Arkansas Administrative Code › Agency 003 - DEPARTMENT OF COMMERCE › Division 02 - Bank Department › Rule 003.02.05-003 - 46-305.1 - Applications / Documents; 47-401.2 - Investment - Consumer Paper; 47-501.1 - Certificates of Reliance

Current through Register Vol. 49, No. 6, June, 2024
SECTION
			 1
STATE BANK DEPARTMENT - GENERAL PROVISIONS
46-101.1
- REQUESTS FOR
			 DOCUMENTS
(Reference A.C.A. §
									23-46-101 )
Requests for non-confidential documents may be made by filling
				out a request form provided by the department. Telephone requests may be
				accepted.
46-101.2
-
			 FEES FOR COPIES PROVIDED PURSUANT TO
REQUEST (Reference A.C.A. §
			 23-46.101)
Copies of documents provided pursuant to request from the
				public or in the case of subpoena (if the copies are of confidential records)
				will be provided based upon the following fee schedule:
* regular copies - $ .50 per page;
* certified copies - $1.00 per page;
* microfilm copies - $1.00 per page;
* faxed copies - $ .50 per page extra.
46-101.3
- CONFIDENTIAL OR
			 NON-CONFIDENTIAL STATUS OF BANK DEPARTMENT RECORDS
(Reference A.C.A. §
										23-46-101
				)
A. The names of
stockholders
			 of a bank or bank holding company
will not be regarded as
			 confidential.
B.
Articles of
			 Agreement and Incorporation
and all amendments are not
			 confidential.
C.
Stock
			 Transfers
. A one-page request form submitted to the Commissioner
			 requesting a transfer of bank stock from one stockholder to another.
However, any information submitted to the
Commissioner, including
			 any personal financial statements, along with the request will be regarded as
			 confidential and is not subject to disclosure.
D
			 .
Charter and branch applications
. Bank charter
			 applications and branch bank applications may be disclosed to anyone with the
			 exception that personal financial statements submitted in support of such
			 applications shall be regarded as confidential and are not subject to
			 disclosure.
E .
Reports of
			 Condition and Income
. Reports of Condition and Income are submitted by
			 the banks to the Department. The contents of such reports are available for
			 public disclosure, with the exception of certain portions of the report
			 considered as confidential by Federal Regulatory Agencies.
F.
Examination Reports
.
			 Examination reports are highly confidential and are not subject to public
			 disclosure. Such examination reports are regularly submitted to the federal
			 regulatory authorities and/or other state financial institution regulatory
			 authorities, as well as to the examined bank as a matter of regulatory process.
			 However, the examination reports remain the property of the Department and, as
			 such, the report, as well as all correspondence between regulatory authorities
			 and the examined bank in respect to the examination report, is confidential,
			 A.C.A. §
										23-46-101.
G.
Investigation Reports
. An
			 investigation made by a bank examiner assigned to investigate the merits of an
			 application is generally considered as confidential. The exception being that
			 the Commissioner, in his/her discretion, reserves the right to permit an
			 investigation to be reviewed by the applicant and an official protestant to an
			 application and permit introduction into evidence, by a party to the
			 proceeding, those portions of the investigation which may be necessary and
			 relevant to that proceeding.
H.
Corporate "File"
. A bank's corporate file contains the following:
			 Articles of Incorporation, Amendments to Articles of Incorporation, Oaths of
			 Directors, list of stockholders, and certificate of director's transfer of
			 funds from undivided profits to the surplus account. The file is subject to
			 disclosure with the exception of any information in support of a petition for a
			 stock transfer since such supportive information is confidential.
I.
Financial Statements
.
			 Personal financial statements shall not be exhibited to the
			 public.
LEGAL HOLIDAY (BANK)
48-103.1.
- LEGAL HOLIDAY; APPLICABLE
			 LAW
(Reference A.C.A. §
									23-48-103 )
The legal holidays applicable to state banks shall be those
				holidays set forth in A.C.A. §
										1-5-101 and
				such other holidays as shall be established from time to time by the Board of
				Governors of the Federal Reserve System. A state bank is not required to close
				on any legal holiday. A bank may close one business day of each week in which
				event the day of such closing is deemed a legal holiday and not a business day.
				Business transacted on a holiday is binding and shall have the same effect as
				if transacted on the next succeeding business day. All items payable on a legal
				holiday shall be deemed to be payable on the day next succeeding the
				holiday.
