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23-48-304. Investigation of new charter applications by Bank Commissioner.
Arkansas Code — all titles (historical 2020) · legal_authorities
23-48-304. Investigation of new charter applications by Bank Commissioner.
(a) As soon as practicable after acceptance of any application for a new state bank charter and receipt of the filing fee, the Bank Commissioner shall ascertain, from the best sources of information at his or her command, the character and general fitness of the persons named as stockholders of more than five percent (5%) of the issued stock and their standing in the community in which the proposed institution is to be located.
(b) The investigation shall seek to determine the probable support for the new state bank and the adequacy of existing facilities and services in the community.
(c) The investigation shall address:
(1) The proposed institution's earnings and deposits prospects;
(2) The ability and character of its proposed management;
(3) The adequacy of initial capital;
(4) The safety and soundness of intended operations;
(5) The economic conditions in the market to be served;
(6) The convenience and needs of the community to be served; and
(7) Whether or not its proposed corporate powers are consistent with applicable banking law.
(d) The commissioner shall also determine to his or her satisfaction that:
(1) The persons named as stockholders of more than five percent (5%) of the issued stock, incorporators, and directors have the confidence of the community and are able, financially and otherwise, to discharge the obligations resting upon them under any of the provisions of this chapter;
(2) The requisite capital has been fully subscribed and the purchase price therefor has been paid into an escrow account approved by the commissioner and that the requirements of § 23-48-310 have been met;
(3) A majority of the stockholders are residents of this state; and
(4
Source: Arkansas Code — historical release 78 (November 6, 2020) · 23-48-304
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:23-48-304
Source file: gov.ar.code.title.23.odt
Pages: Not recorded – Not recorded
Passage SHA-256: 926711af1b49be7344649afd48b133ba939e497a3ca61d2fdea524e544646729
Source location: content.xml paragraph 23430
Stored source content
23-48-304. Investigation of new charter applications by Bank Commissioner.
(a) As soon as practicable after acceptance of any application for a new state bank charter and receipt of the filing fee, the Bank Commissioner shall ascertain, from the best sources of information at his or her command, the character and general fitness of the persons named as stockholders of more than five percent (5%) of the issued stock and their standing in the community in which the proposed institution is to be located.
(b) The investigation shall seek to determine the probable support for the new state bank and the adequacy of existing facilities and services in the community.
(c) The investigation shall address:
(1) The proposed institution's earnings and deposits prospects;
(2) The ability and character of its proposed management;
(3) The adequacy of initial capital;
(4) The safety and soundness of intended operations;
(5) The economic conditions in the market to be served;
(6) The convenience and needs of the community to be served; and
(7) Whether or not its proposed corporate powers are consistent with applicable banking law.
(d) The commissioner shall also determine to his or her satisfaction that:
(1) The persons named as stockholders of more than five percent (5%) of the issued stock, incorporators, and directors have the confidence of the community and are able, financially and otherwise, to discharge the obligations resting upon them under any of the provisions of this chapter;
(2) The requisite capital has been fully subscribed and the purchase price therefor has been paid into an escrow account approved by the commissioner and that the requirements of § 23-48-310 have been met;
(3) A majority of the stockholders are residents of this state; and
(4) There exists an economic need for the business in the community.
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Arkansas Code — all titles (historical 2020) · legal_authorities
23-48-310. Minimum capital requirements generally.
(a) For all state banks chartered after May 30, 1997, the fully paid-up capital shall not be less than one million dollars ($1,000,000). For all state banks, regardless of the dates of their charters, the following capital requirements shall apply:
(1) The minimum “capital base” shall be determined by the Bank Commissioner; and
(2) The capital requirements for any state bank must also satisfy the requirements for deposit insurance of the Federal Deposit Insurance Corporation or its successor.
(b)(1) The commissioner may increase the minimum capital requirement of any state bank, regardless of the date of its charter when, in the commissioner's judgment, conditions within the state bank or the state bank's service area warrant such an increase.
(2) In the event the commissioner orders an increase in a state bank's capital requirement, the state bank shall have at least thirty (30) days from the date of the order to comply with the order, or such longer period as the commissioner may allow.
(3) In the event a state bank disagrees with the commissioner's judgment in ordering an increase in its minimum capital requirement, it may appeal the commissioner's decision to the State Banking Board. An appeal may be had by following the procedures specified by the board.
(c) Shares of a newly chartered state bank may be issued only for cash in an amount sufficient to meet the capitalization requirements set by the commissioner which shall be at least the aggregate par value of the shares plus the amounts, if any, necessary to assure that after issuance of the shares the bank will have the minimum capital base required by the commissioner under this section and the expense fund required by § 23-48-302.
Source: Arkansas Code — historical release 78 (November 6, 2020) · 23-48-310
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 23-48-310. This identifies an authority to review, not proof of applicability.