Arkansas Administrative Code

23 CAR § 320-1807. Information required on reported transfers. (a) Except in the case of bank holding companies that are reporting companies, the bank or the bank holding company must certify to the Bank Commissioner the: (1) Number of shares held by the transferee prior to such …

23 CAR § 320-1901. Notice of meeting. (a) Written notice of a special meeting must be given to the shareholders by mail according to the bylaws, but in no event for less than ten (10) days. (b) Written notice of an annual meeting, even though only routine matters are to be consid…

23 CAR § 320-1902. Cumulative voting. (a)(1) For state banks incorporated on or before May 30, 1997, unless otherwise provided in the articles or bylaws, cumulative voting for directors or on any other issues is permitted. (2) Thus, if there are five (5) directors to be elected, …

23 CAR § 320-2001. Board of directors. (a) The affairs of every bank organized under the laws of this state shall be managed and controlled by a board of directors of not fewer than three (3) persons who shall be selected at such times and in such manner as may be provided by its…

23 CAR § 320-2002. Officer or director removal. (a) Any officer or director found by the Bank Commissioner to be violating state or federal law, State Bank Department rules, or basic principles of safety and soundness in the operation of a bank may be reported in writing to the d…

23 CAR § 320-201. Fees for copies provided pursuant to request. 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: (1) Regular copies, fift…

23 CAR § 320-202. Confidential or nonconfidential status of State Bank Department records. (a)(1) The names of stockholders of a bank or bank holding company will not be regarded as confidential. (2) The stockholder’s list of a bank or bank holding company will not be regarded as…

23 CAR § 320-203. Certified copies and certificates of good standing fees. (a) Certified copies of records and papers furnished to an individual by the State Bank Department will be charged at a rate of one dollar ($1.00) per page. (b) Certificates of good standing provided by th…

23 CAR § 320-204. Interest in state banks, participation in. State Bank Department employees, subject to Arkansas Code § 23-46-207, may be a depositor in any financial institution the department regulates and may participate in overdraft programs associated with such deposit rela…

23 CAR § 320-2101. Directors’ meetings. The procedure at the regular and special meeting of the board of directors shall be governed by the terms of the articles of incorporation and bylaws of the bank; provided, however, no proxy given by a director for any meeting of the board …

23 CAR § 320-2201. Penalty — Failure to maintain reserve. (a) If any state bank shall fail during any period to maintain the reserve required under the Banking Code, the Bank Commissioner may require such bank to pay a penalty computed on the basis of eight percent (8%) per annum…

23 CAR § 320-2301. Bank fictitious names. (a) A state bank planning to file an application for use of a fictitious name must complete the following procedures prior to filing an application with the State Bank Department: (1)(A) Publish legal notice of intention to file an applic…

23 CAR § 320-2401. Healthy bank. (a) A “healthy bank” is defined as an institution meeting all of the following criteria: (1) Received a composite rating of 1 or 2 under the Uniform Financial Institutions Rating System (CAMELS) as a result of its most recent commercial bank exami…

23 CAR § 320-2402. Relocation of existing full-service branch. (a) A state bank may file a notice with the Bank Commissioner to relocate any existing full-service branch to another location then authorized by law. (b) The following rules govern such notice: (1) Fees. A fee of thr…

23 CAR § 320-2403. Short distance relocation. (a)(1)(A) In accordance with Arkansas Code § 23-48-702(d)(5), the State Banking Board rules a bank may relocate an existing full-service branch within an immediate neighborhood without requiring publication of notice pursuant to Acts …

23 CAR § 320-2404. Limited purposes offices. (a) Establishment of limited purpose office. (1) Within the State of Arkansas. Any bank may establish a limited purpose office anywhere in the state to conduct noncore banking activities upon satisfaction of the notice requirement set …

23 CAR § 320-2405. Expedited, standard, and mobile branch application procedures. (a)(1) A state bank’s expedited, standard, or mobile branch application (on separate forms required by the Bank Commissioner) for authority to establish a new branch shall be filed with the commissi…

23 CAR § 320-2406. Mobile branch. The State Banking Board, in accordance with Acts 2007, No. 42, promulgates the following rules governing mobile branches: (1) A mobile branch only conducts banking business within the same county as the main office or another full-service branch …

23 CAR § 320-2407. Protest. (a)(1) A protest may be filed with the Bank Commissioner as to the filing of: (A) A branch application; (B) An expedited branch application; or (C) A mobile branch application. (2) The following rules govern such protest. (b) Formal protest. (1) Each b…

23 CAR § 320-2601. Authority to adopt plan of exchange — Notice — Court reporter. (a) The Bank Commissioner requires that the bank intending to adopt a plan of exchange publish a legal notice of the commissioner’s fairness hearing in a newspaper of statewide circulation. (b) Thes…

23 CAR § 320-2602. Court reporter required. (a) The Bank Commissioner requires that the bank arrange for a court reporter to be present to transcribe the proceedings of the commissioner’s fairness hearing. (b) The bank is responsible for the fees and costs of the court reporter a…

23 CAR § 320-2701. Execution and filing articles with the State Bank Department — Certificate of dissolution — Fees. When the dissolution of an Arkansas state-chartered bank has been completed, the receiver shall file articles of dissolution with the State Bank Department in acco…

23 CAR § 320-2702. Voluntary liquidation. Applications for the voluntary liquidation of an Arkansas state-chartered bank shall be accompanied by a filing fee of two hundred dollars ($200).

