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 46 - STATE BANK DEPARTMENT AND STATE BANKING BOARD (§§ 23-46-101 — 23-46-607) › Subchapter 5 - REPORTS AND EXAMINATIONS (§§ 23-46-501 — 23-46-512) › Section 23-46-505 - Noncompliance with banking law - Special examinations

Whenever it shall come to the knowledge of the Bank Commissioner that any state bank or subsidiary trust company has failed or refused to comply with any of the provisions of the Arkansas Banking Code of 1997, with any provision of federal law or federal regulations applicable to financial institutions, with any State Bank Department rules, or with any direction of the commissioner made specifically to that state bank or subsidiary trust company as a result of an examination into its affairs, he or she is authorized, as a penalty for that failure or refusal, to make a special examination of the state bank or subsidiary trust company, to charge and collect the same fees therefor as for a regular examination, and to continue such examinations and charges at intervals of thirty (30) days or less until such provisions, regulations, rules, and directions are complied with.
Amended by Act 2019, No. 315,§ 2532, eff. 7/24/2019.
Acts 1997, No. 89, § 1.
Arkansas Code of 1987 (2023) › Title 23 - PUBLIC UTILITIES AND REGULATED INDUSTRIES (§§ 23-1-101 — 23-119-105) › Subtitle 2 - FINANCIAL INSTITUTIONS AND SECURITIES (§§ 23-30-101 — 23-55-1007) › Chapter 46 - STATE BANK DEPARTMENT AND STATE BANKING BOARD (§§ 23-46-101 — 23-46-607) › Subchapter 5 - REPORTS AND EXAMINATIONS (§§ 23-46-501 — 23-46-512) › Section 23-46-506 - Examination procedure

(a)
The Bank Commissioner or any examiner appointed by him or her shall have power to make a thorough examination of all the records and affairs of any state bank, any Arkansas bank holding company, or any subsidiary trust company.
(b)
(1)
In making examinations, the representative of the State Bank Department may examine under oath any stockholder, director, officer, agent, clerk, or other employee or representative of the state bank, Arkansas bank holding company, or subsidiary trust company, or any other person, touching the matters he or he may be authorized to inquire and examine into.
(2)
(A)
He or she may subpoena and, by attachment, compel the attendance of any person in this state to testify under oath before him or her in relation to the affairs of the state bank, Arkansas bank holding company, or subsidiary trust company.
(B)
All witnesses who appear in obedience to a subpoena shall be entitled to and shall receive the same per diem fees and mileage as witnesses in civil cases in the circuit courts of this state.
(c)
(1)
The representative of the department making the examination shall make a detailed report of the financial institution so examined, which report shall be filed in the office of the commissioner.
(2)
All comments or criticisms contained in each report shall be presented to the board of directors by the management of the financial institution so examined promptly after receipt thereof.
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 46 - STATE BANK DEPARTMENT AND STATE BANKING BOARD (§§ 23-46-101 — 23-46-607) › Subchapter 5 - REPORTS AND EXAMINATIONS (§§ 23-46-501 — 23-46-512) › Section 23-46-507 - Information furnished state or federal agencies

(a)
The Bank Commissioner may share with or furnish to any state or federal examiner or regulatory agency with jurisdiction over any financial institution or other entity conducting financial activities, including, but not limited to, insurance or securities brokerage or underwriting, copies of any or all examinations or any information with reference to the condition of the affairs of any state bank, subsidiary trust company, or other institution which the State Bank Department regulates.
(b)
The commissioner is authorized to enter into cooperative arrangements with state and federal regulatory agencies to achieve the purposes of the Arkansas Banking Code of 1997.
Acts 1997, No. 89, § 1; 2001, No. 1056, § 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 46 - STATE BANK DEPARTMENT AND STATE BANKING BOARD (§§ 23-46-101 — 23-46-607) › Subchapter 5 - REPORTS AND EXAMINATIONS (§§ 23-46-501 — 23-46-512) › Section 23-46-508 - Noncooperation with examiners

(a)
The Bank Commissioner may revoke a state bank's or subsidiary trust company's authority to transact business and may proceed to wind up its business whenever any officer of the state bank or subsidiary trust company:
(1)
Refuses to submit the books, papers, and effects thereof to the inspection of the commissioner or examiners;
(2)
In any manner obstructs or interferes with the commissioner, or examiner, in the discharge of his or her duties; or
(3)
Refuses to be examined on oath touching the affairs of the financial institution.
(b)
The commissioner may issue a cease and desist order whenever an officer of any financial institution acts in any manner described in subsections (a)(1)-(3) of this section.
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 46 - STATE BANK DEPARTMENT AND STATE BANKING BOARD (§§ 23-46-101 — 23-46-607) › Subchapter 5 - REPORTS AND EXAMINATIONS (§§ 23-46-501 — 23-46-512) › Section 23-46-509 - Assessment fees, application fees, and other department fees

(a)
Every state bank and subsidiary trust company shall pay to the State Bank Department, within ten (10) days after notice from the Bank Commissioner in the months of January and July of each year, an assessment fee which will be charged in accordance with an assessment fee schedule approved by the commissioner.
(b)
The commissioner, with the approval of the State Banking Board, shall also have the authority to establish a schedule of fees to be charged by the department relative to applications which are reviewed by the department, as well as a schedule of other fees to be charged for service performed by the department.
(c)
For each examination made in excess of two (2) per year, the state bank or subsidiary trust company so examined shall pay an additional assessment equal to the January assessment of the year in which the excess examination is made.
(d)
(1)
The assessments provided for in this section may be reduced by the commissioner if the assessments, with other fees received by the department, produce a greater sum than is required to pay the expenses of the department.
(2)
The assessments may be increased if not sufficient in connection with other fees received as aforesaid to defray the expenses of the department.
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 46 - STATE BANK DEPARTMENT AND STATE BANKING BOARD (§§ 23-46-101 — 23-46-607) › Subchapter 5 - REPORTS AND EXAMINATIONS (§§ 23-46-501 — 23-46-512) › Section 23-46-510 - Failure to make report or pay fees - Penalty

