state pursuant to this chapter, or the home state regulator of such a trust institution, shall give at least thirty (30) days prior written notice or, in the case of an emergency transaction, such shorter notice as is consistent with applicable state or federal law, to the Bank Commissioner of:
(1)
Any merger, consolidation, or other transaction that would cause a change of control with respect to the out-of-state trust institution or any bank holding company that controls the trust institution, with the result that an application would be required to be filed pursuant to the Change in Bank Control Act of 1978, as amended,
12 U.S.C. § 1817(j)
, or the Bank Holding Company Act of 1956, as amended,
12 U.S.C. § 1841
et seq., or any successor statutes thereto;
(2)
Any transfer of all or substantially all of the trust accounts or trust assets of the out-of-state trust institution to another person; or
(3)
The closing or disposition of any office in this state.
Acts 1997, No. 940, § 83.
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 23-51-184 - Commissioner shall supervise and examine authorized trust institutions

Every authorized trust institution shall be under the supervision of the Bank Commissioner. The commissioner shall execute and enforce through the State Bank Department and such other agents as are now or may hereafter be created or appointed, all laws which are now or may hereafter be enacted relating to authorized trust institutions. For the more complete and thorough enforcement of the provisions of this chapter, the commissioner is hereby empowered to promulgate such rules not inconsistent with the provisions of this chapter, as may, in his or her opinion, be necessary to carry out the provisions of the laws relating to authorized trust institutions and as may be further necessary to insure safe and conservative management of an authorized trust institution under his or her supervision taking into consideration the appropriate interest of the creditors, stockholders, and the public in their relations with the authorized trust institutions. All authorized trust institutions doing business under the provisions of this chapter shall conduct their business in a manner consistent with all laws relating to authorized trust institutions and all rules and instructions that may be promulgated or issued by the commissioner.
Amended by Act 2019, No. 315,§ 2602, eff. 7/24/2019.
Acts 1997, No. 940, § 84.
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 23-51-185 - Examinations - Assessments

(a)
The Bank Commissioner may examine each state trust company every twenty-four (24) months or more often as he or she determines is necessary to safeguard the interests of the public and the safety and soundness of the institution.
(b)
Each state-chartered trust company shall pay to the State Bank Department within ten (10) days after notice from the commissioner in January and July of each year an assessment fee to defray the costs of examination and the costs of operations of the department which will be charged in accordance with an assessment fee schedule approved by the commissioner.
(c)
The commissioner may accept examinations of a state trust company by a federal or other governmental agency in lieu of an examination under this section or may conduct examinations of a state trust company jointly or concurrently with a federal or other governmental agency.
Acts 1997, No. 940, § 85.
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 23-51-186 - Statements of condition and income

Each state trust company shall periodically file with the Bank Commissioner a copy of its statement of condition and income. The commissioner shall have the power to call for these reports whenever deemed necessary, in order to obtain a full and complete knowledge of the condition of the trust company.
Acts 1997, No. 940, § 86.
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 23-51-187 - Confidential records

(a)
The following records of the State Bank Department shall be confidential and shall not be exhibited or revealed to the public except as stated in this section or in accordance with department rules:
(1)
All examination reports filed with the department;
(2)
All records disclosing information obtained from examinations;
(3)
Investigations and reports revealing facts concerning a state trust company or the customers of the organization; and
(4)
All personal financial statements submitted to the department for any purpose.
(b)
Notwithstanding any provision of this section to the contrary, records deemed confidential in accordance with this section may, in the Bank Commissioner's discretion, be disclosed as follows:
(1)
Under a validly issued subpoena and, in the interest of justice, the commissioner may waive the privilege created herein and produce examination reports and other related documents under the provisions of a protective order entered by a court or administrative tribunal of competent jurisdiction when the order is designed to protect the confidential nature of the information so disclosed from public dissemination;
(2)
Official orders of the department may be disclosed within the discretion of the commissioner if the commissioner makes a determination that such a disclosure would not give advantage to a competitor or adversely affect the safety and soundness of the state trust company; and
(3)
To federal financial institutions' regulatory agencies and financial institutions' regulatory agencies of other states.
(c)
The commissioner shall have the power to promulgate rules with regard to disclosure of confidential information.
Amended by Act 2019, No. 315,§ 2604, eff. 7/24/2019.
Amended by Act 2019, No. 315,§ 2603, eff. 7/24/2019.
Acts 1997, No. 940, § 87.
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 23-51-188 - Administrative orders - Penalties for violation