23 CAR § 320-2703. Voluntary liquidation — Surrender of charter. Prior to accepting the surrender of any bank charter, applicant must provide the Bank Commissioner with evidence satisfactory to him or her that all deposits and trust accounts (if any) have been: (1) Sold; (2) Surr…

23 CAR § 320-301. Applications. (a) The Bank 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. (…

23 CAR § 320-302. Applications/documents. The Bank 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 electro…

23 CAR § 320-303. Meetings of the board — Regular meeting dates. (a)(1) 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. (2) In such a situation, the Bank Commissio…

23 CAR § 320-304. Publication requirements — Applications before the State Banking Board. (a) Sponsors of the following applications must publish notice of the proposed application once a week for three (3) consecutive weeks in a newspaper of statewide circulation. (b) The first …

23 CAR § 320-305. Application filing fees — Applications to be presented to the State Banking Board. Following is a list of application filing fees: (1) New bank charter, eight thousand dollars ($8,000); (2) Merger applications (per institution), five thousand dollars ($5,000); (…

23 CAR § 320-306. Application filing fees — Applications that are not filed with the State Banking Board. (a) New branch banking office (expedited branch application), Arkansas Code § 23-48-703, three hundred dollars ($300). (b) New branch banking office (standard branch applicat…

23 CAR § 320-307. Hearings — Filing fees for written/official protests. (a) A filing fee of two thousand five hundred dollars ($2,500) will be required to file an official protest for the following applications: (1) New bank charter; (2) Merger application; (3) Purchase or assump…

23 CAR § 320-308. Adjudicative hearings before the State Banking Board and/or the Bank Commissioner. (a) The following rules shall apply to adjudicative hearings before the State Banking Board and/or the Bank Commissioner. (b) Public hearing at commissioner’s discretion. The comm…

23 CAR § 320-309. Rehearing modifications. The State Banking Board and the Bank 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 decisi…

23 CAR § 320-310. Assessment fees. (a) 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 commissioner. (b) Exceptions for payment of …

23 CAR § 320-311. Bank retention of records. (a) Arkansas state banks are required to maintain the following records permanently: (1) Minute books of meeting of stockholders and directors; and (2) Capital stock ledger and capital stock certificate ledger or stocks. (b) All record…

23 CAR § 320-401. Warehousing mortgages and other loans. (a) Arkansas Code § 23-47-101(a)(14) permits state banks “To warehouse or act as agent in warehousing mortgages and other loans”. (b) The aggregate of mortgages or other loans shall not be applied against the legal lending …

23 CAR § 320-402. Incidental powers. (a) Arkansas Code § 23-47-101(b) reads: "In addition to the foregoing, a state bank may exercise any other powers which are incidental to the business of banking.” (b) This statutory reference to incidental powers is very similar to the Nation…

23 CAR § 320-403. Gift card disclosures. The State Banking Board, pursuant to the Fair Gift Card Act, Arkansas Code § 4-88-701 et seq., adopts the following guidance on disclosure and marketing issues for the sale of gift cards issued by the United States Office of the Comptrolle…

23 CAR § 320-404. Wild card statute. (a) Pursuant to the power granted to the Bank Commissioner by Arkansas Code § 23-47-101(c), the commissioner, by written order, may authorize state banks to engage in any banking activity then permitted to national banks. (b) Such authority ma…

23 CAR § 320-405. Disposition of income from the sale of credit life insurance or debt cancellation contracts. (a)(1) Individual employees, officers, directors, and principal shareholders of a state bank shall not personally profit by retaining commissions or other income (includ…

23 CAR § 320-406. Computer services by bank or operating subsidy. Any state bank, with the approval of the Bank Commissioner, and so long as national banks are so authorized, may furnish computer, data processing, item processing, billing, and posting services through its own org…

23 CAR § 320-407. Power to borrow. (a) The Arkansas Banking Code imposes no restriction upon a bank's borrowing power except the issuance of capital notes. (b) Excessive borrowing by a bank can affect its capital adequacy and may subject the bank to administrative action by the B…

23 CAR § 320-501. Guaranties. (a) A state bank is not authorized to be an accommodation guarantor. (b) An accommodation guaranty by a state bank is void and ultra vires. (c) A state bank can execute a valid guaranty agreement if such action is necessary or advisable to protect an…

23 CAR § 320-601. Messenger service. (a) To meet the requirements of its customers, a state bank may provide messenger services within the geographic limits of its operations by means of an armored car or otherwise, under which messenger service means any service, such as a couri…

23 CAR § 320-701. Identification requirements for the transfer or closure of pay on death deposit accounts. (a) Arkansas Code § 23-47-204(e)(4) states: "The State Bank Department shall promulgate rules that set out procedures a bank may take before transferring ownership of a dep…

23 CAR § 320-801. Investment, corporate debt obligations. (a) A bank may invest in debt securities, not in the purchase of stock, with certain exceptions. (b) As to convertible debentures, if the securities are: (1) Convertible into common stock at the option of the issuer, the b…

23 CAR § 320-802. Permissible exceptions — Common stock — Trust-preferred securities. (a)(1) Common stock is not generally determined to be an investment security. (2) The State Banking Board and Bank Commissioner rule that in some instances the purchase by a bank of common stock…