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23-55-702. Types of permissible investments.
Arkansas Code — all titles (historical 2020) · legal_authorities
23-55-702. Types of permissible investments.
(a) Except to the extent otherwise limited by the commissioner pursuant to § 23-55-701, the following investments are permissible under § 23-55-701:
(1) cash, a certificate of deposit, or senior debt obligation of an insured depositary institution, as defined in section 3 of the Federal Deposit Insurance Act, 12 U.S.C. § 1813 (1994 & Supp. V 1999);
(2) banker's acceptance or bill of exchange that is eligible for purchase upon endorsement by a member bank of the Federal Reserve System and is eligible for purchase by a Federal Reserve Bank;
(3) an investment bearing a rating of one of the three highest grades as defined by a nationally recognized organization that rates securities;
(4) an investment security that is an obligation of the United States or a department, agency, or instrumentality thereof; an investment in an obligation that is guaranteed fully as to principal and interest by the United States; or an investment in an obligation of a State or a governmental subdivision, agency, or instrumentality thereof;
(5) receivables that are payable to a licensee from its authorized delegates, in the ordinary course of business, pursuant to contracts which are not past due or doubtful of collection if the aggregate amount of receivables under this paragraph does not exceed 20 percent of the total permissible investments of a licensee and the licensee does not hold at one time receivables under this paragraph in any one person aggregating more than 10 percent of the licensee's total permissible investments; and
(6) a share or a certificate issued by an open-end management investment company that is registered with the United States Securities and Exchange Commission under the Investment Company Act of 1940, 15 U.S.
Source: Arkansas Code — historical release 78 (November 6, 2020) · 23-55-702
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:23-55-702
Source file: gov.ar.code.title.23.odt
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Passage SHA-256: ae482b51b3ae1f833ffeb9a718af330188c3d62d1e644c0422dcb7cb9266eecb
Source location: content.xml paragraph 27135
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23-55-702. Types of permissible investments.
(a) Except to the extent otherwise limited by the commissioner pursuant to § 23-55-701, the following investments are permissible under § 23-55-701:
(1) cash, a certificate of deposit, or senior debt obligation of an insured depositary institution, as defined in section 3 of the Federal Deposit Insurance Act, 12 U.S.C. § 1813 (1994 & Supp. V 1999);
(2) banker's acceptance or bill of exchange that is eligible for purchase upon endorsement by a member bank of the Federal Reserve System and is eligible for purchase by a Federal Reserve Bank;
(3) an investment bearing a rating of one of the three highest grades as defined by a nationally recognized organization that rates securities;
(4) an investment security that is an obligation of the United States or a department, agency, or instrumentality thereof; an investment in an obligation that is guaranteed fully as to principal and interest by the United States; or an investment in an obligation of a State or a governmental subdivision, agency, or instrumentality thereof;
(5) receivables that are payable to a licensee from its authorized delegates, in the ordinary course of business, pursuant to contracts which are not past due or doubtful of collection if the aggregate amount of receivables under this paragraph does not exceed 20 percent of the total permissible investments of a licensee and the licensee does not hold at one time receivables under this paragraph in any one person aggregating more than 10 percent of the licensee's total permissible investments; and
(6) a share or a certificate issued by an open-end management investment company that is registered with the United States Securities and Exchange Commission under the Investment Company Act of 1940, 15 U.S.C. § 80a-1-64 (1994 & Supp. V 1999), and whose portfolio is restricted by the management company's investment policy to investments specified in paragraphs (1) through (4).
(b) The following investments are permissible under § 23-55-701, but only to the extent specified:
(1) an interest-bearing bill, note, bond, or debenture of a person whose equity shares are traded on a national securities exchange or on a national over-the-counter market, if the aggregate of investments under this paragraph does not exceed 20 percent of the total permissible investments of a licensee and the licensee does not at one time hold investments under this paragraph in any one person aggregating more than 10 percent of the licensee's total permissible investments;
(2) a share of a person traded on a national securities exchange or a national over-the-counter market or a share or a certificate issued by an open-end management investment company that is registered with the United States Securities and Exchange Commission under the Investment Company Act of 1940, 15 U.S.C. § 80a-1-64 (1994 & Supp. V 1999), and whose portfolio is restricted by the management company's investment policy to shares of a person traded on a national securities exchange or a national over-the-counter market, if the aggregate of investments under this paragraph does not exceed 20 percent of the total permissible investments of a licensee and the licensee does not at one time hold investments in any one person aggregating more than 10 percent of the licensee's total permissible investments;
(3) a demand-borrowing agreement made to a corporation or a subsidiary of a corporation whose securities are traded on a national securities exchange if the aggregate of the amount of principal and interest outstanding under demand-borrowing agreements under this paragraph does not exceed 20 percent of the total permissible investments of a licensee and the licensee does not at one time hold principal and interest outstanding under demand-borrowing agreements under this paragraph with any one person aggregating more than 10 percent of the licensee's total permissible investments; and
(4) any other investment the commissioner designates, to the extent specified by the commissioner.
(c) The aggregate of investments under subsection (b) may not exceed 50 percent of the total permissible investments of a licensee calculated in accordance with § 23-55-701.