(a)
In addition to any other powers conferred by this chapter, the Bank Commissioner shall have the power to:
(1)
Order any authorized trust institution, or subsidiary thereof, or any director, officer, or employee to cease and desist violating any provision of this chapter or any lawful rule issued thereunder;
(2)
Order any authorized trust institution, or subsidiary thereof, or any director, officer, or employee to cease and desist from a course of conduct that is unsafe or unsound and which is likely to cause insolvency or dissipation of assets or is likely to jeopardize or otherwise seriously prejudice the interests of the public in their relationship with the authorized trust institution;
(3)
Order any company to cease engaging in an unauthorized trust activity; and
(4)
Enter any order pursuant to §
23-51-182
.
(b)
The commissioner may impose a civil money penalty of not more than one thousand dollars ($1,000) for each violation by any authorized trust institution, or subsidiary thereof, or any director, officer, or employee of an order issued under subdivision (a)(1) of this section. Provided further, the commissioner may impose a civil money penalty of not more than five hundred dollars ($500) per day for each day that an authorized trust institution, or subsidiary thereof, or any director, officer, or employee violates a cease and desist order issued under subdivision (a)(2) or subdivision (a)(3) of this section.
Amended by Act 2019, No. 315,§ 2605, eff. 7/24/2019.
Acts 1997, No. 940, § 88.
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 23-51-189 - Notice and opportunity for hearing

Consistent with the Arkansas Administrative Procedure Act, §
25-15-201
et seq., notice and opportunity for hearing shall be provided before any of the foregoing actions shall be undertaken by the Bank Commissioner. Provided, however, in cases involving extraordinary circumstances requiring immediate action, the commissioner may take such an action, but shall promptly afford a subsequent hearing upon application to rescind the action taken.
Acts 1997, No. 940, § 89.
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 23-51-190 - Subpoena power and examination under oath

The Bank Commissioner shall have the power to subpoena witnesses, compel their attendance, require the production of evidence, administer oaths, and examine any person under oath in connection with any subject related to a duty imposed or a power vested in the commissioner.
Acts 1997, No. 940, § 90.
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 23-51-191 - Removal of directors, officers, and employees

Consistent with §
23-51-189
, the Bank Commissioner shall have the right, and is hereby empowered, to require the immediate removal from office of any officer, director, or employee of any authorized trust institution who shall be found to be dishonest, incompetent, or reckless in the management of the affairs of the authorized trust institution or who persistently violates the laws of this state or the lawful orders, instructions, and rules issued by the commissioner.
Amended by Act 2019, No. 315,§ 2606, eff. 7/24/2019.
Acts 1997, No. 940, § 91.
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 23-51-192 - Delegation and fiduciary responsibility

(a)
Any person acting as a trustee or as any other fiduciary under the laws of this state may delegate any investment, management, or administrative function if the person exercises reasonable care, judgment, and caution in:
(1)
Selecting the delegate, taking into account the delegate's financial standing and reputation;
(2)
Establishing the scope and other terms of any delegation; and
(3)
Reviewing periodically the delegate's actions in order to monitor overall performance and compliance with the scope and other terms of the delegation.
(b)
Notwithstanding any delegation permitted by subsection (a) of this section, any person acting as a trustee, except as provided in §
28-73-807
, or in any other fiduciary capacity under the laws of this state shall retain responsibility for the due performance of any delegated fiduciary function.
Acts 1997, No. 940, § 92; 2005, No. 1031, § 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 51 - ARKANSAS TRUST INSTITUTIONS ACT (§§ 23-51-101 — 23-51-200) › Section 23-51-193 - Affiliates

(a)
Any person acting as a trustee or in any other fiduciary capacity under §
23-51-192
may hire and compensate, as a delegate, an affiliate of the person if:
(1)
Authorized by a trust or fiduciary instrument;
(2)
Authorized by court order;
(3)
Authorized in writing by each affected client; or
(4)
The standards of §
23-51-192
are satisfied.
(b)
Fees paid to an affiliate shall be competitive with fees charged by nonaffiliates that provide substantially similar services.
Acts 1997, No. 940, § 93.
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 23-51-194 - Fee determination

The compensation arrangement between a client and any person acting as a trustee or as any other fiduciary pursuant to this chapter shall be at arm's length and any compensation pursuant to such an arrangement shall be a reasonable amount with respect to the services rendered.
Acts 1997, No. 940, § 94.
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 23-51-195 - Disclosure of potential conflicts of interest

Any company, proposing to act as a trustee or in any other fiduciary capacity pursuant to a written agreement to be entered into with a prospective client after August 1, 1997, which company has any potential or actual conflict of interest which may reasonably be expected to have an impact on the independence or judgment of the trustee or fiduciary, shall disclose appropriate information concerning the actual or potential conflict of interest prior to entering into any written or oral trust or fiduciary agreement with the client or prospective client.
Acts 1997, No. 940, § 95.
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 23-51-196 - Interests in trust institutions prohibited

