Title 23 — Public Utilities and Regulated Industries

(a) The board of a state trust company shall be governed by the Arkansas Business Corporation Act of 1987, § 4-27-101 et seq., provided that the board shall consist of not fewer than three (3) directors, the majority of whom shall be residents of this state. (b) Unless the Bank C…

(1) The board of a state trust company is responsible for the proper exercise of fiduciary powers by the state trust company and each matter pertinent to the exercise of fiduciary powers, including:(1) The determination of policies;(2) The investment and disposition of property h…

(a) The board of a state trust company shall annually elect the officers of the state trust company, who serve at the pleasure of the board. (b) (1) The state trust company shall have a principal executive officer primarily responsible for the execution of board policies and oper…

(a) The board of a state trust company shall require protection and indemnity for clients in reasonable amounts established by rules adopted under this chapter against dishonesty, fraud, defalcation, forgery, theft, and other similar insurable losses with corporate insurance or s…

(a) A state trust company shall keep its fiduciary records separate and distinct from other records of the state trust company. (b) The fiduciary records under subsection (a) of this section shall contain all material information relative to each account as appropriate under the …

(a) A state trust company's total outstanding loans and extensions of credit to a person other than an insider shall not exceed an amount equal to twenty percent (20%) of the state trust company's capital base. (b) (1) The aggregate loans and extensions of credit outstanding at a…

(a) (1) Without the prior written approval of the Bank Commissioner, a state trust company shall not directly or indirectly invest an amount in excess of its capital and surplus in state trust company facilities, furniture, fixtures, and equipment.(2) Except as otherwise provided…

(a) A state trust company shall not acquire real estate except:(1) As permitted by § 23-51-502 or as otherwise provided by this chapter, including rules adopted under this chapter;(2) If necessary to avoid or minimize a loss on a loan or investment previously made in good faith; …

(a) A state trust company may invest its corporate funds in any type or character of equity or investment securities subject to the limitations provided by this section. (b) Unless the Bank Commissioner approves maintenance of a lesser amount in writing, a state trust company sha…

(a) A state trust company may acquire its own shares if:(1) The amount of its undivided profits is sufficient to fully absorb the acquisition of the shares under regulatory accounting principles; and(2) The state trust company obtains the prior written approval of the Bank Commis…

(a) A state trust company may invest for its own account in equity securities of an investment company registered under the Investment Company Act of 1940, 15 U.S.C. § 80a-1 et seq., as it existed on January 1, 2025, and the Securities Act of 1933, 15 U.S.C. § 77a et seq., as it …

(a) (1) Subject to rules adopted under this chapter, a state trust company may become the owner and lessor of tangible personal property for lease financing transactions on a net lease basis on the specific request and for the use of a client.(2) Without the written approval of t…

(a) A state trust company may deposit trust funds with itself as an investment if authorized by the settlor or the beneficiary, if:(1) The state trust company maintains as security for the deposits a separate fund of securities, legal for trust investments, under control of a fed…

(a) A state trust company may establish common trust funds to provide investment to itself as a fiduciary. (b) The Bank Commissioner may adopt rules to implement and administer this section, including without limitation rules to establish investment and participation limitations,…

(a) Without the prior approval of a disinterested majority of the board of a state trust company recorded in the minutes, or if a disinterested majority cannot be obtained, the prior written approval of a majority of the disinterested directors of a state trust company and the Ba…

(a) Except as otherwise provided by this chapter or rules adopted under this chapter, a state trust company may acquire or establish a subsidiary to conduct any activity that may lawfully be conducted through the form of organization chosen for the subsidiary. (b) (1) A state tru…

(a) Except as expressly otherwise permitted, a person shall not, without the prior written approval of the Bank Commissioner, directly or indirectly acquire control of a state trust company through a change in a legal or beneficial interest in voting securities of a state trust c…

(a) The proposed transferee seeking approval to acquire control of a state trust company or a corporation or other entity that controls a state trust company shall file with the Bank Commissioner:(1) An application in the form prescribed by the commissioner;(2) The filing fee in …

(a) (1) Not later than sixty (60) days after the application for acquisition of control is officially filed under § 23-51-602, the Bank Commissioner may approve the application or set the application for hearing.(2) If the commissioner sets a hearing, the commissioner shall condu…

