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 35 - CREDIT UNIONS (§§ 23-35-101 — 23-35-805) › Subchapter 6 - OPERATION (§§ 23-35-601 — 23-35-611) › Section 23-35-601 - Powers generally

A credit union shall have power to:
(1)
Make contracts;
(2)
Sue and be sued in the name of the credit union;
(3)
Adopt and use a common seal and alter it at pleasure;
(4)
Purchase, hold, and dispose of property necessary or incidental to its operations;
(5)
Require the payment of an entrance or membership fee by any applicant admitted to membership;
(6)
Receive from its members payments on shares, which shall include the right to conduct Christmas clubs, vacation clubs, and other such thrift organizations within the membership;
(7)
Lend its funds to its members as provided in this chapter;
(8)
Purchase insurance on the lives of its members in an amount equal to their respective share and loan balances or any or all of them;
(9)
Borrow from any source in an aggregate amount not exceeding sixty percent (60%) of the share balances;
(10)
Invest surplus funds as provided in this chapter;
(11)
Make deposits in checking or similar type of accounts in state-chartered and federally chartered banks, savings and loan associations, savings banks, and credit unions, which accounts are insured by the Federal Deposit Insurance Corporation, Federal Savings and Loan Insurance Corporation [abolished], or the National Credit Union Administration;
(12)
Hold membership in other credit unions organized under this chapter or other acts, in the Arkansas Credit Union League, and in other organizations composed of credit unions;
(13)
Declare dividends as provided in this chapter;
(14)
Impress a lien upon the shares and accumulation of dividends and interest of any member to the extent of any loans made to him or her directly or indirectly, or on which he or she is surety, and for any dues or charges payable by him or her;
(15)
Change its place of business in Arkansas with written notice to the State Credit Union Supervisor; and
(16)
Exercise the powers granted corporations organized under the laws of Arkansas and such additional incidental powers as may be necessary or requisite to enable it to promote and effectively carry on its purposes.
Acts 1971, No. 132, § 5; 1975, No. 530, §§ 3, 4; 1985, No. 936, § 2; A.S.A. 1947, § 67-905.
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 35 - CREDIT UNIONS (§§ 23-35-101 — 23-35-805) › Subchapter 6 - OPERATION (§§ 23-35-601 — 23-35-611) › Section 23-35-602 - Christmas and other thrift clubs

Christmas clubs, vacation clubs, and other thrift clubs, if provided for the use of members, shall be operated in accordance with such rules as the board of directors of the credit union may prescribe.
Amended by Act 2019, No. 315,§ 2488, eff. 7/24/2019.
Acts 1971, No. 132, § 20; A.S.A. 1947, § 67-920.
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 35 - CREDIT UNIONS (§§ 23-35-101 — 23-35-805) › Subchapter 6 - OPERATION (§§ 23-35-601 — 23-35-611) › Section 23-35-604 - Investment of funds

Funds not used in loans to members may be invested:
(1)
In capital shares, obligations, or preferred stock issues of any agency or association organized either as a stock company, mutual association, or membership corporation, provided that the membership or stockholdings, as the case may be, of the agency or association are confined or restricted to credit unions or organizations of credit unions and provided that the purposes for which the agency or association is organized are designed to service or otherwise assist credit union operations;
(2)
In obligations of the State of Arkansas or any subdivision thereof;
(3)
In obligations of the United States or securities fully guaranteed as to principal and interest thereby;
(4)
In shares of a cooperative society organized under local or national cooperative laws, in an amount not exceeding ten percent (10%) of the shares and surplus of the credit union;
(5)
In any investment legal for fiduciaries, savings banks, or trust companies in Arkansas;
(6)
In loans to other credit unions, in an amount not to exceed thirty-three and one-third percent (331/3%) of the shares and unimpaired surplus of the lending credit union; and
(7)
In an aggregate amount not exceeding twenty-five percent (25%) of the allocations to the reserve fund, in any agency or association of the type described in subdivision (1) of this section, provided the purposes of any such agency or association are designed to assist in establishing and maintaining liquidity, solvency, and security in credit union operations.
Acts 1971, No. 132, § 25; A.S.A. 1947, § 67-925.
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 35 - CREDIT UNIONS (§§ 23-35-101 — 23-35-805) › Subchapter 6 - OPERATION (§§ 23-35-601 — 23-35-611) › Section 23-35-605 - Reserves