(a)
Any financial institution that refuses or fails, for thirty (30) days after notice from the Bank Commissioner, to make any report to the commissioner, or fails to pay any fees for ten (10) days after the date of notice by the commissioner, shall be given an additional notice through personal service or by letter from such person of the office of the commissioner as the commissioner may designate.
(b)
(1)
If the failure continues for ten (10) days after the receipt of the additional notice, then the commissioner may assess a monetary penalty against the financial institution for each separate failure or refusal of one hundred dollars ($100) each day for the first thirty (30) days after receiving the notice of delinquency from the commissioner and one thousand dollars ($1,000) per day of violation for every day thereafter.
(2)
Alternatively, in the case of a state bank or subsidiary trust company, if the failure continues for ten (10) days after the receipt of the additional notice, the commissioner may take charge of the state bank or subsidiary trust company, as provided in case of insolvency.
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 46 - STATE BANK DEPARTMENT AND STATE BANKING BOARD (§§ 23-46-101 — 23-46-607) › Subchapter 5 - REPORTS AND EXAMINATIONS (§§ 23-46-501 — 23-46-512) › Section 23-46-511 - Retention of records

(a)
Every state bank or subsidiary trust company shall retain its business records for periods that are or may be prescribed by or in accordance with the terms of this section.
(b)
Each state bank or subsidiary trust company shall retain permanently the minute books of meetings of its stockholders and directors, its capital stock ledger and capital stock certificate ledger or stubs, and all records which the Bank Commissioner and the State Banking Board shall, in accordance with the terms of this section, require to be retained permanently.
(c)
All records other than those described in subsection (b) of this section shall be retained for periods that the commissioner and board, in accordance with the terms of this section, shall prescribe.
(d)
The commissioner shall issue rules, with the approval of the board, prescribing the period for which records must be maintained. The periods may be permanent or for a term of years.
(e)
Any state bank or subsidiary trust company may dispose of any records which have been retained for the period prescribed in accordance with the terms of this section and shall, after it has disposed of a record, thereafter be under no duty to produce the record in any action or proceeding.
(f)
(1)
In lieu of retention of the original records, any state bank or subsidiary trust company may cause any or all of its records, and records held at any time in its custody, including those held by it as a fiduciary, to be photographed or otherwise reproduced in permanent form.
(2)
Any photograph or other reproduction shall have the same force and effect as the original thereof and be admitted into evidence equally as with the original.
Amended by Act 2019, No. 315,§ 2534, eff. 7/24/2019.
Acts 1997, No. 89, § 1.
Arkansas Code of 1987 (2023) › Title 23 - PUBLIC UTILITIES AND REGULATED INDUSTRIES (§§ 23-1-101 — 23-119-105) › Subtitle 2 - FINANCIAL INSTITUTIONS AND SECURITIES (§§ 23-30-101 — 23-55-1007) › Chapter 46 - STATE BANK DEPARTMENT AND STATE BANKING BOARD (§§ 23-46-101 — 23-46-607) › Subchapter 5 - REPORTS AND EXAMINATIONS (§§ 23-46-501 — 23-46-512) › Section 23-46-512 - Changes in chief executive officer and directors

Every financial institution shall report promptly to the Bank Commissioner any change for whatever reason in the chief executive officer and directors, including in its report a statement of the past and current business and professional affiliations of the new chief executive officer and directors.
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 46 - STATE BANK DEPARTMENT AND STATE BANKING BOARD (§§ 23-46-101 — 23-46-607) › Subchapter 6 - EXAMINATION OF TECHNOLOGY SERVICE PROVIDERS ACT (§§ 23-46-601 — 23-46-607) › Section 23-46-601 - Title

This subchapter shall be known and may be cited as the "Examination of Technology Service Providers Act".
Added by Act 2017, No. 646,§ 1, eff. 3/24/2017.
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 46 - STATE BANK DEPARTMENT AND STATE BANKING BOARD (§§ 23-46-101 — 23-46-607) › Subchapter 6 - EXAMINATION OF TECHNOLOGY SERVICE PROVIDERS ACT (§§ 23-46-601 — 23-46-607) › Section 23-46-602 - Definitions

As used in this subchapter:
(1)
"Bank supervisory agency" means the same as defined in §
23-45-102
;
(2)
(A)
"Covered service" means a service provided by a technology service provider to a depository institution in this state to the extent that the service is designed and marketed specifically for use by depository institutions to provide financial services to their customers.
(B)
"Covered service" includes:
(i)
Data processing services;
(ii)
Activities that support financial services, including without limitation lending, funds transfer, fiduciary activities, trading activities, and deposit-taking;
(iii)
Internet-related services, including without limitation web services, electronic bill payments, mobile applications, system and software development and maintenance, and security monitoring; and
(iv)
Activities related to the business of banking;
(3)
"Depository institution" means an entity or financial institution as defined in §
23-45-102(a)(19)
or §
23-45-102(a)(21)
, including any subsidiary or affiliate of the depository institution that is subject to examination by the Bank Commissioner;
(4)
"Internet service provider" means any provider that provides a subscriber with access to the internet; and
(5)
(A)
"Technology service provider" means a person, company, corporation, or other legal entity that provides a covered service.
(B)
"Technology service provider" does not mean:
(i)
An internet service provider or a general audience internet platform;
(ii)
A person, company, corporation, or other legal entity licensed under the Uniform Money Services Act, §
23-55-101
et seq.; or
(iii)
An authorized delegate of a licensee under the Uniform Money Services Act, §
23-55-101
et seq.
Added by Act 2017, No. 646,§ 1, eff. 3/24/2017.
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 46 - STATE BANK DEPARTMENT AND STATE BANKING BOARD (§§ 23-46-101 — 23-46-607) › Subchapter 6 - EXAMINATION OF TECHNOLOGY SERVICE PROVIDERS ACT (§§ 23-46-601 — 23-46-607) › Section 23-46-603 - Technology service providers subject to examination by Bank Commissioner

