Title 23 — Public Utilities and Regulated Industries

The Bank Commissioner shall have power to call for reports from state banks and subsidiary trust companies whenever deemed necessary, in order to obtain a full and complete knowledge of their condition or the status of their reserves, but he or she shall call upon each of them fo…

(a) Every state bank and subsidiary trust company operating under the supervision of the Bank Commissioner shall make to the commissioner, whenever required by him or her, a statement of its assets and liabilities as shown by its records at the close of business on the day design…

(a) The Bank Commissioner shall, as often as may be deemed necessary or proper, appoint suitable persons to make an examination of each state bank or subsidiary trust company. (b) (1) A thorough examination into the affairs of each state bank or subsidiary trust company shall be …

The Bank Commissioner may make at any time, and from time to time, such examinations of the affairs of affiliates of state banks or of affiliates of subsidiary trust companies as shall be necessary to disclose fully the relations between the state banks and their affiliates or be…

Whenever it shall come to the knowledge of the Bank Commissioner that any state bank or subsidiary trust company has failed or refused to comply with any of the provisions of the Arkansas Banking Code of 1997, with any provision of federal law or federal regulations applicable to…

(a) The Bank Commissioner or any examiner appointed by him or her shall have power to make a thorough examination of all the records and affairs of any state bank, any Arkansas bank holding company, or any subsidiary trust company. (b) (1) In making examinations, the representati…

(a) The Bank Commissioner may share with or furnish to any state or federal examiner or regulatory agency with jurisdiction over any financial institution or other entity conducting financial activities, including, but not limited to, insurance or securities brokerage or underwri…

(a) The Bank Commissioner may revoke a state bank's or subsidiary trust company's authority to transact business and may proceed to wind up its business whenever any officer of the state bank or subsidiary trust company:(1) Refuses to submit the books, papers, and effects thereof…

(a) Every state bank and subsidiary trust company shall pay to the State Bank Department, within ten (10) days after notice from the Bank Commissioner in the months of January and July of each year, an assessment fee which will be charged in accordance with an assessment fee sche…

(a) Any financial institution that refuses or fails, for thirty (30) days after notice from the Bank Commissioner, to make any report to the commissioner, or fails to pay any fees for ten (10) days after the date of notice by the commissioner, shall be given an additional notice …

(a) Every state bank or subsidiary trust company shall retain its business records for periods that are or may be prescribed by or in accordance with the terms of this section. (b) Each state bank or subsidiary trust company shall retain permanently the minute books of meetings o…

Every financial institution shall report promptly to the Bank Commissioner any change for whatever reason in the chief executive officer and directors, including in its report a statement of the past and current business and professional affiliations of the new chief executive of…

This subchapter shall be known and may be cited as the “Examination of Technology Service Providers Act”.

(1) As used in this subchapter:(1) “Bank supervisory agency” means the same as defined in § 23-45-102;(2) (A) “Covered service” means a service provided by a technology service provider to a depository institution in this state to the extent that the service is designed and marke…

When a depository institution receives a covered service, by contract or otherwise, the performance of that service by a technology service provider to the depository institution is subject to examination by the Bank Commissioner to the same extent as if the covered service were …

(1) The Bank Commissioner may enter into agreements with any bank supervisory agency that has jurisdiction over a technology service provider to:(1) Engage the services of the bank supervisory agency's examiners at a reasonable rate of compensation; or(2) Provide the services of …

The Bank Commissioner may enter into joint examinations or joint enforcement actions with a bank supervisory agency having jurisdiction over a technology service provider.

The Bank Commissioner may accept an examination that is conducted by a bank supervisory agency that has jurisdiction over a technology service provider as a substitution for an examination under this subchapter.

(1) The Bank Commissioner may by rule:(1) Adopt additional procedures to implement this subchapter; and(2) Impose sanctions under § 23-46-205 for violations of this subchapter by a technology service provider if the commissioner considers the enforcement action to be necessary or…

(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…