(a)
At the end of each accounting period, the gross income shall be determined. From this amount, there shall be set aside, as a regular reserve against losses on loans and against such other losses as may be specified in rules prescribed under this chapter, sums in accordance with the following schedule:
(1)
A credit union in operation for more than four (4) years and having assets of five hundred thousand dollars ($500,000) or more shall set aside:
(A)
Ten percent (10%) of gross income until the regular reserve shall equal four percent (4%) of the total of outstanding loans and risk assets; then
(B)
Five percent (5%) of gross income until the regular reserve shall equal six percent (6%) of the total of outstanding loans and risk assets;
(2)
A credit union in operation less than four (4) years or having assets of less than five hundred thousand dollars ($500,000) shall set aside ten percent (10%) of gross income until the regular reserve shall equal seven and one-half percent (71/2%) of the total of outstanding loans and risk assets; and
(3)
Whenever the regular reserve falls below the stated percent of the total of outstanding loans and risk assets, it shall be replenished by regular contributions in such amounts as may be needed to maintain the stated reserve goals.
(b)
The State Credit Union Supervisor may decrease the reserve requirement set forth in subsection (a) of this section when, in his or her opinion, a decrease is necessary or desirable. The supervisor may also require special reserves to protect the interests of members either by rule or for an individual credit union in any special case.
(c)
The reserve fund shall belong to the credit union and shall be used to meet all losses from uncollectable loans and shall not be distributed except on liquidation of the credit union or in accordance with a plan approved or ordered by the supervisor.
Amended by Act 2019, No. 315,§ 2489, eff. 7/24/2019.
Acts 1971, No. 132, § 26; 1979, No. 206, § 7; 1985, No. 936, § 15; A.S.A. 1947, § 67-926.
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 35 - CREDIT UNIONS (§§ 23-35-101 — 23-35-805) › Subchapter 6 - OPERATION (§§ 23-35-601 — 23-35-611) › Section 23-35-606 - Inability to contact members - Transfer of funds to reserves

(a)
(1)
If a credit union is unable to contact a member, beneficiary, or other person by first class mail at the last address shown on the records of the credit union, and if such inability continues for a period of more than three (3) years, then all shares, accounts, dividends, interest, and other sums due to or standing in the name of the member, beneficiary, or other person may, by action of the board of directors of the credit union, be credited to accounts payable, and thereafter no dividends or interest will accrue thereto.
(2)
The member shall have the right to reclaim any such sums by proper judicial proceedings commenced within an additional four (4) years after the action by the board.
(b)
This section shall not apply to shares, accounts, dividends, interest, and other sums due to or standing in the name of two (2) or more persons unless the credit union is unable to contact any of those persons in the manner and during the period specified in this section.
(c)
Nothing contained in this section shall exempt a credit union from the Arkansas Uniform Unclaimed Property Act, §
18-28-201
et seq.
Acts 1971, No. 132, § 24; 1975, No. 530, § 16; 1985, No. 936, § 14; A.S.A. 1947, § 67-924.
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 35 - CREDIT UNIONS (§§ 23-35-101 — 23-35-805) › Subchapter 6 - OPERATION (§§ 23-35-601 — 23-35-611) › Section 23-35-607 - Dividends - Definition

(a)
At such intervals as the board of directors of the credit union may authorize and after provision for required reserves, the board may declare, pursuant to such rules as may be issued by the State Credit Union Supervisor, a dividend to be paid at different rates on different types of shares and at different rates and maturity dates in the case of share certificates.
(b)
(1)
Dividend credit may be accrued on various types of shares and share certificates as authorized by the board.
(2)
Dividend credit for a month may be accrued on shares which are or become fully paid up during the first fifteen (15) days of that month.
(3)
No dividends shall be paid on shares which are withdrawn during the dividend period.
(c)
(1)
No dividend shall be declared or paid at a time when the credit union is insolvent or when the payments thereof would render the credit union insolvent.
(2)
Insolvency shall be determined by the supervisor to have occurred when:
(A)
A credit union cannot meet its obligations as they come due in the normal course of business; or
(B)
Considering the credit union's assets and liabilities, the net recoverable assets, if made immediately available, would not be sufficient to discharge the credit union's obligations to its creditors and members.
(3)
As used in this subsection, "net recoverable assets" means all assets of the credit union as reflected in a balance sheet which has been prepared using generally accepted accounting principles less the following:
(A)
Any uncollectible or unrecoverable asset;
(B)
Ten percent (10%) of the unpaid balances of all loans delinquent more than two (2) months but less than six (6) months, twenty-five percent (25%) of the unpaid balances of all loans delinquent from six (6) months to less than twelve (12) months, eighty percent (80%) of the unpaid balances of loans delinquent twelve (12) months but less than sixteen (16) months, and one hundred percent (100%) of the unpaid balances of all loans delinquent sixteen (16) months or more.
(d)
Each individual who has met the requirements for membership shall be entitled to, and paid, a dividend on his or her fully paid shares as declared by the board.
Amended by Act 2019, No. 315,§ 2490, eff. 7/24/2019.
Acts 1971, No. 132, § 27; 1975, No. 530, § 17; 1979, No. 206, § 8; 1985, No. 936, §§ 16-18; A.S.A. 1947, § 67-927.
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 35 - CREDIT UNIONS (§§ 23-35-101 — 23-35-805) › Subchapter 6 - OPERATION (§§ 23-35-601 — 23-35-611) › Section 23-35-608 - Reduction of assets

