23-48-702. Establishment of full-service branches and limited-purpose offices — Locations.

23-48-702. Establishment of full-service branches and limited-purpose offices — Locations. (a)(1) No bank shall engage in core banking activities, receiving deposits, paying checks, or lending money at any location other than at a main banking office or full-service branch, except as otherwise permitted by law. (2) Unless otherwise restricted by applicable law, banks may engage in permitted activities other than core banking activities at a main office, any branch, or a limited purpose office. (3)(A) All communities and banking markets shall be presumed to be suitable for bank branches. (B) The prior existence of a main or branch office of any bank in a community does not grant the bank any right or power to preclude any other bank from branching into the community. (b)(1)(A) An Arkansas bank may establish a full-service branch anywhere within the United States with the approval of its supervisory banking authority. (B) A state bank that relocates its main banking office may continue to use its former main banking office location as a full-service branch as long as the use of the banking facility is uninterrupted. (2) A registered out-of-state bank may establish a full-service branch anywhere within the State of Arkansas: (A) With the approval of its bank supervisory agencies; and (B) Upon receiving a certificate of authority from the Bank Commissioner. (3) An Arkansas bank possessing a capital and surplus of one million dollars ($1,000,000) or more may file an application with the commissioner for permission to exercise, upon such conditions as the commissioner may prescribe, the power to establish branches in foreign countries or dependencies or insular possessions of the United States and to act as fiscal agent for any government entity. (4) Notwithstanding any other provisions of state law regarding locations of full-service branches, a federal or state savings bank or association chartered and in operation before August 13, 2001, with branches in operation in one (1) or more states, may convert to a state bank in accordance with § 23-48-504 and may retain its branches, both in state and out of state, as branches of the state bank. (c)(1) None of the provisions of this section which restrict the locations in which full-service branches may be established shall be effective in emergency instances in which the purchase or assumption of the assets and liabilities of a failed bank becomes necessary due to state or federal regulatory action. (2) The restrictions on the location of banking services by an authorized bank may be suspended by the commissioner during a disaster, emergency, or other cause which disables the operation of a permanent location of the bank under the terms and conditions considered appropriate by the commissioner. (d)(1) Any state bank may file a notice with the commissioner to relocate any existing full-service branch to another location then authorized by law. (2) A fee of not less than three hundred dollars ($300) nor more than five hundred dollars ($500) established by State Bank Department rule shall accompany the notice. (3) The notice shall: (A) Be filed not less than thirty (30) days prior to the proposed relocation; and (B) Contain any information concerning the new location required by the commissioner. (4) The commissioner shall approve the relocation unless it is determined that the relocation is not consistent with the standards contained in § 23-48-703(a). (5)(A) No notice to relocate a full-service branch is required if: (i)(a) A full-service branch is: (1) Opened or built within the immediate neighborhood of an existing branch; or (2) Opened, built, or established as a result of the consolidation of two (2) or more banks within the immediate neighborhood of an existing branch or main office of a bank. (b) The existing branch or main office may be closed upon the opening of the new branch; (ii) The nature of the business and customers of the branch are not substantially affected; and (iii) A notice and filing fee of no more than two hundred fifty dollars ($250) as prescribed by the commissioner is filed with the department. (B) As used in subdivision (d)(5)(A) of this section, “within the immediate neighborhood” includes, but is not limited to: (i) Across the street; (ii) Around the corner; (iii) Within two (2) blocks; (iv) Within one thousand feet (1,000'); or (v) In densely populated areas, within five thousand feet (5,000'). (e)(1) Any bank may establish a limited-purpose office anywhere in the state to conduct noncore banking activities upon satisfaction of the notice requirement set forth in this subsection. (2) As to each limited-purpose office which a bank proposes to establish or use, the bank shall give not fewer than thirty (30) days' prior written notice of its intention to establish or use the limited-purpose office to: (A) The commissioner, in the case of a state bank; (B) The home state regulator, in the case of a registered out-of-state bank which is an out-of-state state-chartered bank; or (C) The United States Comptroller of the Currency, in the case of a national bank. (3) The notice shall be in such form that may be required by the regulatory authority with which the notice is to be filed and shall include the following information: (A) The location and a general description of the surrounding area; (B) Whether the location will be owned or leased; (C) The noncore banking activities to be conducted; (D) An estimate of the initial cost of the limited-purpose office; and (E) Such other relevant information as may be required by the regulatory authority.