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 50 - MISCELLANEOUS VIOLATIONS OF BANKING LAWS (§§ 23-50-101 — 23-50-110) › Section 23-50-103 - Misleading actions or use of words by unauthorized persons

(a)
(1)
All persons except those described in subdivision (a)(2) of this section are prohibited from using in this state as a portion of or in connection with their place of business their name or title or in reference to themselves in their stationery or advertising the following words or phrases, alone or in combination with any other word or phrase: "bank", "banker", "bankers", "banking", "federal reserve", "trust company", "trust", "savings and loan", "credit union", or "building and loan" or any other word or phrase that tends to induce the belief that the party using it is authorized to engage in the business of a bank, trust company, savings and loan association, or credit union.
(2)
The prohibitions contained in subdivision (a)(1) of this section shall not apply to those persons that discharge the burden of proving their authority to use the words or phrases described in subdivision (a)(1) of this section under the laws of this or another state or of the United States.
(b)
All persons except those described in subdivision (a)(2) of this section are prohibited from doing or soliciting business in this state substantially in the manner or so as to induce the belief that the business in whole or in part is that of a bank, savings bank, trust company, credit union, or savings and loan association, either by the sale of contract, or of shares of its capital stock upon partial or installment payments thereof, or by the receipt of money, savings, dues, or other deposits, or by the issuance of certificates of deposit or certificates of investment of money, savings, or dues.
(c)
Nothing in this section shall be construed as preventing the use of the word "bankers" in combination with other words in connection with the place of business, name, and title of any finance or investment company operated in connection with, as a subsidiary to, or having joint offices with a bank or trust company in this state, if the bank or trust company is subject to the supervision of the Bank Commissioner and if the bank or trust company has the word "bankers" alone or in combination with other words in its name or title.
(d)
Each violation of subsection (a) of this section shall constitute a Class A misdemeanor.
(e)
It is declared to be public policy that this law be liberally construed in favor of its enforcement.
(f)
Nothing in this section shall be construed to authorize any person to engage in any activity not otherwise authorized under Arkansas law.
Acts 1997, No. 89, § 1; 2005, No. 1994, § 355.
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 50 - MISCELLANEOUS VIOLATIONS OF BANKING LAWS (§§ 23-50-101 — 23-50-110) › Section 23-50-104 - Circulation of false rumor injurious to bank

A person is guilty of a Class A misdemeanor whenever he or she:
(1)
Maliciously, and without cause, circulates or causes to be circulated, either verbally or in writing, any rumor with the intent to injuriously affect the financial standing or reputation of any bank doing business in this state;
(2)
Makes any statement or circulates or assists in circulating any false rumor for the purpose of injuring the financial standing of any bank; or
(3)
Seeks either by word or action to start a run upon a bank or connives or conspires with any parties for the purpose of injuring the standing or reputation or starting a run on 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 50 - MISCELLANEOUS VIOLATIONS OF BANKING LAWS (§§ 23-50-101 — 23-50-110) › Section 23-50-105 - Embezzlement, misuse of funds, etc., by officer, director, etc

(a)
The following persons shall be guilty of a felony:
(1)
Any officer, director, agent, or employee of any bank or subsidiary trust company who:
(A)
Embezzles or willfully misapplies any of the moneys, funds, or credits of the bank or subsidiary trust company;
(B)
Without authority from the directors of the bank or subsidiary trust company issues or puts forth any certificate of deposit, draws any order or bill of exchange, makes any acceptance, or assigns any note, bond, draft, bill of exchange, mortgage, judgment, or decree; or
(C)
Makes any false entry in any book, report, or statement of the bank or trust company with the purpose in any case to injure or defraud the bank or subsidiary trust company, the Bank Commissioner, any agent or examiner appointed to examine the affairs of the bank or subsidiary trust company, or the State Banking Board;
(2)
Every receiver or liquidating agent of a bank or subsidiary trust company who, with like purpose to defraud or injure, shall embezzle or willfully misapply any of the moneys, funds, or assets of his or her trust; and
(3)
Every agent, attorney, employee, or assistant of any receiver or liquidating agent of any bank or subsidiary trust company who with like purpose to defraud or injure shall embezzle or willfully misapply any of the moneys, funds, or assets of the trust of the receiver or liquidating agent.
(b)
Upon conviction, the person shall be fined in any sum not more than one million dollars ($1,000,000) or shall be imprisoned in the Arkansas penitentiary for not more than thirty (30) years, or both.
Acts 1997, No. 89, § 1; 2005, No. 1994, § 446.
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 50 - MISCELLANEOUS VIOLATIONS OF BANKING LAWS (§§ 23-50-101 — 23-50-110) › Section 23-50-106 - False statements or records - Bribery of commissioner, examiner, or department employee

