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19-8-203. Eligible security for deposits.
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. A text match is a research starting point; applicability is not established.
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Record provenance
Stable record: arkansas_code:legal_authorities:19-8-203
Source file: gov.ar.code.title.19.odt
Pages: Not recorded – Not recorded
Passage SHA-256: 99eb3f927e37615d330538e3a4034a6239f13a1c9ea515bf4fbd429c69e59ccf
Source location: content.xml paragraph 13522
Stored source content
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 funds by any single depositor must be equal to or exceed the amount of the deposit to be secured.
(c) Notwithstanding subdivision (a)(1) of this section, if any political subdivision, school district, improvement district, or other issuer has defaulted on any bonds or other obligations within the preceding period of ten (10) years, bonds or other obligations of the defaulting political subdivision, school district, improvement district, or other issuer shall not be eligible as security for the deposit of public funds or as security required to be deposited in connection with public funds.
Cross-references
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Arkansas Code — all titles (historical 2020) · legal_authorities
23-47-401. Investment powers and limitations.
(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 Congress and authorized thereby to issue securities or evidences of indebtedness, regardless of guarantee of repayment by the United States Government;
(3) Obligations the principal and interest of which are fully guaranteed by the United States Government or an agency or an instrumentality created by an act of Congress and authorized thereby to issue such a guarantee;
(4) Obligations the principal and interest of which are fully secured, insured, or covered by commitments or agreements to purchase by the United States Government or an agency or instrumentality created by an act of Congress and authorized thereby to issue such commitments or agreements;
(5) General obligations of the states of the United States and of the political subdivisions, municipalities, commonwealths, territories, or insular possessions thereof;
(6) Obligations issued by the State Board of Education under authority of the Arkansas Constitution or applicable statutes;
(7) Warrants of political subdivisions of the State of Arkansas and municipalities thereof having maturities not exceeding one (1) year;
(8) Prerefunded municipal bonds, the principal and interest of which are fully secured by the principal and interest of a direct obligation of the United States Government;
(9) The sale of federal funds with a maturity of not more than one (1) business day;
(10) Demand, savings, or time deposits or accounts of any depository institution chartered by the United States, any state of the United States, or the District of Columbia, provided
Source: Arkansas Code — historical release 78 (November 6, 2020) · 23-47-401
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 23-47-401. This identifies an authority to review, not proof of applicability.