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23-47-705. Prohibited operations — Separate investment account — Collateral for certain funds used in conduct of business — Lien and claim upon state bank failure.
Arkansas Code — all titles (historical 2020) · legal_authorities
23-47-705. Prohibited operations — Separate investment account — Collateral for certain funds used in conduct of business — Lien and claim upon state bank failure.
(a)(1) No state bank shall receive in its trust department deposits of current funds subject to check or the deposit of checks, drafts, bills of exchange, or other items for collection or exchange purposes.
(2) Funds deposited or held in trust by the state bank awaiting investment shall be carried in a separate account and shall not be used by the bank in the conduct of its business unless it shall secure the funds deposited or held in trust with investments in which a state bank may invest without limitation pursuant to § 23-47-401.
(3) No security shall be required to the extent the funds so deposited or held in trust are insured under the provisions of the Federal Deposit Insurance Act.
(b) In the event of the failure of the state bank, the owners of the funds held in trust for investment shall have a first priority lien on the bonds or other securities so set apart in addition to their claim against the estate of the bank.
Source: Arkansas Code — historical release 78 (November 6, 2020) · 23-47-705
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:23-47-705
Source file: gov.ar.code.title.23.odt
Pages: Not recorded – Not recorded
Passage SHA-256: 3271ef2efa8db81f2f15f46313ce74fc6c10289a83d4ae5a49a4bd0eedb9c508
Source location: content.xml paragraph 23039
Stored source content
23-47-705. Prohibited operations — Separate investment account — Collateral for certain funds used in conduct of business — Lien and claim upon state bank failure.
(a)(1) No state bank shall receive in its trust department deposits of current funds subject to check or the deposit of checks, drafts, bills of exchange, or other items for collection or exchange purposes.
(2) Funds deposited or held in trust by the state bank awaiting investment shall be carried in a separate account and shall not be used by the bank in the conduct of its business unless it shall secure the funds deposited or held in trust with investments in which a state bank may invest without limitation pursuant to § 23-47-401.
(3) No security shall be required to the extent the funds so deposited or held in trust are insured under the provisions of the Federal Deposit Insurance Act.
(b) In the event of the failure of the state bank, the owners of the funds held in trust for investment shall have a first priority lien on the bonds or other securities so set apart in addition to their claim against the estate of the bank.
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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.