Browse Arkansas Code titles and sections
19-8-107. Depository agreements.
Arkansas Code — all titles (historical 2020) · legal_authorities
19-8-107. Depository agreements.
(a)(1) After the receipt from the Bank Commissioner of the list of banks or banking institutions eligible for public deposits, the depository boards shall:
(A) Designate the banks or banking institutions into which the funds shall be deposited; and
(B) With each bank or banking institution designated under subdivision (a)(1)(A) of this section, enter into a depository agreement and any supplemental agreements under subsection (c) of this section needed to perfect security of public deposits not fully insured directly by the United States.
(2) The depository boards may at any time enter into depository agreements with any new bank chartered if the bank is certified by the commissioner as being eligible as a depository of public funds under the laws of this state.
(3)(A) All depository agreements and supplemental agreements required for creating an enforceable perfected security in collateral for deposits of public funds shall continue in full force until the bank or banking institution receives written notice of revocation by the depository board or until there is a change of membership on the depository board as prescribed in this subsection.
(B) Depository agreements and supplemental agreements required to create an enforceable perfected security in collateral for deposits shall be updated at the time a new treasurer takes office.
(C) Except as provided under subdivision (a)(3)(A) of this section, agreements required to be signed by all members of a depository board shall be changed at the time of membership change on the depository board.
(b)(1) The treasurers or other public officials or other persons having custody of public funds shall deposit those public funds into the designated depositories.
(2) The depositing
Source: Arkansas Code — historical release 78 (November 6, 2020) · 19-8-107
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:19-8-107
Source file: gov.ar.code.title.19.odt
Pages: Not recorded – Not recorded
Passage SHA-256: 6a569112d3eb318d6a3b59c1b34033ace7aa7b0f74b74288bf84e45ea167c8b4
Source location: content.xml paragraph 13412
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19-8-107. Depository agreements.
(a)(1) After the receipt from the Bank Commissioner of the list of banks or banking institutions eligible for public deposits, the depository boards shall:
(A) Designate the banks or banking institutions into which the funds shall be deposited; and
(B) With each bank or banking institution designated under subdivision (a)(1)(A) of this section, enter into a depository agreement and any supplemental agreements under subsection (c) of this section needed to perfect security of public deposits not fully insured directly by the United States.
(2) The depository boards may at any time enter into depository agreements with any new bank chartered if the bank is certified by the commissioner as being eligible as a depository of public funds under the laws of this state.
(3)(A) All depository agreements and supplemental agreements required for creating an enforceable perfected security in collateral for deposits of public funds shall continue in full force until the bank or banking institution receives written notice of revocation by the depository board or until there is a change of membership on the depository board as prescribed in this subsection.
(B) Depository agreements and supplemental agreements required to create an enforceable perfected security in collateral for deposits shall be updated at the time a new treasurer takes office.
(C) Except as provided under subdivision (a)(3)(A) of this section, agreements required to be signed by all members of a depository board shall be changed at the time of membership change on the depository board.
(b)(1) The treasurers or other public officials or other persons having custody of public funds shall deposit those public funds into the designated depositories.
(2) The depositing of public funds as required under subdivision (b)(1) of this section into the designated depositories shall relieve the public officer or other person and his or her sureties from any liability for the loss of the public funds by reason of the default or insolvency of any depository.
(3) County officials shall make timely deposit and investment of public funds to earn optimum interest consistent with the prudent investor rule defined by Arkansas law.
(c)(1) County and municipal officials shall:
(A) Require security for the deposit of public funds in the form of a demand deposit, a savings deposit, or a time deposit for amounts not fully insured directly by the United States; and
(B) Enter into supplemental agreements with each depository banking institution that satisfy the requirements of this subsection.
(2)(A) The Treasurer of State shall make available upon request to any county or municipality fillable depository agreement forms designed for county and municipal governments and any necessary supplemental agreement forms required for collateralizing public funds.
(B) The forms shall include language necessary to create an enforceable perfected security interest in all collateral for deposits.