The following persons shall be guilty of a Class D felony:
(1)
Any person or persons who shall knowingly subscribe to or make or cause to be made any false statement or false entry in the books of any financial institution with the purpose to deceive the Bank Commissioner or examiner;
(2)
Any person or persons who shall knowingly subscribe to or exhibit false papers with the purpose to deceive the commissioner or the examiner;
(3)
Any person or persons who shall make or publish any false statement concerning the assets, liabilities, or affairs of any financial institution; or
(4)
Any person or persons who shall bribe or attempt to bribe or offer any gratuity to the commissioner or any examiner.
Acts 1997, No. 89, § 1; 2005, No. 1994, § 447.
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 50 - MISCELLANEOUS VIOLATIONS OF BANKING LAWS (§§ 23-50-101 — 23-50-110) › Section 23-50-107 - False statements or records by officer, agent, or employee

Every officer, agent, or employee of any financial institution organized or doing business under the laws of the state who knowingly subscribes to or makes any false reports or any false statements or entries in the books of the financial institution or knowingly subscribes or exhibits any false writing or paper with the purpose to deceive any person as to the condition of the financial institution is guilty of a Class A misdemeanor.
Acts 1997, No. 89, § 1; 2005, No. 1994, § 448.
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 50 - MISCELLANEOUS VIOLATIONS OF BANKING LAWS (§§ 23-50-101 — 23-50-110) › Section 23-50-108 - False reports by commissioner or examiner - Acceptance of bribe

Any commissioner or examiner who shall knowingly make a false or fraudulent report of the condition of any financial institution with the purpose to aid or abet its officers, owners, or agents in continuing to operate an insolvent institution or to injure the financial institution, or any examiner who shall receive or accept any bribe or gratuity given for the purpose of inducing him or her not to file a true and correct report of the condition thereof or who shall neglect to make an examination thereof because of having received a bribe or gratuity, is guilty of a Class D felony.
Acts 1997, No. 89, § 1; 2005, No. 1994, § 449.
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 50 - MISCELLANEOUS VIOLATIONS OF BANKING LAWS (§§ 23-50-101 — 23-50-110) › Section 23-50-109 - Disclosure of information or false report by examiner

Any examiner who shall disclose any information obtained by him or her in the course of his or her employment, except to the Bank Commissioner or the directors of the financial institution, or when subpoenaed as a witness in a legal proceeding, or who shall knowingly make, state, or publish any false statement or report concerning the assets, liabilities, or affairs of the financial institution is guilty of a Class D felony, shall be immediately removed from office, and shall be liable under his or her official bond to the institution injured.
Acts 1997, No. 89, § 1; 2005, No. 1994, § 456.
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 50 - MISCELLANEOUS VIOLATIONS OF BANKING LAWS (§§ 23-50-101 — 23-50-110) › Section 23-50-110 - Certification of check when funds insufficient

(a)
It shall be unlawful for any officer, director, agent, or employee of any bank to certify any check drawn upon the bank unless the person drawing the check has on deposit with the bank, at the time the check is certified, an amount of money not less than the amount specified in the check.
(b)
Any check so certified by a duly authorized officer, director, agent, or employee shall be a good and valid obligation against the bank.
(c)
However, any officer, director, agent, or employee of any bank who shall willfully violate any provision of this section, or who shall resort to any device or receive any fictitious obligation, directly or collaterally, in order to evade the provisions thereof, or who shall certify a check before the amount thereof shall have been regularly deposited in the bank to the credit of the drawer thereof is guilty of a Class A misdemeanor.
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 51 - ARKANSAS TRUST INSTITUTIONS ACT (§§ 23-51-101 — 23-51-200) › Section 23-51-101 - Title

