Arkansas Administrative Code › Agency 210 - State Bank Department › Rule 210.00.05-003 - 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.