Title 23 — Public Utilities and Regulated Industries

(a) Subject to any State Bank Department rule and consistent with any restrictions imposed by the Arkansas Banking Code of 1997, each state bank shall, unless it shall be determined to be unsafe and unsound by the Bank Commissioner, and without specific mention thereof in its art…

(a) No state bank shall be the purchaser or holder of its own capital stock, unless such security or purchase shall be necessary to prevent loss upon a debt previously contracted in good faith. (b) Stock so purchased or acquired shall be sold or disposed of as expeditiously as po…

(a) A state bank or subsidiary trust company, acting with the prior approval of the Bank Commissioner, may acquire bank premises to be used, occupied, or owned by it. (b) (1) Any state bank acting with the prior approval of the commissioner may cause the title to its bank premise…

Banks, bank holding companies, and subsidiaries of banks or bank holding companies may not engage in business as real estate salespersons or brokers.

(a) (1) Banks shall have the power to make rules governing deposits, including provisions for reasonable notice, not to exceed ninety (90) days, for the withdrawal of deposits and for changes in or amendments to those rules to be made by the bank without approval of the depositor…

When any deposit is made in any bank by a minor, the bank may pay to the depositor the sums due him or her and the receipt or check of the minor shall be, in all respects, valid in law.

(a) It shall be lawful for any state bank to secure deposits made with it by any of the following:(1) The United States, the State of Arkansas, any county of this state, any municipality of this state, or any agency, corporate instrumentality, or political subdivision of any of t…

(a) (1) As used in this section:(A) “Multiple-party deposit account” means a deposit account established in the names of two (2) or more persons and payable to or in a form subject to withdrawal by one (1) or more of the persons named on the deposit account; and(B) “Single-party …

(1) Notice to a bank of an adverse claim to a deposit standing on its books to the credit of any person shall not be sufficient to require the bank to pay the deposit to the adverse claimant or otherwise recognize the adverse claim unless the adverse claimant also:(1) Procures a …

(a) No state bank shall settle any check drawn on it against an account with a sufficient balance otherwise than at par. (b) However, the provisions of this section shall not apply with respect to the settlement of a check sent to a state bank for special handling or as a special…

(a) Any officer or employee who knowingly pays out the funds of any state bank upon the check, order, or draft of any individual, firm, corporation, or association which does not have on deposit with the bank a sum equal to the check, order, or draft is personally liable to it fo…

(a) On behalf of depositors, state banks may create and open deferred income investment accounts of the following types:(1) The depositor makes a deposit of a lump sum, and the bank agrees to pay the depositor an agreed monthly or annual payment for life or for a term certain beg…

(a) As used in this section:(1) (A) “Financial institution” means a banking institution that may accept deposits from depositors under any state or federal law, the accounts of which are insured by the Federal Deposit Insurance Corporation or the National Credit Union Administrat…

(1) In this subchapter:(1) “Account” means a contract of deposit between a depositor and a bank, and includes a checking account, savings account, and certificate of deposit;(2) “Agent” means a person authorized to make account transactions for a party;(3) “Beneficiary” means a p…

(a) This subchapter applies to accounts in this state. (b) This subchapter does not apply to:(1) An account established for a partnership, joint venture, or other organization for a business purpose;(2) An account controlled by one (1) or more persons as an agent or trustee for a…

A contract of deposit that substantially contains the following form establishes an agency account, and the account is governed by the provisions of this subchapter applicable to agency accounts:Click here to view form.

(a) Unless the terms of an agency designation provide that the authority of the agent terminates on disability or incapacity of a party, the agent's authority survives disability and incapacity. The agent may act for a disabled or incapacitated party until the authority of the ag…

On request of an agent under an agency designation for an account, a bank may, unless it actually knows that the authority of agency has terminated, pay to the agent sums on deposit in the account.

If a bank is required or permitted to make payment pursuant to this subchapter to a minor designated as a beneficiary, payment may be made pursuant to the Arkansas Uniform Transfers to Minors Act, § 9-26-201 et seq.

(a) (1) Payment made pursuant to this subchapter in accordance with an agency account discharges the bank from all claims for amounts so paid, whether or not the payment is consistent with the beneficial ownership of the account as between parties, beneficiaries, or their success…

(a) Without qualifying any other statutory right to setoff or lien and subject to any contractual provision, if a party is indebted to a bank, the bank has a right to setoff against the agency account. (b) The amount of the agency account subject to setoff is the proportion to wh…

This subchapter is supplemental to all laws pertaining to the deposit of funds in banks.

(a) A state bank may invest its funds without limitation in the following:(1) Direct obligations of the United States Government;(2) Obligations of agencies and instrumentalities created by act of the United States Congress and authorized thereby to issue securities or evidences …

(a) The total indebtedness to any state bank of any person shall at no time exceed twenty percent (20%) of the capital base of the bank. (b) (1) Obligations of a person as endorser or guarantor, accommodation or otherwise, of notes or other obligations shall be included in that p…

(a) The following loans and other forms of indebtedness shall not be included in the limitation of twenty percent (20%) imposed by § 23-47-501 and may be made or acquired without being subject to any loan limit:(1) Obligations in the form of drafts or bills of exchange drawn in g…

(a) Except as provided in subsections (b) and (c) of this section, it shall be unlawful for a state bank to knowingly:(1) Loan its funds to its stockholders on its own stock, or stock in its bank holding company, as collateral security;(2) Make a loan, the proceeds of which are u…

The provisions of subsections (g) and (h) of section 22 of the Federal Reserve Act, 12 U.S.C. §§ 375a and 375b, and the regulations promulgated thereunder, shall apply to any state bank.