When a depository institution receives a covered service, by contract or otherwise, the performance of that service by a technology service provider to the depository institution is subject to examination by the Bank Commissioner to the same extent as if the covered service were performed by the depository institution itself.
Added by Act 2017, No. 646,§ 1, eff. 3/24/2017.
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 46 - STATE BANK DEPARTMENT AND STATE BANKING BOARD (§§ 23-46-101 — 23-46-607) › Subchapter 6 - EXAMINATION OF TECHNOLOGY SERVICE PROVIDERS ACT (§§ 23-46-601 — 23-46-607) › Section 23-46-604 - Authorization for agreements with bank supervisory agencies regarding use of examiners

The Bank Commissioner may enter into agreements with any bank supervisory agency that has jurisdiction over a technology service provider to:
(1)
Engage the services of the bank supervisory agency's examiners at a reasonable rate of compensation; or
(2)
Provide the services of the State Bank Department's examiners to the bank supervisory agency at a reasonable rate of compensation.
Added by Act 2017, No. 646,§ 1, eff. 3/24/2017.
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 46 - STATE BANK DEPARTMENT AND STATE BANKING BOARD (§§ 23-46-101 — 23-46-607) › Subchapter 6 - EXAMINATION OF TECHNOLOGY SERVICE PROVIDERS ACT (§§ 23-46-601 — 23-46-607) › Section 23-46-605 - Authorization for joint examinations or joint enforcement actions with bank supervisory agencies

The Bank Commissioner may enter into joint examinations or joint enforcement actions with a bank supervisory agency having jurisdiction over a technology service provider.
Added by Act 2017, No. 646,§ 1, eff. 3/24/2017.
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 46 - STATE BANK DEPARTMENT AND STATE BANKING BOARD (§§ 23-46-101 — 23-46-607) › Subchapter 6 - EXAMINATION OF TECHNOLOGY SERVICE PROVIDERS ACT (§§ 23-46-601 — 23-46-607) › Section 23-46-606 - Acceptance of examinations from bank supervisory agency

The Bank Commissioner may accept an examination that is conducted by a bank supervisory agency that has jurisdiction over a technology service provider as a substitution for an examination under this subchapter.
Added by Act 2017, No. 646,§ 1, eff. 3/24/2017.
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 46 - STATE BANK DEPARTMENT AND STATE BANKING BOARD (§§ 23-46-101 — 23-46-607) › Subchapter 6 - EXAMINATION OF TECHNOLOGY SERVICE PROVIDERS ACT (§§ 23-46-601 — 23-46-607) › Section 23-46-607 - Enforcement - Rules

The Bank Commissioner may by rule:
(1)
Adopt additional procedures to implement this subchapter; and
(2)
Impose sanctions under §
23-46-205
for violations of this subchapter by a technology service provider if the commissioner considers the enforcement action to be necessary or appropriate to enforce this subchapter and ensure compliance with the laws of this state.
Added by Act 2017, No. 646,§ 1, eff. 3/24/2017.
Arkansas Code of 1987 (2023) › Title 23 - PUBLIC UTILITIES AND REGULATED INDUSTRIES (§§ 23-1-101 — 23-119-105) › Subtitle 2 - FINANCIAL INSTITUTIONS AND SECURITIES (§§ 23-30-101 — 23-55-1007) › Chapter 47 - BANK POWERS - SUBSIDIARIES (§§ 23-47-101 — 23-47-906) › Subchapter 1 - POWERS GENERALLY (§§ 23-47-101 — 23-47-104) › Section 23-47-102 - Acquisition and disposition of own stock

(a)
No state bank shall be the purchaser or holder of its own capital stock, unless such security or purchase shall be necessary to prevent loss upon a debt previously contracted in good faith.
(b)
Stock so purchased or acquired shall be sold or disposed of as expeditiously as possible within twenty-four (24) months of its purchase or acquisition. After the expiration of twenty-four (24) months, any such stock shall not be considered as part of the assets of the state bank.
(c)
This section does not apply to:
(1)
The payment by a state bank of the value of shares held by shareholders dissenting from any proposed merger, consolidation, purchase or assumption, or other reorganization involving a plan of exchange of any of the stock of the state bank, who perfect their statutory rights as dissenting shareholders; or
(2)
The repurchase by a state bank of its shares of capital stock if the state bank is required to file reports under section 13 or section 15(d) of the Securities Exchange Act of 1934,
15 U.S.C. § 78a
et seq., as it existed on January 1, 2017, or has a class of equity securities registered under section 12(b) or section 12(g) of the Securities Exchange Act of 1934,
15 U.S.C. § 78a
et seq., as it existed on January 1, 2017, when the terms of the repurchase, or any repurchase plan or program, has been approved by the Bank Commissioner.
Amended by Act 2017, No. 548,§ 1, eff. 3/21/2017.
Acts 1997, No. 89, § 1.
Arkansas Code of 1987 (2023) › Title 23 - PUBLIC UTILITIES AND REGULATED INDUSTRIES (§§ 23-1-101 — 23-119-105) › Subtitle 2 - FINANCIAL INSTITUTIONS AND SECURITIES (§§ 23-30-101 — 23-55-1007) › Chapter 47 - BANK POWERS - SUBSIDIARIES (§§ 23-47-101 — 23-47-906) › Subchapter 1 - POWERS GENERALLY (§§ 23-47-101 — 23-47-104) › Section 23-47-103 - Acquisition of bank premises

