Browse Arkansas Code titles and sections
20-17-1013. Permanent maintenance fund generally.
Arkansas Code — all titles (historical 2020) · legal_authorities
20-17-1013. Permanent maintenance fund generally.
(a)(1)(A) The permanent maintenance fund is a trust fund for the purpose of administration, care, and maintenance of the cemetery, including lots, graves, spaces, crypts, niches, and burial rights.
(B) The principal of the permanent maintenance fund shall be preserved.
(2)(A) The net income generated from the investment of the principal of the permanent maintenance fund shall be paid to and expended by the owners, managers, officers, or directors of the cemetery company exclusively for the care and maintenance of the cemetery, including the payment of taxes and administrative expenses of maintaining the fund.
(B) A cemetery company may add unused net income to the principal of the permanent maintenance fund.
(3) Except as provided in subdivision (a)(4) of this section, the principal of the permanent maintenance fund shall be invested and remain invested in securities and funds permitted by the laws of Arkansas for the investment of policy reserves of life insurance companies under the Arkansas Insurance Code, § 23-60-101 et seq., and in the common trust funds of state or national banks.
(4)(A) A permanent maintenance fund having assets of more than two hundred fifty thousand dollars ($250,000) may invest not more than fifty percent (50%) of its assets in nonassessable common stocks listed on a national securities exchange, preferred stocks meeting the requirements of § 23-63-815, and investment trust securities meeting the requirements of § 23-63-820.
(B) The diversification restrictions of § 23-63-805 do not apply to investments in investment trust securities.
(5) In investing these funds, the trustee shall exercise the judgment and care under the circumstances then prevailing which persons of prudence,
Source: Arkansas Code — historical release 78 (November 6, 2020) · 20-17-1013
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:20-17-1013
Source file: gov.ar.code.title.20.odt
Pages: Not recorded – Not recorded
Passage SHA-256: 7bfc63d0bcac4d28e9081783dd4f8f7d8277673d4c2337fc69829869eeab62d2
Source location: content.xml paragraph 16193
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20-17-1013. Permanent maintenance fund generally.
(a)(1)(A) The permanent maintenance fund is a trust fund for the purpose of administration, care, and maintenance of the cemetery, including lots, graves, spaces, crypts, niches, and burial rights.
(B) The principal of the permanent maintenance fund shall be preserved.
(2)(A) The net income generated from the investment of the principal of the permanent maintenance fund shall be paid to and expended by the owners, managers, officers, or directors of the cemetery company exclusively for the care and maintenance of the cemetery, including the payment of taxes and administrative expenses of maintaining the fund.
(B) A cemetery company may add unused net income to the principal of the permanent maintenance fund.
(3) Except as provided in subdivision (a)(4) of this section, the principal of the permanent maintenance fund shall be invested and remain invested in securities and funds permitted by the laws of Arkansas for the investment of policy reserves of life insurance companies under the Arkansas Insurance Code, § 23-60-101 et seq., and in the common trust funds of state or national banks.
(4)(A) A permanent maintenance fund having assets of more than two hundred fifty thousand dollars ($250,000) may invest not more than fifty percent (50%) of its assets in nonassessable common stocks listed on a national securities exchange, preferred stocks meeting the requirements of § 23-63-815, and investment trust securities meeting the requirements of § 23-63-820.
(B) The diversification restrictions of § 23-63-805 do not apply to investments in investment trust securities.
(5) In investing these funds, the trustee shall exercise the judgment and care under the circumstances then prevailing which persons of prudence, discretion, and intelligence exercise in management of their own affairs, not in regard to speculation, but in regard to the permanent disposition of their funds, considering the probable income and capital appreciation as well as the probable safety of the capital.
(6)(A) For purposes of this section, no more than fifty percent (50%) of annual realized net capital gains on investments bought or acquired after January 1, 2013, may be considered income and used according to subdivision (a)(2) of this section.
(B) All other net capital gains on investments shall be added to the principal.
(b) The permanent maintenance fund is authorized by this subchapter, and all sums paid into it or contributed to it shall be deemed to be for charitable and eleemosynary purposes.
(c) No rule against perpetuities shall be applicable to funds as mentioned in this section.
(d)(1) The trust fund shall be established by executing a written trust agreement approved by the State Board of Embalmers, Funeral Directors, Cemeteries, and Burial Services.
