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23-47-603. Bank service companies.
Arkansas Code — all titles (historical 2020) · legal_authorities
23-47-603. Bank service companies.
(a) As used in this section, unless the context otherwise requires:
(1) “Bank service company” means a corporation or limited liability company organized for the exclusive purpose of performing bank services for one (1) or more persons, which is owned by one (1) or more state banks and one (1) or more persons; and
(2) “Bank services” means services such as check and deposit sorting and posting, computation and posting of interest and other credits and charges; preparation and mailing of checks, statements, notices, and similar items; any other clerical, bookkeeping, accounting, statistical, or similar functions performed for a person; or any other activities authorized by the Bank Commissioner.
(b)(1) With the prior approval of the commissioner and subject to the conditions that may be prescribed by him or her, a state bank may establish, create, or invest in a bank service company to furnish bank services to owners of the bank service company and other persons.
(2) The total of a state bank's loans to and investments in a bank service company shall not exceed twenty percent (20%) of the bank's capital base.
(c) When a state bank becomes the sole owner of a bank service company, it shall become an operating subsidiary of the bank and be governed by § 23-47-601.
Source: Arkansas Code — historical release 78 (November 6, 2020) · 23-47-603
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:23-47-603
Source file: gov.ar.code.title.23.odt
Pages: Not recorded – Not recorded
Passage SHA-256: 350a7d04412186e866f2fd8134bd6cca0eb314f34fc9c318480743ffd69e9de3
Source location: content.xml paragraph 22957
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23-47-603. Bank service companies.
(a) As used in this section, unless the context otherwise requires:
(1) “Bank service company” means a corporation or limited liability company organized for the exclusive purpose of performing bank services for one (1) or more persons, which is owned by one (1) or more state banks and one (1) or more persons; and
(2) “Bank services” means services such as check and deposit sorting and posting, computation and posting of interest and other credits and charges; preparation and mailing of checks, statements, notices, and similar items; any other clerical, bookkeeping, accounting, statistical, or similar functions performed for a person; or any other activities authorized by the Bank Commissioner.
(b)(1) With the prior approval of the commissioner and subject to the conditions that may be prescribed by him or her, a state bank may establish, create, or invest in a bank service company to furnish bank services to owners of the bank service company and other persons.
(2) The total of a state bank's loans to and investments in a bank service company shall not exceed twenty percent (20%) of the bank's capital base.
(c) When a state bank becomes the sole owner of a bank service company, it shall become an operating subsidiary of the bank and be governed by § 23-47-601.
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Arkansas Code — all titles (historical 2020) · legal_authorities
23-47-601. Operating subsidiaries.
(a)(1) With the prior approval of the Bank Commissioner, and subject to such conditions as may be prescribed by him or her, a state bank may engage in any activities which are a part of the business of banking or incidental thereto by means of an operating subsidiary and other activities permissible for state banks or their subsidiaries under statutory authority or as authorized by rules of the State Banking Board.
(2) For purposes of this section, an operating subsidiary in which a state bank may invest includes a corporation, limited liability company, or similar entity if the parent bank owns more than fifty percent (50%) of the voting, or similar type of controlling, interest of the subsidiary; or the parent bank otherwise controls the subsidiary and no other party controls more than fifty percent (50%) of the voting, or similar type of controlling interest, of the subsidiary.
(3) Subsidiaries which are not subject to this section are:
(A) A subsidiary in which the state bank's investment is made and limited pursuant to specific authorization in a statute or by rule; and
(B) A subsidiary, in which the state bank has acquired, in good faith, shares through foreclosure on collateral, by way of compromise of a doubtful claim, or to avoid loss in connection with a debt previously contracted.
(b) The total of each state bank's loans and investments in any single operating subsidiary and the total of each state bank's loans and investments in all subsidiaries, and bank service companies, will be considered by the commissioner and may be limited according to the commissioner's discretion, for safety and soundness purposes.
Source: Arkansas Code — historical release 78 (November 6, 2020) · 23-47-601
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 23-47-601. This identifies an authority to review, not proof of applicability.