This chapter may be cited as the "Arkansas Trust Institutions Act".
Acts 1997, No. 940, § 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 51 - ARKANSAS TRUST INSTITUTIONS ACT (§§ 23-51-101 — 23-51-200) › Section 23-51-103 - Rules

The Bank Commissioner may promulgate such rules as he or she determines to be necessary or appropriate in order to implement the provisions of this chapter.
Amended by Act 2019, No. 315,§ 2564, eff. 7/24/2019.
Acts 1997, No. 940, § 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 51 - ARKANSAS TRUST INSTITUTIONS ACT (§§ 23-51-101 — 23-51-200) › Section 23-51-104 - Organization and powers of state trust company

(a)
Subject to the other provisions of this chapter, one or more persons may organize and charter a state trust company. A state trust company may perform any act as a fiduciary or engage in any trust business within or without this state.
(b)
Subject to §
23-51-111
, a state trust company may exercise the powers of an Arkansas business corporation reasonably necessary or helpful to enable exercise of its specific powers under this chapter.
(c)
A state trust company may contribute to community funds, or to charitable, philanthropic, or benevolent instrumentalities conducive to public welfare, amounts that its board considers appropriate and in the interests of the state trust company.
(d)
Subject to §
23-51-130
, a state trust company may deposit trust funds with itself or an affiliate.
(e)
Subject to obtaining any required insurance from the Federal Deposit Insurance Corporation (FDIC), a state trust company may receive and pay deposits with or without interest, made by agencies of the United States Government or of a state, county, or municipality.
Acts 1997, No. 940, § 4.
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 23-51-105 - Articles of association of state trust company

The articles of association of a state trust company must be signed and acknowledged by each organizer and must contain:
(1)
The name of the state trust company;
(2)
The period of its duration, which may be perpetual;
(3)
The powers of the state trust company, which may be stated as:
(A)
All powers granted to a state trust company in this state; or
(B)
A list of the specific powers that the state trust company chooses and is authorized to exercise;
(4)
The aggregate number of shares that the state trust company will be authorized to issue, the number of classes of shares, which may be one or more, the number of shares of each class if more than one class, and a statement of the par value of the shares of each class or that the shares are to be without par value;
(5)
If the shares are to be divided into classes, the designation of each class and statement of the preferences, limitations, and relative rights of the shares of each class;
(6)
Any provision granting to shareholders the preemptive right to acquire additional shares of the state trust company;
(7)
Any provision granting the right of shareholders to cumulative voting in the election of directors;
(8)
The aggregate amount of consideration to be received for all shares initially issued by the state trust company, and a statement signed and verified by the organizers that the capital stock has been fully subscribed and the purchase price therefor has been paid into an escrow account approved by the Bank Commissioner;
(9)
Any provision consistent with law that the organizers elect to set forth in the articles of association for the regulation of the internal affairs of the state trust company or that is otherwise required by this chapter to be set forth in the articles of association;
(10)
The street address of the state trust company's principal office required to be maintained under §
23-51-172
; and
(11)
The number of directors or managers constituting the initial board, which may not be fewer than three (3), and the names and street addresses of the persons who are to serve as directors until the first annual meeting of shareholders or until successor directors have been elected and qualified.
Acts 1997, No. 940, § 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 51 - ARKANSAS TRUST INSTITUTIONS ACT (§§ 23-51-101 — 23-51-200) › Section 23-51-106 - Application for state trust company charter

