(a) The policy of the State Board of Finance to set aside an amount to be invested in certificates of deposit that mature no sooner than one hundred eighty (180) days shall be known as the "State Treasury Certificate of Deposit Investment Program".
(b) The following institutions may participate in the program:
(1) National banks that have their principal offices in Arkansas or are legally operating branches in Arkansas;
(2) Banks chartered in the State of Arkansas;
(3) Banks chartered by other states that are legally operating branches in Arkansas;
(4) Savings and loan associations or savings banks chartered by the United States that have their principal offices in Arkansas or are legally operating branches in Arkansas; and
(5) Savings and loan associations chartered by the State of Arkansas.
(c) (1) Institutions that have their principal offices in Arkansas shall designate a representative at the principal office responsible for transacting business with the Treasurer of State.
(2) Institutions that do not have their principal offices in Arkansas shall designate a principal branch and a representative at the principal branch responsible for transacting business with the Treasurer of State.
(d) (1) Semiannually, or as required by the board, each participating institution shall compute and report to the Treasurer of State its Arkansas deposits, Arkansas loans, the loan-to-deposit ratio for Arkansas loans and Arkansas deposits, and its capital base.
(2) Each participating institution shall report to the board information required by the board to determine the institution's suitability as a bank depository.
(e) As used in this section:
(1) "Arkansas loans" means the sum of:
(A) Loans made to individual borrowers residing in the State of Arkansas;
(B) Loans made to corporations or other legal entities doing business in Arkansas for which an address within Arkansas is used for transacting business;
(C) Bonds issued or loans made to the State of Arkansas or its instrumentalities;
(D) Bonds issued or loans made to political subdivisions of the State of Arkansas; and
(E) Bonds issued by Arkansas corporations; and
(2) "Arkansas deposits" means deposits received by banks and credited to accounts whose account holders have Arkansas as their principal place of business or permanent home addresses.
(f) The board shall promulgate rules establishing the minimum capital requirements for a bank depository.
(g) The Treasurer of State shall establish procedures to be reviewed and approved by the board establishing guidelines for the deposit and allocation of certificates of deposit among participating institutions.
(h) (1) Interest on funds invested under this section shall be paid by participating institutions at rates established by the board.
(2) The rates shall not exceed the maximum rate, if any, that banks are permitted to pay on time certificates of deposit for the same period of time by regulations of the Federal Reserve System or the Federal Deposit Insurance Corporation.
(i) (1) Moneys required for a purchase under this section shall be withdrawn from the Cash Account and paid to the issuer of the certificate of deposit.
(2) The principal amount of the certificate of deposit shall be credited to the Certificate of Deposit Account.
(j) The certificates of deposit shall be secured as required by the board.
Section: Previous 19-3-509 19-3-510 19-3-511 19-3-512 19-3-513 19-3-514 19-3-515 19-3-516 19-3-517 19-3-518 19-3-519 19-3-520 19-3-521 19-3-522 NextLast modified: November 15, 2016