(a)
A state bank or subsidiary trust company, acting with the prior approval of the Bank Commissioner, may acquire bank premises to be used, occupied, or owned by it.
(b)
(1)
Any state bank acting with the prior approval of the commissioner may cause the title to its bank premises, now owned or at any time hereafter acquired by the bank to be held by a subsidiary corporation which shall be wholly owned by the bank.
(2)
A state bank having such a subsidiary may rent the bank premises or any portion thereof from the subsidiary or acquire the title to the premises by purchase from the subsidiary or through its liquidation under such terms and conditions as may be approved by the commissioner.
(c)
A state bank may with the prior approval of the commissioner invest in bank premises or in the stock, bonds, debentures, or other obligations of the subsidiary owning the bank premises, or make loans to, or upon the security of the stock of the subsidiary, if the aggregate of all such investments or loans, together with the amount of any indebtedness incurred by the subsidiary, will not exceed one hundred fifty percent (150%) of the capital base of the state bank.
Acts 1997, No. 89, § 1; 1999, No. 112, § 1.
Arkansas Code of 1987 (2023) › Title 23 - PUBLIC UTILITIES AND REGULATED INDUSTRIES (§§ 23-1-101 — 23-119-105) › Subtitle 2 - FINANCIAL INSTITUTIONS AND SECURITIES (§§ 23-30-101 — 23-55-1007) › Chapter 47 - BANK POWERS - SUBSIDIARIES (§§ 23-47-101 — 23-47-906) › Subchapter 1 - POWERS GENERALLY (§§ 23-47-101 — 23-47-104) › Section 23-47-104 - Prohibition on engaging in business as real estate salespersons or brokers

Banks, bank holding companies, and subsidiaries of banks or bank holding companies may not engage in business as real estate salespersons or brokers.
Acts 1997, No. 89, § 1.
Arkansas Code of 1987 (2023) › Title 23 - PUBLIC UTILITIES AND REGULATED INDUSTRIES (§§ 23-1-101 — 23-119-105) › Subtitle 2 - FINANCIAL INSTITUTIONS AND SECURITIES (§§ 23-30-101 — 23-55-1007) › Chapter 47 - BANK POWERS - SUBSIDIARIES (§§ 23-47-101 — 23-47-906) › Subchapter 2 - DEPOSITS (§§ 23-47-201 — 23-47-209) › Section 23-47-201 - Notice of rules governing deposits

(a)
(1)
Banks shall have the power to make rules governing deposits, including provisions for reasonable notice, not to exceed ninety (90) days, for the withdrawal of deposits and for changes in or amendments to those rules to be made by the bank without approval of the depositor.
(2)
Notice of the rules and all changes therein shall be given to each customer whose deposits are affected by the rules, either by delivery or mailing of a copy to the customer or by posting them in a conspicuous area in the main office and in all branch offices of the bank.
(3)
If the rules are stated on a signature card or other document signed by the customer, the bank shall be deemed to have given notice of the rules for purposes of this provision even if the signature card or document is returned to the bank.
(b)
Rules so made shall be a valid contract between the depositor and the bank, subject to the right of the bank to change or amend the rules in the manner provided in the rules.
Acts 1997, No. 89, § 1.
Arkansas Code of 1987 (2023) › Title 23 - PUBLIC UTILITIES AND REGULATED INDUSTRIES (§§ 23-1-101 — 23-119-105) › Subtitle 2 - FINANCIAL INSTITUTIONS AND SECURITIES (§§ 23-30-101 — 23-55-1007) › Chapter 47 - BANK POWERS - SUBSIDIARIES (§§ 23-47-101 — 23-47-906) › Subchapter 2 - DEPOSITS (§§ 23-47-201 — 23-47-209) › Section 23-47-202 - Deposits by minors

When any deposit is made in any bank by a minor, the bank may pay to the depositor the sums due him or her and the receipt or check of the minor shall be, in all respects, valid in law.
Acts 1997, No. 89, § 1.
Arkansas Code of 1987 (2023) › Title 23 - PUBLIC UTILITIES AND REGULATED INDUSTRIES (§§ 23-1-101 — 23-119-105) › Subtitle 2 - FINANCIAL INSTITUTIONS AND SECURITIES (§§ 23-30-101 — 23-55-1007) › Chapter 47 - BANK POWERS - SUBSIDIARIES (§§ 23-47-101 — 23-47-906) › Subchapter 2 - DEPOSITS (§§ 23-47-201 — 23-47-209) › Section 23-47-205 - Adverse claim to deposit

Notice to a bank of an adverse claim to a deposit standing on its books to the credit of any person shall not be sufficient to require the bank to pay the deposit to the adverse claimant or otherwise recognize the adverse claim unless the adverse claimant also:
(1)
Procures a restraining order, injunction, or other appropriate process, which has become final and not further appealable, against the bank from a court of competent jurisdiction in a cause therein instituted by him or her wherein the person to whose credit the deposit stands is made a party and served with summons; or
(2)
Executes to the bank, in form and with sureties acceptable to it, a bond indemnifying the bank from any and all liability, loss, damage, costs, and expenses for and on account of the payment of the adverse claim or the dishonor of the check or other order of the person to whose credit the deposit stands on the books of the bank.
Acts 1997, No. 89, § 1.
Arkansas Code of 1987 (2023) › Title 23 - PUBLIC UTILITIES AND REGULATED INDUSTRIES (§§ 23-1-101 — 23-119-105) › Subtitle 2 - FINANCIAL INSTITUTIONS AND SECURITIES (§§ 23-30-101 — 23-55-1007) › Chapter 47 - BANK POWERS - SUBSIDIARIES (§§ 23-47-101 — 23-47-906) › Subchapter 2 - DEPOSITS (§§ 23-47-201 — 23-47-209) › Section 23-47-206 - Settlement of checks at par - Exception