(a)
An application for a state trust company charter must be made under oath and in the form required by the Bank Commissioner and must be supported by information, data, records, and opinions of counsel that the commissioner requires. The application must be accompanied by a non-refundable filing fee of not less than three thousand dollars ($3,000) nor more than ten thousand dollars ($10,000) as set by rule of the commissioner and proof of escrow of deposit for the required capital.
(b)
The commissioner shall grant a state trust company charter only on proof that one or more viable markets exist within or outside of this state that may be served in a profitable manner by the establishment of the proposed state trust company. In making such a determination, the commissioner shall examine the business plan which shall be submitted as part of the application for a state trust company charter and consider:
(1)
The market or markets to be served;
(2)
Whether the proposed organizational and capital structure and amount of initial capitalization is adequate for the proposed business and location;
(3)
Whether the anticipated volume and nature of business indicates a reasonable probability of success and profitability based on the market sought to be served;
(4)
Whether the proposed officers and directors, as a group, have sufficient fiduciary experience, ability, standing, competence, trustworthiness, and integrity to justify a belief that the proposed state trust company will operate in compliance with law and that success of the proposed state trust company is probable;
(5)
Whether each principal shareholder has sufficient experience, ability, standing, competence, trustworthiness, and integrity to justify a belief that the proposed state trust company will be free from improper or unlawful influence or interference with respect to the state trust company's operation in compliance with law; and
(6)
Whether the organizers are acting in good faith.
(c)
The failure of an applicant to furnish required information, data, opinions of counsel, other material or the required fee is considered an abandonment of the application.
Amended by Act 2019, No. 315,§ 2565, eff. 7/24/2019.
Acts 1997, No. 940, § 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 51 - ARKANSAS TRUST INSTITUTIONS ACT (§§ 23-51-101 — 23-51-200) › Section 23-51-107 - Notice and investigation of charter application

(a)
The Bank Commissioner shall notify the organizers when the application is complete and accepted for filing and all required fees and deposits have been paid. Upon filing of an application with the commissioner, the organizers of the proposed state trust company shall give notice of filing through publication by one (1) insertion in a newspaper published in the City of Little Rock and having a general and substantially statewide circulation and shall give written notice of filing through the United States mail to all trust institutions maintaining a principal office or a trust office in the county wherein the principal office of the proposed state trust company is to be located.
(b)
At the expense of the organizers, the commissioner shall investigate the application and inquire into the identity and character of each proposed director, officer, and principal shareholder. The commissioner shall prepare a written report of the investigation, and any person may request a copy of the nonconfidential portions of the application and written report as provided by the Freedom of Information Act of 1967, §
25-19-101
et seq. Rules adopted under this chapter may specify the confidential or nonconfidential character of information obtained by the State Bank Department under this section. Except as provided in rules regarding confidential information, the financial statement of a proposed officer, director, or principal shareholder is confidential and not subject to public disclosure.
Amended by Act 2019, No. 315,§ 2566, eff. 7/24/2019.
Acts 1997, No. 940, § 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 51 - ARKANSAS TRUST INSTITUTIONS ACT (§§ 23-51-101 — 23-51-200) › Section 23-51-108 - Hearing and decision on charter application

(a)
No person shall appear in opposition to the application unless the person shall have filed a written protest to the granting of the application within thirty (30) days of the date of the notice of the filing of the application. The protest must state the grounds for objection and must be accompanied by a filing fee of not less than two thousand dollars ($2,000) nor more than five thousand dollars ($5,000) for each protestant, such amount to be set by rule promulgated by the Bank Commissioner.
(b)
Once the written report of investigation has been completed, the commissioner shall establish a time for hearing on the charter application.
(c)
Notice of the time, place, and purpose of the hearing shall be given at least thirty (30) days before the hearing as follows:
(1)
By letter from the commissioner to the organizers of the proposed state trust company and to each trust institution to which the organizers of the application are required to give written notice pursuant to §
23-51-107(a)
;
(2)
By letter from the commissioner to each person who has notified the commissioner of an intention to oppose the application, provided that if a group of persons has protested the application, the notice may be given to one (1) member of the group; and
(3)
By release to news media.
(d)
If the commissioner sets a hearing, the commissioner shall conduct a public hearing and as many prehearing conferences and opportunities for discovery as the commissioner considers advisable and consistent with applicable law and rules.
(e)
Based on the record of any hearing conducted pursuant to subsection (d) of this section, the commissioner shall determine whether all of the necessary conditions set forth in §
23-51-106(b)
have been established and shall enter an order granting or denying the charter. The commissioner may make approval of any application conditional and shall include any conditions in the order granting the charter.
Amended by Act 2019, No. 315,§ 2568, eff. 7/24/2019.
Amended by Act 2019, No. 315,§ 2567, eff. 7/24/2019.
Acts 1997, No. 940, § 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 51 - ARKANSAS TRUST INSTITUTIONS ACT (§§ 23-51-101 — 23-51-200) › Section 23-51-109 - Issuance of charter