When the losses of a credit union resulting from a depreciation in value of its loans or investments, or otherwise, exceed its undivided earnings and reserve fund so that the estimated value of its assets is less than the total amount due the shareholders, the credit union may by a majority vote of the entire membership order a reduction in the shares of each of its shareholders to divide the loss proportionately among the members. If thereafter the credit union shall realize from its assets a greater amount than was fixed by the order of reduction, the excess shall be divided among the shareholders whose assets were reduced, but only to the extent of the reduction.
Acts 1971, No. 132, § 28; A.S.A. 1947, § 67-928.
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 35 - CREDIT UNIONS (§§ 23-35-101 — 23-35-805) › Subchapter 6 - OPERATION (§§ 23-35-601 — 23-35-611) › Section 23-35-609 - Fiscal year

The fiscal year of all credit unions subject to the provisions of this chapter shall end on December 31.
Acts 1971, No. 132, § 9; A.S.A. 1947, § 67-909.
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 35 - CREDIT UNIONS (§§ 23-35-101 — 23-35-805) › Subchapter 6 - OPERATION (§§ 23-35-601 — 23-35-611) › Section 23-35-610 - Establishment of subsidiary offices

(a)
A credit union shall have the power to establish offices at locations other than its main office if the maintenance of those offices is reasonably necessary to furnish services to its membership. No additional offices shall be established to serve persons who are not entitled to membership, as defined in the common bond provision of the articles of incorporation, and who would not be entitled to services of the credit union at its main office.
(b)
All books of account shall be maintained at the main office of the credit union.
(c)
The State Credit Union Supervisor shall grant prior written approval for the establishment of subsidiary offices. He or she shall have the authority to issue notice and hold a public hearing to determine if the establishment of the subsidiary office or offices is necessary and in the best interests of the credit union.
Acts 1971, No. 132, § 39; A.S.A. 1947, § 67-939.
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 35 - CREDIT UNIONS (§§ 23-35-101 — 23-35-805) › Subchapter 6 - OPERATION (§§ 23-35-601 — 23-35-611) › Section 23-35-611 - Records

(a)
All credit union records shall be kept for a period of five (5) years from the date of making them or from the date of the last entry thereon.
(b)
No credit union shall be required to make receipt for payment except as may be provided in the bylaws, nor shall it be necessary to endorse a note showing date of payments or balance due.
Acts 1971, No. 132, § 32; A.S.A. 1947, § 67-932.
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 35 - CREDIT UNIONS (§§ 23-35-101 — 23-35-805) › Subchapter 7 - MERGER, CONVERSION, OR DISSOLUTION (§§ 23-35-701 — 23-35-705) › Section 23-35-701 - Merger

(a)
Any credit union other than a central credit union may, with the approval of the State Credit Union Supervisor, merge with any other credit union under the existing charter of the other credit union, pursuant to any plan agreed upon by the majority of the board of directors of each credit union joining in the merger and approved by the affirmative vote of a majority of the members of each credit union present at the meetings of members duly called for that purpose. The supervisor may waive the common bond requirement of this chapter for merging credit unions if he or she determines that good cause has been shown for waiving the requirement and that the merger is consistent with the purposes of this chapter.
(b)
(1)
After agreement by the directors and approval by the members of each credit union, the president and secretary of each credit union shall execute a certificate of merger, which shall set forth all of the following:
(A)
The time and place of the meeting of the board of directors at which the plan was agreed upon;
(B)
The vote in favor of adoption of the plan;
(C)
A copy of the resolution or other action by which the plan was agreed upon;
(D)
The time and place of the meeting of the members at which the plan agreed upon was approved;
(E)
The vote by which the plan was approved by the members; and
(F)
Such other provisions as set by rule or order of the supervisor.
(2)
The certificates and a copy of the plan of merger agreed upon shall be forwarded to the supervisor and, if approved, returned to the merging credit unions.
(c)
Upon any such merger so effected, all property, property rights, and interests of the merged credit union shall vest in the surviving credit union without deed, endorsement, or other instrument of transfer. All debts, obligations, and liabilities of the merged credit union shall be deemed to have been assumed by the surviving credit union under whose charter the merger was effected.
(d)
This section shall be construed, whenever possible, to permit a credit union chartered under any other act to merge with one subject to the provisions of this chapter.
Acts 1971, No. 132, § 29; 1975, No. 530, § 18; A.S.A. 1947, § 67-929.
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 35 - CREDIT UNIONS (§§ 23-35-101 — 23-35-805) › Subchapter 7 - MERGER, CONVERSION, OR DISSOLUTION (§§ 23-35-701 — 23-35-705) › Section 23-35-702 - Conversion to or from federal credit union