Any officer or director of any state bank who shall knowingly make or approve a loan in violation of §§ 23-47-501 — 23-47-504 or who shall knowingly permit such a loan to be made, or who shall fail to exercise his or her authority to prevent the making of the loan shall be person…

(1) Notwithstanding any other provision of law, any state bank which has as one (1) of its principal purposes the making or purchasing of loans secured by real estate mortgages is authorized to:(1) Sell the mortgage loans to the Federal National Mortgage Association, the Federal …

(a) A state bank may hold and sell all kinds of property that may come into its possession as collateral security for loans or any ordinary collection of debts in the manner provided by law. (b) Any personal property coming into its possession in this manner and which is not othe…

(a) Except as provided in subsection (b) of this section, real estate acquired through the collection of debts previously contracted in the ordinary course of business shall not be held by the state bank as an asset for a longer period than five (5) years. (b) The Bank Commission…

Whenever a minor borrows money from a bank for the purpose of defraying the expenses of his or her higher education or for necessaries, any contract, promissory note, loan agreement, or other loan instrument entered into by and between the bank and the minor shall constitute a va…

(a) A state bank, when making a mortgage loan, may not require, as a condition or term of the mortgage, that the mortgagor purchase casualty insurance on property which is the subject of the mortgage in an amount in excess of the fair market value of the buildings or appurtenance…

(a) (1) With the prior approval of the Bank Commissioner, and subject to such conditions as may be prescribed by him or her, a state bank may engage in any activities which are a part of the business of banking or incidental thereto by means of an operating subsidiary and other a…

(a) A state bank acting through an operating subsidiary or a bank holding company acting, directly or through a subsidiary, may, with the prior approval of the Bank Commissioner, engage in real estate investment and development, including without limitation:(1) Development of sub…

(a) As used in this section, unless the context otherwise requires:(1) “Bank service company” means a corporation or limited liability company organized for the exclusive purpose of performing bank services for one (1) or more persons, which is owned by one (1) or more state bank…

A.C.A. § 23-47-604Current through all legislation of the 2025 Regular Session.Arkansas Code of 1987 Annotated Official EditionCopyright © 2026 by the State of Arkansas All rights reserved

(a) As used in this section, the term “public welfare” means developing housing, fostering economic growth and revitalization, creating small businesses, including minority-owned businesses, and supporting other community development initiatives approved by the Bank Commissioner.…

(a) A state bank may purchase up to one hundred percent (100%) of the capital stock of small business investment companies and minority enterprise small business investment companies as defined by the Small Business Investment Act of 1958. (b) However, in no event may any state b…

(a) Any state bank may purchase up to one hundred percent (100%) of the capital stock of any corporation organized and existing under the Edge Act, and any amendments thereto. (b) However, in no event may any state bank acquire shares of any such corporation if, upon the making o…

With prior notice to the Bank Commissioner and in accordance with the state and federal law, state banks are authorized to engage in activities through financial subsidiaries.

The Bank Commissioner shall be authorized and empowered to grant to state banks applying therefor the right to operate a trust department to act as trustee, executor, administrator, custodian, registrar, paying agent or transfer agent of stocks and bonds, guardian of estates, ass…

In determining whether to grant an application by a state bank for permission to operate a trust department to exercise the powers enumerated in this subchapter, the Bank Commissioner may take into consideration the sufficiency of the capital base of the applying state bank, the …

The granting and exercise of such powers as are authorized by this subchapter shall not be deemed to be in contravention of any other provision of Arkansas law.

State banks exercising any or all of the powers enumerated in this subchapter shall segregate all assets held in its trust department from the general assets of the bank and shall keep a separate set of books and records showing in proper detail all transactions engaged in under …

(a) (1) No state bank shall receive in its trust department deposits of current funds subject to check or the deposit of checks, drafts, bills of exchange, or other items for collection or exchange purposes.(2) Funds deposited or held in trust by the state bank awaiting investmen…

If Arkansas law requires that a corporation acting as trustee, executor, administrator, or in any capacity specified in this subchapter shall take an oath or make an affidavit, the president or chief executive officer, a vice president, or a trust officer of a state bank may take…

(a) It shall be unlawful for any state bank to lend to any officer, director, or employee any funds held in trust under the powers conferred by this subchapter, or to sell assets held in trust to any such persons, without the prior written approval of the Bank Commissioner. (b) I…

(a) (1) Any state bank desiring to surrender its right to operate a trust department and to exercise the powers granted under this subchapter, in order to relieve itself of the necessity of complying with the requirements of this subchapter, or to have returned to it any securiti…

(a) (1) In addition to the authority conferred by any other law, if, in the opinion of the Bank Commissioner, a state bank is unlawfully or unsoundly operating a trust department or exercising, or has unlawfully or unsoundly operated or exercised, or has failed for a period of fi…