(a)
No state bank shall settle any check drawn on it against an account with a sufficient balance otherwise than at par.
(b)
However, the provisions of this section shall not apply with respect to the settlement of a check sent to a state bank for special handling or as a special collection item.
Acts 1997, No. 89, § 1.
Arkansas Code of 1987 (2023) › Title 23 - PUBLIC UTILITIES AND REGULATED INDUSTRIES (§§ 23-1-101 — 23-119-105) › Subtitle 2 - FINANCIAL INSTITUTIONS AND SECURITIES (§§ 23-30-101 — 23-55-1007) › Chapter 47 - BANK POWERS - SUBSIDIARIES (§§ 23-47-101 — 23-47-906) › Subchapter 2 - DEPOSITS (§§ 23-47-201 — 23-47-209) › Section 23-47-207 - Payment of overdrafts - Liability of officer or employee

(a)
Any officer or employee who knowingly pays out the funds of any state bank upon the check, order, or draft of any individual, firm, corporation, or association which does not have on deposit with the bank a sum equal to the check, order, or draft is personally liable to it for the amount so paid unless the drawer of the check, order, or draft has previously arranged with the bank for a line of credit sufficient to cover the payment or unless the payment was made pursuant to a general authorization approved by the board of directors for the officer or employee to cover the payment.
(b)
However, the board of directors may ratify the overdraft and relieve the employee from liability.
Acts 1997, No. 89, § 1.
Arkansas Code of 1987 (2023) › Title 23 - PUBLIC UTILITIES AND REGULATED INDUSTRIES (§§ 23-1-101 — 23-119-105) › Subtitle 2 - FINANCIAL INSTITUTIONS AND SECURITIES (§§ 23-30-101 — 23-55-1007) › Chapter 47 - BANK POWERS - SUBSIDIARIES (§§ 23-47-101 — 23-47-906) › Subchapter 2 - DEPOSITS (§§ 23-47-201 — 23-47-209) › Section 23-47-208 - Deferred income investment accounts

(a)
On behalf of depositors, state banks may create and open deferred income investment accounts of the following types:
(1)
The depositor makes a deposit of a lump sum, and the bank agrees to pay the depositor an agreed monthly or annual payment for life or for a term certain beginning immediately or at some time in the future; and
(2)
The depositor makes a deposit periodically on an agreed basis, and the bank agrees to pay the depositor, on a periodic basis beginning at some time in the future for life or a term certain, an agreed monthly or annual payment.
(b)
The depositor and the state bank may agree that:
(1)
A partial refund of the deposit may occur upon specified events, or no refund may occur;
(2)
The depositor may elect to stop payments from the bank for a term;
(3)
The payments may go to designated beneficiaries in all cases both before and after death of the depositor;
(4)
The amount of the payments to the bank and to the depositor will be fixed for the term agreed upon; or
(5)
The payment to the depositor will be determined by an index or criteria beyond the control of the depositor or bank.
(c)
The Bank Commissioner shall promulgate such rules as may be necessary and proper to carry out the intent and purpose of this section and to issue cease and desist orders to any state bank found to be violating this section or State Bank Department rules. These department rules shall incorporate §§
23-81-121
-
23-81-128
, where applicable.
(d)
The deferred income investment accounts allowed in this section shall be exempt from §§
23-42-501
and
23-42-502
.
(e)
It is the intent of this section that distributions from deferred income investment accounts be treated as nontaxable to the greatest extent possible under section 72 of the Internal Revenue Code of 1986.
Amended by Act 2019, No. 315,§ 2536, eff. 7/24/2019.
Acts 1997, No. 89, § 1.
Arkansas Code of 1987 (2023) › Title 23 - PUBLIC UTILITIES AND REGULATED INDUSTRIES (§§ 23-1-101 — 23-119-105) › Subtitle 2 - FINANCIAL INSTITUTIONS AND SECURITIES (§§ 23-30-101 — 23-55-1007) › Chapter 47 - BANK POWERS - SUBSIDIARIES (§§ 23-47-101 — 23-47-906) › Subchapter 2 - DEPOSITS (§§ 23-47-201 — 23-47-209) › Section 23-47-209 - Savings promotion raffle - Definitions

(a)
As used in this section:
(1)
(A)
"Financial institution" means a banking institution that may accept deposits from depositors under any state or federal law, the accounts of which are insured by the Federal Deposit Insurance Corporation or the National Credit Union Administration, and is a state or federally regulated institution.
(B)
"Financial institution" includes without limitation:
(i)
A state bank regulated by the State Bank Department or similar state regulator in the domicile of the state bank;
(ii)
A national bank or association;
(iii)
A state or federal savings and loan association;
(iv)
A mutual savings bank;
(v)
A state or federal credit union; and
(vi)
A community or rural development bank;
(2)
"Savings promotion deposit" means the specified amount of moneys required by a depositor to be deposited into a savings account to be entered in a savings promotion raffle; and
(3)
"Savings promotion raffle" means a raffle conducted by a financial institution in which the sole consideration required for a chance of winning designated prizes is the deposit of at least a specified amount of moneys into a savings account or other savings program offered by the financial institution.
(b)
A financial institution may conduct a savings promotion raffle for depositors who make a savings promotion deposit into a savings account of the financial institution.
(c)
A savings promotion raffle shall be conducted so that each savings promotion deposit provides a depositor with an equal chance of winning a prize as designated by the financial institution.
Added by Act 2015, No. 589,§ 2, eff. 7/22/2015.
Arkansas Code of 1987 (2023) › Title 23 - PUBLIC UTILITIES AND REGULATED INDUSTRIES (§§ 23-1-101 — 23-119-105) › Subtitle 2 - FINANCIAL INSTITUTIONS AND SECURITIES (§§ 23-30-101 — 23-55-1007) › Chapter 47 - BANK POWERS - SUBSIDIARIES (§§ 23-47-101 — 23-47-906) › Subchapter 3 - AGENCY DESIGNATION ON CERTIFICATES OF DEPOSIT (§§ 23-47-301 — 23-47-309) › Section 23-47-301 - Definitions