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Federal law — U.S. Code and appendices · legal_authorities
As used in this chapter—
**(a) Definitions of bank and related terms**
(1) **Bank** — The term “bank”—
(A) means any national bank and State bank, and any Federal branch and insured branch;
(B) includes any former savings association.
(2) **State bank** — The term “State bank” means any bank, banking association, trust company, savings bank, industrial bank (or similar depository institution which the Board of Directors finds to be operating substantially in the same manner as an industrial bank), or other banking institution which—
(A) is engaged in the business of receiving deposits, other than trust funds (as defined in this section); and
(B) is incorporated under the laws of any State or which is operating under the Code of Law for the District of Columbia,
including any cooperative bank or other unincorporated bank the deposits of which were insured by the Corporation on the day before August 9, 1989.
(3) **State** — The term “State” means any State of the United States, the District of Columbia, any territory of the United States, Puerto Rico, Guam, American Samoa, the Trust Territory of the Pacific Islands, the Virgin Islands, and the Northern Mariana Islands.
**(b) Definition of savings associations and related terms**
(1) **Savings association** — The term “savings association” means—
(A) any Federal savings association;
(B) any State savings association; and
(C) any corporation (other than a bank) that the Board of Directors and the Comptroller of the Currency jointly determine to be operating in substantially the same manner as a savings association.
(2) **Federal savings association** — The term “Federal savings association” means any Federal savings association or Federal savings bank which is chartered under [section 1464 of t
Source: Supplied U.S. Code snapshot — release unconfirmed · 12 U.S.C. § 1813
Stored review status: release_metadata_unconfirmed. The source passage cites 12 U.S.C. § 1813. This identifies an authority to review, not proof of applicability.
Federal law — U.S. Code and appendices · legal_authorities
Page 966
TITLE 12—BANKS AND BANKING
§ 1813
(B) any other right or remedy against the
Corporation,
against
the
United
States
under applicable law, or against any person
other than a person described in paragraph
(1) participating in such transactions.
This subsection shall not be construed to limit
or alter in any way the immunities that are
available under applicable law for Federal offi-
cials and employees not described in this sub-
section.
(Sept. 21, 1950, ch. 967, § 2[2], 64 Stat. 873; Pub. L.
86–230, § 19, Sept. 8, 1959, 73 Stat. 460; Pub. L.
98–181, title I [title VII, § 702(a)], Nov. 30, 1983, 97
Stat. 1267; Pub. L. 101–73, title II, § 203(a), Aug. 9,
1989, 103 Stat. 188; Pub. L. 102–18, title I, § 103(b),
Mar. 23, 1991, 105 Stat. 60; Pub. L. 104–208, div. A,
title II, § 2243, Sept. 30, 1996, 110 Stat. 3009–419;
Pub. L. 111–203, title III, § 336(a), July 21, 2010, 124
Stat. 1540.)
Editorial Notes
REFERENCES IN TEXT
The Securities Act of 1933, referred to in subsec. (f)(1),
is act May 27, 1933, ch. 38, title I, 48 Stat. 74, which is
classified generally to subchapter I (§ 77a et seq.) of
chapter 2A of Title 15, Commerce and Trade. For com-
plete classification of this Act to the Code, see section
77a of Title 15 and Tables.
PRIOR PROVISIONS
Section is derived from subsec. (b) of former section
264 of this title. See Codification note set out under
section 1811 of this title.
AMENDMENTS
2010—Subsec. (a)(1)(B). Pub. L. 111–203, § 336(a)(1), sub-
stituted ‘‘Director of the Consumer Financial Protec-
tion Bureau’’ for ‘‘Director of the Office of Thrift Su-
pervision’’.
Subsec. (d)(2). Pub. L. 111–203, § 336(a)(2), amended par.
(2) generally. Prior to amendment, text read as follows:
‘‘In the event of a vacancy in the office of the Co
Source: Supplied 2024 U.S. Code historical extraction · 12 U.S.C. § 1813
Stored review status: historical_2024_not_currentness_verified. The source passage cites 12 U.S.C. § 1813. This identifies an authority to review, not proof of applicability.
Arkansas Code — all titles (historical 2020) · legal_authorities
23-55-701. Maintenance of permissible investments.
(a) A licensee shall maintain at all times permissible investments that have a market value computed in accordance with generally accepted accounting principles or international financial reporting standards of not less than the aggregate amount of all of its outstanding payment instruments and stored value and prepaid access obligations issued or sold in all states and money transmitted from all states by the licensee.
(b) The commissioner, with respect to any licensees, may limit the extent to which a type of investment within a class of permissible investments may be considered a permissible investment, except for money and certificates of deposit issued by a bank. The commissioner by rule may prescribe or by order allow other types of investments that the commissioner determines to have a safety substantially equivalent to other permissible investments.
(c) Permissible investments, even if commingled with other assets of the licensee, are held in trust for the benefit of the purchasers and holders of the licensee's outstanding payment instruments and stored value and prepaid access obligations in the event of bankruptcy or receivership of the licensee.
Source: Arkansas Code — historical release 78 (November 6, 2020) · 23-55-701
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 23-55-701. This identifies an authority to review, not proof of applicability.