(a)
Neither the Bank Commissioner nor any employee or officer of the State Bank Department who participates in the examination of a trust institution, or who may be called upon to make an official decision or determination affecting the operation of a trust institution, shall be an officer, director, attorney, owner, or holder of stock in any state trust company, or any company which owns or controls a state trust company, or receive, directly or indirectly, any payment or gratuity from any such organizations. A person subject to this section may not borrow money from a state trust company.
(b)
A person subject to this section may:
(1)
Be a depositor in any trust institution that the department regulates; and
(2)
Purchase trust or fiduciary services, other than credit services, under rates and terms generally available to other customers of the trust institution.
Acts 1997, No. 940, § 96.
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 23-51-197 - Designation of trustee

Any person residing in this state may designate any trust institution to act as a fiduciary on behalf of the person.
Acts 1997, No. 940, § 97.
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 23-51-198 - Choice of law governing trusts

Any trust institution that maintains a trust office in this state and its affected clients may designate either this state, a state where affected clients reside, or the state where the trust institution has its principal office as the state whose laws shall govern any written agreement between the trust institution and its client or any instrument under which the trust institution acts for a client.
Acts 1997, No. 940, § 98.
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 23-51-199 - Choice of law governing fiduciary investments

Any trust institution that maintains a trust office in this state and its affected clients may designate either this state, a state where affected clients reside, or the state where the trust institution has its principal office as the state whose laws shall govern with respect to the fiduciary investment standards applicable to any written agreement between the trust institution or its client and any other instrument under which the trust institution acts for a client.
Acts 1997, No. 940, § 99.
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 53 - ARKANSAS HOME LOAN PROTECTION ACT (§§ 23-53-101 — 23-53-106) › Section 23-53-101 - Title

This chapter shall be known as the "Arkansas Home Loan Protection Act".
Acts 2003, No. 1340, § 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 53 - ARKANSAS HOME LOAN PROTECTION ACT (§§ 23-53-101 — 23-53-106) › Section 23-53-102 - Legislative intent

(a)
The General Assembly finds that:
(1)
Abusive mortgage lending has become an increasing problem in this state, exacerbating the loss of equity in homes and causing the number of foreclosures to increase in recent years;
(2)
One of the most common forms of abusive lending is the making of loans that are equity-based, rather than income-based;
(3)
The financing of points and fees in the loans provides immediate income to the originator and encourages lenders to repeatedly refinance home loans;
(4)
The lender's ability to sell loans reduces the incentive to ensure that the homeowner can afford the payments of the loan;
(5)
As long as there is sufficient equity in the home, an abusive lender benefits even if the borrower is unable to make the payments and is forced to refinance;
(6)
The financing of high points and fees causes the loss of precious equity in each refinancing and often leads to foreclosure;
(7)
Abusive lending has threatened the viability of many communities and caused decreases in homeownership;
(8)
While the marketplace appears to operate effectively for conventional mortgages, too many homeowners find themselves victims of overreaching lenders who provide loans with unnecessarily high costs and terms that are unnecessary to secure repayment of the loan; and
(9)
As competition and self-regulation have not eliminated the abusive terms from home-secured loans, the consumer protection provisions of this chapter are necessary to encourage lending at reasonable rates with reasonable terms.
(b)
This chapter shall be liberally construed:
(1)
To effectuate its purpose of protecting the homes and the equity of individual borrowers; and
(2)
As a consumer protection statute for all purposes.
Acts 2003, No. 1340, § 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 53 - ARKANSAS HOME LOAN PROTECTION ACT (§§ 23-53-101 — 23-53-106) › Section 23-53-105 - Preservation and enforcement of claims and defenses - No subterfuge