The State Credit Union Supervisor shall issue rules to permit the conversion of a credit union operating under this chapter to a federal credit union and the conversion of a federal credit union to a credit union operating under this chapter.
Amended by Act 2019, No. 315,§ 2491, eff. 7/24/2019.
Acts 1971, No. 132, § 36; A.S.A. 1947, § 67-936.
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 35 - CREDIT UNIONS (§§ 23-35-101 — 23-35-805) › Subchapter 7 - MERGER, CONVERSION, OR DISSOLUTION (§§ 23-35-701 — 23-35-705) › Section 23-35-703 - Voluntary dissolution

A credit union may elect to dissolve voluntarily and wind up its affairs in the following manner:
(1)
The board of directors of the credit union shall adopt a resolution recommending that the credit union be dissolved voluntarily and directing that the question of dissolution be submitted to a regular or special meeting of the members;
(2)
After the adoption of the resolution to voluntarily dissolve, no receipts shall be accepted nor withdrawals permitted from its share or deposit accounts, nor shall any loans be made nor any dividends declared nor paid pending final determination by its membership on the voluntary dissolution;
(3)
At a meeting called to consider the matter, a majority of the entire membership may vote to dissolve the credit union, provided a notice of the meeting was mailed to the members of the credit union at least ten (10) days prior thereto. Any member not present at the meeting may, within the next twenty (20) days, vote in favor of dissolution by signing a statement in a form approved by the State Credit Union Supervisor, and the vote shall have the same force and effect as if cast at the meeting;
(4)
The credit union shall thereupon immediately cease to do business, except for the purpose of liquidation; and
(5)
The president and the secretary of the credit union shall, within five (5) days following the meeting, notify the supervisor of intention to liquidate and shall include a list of the names and addresses of the directors and officers of the credit union.
Acts 1971, No. 132, § 38; A.S.A. 1947, § 67-938.
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 35 - CREDIT UNIONS (§§ 23-35-101 — 23-35-805) › Subchapter 7 - MERGER, CONVERSION, OR DISSOLUTION (§§ 23-35-701 — 23-35-705) › Section 23-35-704 - Suspension of operations - Involuntary liquidation

(a)
If it shall appear that any credit union is bankrupt or insolvent, that it has willfully violated any of the provisions of this chapter, or that it is operating in an unsafe or unsound manner, the State Credit Union Supervisor shall issue an order temporarily suspending the credit union's operations. The board of directors of the credit union shall be given notice by registered mail of the suspension, which notice shall include a list of the reasons for the suspension and a list of the specific violations of this chapter.
(b)
Upon receipt of the suspension notice, the credit union shall immediately cease all operations.
(c)
The directors of the credit union shall then file a reply to the suspension notice with the supervisor within fifteen (15) days. They may request a hearing to present a plan of corrective actions proposed if they desire to continue operations, or they may request that the credit union be declared insolvent and that a liquidating agent be appointed.
(d)
(1)
If the credit union fails to answer the suspension notice or request a hearing, the supervisor may then revoke the credit union's charter, appoint a liquidating agent, and liquidate the credit union in accordance with §
23-35-705
.
(2)
(A)
If the supervisor, after issuing notice of suspension and providing opportunity for a hearing, rejects the credit union's plan to continue operations, the supervisor may issue a notice of involuntary liquidation and appoint a liquidating agent.
(B)
The credit union may request a stay of execution of this action by appealing to the circuit court of the jurisdiction in which the credit union is located.
(C)
Involuntary liquidation may not be ordered prior to following the suspension procedures outlined in this section.
Acts 1971, No. 132, §§ 37, 38; A.S.A. 1947, §§ 67-937, 67-938.
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 35 - CREDIT UNIONS (§§ 23-35-101 — 23-35-805) › Subchapter 7 - MERGER, CONVERSION, OR DISSOLUTION (§§ 23-35-701 — 23-35-705) › Section 23-35-705 - Procedure for liquidation or dissolution