(a)
A state trust company may not engage in the trust business until it receives its charter from the Bank Commissioner. The commissioner may not deliver the charter until the state trust company has:
(1)
Elected or qualified the initial officers and directors named in the application for charter or other officers and directors approved by the commissioner; and
(2)
Complied with all other requirements of this chapter relative to the organization of a state trust company.
(b)
If a state trust company does not open and engage in the trust business within six (6) months after the date it receives its charter or conditional approval of application for charter, or within such further period as such period may be extended, the commissioner shall revoke the charter or cancel the conditional approval of application for charter without judicial action.
Acts 1997, No. 940, § 9.
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 23-51-110 - Required capital

(a)
The Bank Commissioner may not issue a charter to a state trust company having required capital of less than one million dollars ($1,000,000), except as provided in subsection (b) of this section.
(b)
The commissioner may require additional capital for a proposed or existing state trust company or, on application in the exercise of discretion consistent with protecting safety and soundness, reduce the amount of minimum capital required for a proposed or existing state trust company, if the commissioner finds the condition and operations of an existing state trust company or the proposed scope or type of operations of a proposed state trust company requires additional, or permits reduced, capital consistent with the safety and soundness of the state trust company. The safety and soundness factors to be considered by the commissioner in the exercise of such discretion include but are not limited to,
(1)
The nature and type of business conducted;
(2)
The nature and degree of liquidity in assets held in a corporate capacity;
(3)
The amount of fiduciary assets under management;
(4)
The type of fiduciary assets held and the depository of the assets;
(5)
The complexity of fiduciary duties and degree of discretion undertaken;
(6)
The competence and experience of management;
(7)
The extent and adequacy of internal controls;
(8)
The presence or absence of annual unqualified audits by an independent certified public accountant;
(9)
The reasonableness of business plans for retaining or acquiring additional capital; and
(10)
The existence and adequacy of insurance obtained or held by the trust company for the purpose of protecting its clients, beneficiaries and grantors.
(c)
The proposed effective date of an order requiring an existing state trust company to increase its capital must be stated in the order as no sooner than twenty (20) days after the date the proposed order is mailed or delivered. Unless the state trust company requests a hearing before the commissioner in writing before the effective date of the proposed order, the order becomes effective and is final and nonappealable. This subsection does not prohibit an application to reduce capital requirements of a proposed or an existing state trust company under subsection (b) of this section.
(d)
Subject to subsection (b) of this section and §
23-51-118
, a state trust company to which the commissioner issues a charter shall at all times maintain capital in at least the amount required under subsection (a) of this section, plus any additional amount or less any reduction the commissioner directs under subsection (b) of this section.
Acts 1997, No. 940, § 10.
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 23-51-111 - Application of laws relating to general business corporations

(a)
The Arkansas Business Corporation Act of 1987, §
4-27-101
et seq., applies to a trust company to the extent not inconsistent with this chapter or the proper business of a trust company, except that any reference to the Secretary of State means the Bank Commissioner unless the context requires otherwise.
(b)
Unless expressly authorized by this chapter or a rule of the commissioner, a trust company may not take an action authorized by the Arkansas Business Corporation Act of 1987, §
4-27-101
et seq., regarding its corporate status, capital structure, or a matter of corporate governance, of the type for which the Arkansas Business Corporation Act of 1987, §
4-27-101
et seq., would require a filing with the Secretary of State if the trust company were a business corporation, without first submitting the filing to the commissioner for the same purposes for which it otherwise would be required to be submitted to the Secretary of State and compliance with the applicable provisions of this chapter.
(c)
The commissioner may adopt rules to limit or refine the applicability of subsection (a) of this section to a trust company or to alter or supplement the procedures and requirements of the Arkansas Business Corporation Act of 1987, §
4-27-101
et seq., applicable to an action taken under this chapter.
Amended by Act 2019, No. 315,§ 2569, eff. 7/24/2019.
Acts 1997, No. 940, § 11.
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 23-51-112 - Commissioner hearings - Appeals