(2)(A) The agreement may provide that the cemetery company may change the trustee of its trust fund by amending the agreement if:
(i) The successor trustee meets the requirements of § 20-17-1014; and
(ii) The trustee and successor trustee are parties to the amendment of the agreement.
(B) The trustee and successor trustee shall send the board notification of a change in trustee under subdivision (d)(2)(A) of this section within ten (10) calendar days after the change.
(e) At a minimum, the trustee shall maintain the following:
(1) A general ledger and general journal or comparable books of entry showing all receipts, disbursements, assets, liabilities, and income of the trust fund;
(2) Documents supporting and verifying each asset of the trust fund; and
(3) A trust agreement.
(f) In establishing a permanent maintenance fund, the cemetery company may from time to time adopt plans for the general care and maintenance of its cemetery.
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Arkansas Code — all titles (historical 2020) · legal_authorities
23-60-101. Title.
This code constitutes the Arkansas Insurance Code.
Source: Arkansas Code — historical release 78 (November 6, 2020) · 23-60-101
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 23-60-101. This identifies an authority to review, not proof of applicability.
Arkansas Code — all titles (historical 2020) · legal_authorities
23-63-805. Diversification of investments.
An insurer shall invest in or hold as admitted assets categories of investments only within applicable limits as follows:
(1)One Person.
(A)(i)(a) Except with the consent of the Insurance Commissioner and except as otherwise specified in this subchapter, an insurer shall not have, directly or indirectly through an investment subsidiary, an investment under this subchapter if, as a result of and after giving effect to the investment, the insurer holds more than five percent (5%) of its admitted assets in investments of all kinds issued, assumed, accepted, insured, or guaranteed by a single person or five percent (5%) of its admitted assets in investments in the voting securities of a depository institution or any company that controls the institution.
(b) The five percent (5%) limitation under subdivision (1)(A)(i)(a) of this section shall not apply to the aggregate amounts insured by a single financial guaranty insurer with the highest generic rating issued by a nationally recognized statistical rating organization.
(ii)(a) Investments in certificates of deposit and savings and loan association deposits in any one (1) person may be the greater of:
(1) Ten percent (10%) of the insurer's assets; or
(2) The maximum amount of federal insurance applicable to the deposit.
(b) The restriction under subdivision (1)(A)(i)(a) of this section does not apply to general obligations of the United States or any state or include policy loans made under § 23-63-821.
(iii) The applicable limitation shall be twenty-five percent (25%) rather than five percent (5%) for investments permitted under § 23-63-812.
(B) If upon enactment, the immediate application of this provision would have the effect of reducing the admitted asset v
Source: Arkansas Code — historical release 78 (November 6, 2020) · 23-63-805
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 23-63-805. This identifies an authority to review, not proof of applicability.
Arkansas Code — all titles (historical 2020) · legal_authorities
23-63-815. Preferred or guaranteed stock.
(a) An insurer may invest in preferred or guaranteed stocks or shares of any solvent institution existing under the laws of the United States or of Canada, or of any state or province thereof, if at the date of the acquisition of the investment by the insurer:
(1) The net earnings of the institution available for its fixed charges during each of the last two (2) years have been, and during each of the last five (5) years have averaged, not less than one and one-half (1½) times the sum of its average annual fixed charges, if any, its average annual maximum contingent interest, if any, and its average annual preferred dividend requirements; or
(2) The securities are:
(A) Rated “1” or “2” by the Securities Valuation Office of the National Association of Insurance Commissioners; or
(B) Exempt under the Purposes and Procedures Manual of the Securities Valuation Office of the National Association of Insurance Commissioners.
(b) For the purposes of this section, the computation shall refer to the fiscal years immediately preceding the date of acquisition of the investment by the insurer, and the term “preferred dividend requirement” shall be deemed to mean cumulative or noncumulative dividends, whether paid or not.
Source: Arkansas Code — historical release 78 (November 6, 2020) · 23-63-815
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 23-63-815. This identifies an authority to review, not proof of applicability.
Arkansas Code — all titles (historical 2020) · legal_authorities
23-63-820. Investment trust securities.
An insurer may invest in the securities of any management-type investment company or investment trust registered with the Securities and Exchange Commission under the Investment Company Act of 1940, as from time to time amended, if the investment company or trust has been organized for not less than two (2) years and has assets not less than fifty million dollars ($50,000,000) at the date of investment by the insurer.
Source: Arkansas Code — historical release 78 (November 6, 2020) · 23-63-820
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 23-63-820. This identifies an authority to review, not proof of applicability.