46-203
-
			 CERTIFIED COPIES AND CERTIFICATES OF GOOD STANDING FEES
(Reference A.C.A. §
										23-46-203
				)
Certified copies of records and papers furnished to an
				individual by the State Bank Department will be charged at a rate of $1.00 per
				page.
Certificates of Good Standing provided by the State Bank
				Department will be charged at $50.00 per certificate.
46-207.1
- INTEREST IN STATE BANKS;
			 PARTICIPATION IN
(Reference A.C.A. §
									23-46-207
			 )
State Bank Department employees, subject to A.C.A. §
										23-46-207,
				may be a depositor in any financial institution the Department regulates and
				may participate in overdraft programs associated with such deposit
				relationships so long as participation in such programs are regularly offered
				as a customer service of the institution.
PROCEEDINGS BEFORE THE BOARD AND
				COMMISSIONER
46-304.1
- APPLICATIONS
(Reference A.C.A. §
									23-46-304
			 )
The Commissioner and the State Banking Board rule that
				applications forms provided by the State Bank Department for various
				applications will request information required for submission of an application
				to the Board or the Commissioner. The Board and the Commissioner reserve the
				right to request additional information as necessary to consider an
				application.
46-305.1
- APPLICATIONS/DOCUMENTS
(Reference A.C.A. §
									23-46-305
			 )
The Commissioner and the State Banking Board may permit
				applications and supporting documentation, or any other documents to be
				submitted to the State Bank Department in original paper document format,
				photographic format, or electronic format, which has been determined as
				acceptable by the Commissioner.
46-402.1
- MEETINGS OF THE BOARD;
			 REGULAR MEETING DATES
(Reference A.C.A. §
									23-46-402
			 )
Meetings of the State Banking Board will be held in offices of
				the State Bank Department, except in the case of meetings at which a large
				attendance is anticipated. In such a situation, the Commissioner will arrange
				for a meeting in outside quarters where a larger space is available.
Regular meetings of the Board may be scheduled four (4) times a
				year. These meetings will be held at 10:00 a.m. on the third Thursday of
				January, April, July, and October, but if, in the opinion of either the
				Commissioner or chairman of the State Banking Board, any necessitous reason
				exists for changing the date of a regular meeting, either said Commissioner or
				chairman may reset the meeting for a different date after giving notice as
				required in these regulations for the call of a special meeting. All meetings
				are public except when the members meet in executive session as permitted under
				the Arkansas Freedom of Information Act.
46.403.1.
- PUBLICATION REQUIREMENTS.
			 APPLICATIONS BEFORE THE STATE BANKING BOARD
(Reference A.C.A. §
									23-46-403
			 )
Sponsors of the following applications must publish notice of
				the proposed application three (3) times at equal intervals in a newspaper of
				statewide circulation. Publication shall be as close as practicable to the date
				the application is filed with the State Bank Department, but no more than ten
				(10) calendar days prior to or after the filing date. Publications must provide
				for a fifteen (15) day comment period beginning with the actual filing of the
				application. These applications are:
(1) New state bank charters;
(2) Merger or consolidation applications
			 between one or more banks, or saving and loan associations into a state
			 bank;
(3) Purchase or assumption
			 application (over 50% of the assets or liabilities) of another depository
			 institution; and
(4) Change of a
			 state bank's main banking office from one municipality to another (Simple or
			 Complex Application).
46-404.1
- APPLICATION FILING FEES.
			 APPLICATIONS TO BE PRESENTED TO THE STATE BANKING BOARD
(Reference
			 A.C.A. §
									23-46-404
			 )
Following is a list of application filing fees:
a) New bank charter
$8,000
b) Merger applications (per institution)
$5,000
c) Conversion (national bank to state bank)
$8,000
d) Conversion (stock savings and loan or federal
							 savings bank to state bank)
$8,000
e) Charter amendments
$ 200
f) Charter amendments for trust powers
$ 500
g) Purchase or assumption
(over fifty percent (50%) of assets or liabilities of
							 another depository institution)
$5,000
h) Relocation of main office (from one municipality
							 to another)(Application does not include any reorganization or change of bank
							 business plans - must be simple relocation of address only)
$2,500
i) Reorganization and Relocation of Bank Charter
							 (Complex Application)
$6,500
46-404.2
- APPLICATION FILING FEES.
			 APPLICATIONS WHICH ARE NOT FILED WITH THE STATE BANKING BOARD
(Reference
			 A.C.A.
