Browse Arkansas Code titles and sections
14-73-103. Trust agreement.
Arkansas Code — all titles (historical 2020) · legal_authorities
14-73-103. Trust agreement.
(a) The reserve fund shall be established by written agreement with a trustee independent from the local government. The trust agreement shall contain:
(1) A description of the improvements for which the reserve is established;
(2) A covenant that the reserve funds will not be used for any purpose other than the purposes described in the trust agreement;
(3) A covenant by the trustee that all sums in the reserve fund will be invested by the trustee in a manner consistent with the “prudent man” rule, as authorized and defined by §§ 28-71-105 and 28-71-106;
(4) A covenant by the trustee to disburse the reserve funds only to the contractor or to a trustee for bonds or notes issued to finance the improvements or to disburse the reserve funds in such manner that they will be applied to the acquisition, construction, reconstruction, remodeling, equipping, extending, operating, maintaining, or providing the improvements;
(5) A term for the agreement which shall not exceed twenty-one (21) years.
(b) A trust agreement in which a city, town, or county is a party shall specify that each payment to the reserve fund shall be a separate contract with the trustee and shall specifically limit the amount of payments to the reserve fund in any fiscal year to the amount of the appropriation to the reserve fund for that fiscal year.
(c) The trust agreement may contain provisions providing for the trustee's fee, if any, to be paid from the reserve funds held in trust.
Source: Arkansas Code — historical release 78 (November 6, 2020) · 14-73-103
Stored review status: Historical 2020-11-06 source release; later amendments not reconciled; machine-extracted, not independently legally reviewed; source heading status: text_in_historical_source. A text match is a research starting point; applicability is not established.
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Stable record: arkansas_code:legal_authorities:14-73-103
Source file: gov.ar.code.title.14.odt
Pages: Not recorded – Not recorded
Passage SHA-256: cd230339090909d9e35fc10875074c769a357958f4913a5a0cb5816dcd688386
Source location: content.xml paragraph 20227
Stored source content
14-73-103. Trust agreement.
(a) The reserve fund shall be established by written agreement with a trustee independent from the local government. The trust agreement shall contain:
(1) A description of the improvements for which the reserve is established;
(2) A covenant that the reserve funds will not be used for any purpose other than the purposes described in the trust agreement;
(3) A covenant by the trustee that all sums in the reserve fund will be invested by the trustee in a manner consistent with the “prudent man” rule, as authorized and defined by §§ 28-71-105 and 28-71-106;
(4) A covenant by the trustee to disburse the reserve funds only to the contractor or to a trustee for bonds or notes issued to finance the improvements or to disburse the reserve funds in such manner that they will be applied to the acquisition, construction, reconstruction, remodeling, equipping, extending, operating, maintaining, or providing the improvements;
(5) A term for the agreement which shall not exceed twenty-one (21) years.
(b) A trust agreement in which a city, town, or county is a party shall specify that each payment to the reserve fund shall be a separate contract with the trustee and shall specifically limit the amount of payments to the reserve fund in any fiscal year to the amount of the appropriation to the reserve fund for that fiscal year.
(c) The trust agreement may contain provisions providing for the trustee's fee, if any, to be paid from the reserve funds held in trust.
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Arkansas Code — all titles (historical 2020) · legal_authorities
28-71-105. Standard of judgment and care — Prudent investor rule.
In acquiring, investing, reinvesting, exchanging, retaining, selling, and managing property held in a fiduciary capacity, other than trusts subject to the prudent investor rule as set forth in the Arkansas Trust Code, § 28-73-101 et seq., the fiduciary shall exercise the judgment and care under the circumstances then prevailing which persons of prudence, discretion, and intelligence exercise in the management of their own affairs, not in regard to speculation, but in regard to the permanent disposition of their funds, considering the probable income as well as the probable safety of their capital.
Source: Arkansas Code — historical release 78 (November 6, 2020) · 28-71-105
Stored review status: Historical 2020-11-06 source release; later amendments not reconciled; machine-extracted, not independently legally reviewed; source heading status: text_in_historical_source. The source passage cites 28-71-105. This identifies an authority to review, not proof of applicability.
Arkansas Code — all titles (historical 2020) · legal_authorities
28-71-106. Investments authorized.
(a) Within the limitations of the standard set forth in § 28-71-105, a fiduciary is authorized to acquire and retain every kind of real, personal, or mixed property and every kind of investment, specifically including, but not by way of limitation, bonds, debentures, and other corporate obligations, preferred or common stocks, shares or interests in common trust funds, and securities of any open-end or closed-end management-type investment company or investment trust registered under the Federal Investment Company Act of 1940, as amended, which persons of prudence, discretion, and intelligence acquire or retain for their own account.
(b)(1) Whenever a fiduciary is authorized or required by the instrument, judgment, decree, or order establishing the fiduciary relationship to invest funds in specifically described securities, the fiduciary may, unless expressly prohibited by such an instrument, judgment, decree, or order, invest such funds in any investment company or investment trust described in subsection (a) of this section, the portfolio of which is limited to such specifically described securities and to repurchase agreements fully collateralized by such specifically described securities, provided that the investment company or investment trust takes delivery of the collateral either directly or through an authorized custodian.
(2) Notwithstanding any other provision of state law, this subsection shall apply to all funds deposited with or controlled by any bank trustee acting in a fiduciary capacity in connection with the issuance, sale or redemption of bonds, notes, and other certificates of indebtedness.
(c) Unless expressly prohibited by the instrument, judgment, decree, or order establishing the fiduciary relationship,
Source: Arkansas Code — historical release 78 (November 6, 2020) · 28-71-106
Stored review status: Historical 2020-11-06 source release; later amendments not reconciled; machine-extracted, not independently legally reviewed; source heading status: text_in_historical_source. The source passage cites 28-71-106. This identifies an authority to review, not proof of applicability.