(a) (1) If a hearing has been held and the Bank Commissioner has entered an order denying the application for acquisition of control filed under § 23-51-602 and the order has become final, the proposed transferee may appeal the final order by filing a petition for judicial review…

This subchapter shall not be construed to prevent the Bank Commissioner from investigating, commenting on, or seeking to enjoin or set aside a transfer of voting securities that evidence a direct or indirect interest in a state trust company, whether or not the transfer is includ…

(a) With the prior written approval of the Bank Commissioner, a state trust company may merge:(1) With and into a state bank to the same extent as a state bank under the Arkansas Banking Code of 1997, § 23-45-101 et seq. — § 23-50-101 et seq.; or(2) With another person to the sam…

(a) To apply for a merger under this subchapter, two (2) original copies of the articles of merger and an application in the form required by the Bank Commissioner shall be filed with the commissioner. (b) The commissioner shall investigate the condition of the merging parties. (…

(a) The Bank Commissioner may approve a merger under this subchapter if:(1) A resulting state trust company will be solvent and have adequate capitalization for its business and location;(2) A resulting state trust company has in all respects complied with the statutes and rules …

A shareholder of the state trust company may dissent from a merger under this subchapter to the extent and by following the procedure provided by the Arkansas Business Corporation Act of 1987, § 4-27-101 et seq., or rules adopted under this chapter.

(a) (1) Subject to this section, a state trust company may purchase assets of another state trust company or trust-related assets of another trust institution, including the right to control accounts established with the trust institution.(2) Except as otherwise expressly provide…

(a) The board of a state trust company, with the Bank Commissioner's approval, may cause a state trust company to sell all or substantially all of its assets, including the right to control accounts established with the state trust company, without shareholder approval if the com…

(a) A state trust institution may act as a fiduciary and engage in a trust business at each trust office as permitted by this chapter and at a branch. (b) Notwithstanding subsection (a) of this section, a state bank or a state trust company shall not engage at an out-of-state off…

(a) (1) A state trust institution may establish or acquire and maintain trust offices or representative trust offices anywhere in this state.(2) A state trust institution desiring to establish or acquire and maintain a trust office or representative trust office under subdivision…

(a) (1) A state bank, a state trust company, or a savings association chartered under the laws of this state may establish and maintain a new trust office or representative trust office or acquire and maintain a trust office or representative trust office in a state other than th…

An out-of-state trust institution may act as a fiduciary in this state or engage in a trust business at a trust office in this state only if it maintains a trust office in this state as permitted by this chapter or a branch in this state.

(a) An out-of-state trust institution that does not operate a trust office in this state and that meets the requirements of this chapter may establish and maintain a new trust office in this state. (b) An out-of-state trust institution shall not establish a new trust office in th…

(a) A trust office of an out-of-state trust institution shall not be acquired or established in this state under this chapter unless:(1) The out-of-state trust institution has confirmed in writing to the Bank Commissioner that for as long as the out-of-state trust institution mai…

An out-of-state trust institution that maintains a trust office in this state under this chapter may establish or acquire additional trust offices or representative trust offices in this state to the same extent that a state trust institution may establish or acquire additional t…

(a) An out-of-state trust institution that does not operate a trust office in this state and that meets the requirements of this chapter may acquire and maintain a trust office in this state. (b) An out-of-state trust institution shall not maintain a trust office in this state un…

(a) An out-of-state trust institution desiring to establish and maintain a new trust office or acquire and maintain a trust office in this state under this chapter shall provide, or cause its home state regulator to provide, written notice of the proposed transaction to the Bank …

An out-of-state trust institution that establishes or maintains one (1) or more trust offices in this state under this subchapter may conduct any activity at each trust office that would be authorized under the laws of this state for a state trust institution to conduct at a trus…

(a) An out-of-state trust institution shall not act as a fiduciary, but may otherwise engage in a trust business, at a representative trust office as permitted by this subchapter. (b) Subject to the requirements contained in this subchapter, an out-of-state trust institution may …

(a) (1) An out-of-state trust institution may establish or acquire and maintain a representative trust office in this state.(2) An out-of-state trust institution not maintaining a trust office in this state and desiring to establish or acquire and maintain a representative trust …