(a)
Liability of Assignees and Other Holders in High-Cost Home Loans.
(1)
Notwithstanding any provision of any other law, the remedies provided in this chapter apply to any person or entity who personally participated in the making or approving of the high-cost home loan and who violated the requirements of this chapter.
(2)
(A)
(i)
Any person who purchases or is otherwise assigned a high-cost home loan shall be subject to all affirmative claims and any defenses with respect to the loan that the borrower could assert against the original creditor or broker of the loan.
(ii)
However, if the purchaser or assignee demonstrates by a preponderance of the evidence that at the time of the purchase of the home loans or within a reasonable time thereafter the purchaser or assignee exercised reasonable due diligence that was intended to prevent the purchaser or assignee from purchasing or taking assignment of high-cost home loans, then the purchaser or assignee shall have no liability to any person under this chapter.
(B)
The liability of any person who purchases or is otherwise assigned a high-cost home loan whose liability is established under this subsection but who did not personally participate in the making or approving of the high-cost home loan, shall be limited to the amount of all remaining indebtedness of the borrower and the total amount paid by the borrower in connection with the transaction.
(C)
Any person incurring liability as an assignee is entitled to full recourse against any previous assignee or against any person or entity who personally participated in making or approving the home loan for the full amount of liability sustained by the assignee.
(b)
Liability of Assignees in Foreclosure Action.
Notwithstanding any provision of any other law, a borrower in default more than sixty (60) days or in foreclosure may assert a violation of this chapter by way of offset:
(1)
(A)
As an original action, in an individual action only, brought within two (2) years from the date of the occurrence of the violation.
(B)
A borrower shall not be barred from asserting a violation in an action to collect the debt which was brought more than one (1) year from the date of the occurrence of the violation as a matter of defense by recoupment or set-off in the action except as otherwise provided by law;
(2)
As a defense or counterclaim to an action to collect amounts owed; or
(3)
To obtain possession of the home secured by the high-cost home loan.
(c)
No Subterfuge.
It is a violation of this chapter for any person who in bad faith attempts to avoid the application of this chapter by:
(1)
Dividing any loan transaction into separate parts for this purpose; or
(2)
Any other subterfuge, with the intent of evading the provisions of this chapter.
Acts 2003, No. 1340, § 4[5].
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 54 - REVERSE MORTGAGE PROTECTION ACT (§§ 23-54-101 — 23-54-109) › Section 23-54-101 - Title

This chapter shall be known and may be cited as the "Reverse Mortgage Protection Act".
Acts 2005, No. 2166, § 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 54 - REVERSE MORTGAGE PROTECTION ACT (§§ 23-54-101 — 23-54-109) › Section 23-54-102 - Applicability

This chapter applies to reverse mortgage loans executed on or after January 1, 2006.
Acts 2005, No. 2166, § 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 54 - REVERSE MORTGAGE PROTECTION ACT (§§ 23-54-101 — 23-54-109) › Section 23-54-103 - Definitions

As used in this chapter, "reverse mortgage" means a nonrecourse loan secured by a borrower's principal residence that:
(1)
Provides cash advances to a borrower based upon the amount of equity in the borrower's residence; and
(2)
Requires no payment of principal or interest until the entire loan becomes due and payable.
Acts 2005, No. 2166, § 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 54 - REVERSE MORTGAGE PROTECTION ACT (§§ 23-54-101 — 23-54-109) › Section 23-54-104 - Provisions of reverse mortgages

(a)
A reverse mortgage loan:
(1)
(A)
Shall permit prepayment in whole or in part without penalty at any time during the term of the reverse mortgage loan.
(B)
For the purposes of this subdivision (a)(1), "penalty" does not include any fees, payments, or other charges that would have otherwise been due upon the maturity of the reverse mortgage;
(2)
May provide for a fixed or adjustable interest rate, or combination thereof, and compound interest;
(3)
May provide for a rate of interest that is contingent upon the value of the property at the time of execution of the loan or at maturity, or upon changes in value between closing and maturity; and
(4)
May include costs and fees that are customarily charged by the lender or the lender's designee, originator, or servicer, including costs and fees charged:
(1)
Upon execution of the loan;
(2)
On a periodic basis; or
(3)
Upon maturity.
(b)
If a reverse mortgage loan provides for periodic advances to a borrower, the advances shall not be reduced in amount or number based upon any adjustment in the interest rate.
(c)
The lender shall prominently disclose in the loan agreement any interest rate or other fees to be charged during the period that commences on the date that the reverse mortgage loan becomes due and payable and that ends when repayment in full is made.
(d)
The first page of any mortgage or deed of trust securing a reverse mortgage loan shall contain the following statement in 10-point boldface type: "This deed of trust secures a reverse mortgage loan."
Acts 2005, No. 2166, § 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 54 - REVERSE MORTGAGE PROTECTION ACT (§§ 23-54-101 — 23-54-109) › Section 23-54-105 - Treatment of loan proceeds

To the extent that implementation of this section does not conflict with federal law:
(1)
Reverse mortgage loan payments made to a borrower shall be treated as proceeds from a loan and not as income for the purpose of determining eligibility and benefits under programs of aid to individuals; and
(2)
Undisbursed reverse mortgage funds shall be treated as equity in the borrower's home and not as proceeds from a loan, resources, or assets for the purpose of determining eligibility and benefits under programs of aid to individuals.
Acts 2005, No. 2166, § 1.