(a)
This section does not grant a right to a hearing to a person that is not otherwise granted by governing law. A hearing before the Bank Commissioner that is required or authorized by law may be conducted by a hearing officer on behalf of the commissioner. A matter made confidential by law must be considered by the commissioner in a closed hearing.
(b)
The commissioner may convene a hearing to receive evidence and argument regarding any matter before the commissioner for decision or review under this chapter.
(c)
No person shall appear in opposition to the application unless the person shall have filed a written protest pursuant to §
23-51-108
and paid the applicable fee.
(d)
At the hearing all organizers of the proposed state trust company and any person making a timely written protest against the application may appear. The attorneys for any such person may appear and be heard.
(e)
The commissioner may subpoena witnesses on his or her own motion or on the request of any party to the proceedings.
(f)
The admission of evidence at the hearing shall be controlled by §
25-15-213
. The parties shall have the right to cross-examine witnesses. Official notice may be taken of judicially cognizable facts and of generally recognized technical or scientific facts within the commissioner's specialized knowledge. The parties may bind themselves by stipulation.
(g)
The organizers shall be responsible for procuring and paying for a verbatim record of the proceeding. It will be the duty of the organizers to furnish at least one (1) copy of the transcript to the commissioner free of charge.
(h)
The commissioner shall render his or her decision in writing, at or after a hearing, which decision shall include the commissioner's findings of fact and conclusions of law.
(i)
(1)
The time for filing a petition for judicial review under the Arkansas Administrative Procedure Act, §
25-15-201
et seq., shall run from the date the final decision of the commissioner is mailed or delivered, in written form, to the parties desiring to appeal.
(2)
The hearing of such a petition for review will be advanced on the docket of each reviewing court as a matter of public interest.
Acts 1997, No. 940, § 12.
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 23-51-113 - Trust companies chartered under prior law

The charter of a corporation which was previously a trust company incorporated under any laws of this state prior to the adoption of the Arkansas Banking Code of 1997 may be converted to a state trust company under this chapter, if the charter, or evidence satisfactory to the Bank Commissioner that the corporation is still in existence and in good standing, is presented to the State Bank Department within six (6) months of enactment of this chapter for substitution of a charter issued under this chapter.
Acts 1997, No. 940, § 13.
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 23-51-114 - Amendment of state trust company articles of association

(a)
A state trust company that has been granted a charter under §
23-51-109
or a predecessor statute may amend or restate its articles of association for any lawful purpose, including the creation of authorized but unissued shares in one or more classes or series.
(b)
An amendment authorizing the issuance of shares in series must contain:
(1)
The designation of each series and of any variations in the preferences, limitations, and relative rights among series to the extent that the preferences, limitations, and relative rights are to be established in the articles of association; and
(2)
A statement of any authority to be vested in the board to establish series and determine the preferences, limitations, and relative rights of each series.
(c)
Amendment or restatement of the articles of association of a state trust company and approval of the board and shareholders must be made or obtained in accordance with provisions of the Arkansas Business Corporation Act of 1987, §
4-27-101
et seq., for the amendment or restatement of articles of incorporation except as otherwise provided by this chapter or rules adopted under this chapter. The original and one (1) copy of the articles of amendment or restated articles of association must be filed with the Bank Commissioner for approval. Unless the submission presents novel or unusual questions, the commissioner shall approve or reject the amendment or restatement within thirty (30) days after the date the commissioner considers the submission informationally complete and accepted for filing. The commissioner may require the submission of additional information as considered necessary to an informed decision to approve or reject any amendment or restatement or articles of association under this section.
(d)
If the commissioner finds that the amendment or restatement conforms to law and any conditions imposed by the commissioner, and any required filing fee has been paid, the commissioner shall:
(1)
Endorse the face of the original and copy with the date of approval and the word "Approved";
(2)
File the original in the State Bank Department's records; and
(3)
Deliver a certified copy to the amendment or restatement to the state trust company.
(e)
An amendment or restatement, if approved, takes effect on the date of approval, unless the amendment or restatement provides for a different effective date.
Amended by Act 2019, No. 315,§ 2570, eff. 7/24/2019.
Acts 1997, No. 940, § 14.
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 23-51-115 - Establishing a series of shares