(a)
The credit union shall continue in existence for the purposes of discharging its debts, collecting and distributing its assets, and doing all acts required in order to wind up its business, and it may sue and be sued for the purpose of enforcing its debts and obligations until its affairs are fully adjusted.
(b)
The board of directors of the credit union, or in the case of involuntary dissolution the liquidating agent, shall, after applying each member's share or deposit account against any loan or debt owed the credit union by that member, use the assets of the credit union to pay:
(1)
Expenses incidental to liquidation, including any surety bond that may be required;
(2)
Any liability due nonmembers; and
(3)
Savings club accounts as provided in this chapter.
(c)
Assets then remaining shall be distributed to the members proportionately to the shares held by each member as of the date dissolution was voted or ordered.
(d)
As soon as the board or liquidating agent determines that all assets from which there is a reasonable expectancy of realization have been liquidated and distributed as set forth in this section, they shall execute a certificate of dissolution on a form prescribed by the State Credit Union Supervisor and file the certificate with him or her.
(e)
The credit union shall be subject to examination by the supervisor in accordance with its schedules.
Acts 1971, No. 132, § 38; 1985, No. 936 § 19; A.S.A. 1947, § 67-938.
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 35 - CREDIT UNIONS (§§ 23-35-101 — 23-35-805) › Subchapter 8 - PROHIBITED PRACTICES (§§ 23-35-801 — 23-35-805) › Section 23-35-801 - Misleading conduct or use of words "credit union"

(a)
It is unlawful for any person, corporation, copartnership, or association except a credit union subject to the provisions of this chapter or the Federal Credit Union Act to:
(1)
Use a name or title containing the words "credit union" or any derivation thereof;
(2)
Represent themselves in their advertising as a credit union; or
(3)
Otherwise conduct business as a credit union.
(b)
Any person who willfully violates this section shall be guilty of a Class D felony and may be permanently enjoined from such conduct.
(c)
The State Credit Union Supervisor may institute and prosecute actions in his or her own name in the circuit court of any county having jurisdiction, to seek any judicial remedy necessary to enforce the provisions of this section.
Acts 1971, No. 132, § 4; A.S.A. 1947, § 67-904; Acts 2005, No. 1994, § 433.
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 35 - CREDIT UNIONS (§§ 23-35-101 — 23-35-805) › Subchapter 8 - PROHIBITED PRACTICES (§§ 23-35-801 — 23-35-805) › Section 23-35-802 - Commission or compensation for sale of shares, grant of loans, etc

No credit union shall pay or receive any commission or compensation for securing members, for the sale of its shares, or for the granting of loans to its members or to other credit unions except for loan origination fees which are specifically provided for in §
23-35-603
.
Acts 1971, No. 132, § 6; 1979, No. 206, § 1; 1985, No. 936, § 4; A.S.A. 1947, § 67-906.
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 35 - CREDIT UNIONS (§§ 23-35-101 — 23-35-805) › Subchapter 8 - PROHIBITED PRACTICES (§§ 23-35-801 — 23-35-805) › Section 23-35-803 - Prohibited actions by officers, directors, agents, etc

(a)
(1)
It is unlawful for any officer, director, committee member, agent, employee, or loan officer of a credit union to permit a loan to be made to a nonmember or to participate in a loan to a nonmember.
(2)
It is unlawful for any corporation, officer, director, member, committee member, agent, employee, or loan officer of a credit union to receive either directly or indirectly the proceeds of a credit union loan made in the name of another person, corporation, or credit union with the purpose to avoid compliance with this chapter.
(3)
Any person who willfully violates this subsection shall be guilty of a Class A misdemeanor and shall be primarily liable to the credit union for the amount thus illegally loaned.
(4)
The illegality of such a loan shall be no defense in any action of the credit union to recover on the loan.
(b)
(1)
It is unlawful for any officer, director, committee member, agent, or employee of a credit union to make or subscribe to false entries or exhibit a false or fictitious paper, instrument, or security to a person authorized to examine the credit union books and records.
(2)
Any person who willfully violates this subsection shall be guilty of a Class D felony.
(c)
(1)
It is unlawful for any officer, director, committee member, agent, or employee of a credit union to receive payments on shares knowing the credit union is insolvent.
(2)
Any person who willfully violates this subsection shall be guilty of a Class C felony.
Acts 1971, No. 132, § 14; 1975, No. 530, § 11; A.S.A. 1947, § 67-914; Acts 2005, No. 1994, § 444.
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 35 - CREDIT UNIONS (§§ 23-35-101 — 23-35-805) › Subchapter 8 - PROHIBITED PRACTICES (§§ 23-35-801 — 23-35-805) › Section 23-35-804 - Compensation of directors or committee members

(a)
With the exception of the treasurer of the credit union whom the board of directors of the credit union has specifically appointed or contracted to actually work in the credit union, no director or member of a credit committee or supervisory committee may receive compensation for performing the duties or responsibilities of the board or committee position to which the person was elected or appointed.
(b)
For purposes of this section, the term "compensation" specifically excludes reasonable and proper costs incurred by or on behalf of an official whether on a reimbursement basis or paid directly by the credit union in carrying out the responsibilities of the position.
Acts 1971, No. 132, § 6; 1979, No. 206, § 1; 1985, No. 936, § 3; A.S.A. 1947, § 67-906.
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 35 - CREDIT UNIONS (§§ 23-35-101 — 23-35-805) › Subchapter 8 - PROHIBITED PRACTICES (§§ 23-35-801 — 23-35-805) › Section 23-35-805 - [Repealed]

