Arkansas Code § 23-47-604 - Capital Development Companies

(a) (1) State banks shall have the power to acquire and own on their own behalf stock or equity interests issued by a capital development company or make loans to a capital development company.

(2) No state bank shall invest in or lend to the capital development company more than twenty percent (20%) of the bank's capital base.

(b) Any investment in stock or equity interest made pursuant to this section shall not be revalued or classified by the Bank Commissioner solely because of the failure of a capital development company to pay dividends or distributions of equity to the investors.

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Last modified: November 15, 2016