(a)
If the articles of association expressly give the board authority to establish series and determine the preferences, limitations, and relative rights of each series of shares, the board may do so only on compliance with this section and any rules adopted under this chapter.
(b)
A series of shares may be established in the manner provided by the provisions of the Arkansas Business Corporation Act of 1987, §
4-27-101
et seq., as if the state trust company were a domestic corporation, but the shares of the series may not be issued and sold except upon compliance with this section. The state trust company shall file the original and one copy of the articles of amendment required by the Arkansas Business Corporation Act of 1987, §
4-27-101
et seq., with the Bank Commissioner. Unless the submission presents novel or unusual questions, the commissioner shall approve or reject the series within thirty (30) days after the date the commissioner considers the submission informationally complete and accepted for filing. The commissioner may require the submission of additional information as considered necessary to an informed decision.
(c)
If the commissioner finds that the interests of the clients and creditors of the state trust company will not be adversely affected by the series, that the series otherwise conforms to law and any conditions imposed by the commissioner, and that any required filing fee has been paid, the commissioner shall:
(1)
Endorse the face of the original and copy of the statement with the date of approval and the word "Approved";
(2)
File the original in the State Bank Department's records; and
(3)
Deliver a certified copy of the statement to the state trust company.
Amended by Act 2019, No. 315,§ 2571, eff. 7/24/2019.
Acts 1997, No. 940, § 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 51 - ARKANSAS TRUST INSTITUTIONS ACT (§§ 23-51-101 — 23-51-200) › Section 23-51-116 - Change in outstanding capital and surplus

(a)
A state trust company may not reduce or increase its outstanding capital through dividend, redemption, issuance of shares or otherwise, without the prior approval of the Bank Commissioner, except as permitted by this section or rules adopted under this chapter.
(b)
Unless otherwise restricted by rules, prior approval is not required for an increase in capital accomplished through:
(1)
Issuance of shares of common stock for cash;
(2)
Declaration and payment of pro rata share dividends as defined in the Arkansas Business Corporation Act of 1987, §
4-27-101
et seq.; or
(3)
Adoption by the board of a resolution directing that all or part of undivided profits be transferred to capital.
(c)
Prior approval is not required for a decrease in surplus caused by incurred losses in excess of undivided profits.
Amended by Act 2019, No. 315,§ 2572, eff. 7/24/2019.
Acts 1997, No. 940, § 16.
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 23-51-117 - Capital notes or debentures

(a)
With the prior written approval of the Bank Commissioner, any state trust company may, at any time, through action of its board, and without requiring action of its shareholders, issue and sell its capital notes or debentures, which must be subordinate to the claims of depositors and may be subordinate to other claims, including the claims of other creditors or classes of creditors or the shareholders.
(b)
Capital notes or debentures may be convertible into shares of any class or series. The issuance and sale of convertible capital notes or debentures are subject to satisfaction of preemptive rights, if any, to the extent provided by law.
(c)
Without the prior written approval of the commissioner, interest due or principal repayable on outstanding capital notes or debentures may not be paid by a state trust company when the state trust company is in hazardous condition or insolvent, as determined by the commissioner, or to the extent that payment will cause the state trust company to be in hazardous condition or insolvent.
(d)
The amount of any outstanding capital notes or debentures that meet the requirements of this section and are subordinated to unsecured creditors of the state trust company may be included in equity capital of the state trust company for purposes of determining hazardous condition or insolvency, and for such other purposes as may be provided by rules adopted under this chapter.
Amended by Act 2019, No. 315,§ 2573, eff. 7/24/2019.
Acts 1997, No. 940, § 17.
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 23-51-120 - Conversion to public trust company

(a)
A private trust company may terminate its status as a private trust company and commence transacting business with the general public. A private trust company desiring to commence transacting business with the general public shall file a notice on a form prescribed by the Bank Commissioner, which shall set forth the name of the private trust company and an acknowledgment that any exemption granted or otherwise applicable to the private trust company pursuant to §
23-51-118
shall cease to apply on the effective date of the notice, furnish a copy of the resolution adopted by the board authorizing the private trust company to commence transacting business with the general public, and pay the filing fee, if any, prescribed by the commissioner.
(b)
The notificant may commence transacting business with the general public 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 determination that the written notice raises issues that require additional information or additional time for analysis. If the period for review is extended, the notificant may commence transacting business with the public only on prior written approval by the commissioner.
(d)
The commissioner may deny approval of the notice of the private trust company to commence transacting business with the general public 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 transacting of business of the general public would be contrary to the public interest or if the commissioner determines that the notificant will not within a reasonable period be in compliance with any provision of this chapter from which the notificant had been previously exempted pursuant to §
23-51-118
.
Acts 1997, No. 940, § 20.
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 23-51-122 - Other real estate