(3) Depository boards and banks or banking institutions giving or holding collateral for deposits of public funds shall comply with federal laws and regulations so that the governmental entity or political subdivision depositing public funds holds a valid claim in deposits and collateral given for those deposits against, and prevent avoidance of such a claim by, the Federal Deposit Insurance Corporation or its successor or any similar deposit insurance agency acting as receiver, conservator, or in any other capacity.
(4) All security required under this subsection shall meet the requirements of an eligible security under § 19-8-203 and § 23-47-203(c).
(5) Public officials may require as a condition for placing deposits or keeping funds on deposit such financial data as they need to make an informed decision, including without limitation quarterly financial statements, quarterly profit and loss statements, and tangible net worth or capital-to-assets ratios.
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Arkansas Code — all titles (historical 2020) · legal_authorities
19-8-203. Eligible security for deposits.
(a) Whenever, pursuant to any statute of the state, any depository in the State of Arkansas must furnish security for the deposit of any public funds or whenever any security must be granted to any public official in connection with public funds the following shall be considered as eligible security for such purposes and subject to the depositor's discretion regarding the suitability of the collateral:
(1) The pledge or escrow of the assets of the bank consisting of any investment in which a state bank may invest pursuant to § 23-47-401;
(2) A surety bond issued by an insurance company licensed under the laws of the State of Arkansas and either:
(A) Rated “A” or better by any one (1) or more of the following rating agencies:
(i) A.M. Best Company, Inc.;
(ii) Standard & Poor's Insurance Rating Service;
(iii) Moody's Investors Service, Inc.; or
(iv) Duff & Phelps Credit Rating Co.; or
(B) Listed on the then-current United States Department of the Treasury Listing of Approved Sureties;
(3) Private deposit insurance issued by an insurance company licensed under the laws of the State of Arkansas and either:
(A) Rated “A” or better by any one (1) or more of the following rating agencies:
(i) A.M. Best Company, Inc.;
(ii) Standard & Poor's Insurance Rating Service;
(iii) Moody's Investors Service, Inc.; or
(iv) Duff & Phelps Credit Rating Co.; or
(B) Listed on the then-current United States Department of the Treasury Listing of Approved Sureties; or
(4) An irrevocable standby letter of credit issued by a Federal Home Loan Bank.
(b) The aggregate market value of assets pledged or escrowed or the face amount of the surety bond, private deposit insurance, or letter of credit securing the deposit of fund
Source: Arkansas Code — historical release 78 (November 6, 2020) · 19-8-203
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 19-8-203. This identifies an authority to review, not proof of applicability.
Arkansas Code — all titles (historical 2020) · legal_authorities
23-47-203. Securing of deposits.
(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 the foregoing;
(2) Any university or college supported by this state;
(3) Any school district of this state;
(4) Any community college district of this state;
(5) Any relief body of the United States or of this state;
(6) Any road, drainage, levee, bridge, street, sewer, paving, or other improvement district organized under the laws of this state;
(7) Any regional water distribution district organized under the laws of this state;
(8) Any federal agency;
(9) The United States Postal Service;
(10) Any receiver of any state or federal court, whether appointed in proceedings pending in this state or elsewhere;
(11) Any referee in bankruptcy;
(12) Any receiver, trustee, or operating officials appointed by any federal court in any bankruptcy, debt-adjustment, or composition proceeding pending within this state or elsewhere;
(13) Any pension or retirement fund for employees of any county or municipality in this state or any agency, corporate instrumentality, or political subdivision of any of the foregoing; and
(14) The Treasurer of State.
(b) It shall be lawful for any state bank to secure the deposit with it of the following described funds:
(1) Any funds deposited into the bank and which are held in trust by the bank, awaiting investment or distribution if not prohibited by the instrument or judgment creating the trust; and
(2) Any funds deposited for such other purposes as are approved by the Bank Commissioner.
(c)(1) A state b
Source: Arkansas Code — historical release 78 (November 6, 2020) · 23-47-203
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 23-47-203. This identifies an authority to review, not proof of applicability.