			 23-46-404
			 )
a) New branch banking office A.C.A. §
															23-48-703
$3,000
b) Relocation of existing branch office (inside
							 current municipality) A.C.A. §
															23-48-702
$1,000
c) Relocation of existing branch office (outside of
							 current municipality)A.C.A. §
															23-48-702
$2,500
d) Plan of exchange
(plus expenses of Commissioner; does not include
							 costs associated with appraisals of bank stock)
$ 500
e) Filing of fictitious name
$ 25
f) Filing of out-of-state bank/bank holding
							 company
$ 300
g) Change in Control
$1,500
h) Purchase or Assumption (less than fifty percent
							 (50%) of assets or liabilities)
$3,000
46-406.1
- HEARINGS. FILING FEES FOR
			 WRITTEN/OFFICIAL PROTESTS
(Reference A.C.A. §
										23-46-406
				)
a) A filing fee of $2,500 will be
			 required to file an official protest for the following applications:
1) New bank charter
2) Merger application
3) Purchase or assumption (over fifty percent
			 (50%) of assets or liabilities) or (less than fifty percent (50%) of assets or
			 liabilities)
4) Conversion
			 (national to state bank)
5)
			 Conversion (stock savings and loan or federal savings bank to state
			 bank)
6) Relocation of main office
			 (from one municipality to another)(Simple Application)
7) Reorganization and Relocation of Bank
			 Charter (Complex Application)
b) A filing fee of $1,000 will be required to
			 file an official protest for a branch application (A.C.A. §
										23-48-703
			 ).
46-407.1
-
			 REHEARING MODIFICATIONS
(Reference A.C.A. §
									23-46-406 )
The State Banking Board and the Commissioner take the position
				that until the Findings of Fact, Conclusions of Law, and written decision have
				been served on the parties, the Board has the power to reverse, modify, or
				rehear a decision formerly reached.
46-509.1
- ASSESSMENT FEES
(Reference A.C.A. §
									23-46-509
			 )
The State Banking Board and the Bank Commissioner require that
				assessment fees payable on a semi-annual basis to the State Bank Department be
				remitted by automated processing as established by the Bank Commissioner.
				Exceptions for payment of assessment fees by any other method than the
				automated method established by the Department must be upon prior request and
				approval by the Bank Commissioner. Exception requests will only be approved on
				an extraordinary basis.
46-511.1
- BANK RETENTION OF
			 RECORDS
(Reference A.C.A. §
									23-46-511 )
Arkansas state banks are required to maintain the following
				records permanently:
a) Minute books
			 of meeting of stockholders and directors; and
b) Capital stock ledger and capital stock
			 certificate ledger or stocks.
All records, other than those described in part a) and b) shall
				be retained as follows:
Examination reports
							 ...................................................................................................................
. permanent
Call reports
							 ..................................................................................................................................
. permanent
General ledger
							 .............................................................................................................................
. permanent
Accounts payable
							 .......................................................................................................................
....... 7 years
GENERAL
Customer relationship contract, after closing
Signature cards
							 ...............................................................................................................
..... 10 years
Loan applications - Consumer
							 ......................................................................................
. 25 months
Loan applications - Business
							 ........................................................................................
. 12 months
Overdraft loan agreement
							 ..............................................................................................
....... 6 years
Safe deposit agreement
							 ..................................................................................................
..... 10 years
Night depository agreement
							 ..........................................................................................
........ 1 year
Financial activity records
Deposit tickets
							 ................................................................................................................
..... 10 years
Buy/sell orders for securities (after maturity)
							 ...............................................................
....... 3 years
Withdrawal receipts
							 .......................................................................................................
..... 10 years
Cash letters
							 .....................................................................................................................
........ 1 year
Stop payment orders
							 ......................................................................................................
....... 6 years
Safekeeping receipts
							 ......................................................................................................
....... 7 years
Wire transfer receipts
							 .....................................................................................................
....... 6 years
Safe deposit access records
							 ...........................................................................................
....... 7 years
Accounting records of financial activity
Transaction journal
							 ........................................................................................................
....... 7 years
Note and discount register
							 .............................................................................................
..... 10 years
Draft register
							 ..................................................................................................................
..... 10 years
Dividend Checks
							 ............................................................................................................
..... 10 years
Reconciliation record of account activity
Customer statements
							 ......................................................................................................
....... 6 years
Checks paid
							 ....................................................................................................................
....... 7 years
Supporting and specialized documentation
Collateral records or receipts
							 .........................................................................................
..... 10 years
Amortization records
							 .....................................................................................................
to maturity
Credit files
							 ......................................................................................................................