In this subchapter:
(1)
"Account" means a contract of deposit between a depositor and a bank, and includes a checking account, savings account, and certificate of deposit;
(2)
"Agent" means a person authorized to make account transactions for a party;
(3)
"Beneficiary" means a person named as one (1) to whom sums on deposit in an account are payable on request after the death of all parties or for whom a party is named as trustee;
(4)
"Devisee" means any person designated in a will to receive a testamentary disposition of real or personal property;
(5)
"Party" means a person who, by the terms of an account, has a present right, subject to request, to payment from the account other than as a beneficiary or agent;
(6)
"Payment" of sums on deposit includes withdrawal, payment to a party or third person pursuant to check or other request, and a pledge of sums on deposit by a party, or a setoff, reduction, or other disposition of all or part of an account pursuant to a pledge; and
(7)
"Personal representative" includes an executor, administrator, successor personal representative, special administrator, and persons who perform substantially the same function under the law governing their status.
Acts 1997, No. 89, § 1.
Arkansas Code of 1987 (2023) › Title 23 - PUBLIC UTILITIES AND REGULATED INDUSTRIES (§§ 23-1-101 — 23-119-105) › Subtitle 2 - FINANCIAL INSTITUTIONS AND SECURITIES (§§ 23-30-101 — 23-55-1007) › Chapter 47 - BANK POWERS - SUBSIDIARIES (§§ 23-47-101 — 23-47-906) › Subchapter 3 - AGENCY DESIGNATION ON CERTIFICATES OF DEPOSIT (§§ 23-47-301 — 23-47-309) › Section 23-47-302 - Scope of subchapter

(a)
This subchapter applies to accounts in this state.
(b)
This subchapter does not apply to:
(1)
An account established for a partnership, joint venture, or other organization for a business purpose;
(2)
An account controlled by one (1) or more persons as an agent or trustee for a corporation, unincorporated association, or charitable or civic organization; or
(3)
A fiduciary or trust account in which the relationship is established other than by the terms of the account.
Acts 1997, No. 89, § 1.
Arkansas Code of 1987 (2023) › Title 23 - PUBLIC UTILITIES AND REGULATED INDUSTRIES (§§ 23-1-101 — 23-119-105) › Subtitle 2 - FINANCIAL INSTITUTIONS AND SECURITIES (§§ 23-30-101 — 23-55-1007) › Chapter 47 - BANK POWERS - SUBSIDIARIES (§§ 23-47-101 — 23-47-906) › Subchapter 3 - AGENCY DESIGNATION ON CERTIFICATES OF DEPOSIT (§§ 23-47-301 — 23-47-309) › Section 23-47-304 - Designation of agent

(a)
Unless the terms of an agency designation provide that the authority of the agent terminates on disability or incapacity of a party, the agent's authority survives disability and incapacity. The agent may act for a disabled or incapacitated party until the authority of the agent is terminated.
(b)
Death of the sole party or last surviving party terminates the authority of an agent.
(c)
An agent in an account with an agency designation has no beneficial right to sums on deposit.
Acts 1997, No. 89, § 1.
Arkansas Code of 1987 (2023) › Title 23 - PUBLIC UTILITIES AND REGULATED INDUSTRIES (§§ 23-1-101 — 23-119-105) › Subtitle 2 - FINANCIAL INSTITUTIONS AND SECURITIES (§§ 23-30-101 — 23-55-1007) › Chapter 47 - BANK POWERS - SUBSIDIARIES (§§ 23-47-101 — 23-47-906) › Subchapter 3 - AGENCY DESIGNATION ON CERTIFICATES OF DEPOSIT (§§ 23-47-301 — 23-47-309) › Section 23-47-305 - Payment to designated agent

On request of an agent under an agency designation for an account, a bank may, unless it actually knows that the authority of agency has terminated, pay to the agent sums on deposit in the account.
Acts 1997, No. 89, § 1.
Arkansas Code of 1987 (2023) › Title 23 - PUBLIC UTILITIES AND REGULATED INDUSTRIES (§§ 23-1-101 — 23-119-105) › Subtitle 2 - FINANCIAL INSTITUTIONS AND SECURITIES (§§ 23-30-101 — 23-55-1007) › Chapter 47 - BANK POWERS - SUBSIDIARIES (§§ 23-47-101 — 23-47-906) › Subchapter 3 - AGENCY DESIGNATION ON CERTIFICATES OF DEPOSIT (§§ 23-47-301 — 23-47-309) › Section 23-47-306 - Payment to minor

If a bank is required or permitted to make payment pursuant to this subchapter to a minor designated as a beneficiary, payment may be made pursuant to the Arkansas Uniform Transfers to Minors Act, §
9-26-201
et seq.
Acts 1997, No. 89, § 1.
Arkansas Code of 1987 (2023) › Title 23 - PUBLIC UTILITIES AND REGULATED INDUSTRIES (§§ 23-1-101 — 23-119-105) › Subtitle 2 - FINANCIAL INSTITUTIONS AND SECURITIES (§§ 23-30-101 — 23-55-1007) › Chapter 47 - BANK POWERS - SUBSIDIARIES (§§ 23-47-101 — 23-47-906) › Subchapter 3 - AGENCY DESIGNATION ON CERTIFICATES OF DEPOSIT (§§ 23-47-301 — 23-47-309) › Section 23-47-307 - Discharge

