Arkansas Code § 23-48-303 - Promoter's Fees Prohibited

(a) A state bank shall not pay any fee, compensation, or commission for promotion in connection with its organization or apply any money received on account of shares or subscriptions, selling shares, or other services in connection with its organization or for securing subscriptions for stock, except legal fees and other usual and ordinary expenses necessary for its organization.

(b) A majority of incorporators shall file with the State Bank Department, at the time of filing of the articles, an affidavit:

(1) Setting forth all expenses incurred or to be incurred in connection with the organization of the state bank, subscription for its shares, and sale of its shares; and

(2) Stating that no fee, compensation, or commission prohibited by this section has been paid or incurred.

(c) In the event of a violation of this section, the Bank Commissioner may disapprove the articles on account of the violation.

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Last modified: November 15, 2016