....... 6 years
Account analysis records
							 ...............................................................................................
....... 3 years
Proof sheets
							 ....................................................................................................................
....... 3 years
Overdrafts
							 .......................................................................................................................
....... 4 years
Trial balance
							 ...................................................................................................................
....... 4 years
Return or exception items
							 .............................................................................................
....... 5 years
Transit letters
							 ..................................................................................................................
....... 3 years
1099 forms
							 .....................................................................................................................
....... 5 years
DEPOSITS
Evidence of compliance with Electronic Funds Transfer
							 Act ..............................................
........... 2 years
Currency transactions over $10,000 reports
							 ..........................................................................
........... 5 years
Exemption reports and written statements for
							 currency
Transactions over $10,000, after removal from
							 exemption list ...........................................
........... 5 years
Taxpayer identification records for certificates of
							 deposit,
After redemption
							 ....................................................................................................................
........... 6 years
Signature cards for deposit accounts verifying
							 identity of signer ........................................
......... 10 years
Statements or ledger cards for deposit accounts
							 ...................................................................
........... 6 years
Checks, drafts, and money orders over $100 except for
							 accounts
Which average 100 checks per month and fall into one
							 of these
Categories; payroll, dividend, employee benefit,
							 insurance claims,
Medical benefits, government agency, brokers or
							 dealers in
Securities, fiduciary accounts, pension or annuity
							 checks, and
Checks drawn on other financial institutions
							 ........................................................................
........... 6 years
Certificates of deposit records, purchased
							 .............................................................................
........... 5 years
Certificates of deposit records, redeemed
							 .............................................................................
......... 10 years
Deposit slips or credit tickets for transactions over
							 $100
that identify amount of currency transacted
							 ..........................................................................
......... 10 years
LOANS
General
Credit extension records for transactions over
							 $10,000, excluding real estate required by the Bank Secrecy Act (formerly
							 $5,000)
							 ...................................................................................................................
........... 5 years
Commercial
Standby letters of credit records (Regulation H)
							 ..................................................................
Not specified
Installment/Consumer
Credit evaluations required by Equal Credit
							 Opportunity Act
and Regulation B, after notification or final
							 disposition
Consumer
							 ...................................................................................................................
..... 25 months
Business
							 ......................................................................................................................
..... 12 months
Evidence of Compliance with Consumer Credit
							 Protection Act
Title IX for EFTS services
							 .......................................................................................
Until final disposition
Evidence of compliance with Truth in Lending
							 requirements
(Regulation Z), after disclosure
							 ...............................................................................
3 years
INVESTMENTS
Municipal securities deal transactions records. Forms
							 MSD4
and Forms MSD5 (Regulation H), after disclosure
							 ................................................
3 years
Broker/deal transactions and commission records,
							 customer
account records and related correspondence
							 ............................................................
3 years
Credit information relating to public and
							 investment
securities
							 ...................................................................................................................
3 years
Records of lost or stolen securities
							 ..........................................................................
3 years
Transaction records for brokers and dealers
							 extending
credit (Regulation T)
							 ................................................................................................
3 years
TRUST
Fiduciary records, after termination of account
							 or
settlement of litigation
							 ..............................................................................................
permanent
Investments of each trust account shall be kept
							 separate
from the assets of the bank
							 .......................................................................................
10 years
Other records not specified
							 ...............................................................................
6 years
All records as noted in Act 89 of 1997 may be retained by
				photographic or other reproduction methods in lieu of retention of original
				records.
48-310.1
- APPEAL OF COMMISSIONER
			 DECISION ON MINIMUM CAPITAL REQUIREMENTS TO STATE BANKING BOARD
(Reference A.C.A.
			 23-48-310
			 )
A state bank may appeal an order of the Commissioner to
				increase its capital stock to the Arkansas State Banking Board. Notice of the
				bank's request for appeal must be served upon the Commissioner and the members
				of the State Banking Board by personal service or certified mail within ten
				(10) days of the date the Commissioner's order was issued. A public hearing on
				the appeal will be held as soon as practicable by the State Banking Board.
				Notice of the hearing will be given twenty (20) days prior to the date of the
				hearing stating the time, date, and location of the hearing. Notice will be
				provided by United States mail to the parties to the appeal and published one
				time in a newspaper of statewide circulation. The bank requesting such an
				appeal will be required to provide a court reporter and transcript of the
				hearing to the Arkansas State Banking Board free of charge.