(a)
(1)
Payment made pursuant to this subchapter in accordance with an agency account discharges the bank from all claims for amounts so paid, whether or not the payment is consistent with the beneficial ownership of the account as between parties, beneficiaries, or their successors.
(2)
Payment may be made whether or not a party, beneficiary, or agent is disabled, incapacitated, or deceased when payment is requested, received, or made.
(b)
(1)
Protection under this section does not extend to payments made after a bank has received written notice from a party, or from the personal representative, surviving spouse, or heir or devisee of a deceased party, to the effect that payments in accordance with the terms of the agency account should not be permitted and the bank has had a reasonable opportunity to act on it when payment is made.
(2)
Unless the notice is withdrawn by the person giving it, the successor of any deceased party must concur in a request for payment if the bank is to be protected under this section.
(3)
Unless a bank has been served with process in an action or proceeding, no other notice or other information shown to have been available to the bank affects its right to protection under this section.
(c)
A bank that receives written notice pursuant to this section or otherwise that has reason to believe that a dispute exists as to the rights of the parties may refuse, without liability, to make payments in accordance with the terms of the agency account.
(d)
Protection of a bank under this section does not affect the rights of parties in disputes between themselves or their successors concerning the beneficial ownership of sums on deposit in agency accounts or payments made from agency accounts.
Acts 1997, No. 89, § 1.
Arkansas Code of 1987 (2023) › Title 23 - PUBLIC UTILITIES AND REGULATED INDUSTRIES (§§ 23-1-101 — 23-119-105) › Subtitle 2 - FINANCIAL INSTITUTIONS AND SECURITIES (§§ 23-30-101 — 23-55-1007) › Chapter 47 - BANK POWERS - SUBSIDIARIES (§§ 23-47-101 — 23-47-906) › Subchapter 3 - AGENCY DESIGNATION ON CERTIFICATES OF DEPOSIT (§§ 23-47-301 — 23-47-309) › Section 23-47-308 - Setoff

(a)
Without qualifying any other statutory right to setoff or lien and subject to any contractual provision, if a party is indebted to a bank, the bank has a right to setoff against the agency account.
(b)
The amount of the agency account subject to setoff is the proportion to which the party is, or immediately before death was, beneficially entitled or, in the absence of proof of that proportion, an equal share with all parties.
Acts 1997, No. 89, § 1.
Arkansas Code of 1987 (2023) › Title 23 - PUBLIC UTILITIES AND REGULATED INDUSTRIES (§§ 23-1-101 — 23-119-105) › Subtitle 2 - FINANCIAL INSTITUTIONS AND SECURITIES (§§ 23-30-101 — 23-55-1007) › Chapter 47 - BANK POWERS - SUBSIDIARIES (§§ 23-47-101 — 23-47-906) › Subchapter 3 - AGENCY DESIGNATION ON CERTIFICATES OF DEPOSIT (§§ 23-47-301 — 23-47-309) › Section 23-47-309 - Effect on other laws

This subchapter is supplemental to all laws pertaining to the deposit of funds in banks.
Acts 1997, No. 89, § 1.
Arkansas Code of 1987 (2023) › Title 23 - PUBLIC UTILITIES AND REGULATED INDUSTRIES (§§ 23-1-101 — 23-119-105) › Subtitle 2 - FINANCIAL INSTITUTIONS AND SECURITIES (§§ 23-30-101 — 23-55-1007) › Chapter 47 - BANK POWERS - SUBSIDIARIES (§§ 23-47-101 — 23-47-906) › Subchapter 5 - LOANS (§§ 23-47-501 — 23-47-510) › Section 23-47-501 - Loan limits - Maximum generally

(a)
The total indebtedness to any state bank of any person shall at no time exceed twenty percent (20%) of the capital base of the bank.
(b)
(1)
Obligations of a person as endorser or guarantor, accommodation or otherwise, of notes or other obligations shall be included in that person's loan limit.
(2)
However, in the case of obligations that are endorsed without recourse, the limitation of twenty percent (20%) shall be applied to each primary debtor, but not to the liability, in such capacity, of the endorser.
(c)
(1)
A loan or group of loans that are within the legal loan limit of a state bank at the time the loan or loans are made shall be valid for legal loan limit purposes until maturity, as stated in the original contract, regardless of fluctuations in the bank's legal loan limit. However, if a bank's legal loan limit is reduced due to fluctuations in its capital base, a loan or group of loans to a borrower or borrowers that were within the legal loan limit prior to the reduction may become in violation of the bank's reduced legal loan limit upon the extension, renewal, or advancement of additional funds on the loan or group of loans occurring after the reduction in the bank's legal loan limits.
(2)
State banks are required to calculate their legal loan limits on a quarterly basis to coincide with the requirement to calculate their capital base.
(d)
(1)
If in any instance it shall appear, as determined by the Bank Commissioner, that the interests of a group composed of individuals, partnerships, unincorporated associations, or corporations are so interrelated that, from a credit standpoint, applying standard and customary banking practice, they should be considered as a single unit for the purposes of extensions of credit, the total indebtedness of these interrelated customers shall be combined and treated as the indebtedness of a single customer in applying the loan limit.
(2)
A state bank shall not be deemed to have violated this section solely by reason of the fact that the indebtedness of a group held by the bank exceeds the limitation of this section at the time the commissioner determines that the indebtedness of the group must be combined. However, if required by the commissioner, the state bank shall dispose of indebtedness of the group in the amount of excess of the limitation of this section within such reasonable time as shall be fixed by the commissioner.
Amended by Act 2019, No. 62,§ 1, eff. 7/24/2019.
Acts 1997, No. 89, § 1; 2005, No. 427, § 1.
Arkansas Code of 1987 (2023) › Title 23 - PUBLIC UTILITIES AND REGULATED INDUSTRIES (§§ 23-1-101 — 23-119-105) › Subtitle 2 - FINANCIAL INSTITUTIONS AND SECURITIES (§§ 23-30-101 — 23-55-1007) › Chapter 47 - BANK POWERS - SUBSIDIARIES (§§ 23-47-101 — 23-47-906) › Subchapter 5 - LOANS (§§ 23-47-501 — 23-47-510) › Section 23-47-502 - Loan limits - Inclusions and exceptions