Repealed by Act 2019, No. 252,§ 1, eff. 7/24/2019.
Acts 1971, No. 132, § 34; A.S.A. 1947, § 67-934.
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 36 - INDUSTRIAL LOAN INSTITUTIONS (§§ 23-36-101 — 23-36-117) › Section 23-36-101 - Definition

As used in this chapter, unless the context otherwise requires, "industrial loan institution" means any corporation organized under the general corporation laws of this state, which is engaged in lending money, to be paid in weekly, monthly, or other periodical installments or principal sums, as a business. However, this definition shall not be construed to include building and loan associations, commercial banks or savings banks, trust companies, credit unions, pawnbrokers, agricultural or livestock pools, rural credit unions, or farmers cooperative societies.
Acts 1941, No. 111, § 1; A.S.A. 1947, § 67-1001.
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 36 - INDUSTRIAL LOAN INSTITUTIONS (§§ 23-36-101 — 23-36-117) › Section 23-36-102 - Stock ownership

At least two-thirds (2/3) of the stock of an industrial loan institution shall be owned by bona fide residents of the State of Arkansas.
Acts 1941, No. 111, § 9; A.S.A. 1947, § 67-1009.
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 36 - INDUSTRIAL LOAN INSTITUTIONS (§§ 23-36-101 — 23-36-117) › Section 23-36-103 - Directors

(a)
At least three-fourths (3/4) of the number of directors of any industrial loan institution shall be residents of the county in which the city is located in which an industrial loan institution is organized or becomes active under this chapter.
(b)
Every director shall own and hold unencumbered not less than five hundred dollars ($500) par value of the capital stock of the industrial loan institution.
Acts 1941, No. 111, § 9; A.S.A. 1947, § 67-1009.
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 36 - INDUSTRIAL LOAN INSTITUTIONS (§§ 23-36-101 — 23-36-117) › Section 23-36-104 - Corporate title

(a)
Every corporation authorized by the Bank Commissioner to operate pursuant to the provisions of this chapter shall be known as an industrial loan institution and shall use the words "industrial loan institution" as part of its corporate title or in connection with its corporate title.
(b)
All persons, firms, associations, and corporations, except those which discharge the burden of proving their authority under the laws of another state or the United States, are prohibited from using in this state, as a portion of or in connection with their office or other place of business, or in reference to themselves on their stationery or in their advertising, any of the words or phrases, alone or in combination with any other word or phrase, "industrial loans", "industrial plan of loans", "industrial lending", or the word "plan" in connection with any system of loaning money which would in any way tend to induce the belief that the party using it is authorized to engage in business as an industrial loan institution under the provisions of this chapter.
Acts 1941, No. 111, §§ 3, 10; A.S.A. 1947, §§ 67-1003, 67-1010.
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 36 - INDUSTRIAL LOAN INSTITUTIONS (§§ 23-36-101 — 23-36-117) › Section 23-36-105 - Supervision by Bank Commissioner

(a)
Every institution transacting the business of an industrial loan institution as defined by this chapter, whether as a separate business or in connection with any other business, under the laws of and within this state, shall be subject to the provisions of this chapter and shall be under the supervision of the Bank Commissioner.
(b)
The commissioner may make, at any time and from time to time, any examinations of the affairs of securities affiliates or other affiliates of industrial loan institutions which are necessary to disclose fully the relations between the industrial loan institutions and their affiliates and the effect of the rules promulgated by the commissioner on the affairs of the industrial loan institutions.
(c)
The commissioner shall exercise control of and supervision over industrial loan institutions doing business under this chapter. It shall be his or her duty to execute and enforce, through the state bank examiners and any other agents appointed for that purpose, all laws relating to industrial loan institutions as defined by this chapter.
(d)
For the more complete and thorough enforcement of the provisions of this chapter, the commissioner is empowered to promulgate any rules and instructions, not inconsistent with this chapter, which may, in his or her opinion, be necessary to carry out the provisions of the laws relating to industrial loan institutions as defined in §
23-36-101
and which may be further necessary to ensure safe and conservative management of industrial loan institutions under his or her supervision to provide adequate protection for the interest of creditors, depositors, and stockholders in their relations with the institutions.
(e)
All industrial loan institutions doing business under the provisions of this chapter shall conduct their business in a manner consistent with all laws relating to industrial loan institutions and all rules and instructions that may be promulgated or issued by the commissioner.
Amended by Act 2019, No. 315,§ 2492, eff. 7/24/2019.
Acts 1941, No. 111, § 8; A.S.A. 1947, § 67-1008.
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 36 - INDUSTRIAL LOAN INSTITUTIONS (§§ 23-36-101 — 23-36-117) › Section 23-36-106 - Statement on call

