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23-47-502. Loan limits — Inclusions and exceptions.
Arkansas Code — all titles (historical 2020) · legal_authorities
23-47-502. Loan limits — Inclusions and exceptions.
(a) The following loans and other forms of indebtedness shall not be included in the limitation of twenty percent (20%) imposed by § 23-47-501 and may be made or acquired without being subject to any loan limit:
(1) Obligations in the form of drafts or bills of exchange drawn in good faith against actually existing values;
(2) Nonconforming assets acquired as a result of acquisition of a failed bank or savings and loan association, so long as a plan for divestiture within a reasonable amount of time is approved by the Bank Commissioner;
(3) Obligations drawn in good faith against actually existing values and fully secured by goods or commodities in process of shipment may be acquired without limit;
(4) Obligations in the form of bankers' acceptances of other banks; and
(5) Obligations secured by investments which the state bank, pursuant to § 23-47-401 could invest in without limit, having a market value at all times at least equal to the principal balance of the obligation.
(b)(1) The loan limit of twenty percent (20%) provided by § 23-47-501 shall be modified so that a loan limit not to exceed sixty percent (60%) shall apply to obligations secured by transferable documents of title covering:
(A) Livestock; or
(B) Readily marketable and nonperishable commodities or staples fully insured, if of a type that is customarily insured.
(2) The property in each instance must have a value of at least one hundred fifteen percent (115%) of the amount of the secured obligation.
(3) An obligation secured in this manner shall not be deemed non- conforming on the grounds that, for the purpose of loading, unloading, storing, shipping, or transshipping, the title documents or the property covered thereby may be r
Source: Arkansas Code — historical release 78 (November 6, 2020) · 23-47-502
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:23-47-502
Source file: gov.ar.code.title.23.odt
Pages: Not recorded – Not recorded
Passage SHA-256: 2e7e641a28329e23442397bffcd6ebd44dd9289b6c30fce5525315dcde3fe579
Source location: content.xml paragraph 22845
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23-47-502. Loan limits — Inclusions and exceptions.
(a) The following loans and other forms of indebtedness shall not be included in the limitation of twenty percent (20%) imposed by § 23-47-501 and may be made or acquired without being subject to any loan limit:
(1) Obligations in the form of drafts or bills of exchange drawn in good faith against actually existing values;
(2) Nonconforming assets acquired as a result of acquisition of a failed bank or savings and loan association, so long as a plan for divestiture within a reasonable amount of time is approved by the Bank Commissioner;
(3) Obligations drawn in good faith against actually existing values and fully secured by goods or commodities in process of shipment may be acquired without limit;
(4) Obligations in the form of bankers' acceptances of other banks; and
(5) Obligations secured by investments which the state bank, pursuant to § 23-47-401 could invest in without limit, having a market value at all times at least equal to the principal balance of the obligation.
(b)(1) The loan limit of twenty percent (20%) provided by § 23-47-501 shall be modified so that a loan limit not to exceed sixty percent (60%) shall apply to obligations secured by transferable documents of title covering:
(A) Livestock; or
(B) Readily marketable and nonperishable commodities or staples fully insured, if of a type that is customarily insured.
(2) The property in each instance must have a value of at least one hundred fifteen percent (115%) of the amount of the secured obligation.
(3) An obligation secured in this manner shall not be deemed non- conforming on the grounds that, for the purpose of loading, unloading, storing, shipping, or transshipping, the title documents or the property covered thereby may be released under trust receipt to the possession of the obligor or borrower if, within twenty-one (21) days after the release, the property or valid title documents covering the property is redelivered to the state bank, and provided that, during the interim, the bank holds a perfected security interest in all such property under the Uniform Commercial Code, § 4-1-101 et seq.
(4) The standard twenty percent (20%) loan limit will apply even to the obligations secured by transferable documents of title if the warehouser who issued the documents of title under applicable law can transfer marketable title to the commodities described in the documents to a purchaser in the ordinary course of business.
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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.
Arkansas Code — all titles (historical 2020) · legal_authorities
23-47-501. Loan limits — Maximum generally.
(a) The total indebtedness to any state bank of any person shall at no time exceed twenty percent (20%) of the capital base of the bank.
(b)(1) Obligations of a person as endorser or guarantor, accommodation or otherwise, of notes or other obligations shall be included in that person's loan limit.
(2) However, in the case of obligations that are endorsed without recourse, the limitation of twenty percent (20%) shall be applied to each primary debtor, but not to the liability, in such capacity, of the endorser.
(c)(1) A loan or group of loans that are within the legal loan limit of a state bank at the time the loan or loans are made shall be valid for legal loan limit purposes until maturity, as stated in the original contract, regardless of fluctuations in the bank's legal loan limit. However, if a bank's legal loan limit is reduced due to fluctuations in its capital base, a loan or group of loans to a borrower or borrowers that were within the legal loan limit prior to the reduction may become in violation of the bank's reduced legal loan limit upon the extension, renewal, or advancement of additional funds on the loan or group of loans occurring after the reduction in the bank's legal loan limits.
(2) State banks are required to calculate their legal loan limits on a quarterly basis to coincide with the requirement to calculate their capital base.
(d)(1) If in any instance it shall appear, as determined by the Bank Commissioner, that the interests of a group composed of individuals, partnerships, unincorporated associations, or corporations are so interrelated that, from a credit standpoint, applying standard and customary banking practice, they should be considered as a single unit for the purposes of extensions
Source: Arkansas Code — historical release 78 (November 6, 2020) · 23-47-501
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 23-47-501. This identifies an authority to review, not proof of applicability.
Arkansas Code — all titles (historical 2020) · legal_authorities
4-1-101. Short titles.
(a) This subtitle may be cited as the Uniform Commercial Code.
(b) This chapter may be cited as Uniform Commercial Code — General Provisions.
Source: Arkansas Code — historical release 78 (November 6, 2020) · 4-1-101
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 4-1-101. This identifies an authority to review, not proof of applicability.