(a)
The following loans and other forms of indebtedness shall not be included in the limitation of twenty percent (20%) imposed by §
23-47-501
and may be made or acquired without being subject to any loan limit:
(1)
Obligations in the form of drafts or bills of exchange drawn in good faith against actually existing values;
(2)
Nonconforming assets acquired as a result of acquisition of a failed bank or savings and loan association, so long as a plan for divestiture within a reasonable amount of time is approved by the Bank Commissioner;
(3)
Obligations drawn in good faith against actually existing values and fully secured by goods or commodities in process of shipment may be acquired without limit;
(4)
Obligations in the form of bankers' acceptances of other banks; and
(5)
Obligations secured by investments which the state bank, pursuant to §
23-47-401
could invest in without limit, having a market value at all times at least equal to the principal balance of the obligation.
(b)
(1)
The loan limit of twenty percent (20%) provided by §
23-47-501
shall be modified so that a loan limit not to exceed sixty percent (60%) shall apply to obligations secured by transferable documents of title covering:
(A)
Livestock; or
(B)
Readily marketable and nonperishable commodities or staples fully insured, if of a type that is customarily insured.
(2)
The property in each instance must have a value of at least one hundred fifteen percent (115%) of the amount of the secured obligation.
(3)
An obligation secured in this manner shall not be deemed non- conforming on the grounds that, for the purpose of loading, unloading, storing, shipping, or transshipping, the title documents or the property covered thereby may be released under trust receipt to the possession of the obligor or borrower if, within twenty-one (21) days after the release, the property or valid title documents covering the property is redelivered to the state bank, and provided that, during the interim, the bank holds a perfected security interest in all such property under the Uniform Commercial Code, §
4-1-101
et seq.
(4)
The standard twenty percent (20%) loan limit will apply even to the obligations secured by transferable documents of title if the warehouser who issued the documents of title under applicable law can transfer marketable title to the commodities described in the documents to a purchaser in the ordinary course of business.
Acts 1997, No. 89, § 1.
Arkansas Code of 1987 (2023) › Title 23 - PUBLIC UTILITIES AND REGULATED INDUSTRIES (§§ 23-1-101 — 23-119-105) › Subtitle 2 - FINANCIAL INSTITUTIONS AND SECURITIES (§§ 23-30-101 — 23-55-1007) › Chapter 47 - BANK POWERS - SUBSIDIARIES (§§ 23-47-101 — 23-47-906) › Subchapter 5 - LOANS (§§ 23-47-501 — 23-47-510) › Section 23-47-503 - Loans involving stock of state bank

(a)
It shall be unlawful for any state bank to knowingly:
(1)
Loan its funds to its stockholders on its own stock, or stock in its bank holding company, as collateral security;
(2)
Make any loan, the proceeds of which are used to purchase its own stock or stock of its bank holding company; or
(3)
Carry as an asset any loan representing, either directly or indirectly, an investment in its own stock or that of its bank holding company. Provided, however, that there shall be no violation of this subdivision (a)(3) when a bank acquires its own stock or stock in its bank holding company in the regular course of collecting a debt previously contracted in good faith if the bank complied with subdivisions (a)(1) and (2) of this section at the time the loan was made and if the bank divests the stock within two (2) years.
(b)
(1)
Any officer or director of any state bank or any stockholder violating the provisions of this section shall be subject to civil money penalties of one thousand dollars ($1,000) per day, up to a maximum of one hundred thousand dollars ($100,000) in the aggregate, for each violation.
(2)
The civil penalties may be imposed by the commissioner pursuant to his or her power to and the procedure for issuing cease and desist orders.
Acts 1997, No. 89, § 1.
Arkansas Code of 1987 (2023) › Title 23 - PUBLIC UTILITIES AND REGULATED INDUSTRIES (§§ 23-1-101 — 23-119-105) › Subtitle 2 - FINANCIAL INSTITUTIONS AND SECURITIES (§§ 23-30-101 — 23-55-1007) › Chapter 47 - BANK POWERS - SUBSIDIARIES (§§ 23-47-101 — 23-47-906) › Subchapter 5 - LOANS (§§ 23-47-501 — 23-47-510) › Section 23-47-504 - Loans to affiliates and insiders

The provisions of subsections (g) and (h) of section 22 of the Federal Reserve Act,
12 U.S.C. §§ 375a
and
375b
, and the regulations promulgated thereunder, shall apply to any state bank.
Acts 1997, No. 89, § 1.
Arkansas Code of 1987 (2023) › Title 23 - PUBLIC UTILITIES AND REGULATED INDUSTRIES (§§ 23-1-101 — 23-119-105) › Subtitle 2 - FINANCIAL INSTITUTIONS AND SECURITIES (§§ 23-30-101 — 23-55-1007) › Chapter 47 - BANK POWERS - SUBSIDIARIES (§§ 23-47-101 — 23-47-906) › Subchapter 5 - LOANS (§§ 23-47-501 — 23-47-510) › Section 23-47-505 - Illegal loans - Liability of officer or director

Any officer or director of any state bank who shall knowingly make or approve a loan in violation of §§
23-47-501
-
23-47-504
or who shall knowingly permit such a loan to be made, or who shall fail to exercise his or her authority to prevent the making of the loan shall be personally liable to the bank, or to the Bank Commissioner, for the full amount thereof. However, written notice of disapproval of the loan, served on the board of directors and also the commissioner at the time the making or existence of the loan first comes to his or her knowledge, shall relieve any officer or director from personal liability.
Acts 1997, No. 89, § 1.