Title 23, Public Utilities and Regulated Industries

(a) (1) An officer, director, employee, or shareholder of a state trust company commits an offense if the officer, director, employee, or shareholder of a state trust company knowingly:(A) Conceals information or a fact or removes, destroys, or conceals a book or record of the st…

(a) The Bank Commissioner may take possession of the business and property of a state trust company to which this chapter is applicable whenever it appears that the state trust company:(1) Has violated its charter or any laws applicable to the charter of a state trust company;(2)…

(a) (1) Subject to the other provisions of this chapter, one (1) or more persons may organize and charter a state trust company.(2) A state trust company may perform any act as a fiduciary or engage in any trust business within or without this state. (1) Subject to the other prov…

(a) A state trust company shall have and continuously maintain a principal office in this state. (b) An executive officer at the principal office is an agent of the state trust company for service of process. (c) A state trust company may change its principal office to any locati…

(a) Except as provided in subsection (b) of this section, the Bank Commissioner shall not issue a charter to a state trust company having required capital of less than one million dollars ($1,000,000). (b) (1) The commissioner may require additional capital for a proposed or exis…

(a) A state trust company shall not reduce or increase its outstanding capital through dividend, redemption, issuance of shares, or otherwise without the prior approval of the Bank Commissioner, except as permitted by this section or rules adopted under this chapter. (b) Unless o…

(a) The articles of association of a state trust company shall be signed and acknowledged by each organizer. (b) The articles of association of a state trust company shall include:(1) The name of the state trust company;(2) The period of the state trust company's duration, which …

(a) An application for a state trust company charter shall be:(1) Made under oath and in the form required by the Bank Commissioner;(2) Supported by information, data, records, and opinions of counsel that the commissioner requires;(3) Accompanied by a nonrefundable filing fee of…

(a) The Bank Commissioner shall notify the organizers of the proposed state trust company when the application is complete and accepted for filing and all required fees and deposits have been paid. (b) Upon submission of an application to the commissioner, the organizers of the p…

(a) (1) A person shall not appear in opposition to an application for a charter for a state trust company unless the person has filed an official protest to the granting of the application within thirty (30) days of the date of the notice of the filing of the application.(2) The …

(a) A state trust company shall not engage in the trust business until it receives its charter from the Bank Commissioner. (b) The commissioner shall not deliver the charter for a state trust company until the state trust company has:(1) Elected or qualified the initial officers …

(a) A state trust company that has been granted a charter under § 23-51-409 or a predecessor statute may amend or restate its articles of association for any lawful purpose, including the creation of authorized but unissued shares in one (1) or more classes or series. (b) An amen…

(a) If the articles of association expressly give the board of a state trust company authority to establish series and determine the preferences, limitations, and relative rights of each series of shares, the board may do so only in compliance with this section and any rules adop…

(a) With the prior written approval of the Bank Commissioner, a state trust company, at any time, through action of its board, and without requiring action of its shareholders, may issue and sell its capital notes or debentures, which shall be subordinate to the claims of deposit…

A state trust company shall adopt bylaws and may amend its bylaws from time to time for the purposes and in accordance with the procedures stated in the Arkansas Business Corporation Act of 1987, § 4-27-101 et seq.

(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.