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23-47-203. Securing of deposits.
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. A text match is a research starting point; applicability is not established.
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Record provenance
Stable record: arkansas_code:legal_authorities:23-47-203
Source file: gov.ar.code.title.23.odt
Pages: Not recorded – Not recorded
Passage SHA-256: bda3400c196fbf2bb3d87788cf17662bbef6e4986fb9883e5388bbb5436162c1
Source location: content.xml paragraph 22547
Stored source content
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 bank may secure the deposits described in subsections (a) and (b) of this section, subject to the depositor's discretion regarding the suitability of the collateral, by:
(A) 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;
(B) A surety bond issued by an insurance company licensed under the laws of the State of Arkansas and either:
(i) Rated “A” or better by any one (1) or more of the following rating agencies:
(a) A.M. Best Company, Inc.;
(b) Standard & Poor's Insurance Rating Service;
(c) Moody's Investors Service, Inc.; or
(d) Duff & Phelps Credit Rating Co.; or
(ii) Listed on the then-current United States Department of the Treasury's Listing of Approved Sureties;
(C) Private deposit insurance issued by an insurance company licensed under the laws of the State of Arkansas and either:
(i) Rated “A” or better by any one (1) or more of the following rating agencies:
(a) A.M. Best Company, Inc.;
(b) Standard & Poor's Insurance Rating Service;
(c) Moody's Investors Service, Inc.; or
(d) Duff & Phelps Credit Rating Co.; or
(ii) Listed on the then-current United States Department of the Treasury's Listing of Approved Sureties; or
(D) An irrevocable standby letter of credit issued by a Federal Home Loan Bank.
(2) 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.
(d) Notwithstanding any other provision of this section, or the provision of any other law requiring security for deposit of funds in the form of the deposit or pledge of securities, security for such deposits shall not be required to the extent that such deposits are insured under the provisions of the Federal Deposit Insurance Act.
(e) The powers herein conferred upon state banks are cumulative to such similar powers as they now may hold under existing laws.
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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.