(a)
A state trust company may not acquire real estate except:
(1)
As permitted by §
23-51-121
or as otherwise provided by this chapter, including rules adopted under this chapter;
(2)
If necessary to avoid or minimize a loss on a loan or investment previously made in good faith; or
(3)
With the prior written approval of the Bank Commissioner.
(b)
To the extent reasonably necessary to avoid or minimize loss on real estate acquired as permitted by subsection (a) of this section, a state trust company may exchange real estate for other real estate or personal property, invest additional funds in or improve real estate acquired under this subsection or subsection (a) of this section, or acquire additional real estate.
(c)
A state trust company shall dispose of any real estate subject to subdivisions (a)(1) and (2) of this section not later than:
(1)
The fifth anniversary of the date:
(A)
It was acquired, except as otherwise provided by rules adopted under this chapter; or
(B)
It ceases to be used as a state trust company facility; or
(2)
The third anniversary of the date it ceases to be a state trust company facility as provided by §
23-51-121(c)
.
(d)
The commissioner on application may grant one (1) or more extensions of time for disposing of real estate if the commissioner determines that:
(1)
The state trust company has made a good faith effort to dispose of the real estate; or
(2)
Disposal of the real estate would be detrimental to the state trust company.
Amended by Act 2019, No. 315,§ 2580, eff. 7/24/2019.
Amended by Act 2019, No. 315,§ 2579, eff. 7/24/2019.
Acts 1997, No. 940, § 22.
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 23-51-124 - Transactions in state trust company shares

(a)
A state trust company may acquire its own shares if:
(1)
The amount of its undivided profits is sufficient to fully absorb the acquisition of the shares under regulatory accounting principles; and
(2)
The state trust company obtains the prior written approval of the Bank Commissioner.
(b)
A state trust company shall not make loans upon the security of its own shares.
Acts 1997, No. 940, § 24.
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 23-51-125 - Subsidiaries

(a)
Except as otherwise provided by this chapter or rules adopted under this chapter, a state trust company may acquire or establish a subsidiary to conduct any activity that may lawfully be conducted through the form of organization chosen for the subsidiary.
(b)
A state trust company may not invest more than an amount equal to twenty percent (20%) of its capital base in a single subsidiary and may not invest an amount in excess of forty percent (40%) of its capital base in all subsidiaries. The amount of a state trust company's investment in a subsidiary is the total amount of the state trust company's investment in equity or investment securities issued by its subsidiary and any loans and extensions of credit from the state trust company to its subsidiary. The Bank Commissioner may authorize investments in excess of these limitations on written application if the commissioner concludes that:
(1)
The excess investment is not prohibited by other applicable law; and
(2)
The safety and soundness of the requesting state trust company is not adversely affected.
(c)
A state trust company that intends to acquire, establish, or perform new activities through a subsidiary shall submit a letter to the commissioner describing in detail the proposed activities of the subsidiary.
(d)
The state trust company may acquire or establish a subsidiary or begin performing new activities in an existing subsidiary thirty (30) days after the date the commissioner receives the state trust company's letter, unless the commissioner specifies another date. The commissioner may extend the thirty-day period of review on a determination that the state trust company's letter raises issues that require additional information or additional time for analysis. If the period of review is extended, the state trust company may acquire or establish the subsidiary, or perform new activities in an existing subsidiary, only on prior written approval of the commissioner.
(e)
A subsidiary of a state trust company is subject to rule by the commissioner to the extent provided by this chapter or rules adopted under this chapter. In the absence of limiting rules, the commissioner may regulate a subsidiary as if it were a state trust company.
Amended by Act 2019, No. 315,§ 2583, eff. 7/24/2019.
Amended by Act 2019, No. 315,§ 2582, eff. 7/24/2019.
Acts 1997, No. 940, § 25.