(a)
Every industrial loan institution operating under the supervision of the Bank Commissioner shall make to the commissioner, whenever required by him or her, a statement of its assets and liabilities at the close of business on the day designated, which day shall be prior to the call of the commissioner.
(b)
The commissioner shall give no notice to any person whatever of the date on which he or she will call for the statement.
(c)
The report shall be verified by the oath of either the president, vice president, cashier, or secretary of the institution, and, in addition thereto, it shall be attested to by not fewer than two (2) directors.
Acts 1941, No. 111, § 17; A.S.A. 1947, § 67-1017.
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 36 - INDUSTRIAL LOAN INSTITUTIONS (§§ 23-36-101 — 23-36-117) › Section 23-36-107 - Examinations and fees

(a)
(1)
Every industrial loan institution shall pay to the Bank Commissioner, within ten (10) days after notice from the commissioner, in the months of January and July of each year, a fixed fee of fifteen dollars ($15.00). In addition thereto, the industrial loan institution shall pay the commissioner a sum, ascertained according to the following scale:
(A)
A sum equal to one-fiftieth percent (1/50%) of the assets of the industrial loan institution, as shown by the last call report of the condition of the industrial loan institution, up to and including the first two million dollars ($2,000,000) of its assets, determined as aforesaid; plus
(B)
One one-hundredth percent (1/100%) on the next one million dollars ($1,000,000) of assets, determined as aforesaid; plus
(C)
One two-hundredth percent (1/200%) of the next one million dollars ($1,000,000) of assets, determined as aforesaid; plus
(D)
One five-hundredth percent (1/500%) upon all assets, determined as aforesaid, in excess of four million dollars ($4,000,000).
(2)
The minimum amount thus payable shall not be less than thirty dollars ($30.00).
(b)
The commissioner may, at his or her discretion, examine every industrial loan institution in the state two (2) times annually or more often if, in his or her opinion, it is necessary. For any examination made in excess of two (2), industrial loan institutions so examined shall pay an additional assessment equal to the January assessment of the year in which the excess examination is made.
(c)
The assessments provided for in this section may be reduced by the commissioner if they, with other fees received by the State Bank Department, produce a greater sum than is required to pay the expenses of the department. They may be increased if not sufficient in connection with other fees received as aforesaid to defray the expenses of the department.
Acts 1941, No. 111, § 16; A.S.A. 1947, § 67-1016.
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 36 - INDUSTRIAL LOAN INSTITUTIONS (§§ 23-36-101 — 23-36-117) › Section 23-36-108 - Powers generally

(a)
Industrial loan institutions shall be empowered to purchase, sell, discount, or negotiate bonds, notes, or other choses in action and issue, as evidence therefor, investment certificates, contracts, or agreements under any descriptive name. They may bear such interest, if any, as their terms may provide and may require the payment to the industrial loan institution of such amounts, from time to time, as their terms may provide. The industrial loan institution may permit the withdrawal or cancellation of amounts paid upon the bonds, notes, or other choses in action, in whole or in part, from time to time, and may credit amounts thereon upon such conditions as may be set forth therein.
(b)
The industrial loan institution shall have the right to lend money upon the collateral deposit of, and the compliance of the borrowers with the terms of, any investment certificate, contract, or agreements issued under subsection (a) of this section.
(c)
All industrial loan institutions operating under the provisions of this chapter shall so distinguish their operations and so qualify them as not to perform any of the functions of a commercial bank, savings bank, or trust company, outside of the specific authority provided for their operation under this chapter.
Acts 1941, No. 111, §§ 3-5; A.S.A. 1947, §§ 67-1003 -- 67-1005.
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 36 - INDUSTRIAL LOAN INSTITUTIONS (§§ 23-36-101 — 23-36-117) › Section 23-36-109 - Loan limits

The total liabilities to any industrial loan institution of any person, corporation, company, or firm for money borrowed, including in the liabilities of the company or firm the liabilities of the several members thereof, shall at no time exceed twenty percent (20%) of the actually paid-up capital and surplus of the industrial loan institution. However, the discount of bona fide bills of exchange or acceptances drawn against actually existing values and the discount of commercial or business paper actually owned by the person, corporation, company, or firm negotiating them shall not be considered money so borrowed.
Acts 1941, No. 111, § 6; A.S.A. 1947, § 67-1006.
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 36 - INDUSTRIAL LOAN INSTITUTIONS (§§ 23-36-101 — 23-36-117) › Section 23-36-110 - Loans insured by federal government

(a)
Subject to any rules which the Bank Commissioner finds to be necessary and proper, industrial loan institutions are authorized:
(1)
To make loans and advances of credit and purchases of obligations representing loans and advancement of credit which are insured by the Federal Housing Administrator and to obtain such insurance;
(2)
To make any loans secured by mortgages on real property which the administrator insures or makes a commitment to insure and to obtain such insurance; and
(3)
To purchase, invest in, and dispose of notes or bonds secured by mortgage or deed of trust which the administrator has insured or made a commitment to insure in debentures issued by the administrator or in securities issued by the national mortgage associations.
(b)
No law of this state prescribing the nature, amount, or form of security, or requiring security upon which such loans or advances of credit may be made, or prescribing or limiting the period for which loans or advances of credit may be made shall be deemed to apply to loans and advances of credit, or purchases made pursuant to subsection (a) of this section.
Amended by Act 2019, No. 315,§ 2493, eff. 7/24/2019.
Acts 1941, No. 111, § 14; A.S.A. 1947, § 67-1014.
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 36 - INDUSTRIAL LOAN INSTITUTIONS (§§ 23-36-101 — 23-36-117) › Section 23-36-111 - Prohibited loans

No industrial loan institution shall make any loans directly or indirectly to its officers or directors or to any employee, nor make any loans on capital stock of its own issue.
Acts 1941, No. 111, § 18; A.S.A. 1947, § 67-1018.
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 36 - INDUSTRIAL LOAN INSTITUTIONS (§§ 23-36-101 — 23-36-117) › Section 23-36-112 - Late charge for default in payment

Industrial loan institutions are authorized under this chapter to impose a late charge of five cents (5¢) for each default of the payment of one dollar ($1.00), or a fraction thereof, at the time any periodical installment upon a certificate assigned as collateral security for the payment of a loan, under §
23-36-108
, after payment becomes due. The late charges shall not be cumulative.
Acts 1941, No. 111, § 12; A.S.A. 1947, § 67-1012.
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 36 - INDUSTRIAL LOAN INSTITUTIONS (§§ 23-36-101 — 23-36-117) › Section 23-36-113 - Reserves

(a)
All industrial loan institutions shall establish, as a reserve against the choses in action, investment certificates, contracts, or agreements, described in §
23-36-108
, not less than fifteen percent (15%) of the amount of the indebtedness thus created.
(b)
(1)
Not less than twenty percent (20%) of this reserve shall be in cash in the actual possession of the industrial loan institution or on demand deposit in approved state or national banks located in Arkansas and insured by the Federal Deposit Insurance Corporation.
(2)
The remaining portion of the reserve shall be invested in Treasury bills or certificates of deposit of not more than six (6) months' maturity, in repurchase agreements, in bankers' acceptances, or in federal funds.
(c)
However, choses in action, investment certificates, contracts, or agreements issued under §
23-36-108
and held by the industrial loan institution as security for its own loans cannot be considered as an indebtedness for which a reserve must be maintained under this section.
(d)
An industrial loan institution shall be given credit against the reserve requirements created as authorized by this chapter for any reserve funds held as required by the laws or regulations of the federal government.
Acts 1941, No. 111, § 13; 1981, No. 580, § 1; A.S.A. 1947, § 67-1013.
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 36 - INDUSTRIAL LOAN INSTITUTIONS (§§ 23-36-101 — 23-36-117) › Section 23-36-114 - Deposit of funds

No industrial loan institution shall deposit any of its funds in any banking corporation unless the corporation has been designated as a depository by vote of a majority of directors, or of the executive committee, exclusive of any director who is an officer, director, or trustee of the depository so designated, present at any duly called meeting at which a quorum is in attendance.
Acts 1941, No. 111, § 7; A.S.A. 1947, § 67-1007.
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 36 - INDUSTRIAL LOAN INSTITUTIONS (§§ 23-36-101 — 23-36-117) › Section 23-36-115 - Dividends

An industrial loan institution operating under this chapter may, under proper authority from the board of directors of the industrial loan institution, declare a dividend of so much of the net profits of the industrial loan institution, after providing for all expenses, losses, reserves, interest, and taxes accrued or due by the industrial loan institution, as they shall judge expedient. However, before any dividend is declared, not less than one-tenth (1/10) of the net profits of the industrial loan institution for the preceding one-half (1/2) year or for the period covered by the dividend shall be carried to a surplus fund, until the surplus fund shall amount to fifty percent (50%) of the par value of the common stock of the industrial loan institution.
Acts 1941, No. 111, § 15; A.S.A. 1947, § 67-1015.