Arkansas Code Title 23, Subtitle 2, Chapter 51 - Arkansas Trust Institutions Act

• § 23-51-101 - Title.
  This chapter may be cited as the "Arkansas Trust Institutions Act".
• § 23-51-102 - Certain Definitions.
  (a) For the purposes of this chapter: (1) "Account" means the client relationship established with a trust company involving the transfer of funds or...
• § 23-51-103 - Regulations.
  The Bank Commissioner may promulgate such regulations as he or she determines to be necessary or appropriate in order to implement the provisions of...
• § 23-51-104 - Organization and Powers of State Trust Company.
  (a) Subject to the other provisions of this chapter, one or more persons may organize and charter a state trust company. A state trust...
• § 23-51-105 - Articles of Association of State Trust Company.
  The articles of association of a state trust company must be signed and acknowledged by each organizer and must contain: (1) The name of...
• § 23-51-106 - Application for State Trust Company Charter.
  (a) An application for a state trust company charter must be made under oath and in the form required by the Bank Commissioner and...
• § 23-51-107 - Notice and Investigation of Charter Application.
  (a) The Bank Commissioner shall notify the organizers when the application is complete and accepted for filing and all required fees and deposits have...
• § 23-51-108 - Hearing and Decision on Charter Application.
  (a) No person shall appear in opposition to the application unless the person shall have filed a written protest to the granting of the...
• § 23-51-109 - Issuance of Charter.
  (a) A state trust company may not engage in the trust business until it receives its charter from the Bank Commissioner. The commissioner may...
• § 23-51-110 - Required Capital.
  (a) The Bank Commissioner may not issue a charter to a state trust company having required capital of less than one million dollars ($1,000,000),...
• § 23-51-111 - Application of Laws Relating to General Business Corporations.
  (a) The Arkansas Business Corporation Act, § 4-27-101 et seq., applies to a trust company to the extent not inconsistent with this chapter or...
• § 23-51-112 - Commissioner Hearings -- Appeals.
  (a) This section does not grant a right to a hearing to a person that is not otherwise granted by governing law. A hearing...
• § 23-51-113 - Trust Companies Chartered Under Prior Law.
  The charter of a corporation which was previously a trust company incorporated under any laws of this state prior to the adoption of the...
• § 23-51-114 - Amendment of State Trust Company Articles of Association.
  (a) A state trust company that has been granted a charter under § 23-51-109 or a predecessor statute may amend or restate its articles...
• § 23-51-115 - Establishing a Series of Shares.
  (a) If the articles of association expressly give the board authority to establish series and determine the preferences, limitations, and relative rights of each...
• § 23-51-116 - Change in Outstanding Capital and Surplus.
  (a) A state trust company may not reduce or increase its outstanding capital through dividend, redemption, issuance of shares or otherwise, without the prior...
• § 23-51-117 - Capital Notes or Debentures.
  (a) With the prior written approval of the Bank Commissioner, any state trust company may, at any time, through action of its board, and...
• § 23-51-118 - Private Trust Company.
  (a) A private trust company engaging in the trust business in this state shall comply with each and every provision of this chapter applicable...
• § 23-51-119 - Requirements for a Private Trust Company.
  (a) Application. (1) A private trust company requesting an exemption from the provisions of this chapter pursuant to § 23-51-118 shall file an application...
• § 23-51-120 - Conversion to Public Trust Company.
  (a) A private trust company may terminate its status as a private trust company and commence transacting business with the general public. A private...
• § 23-51-121 - Investment in State Trust Company Facilities.
  (a) In this chapter, "state trust company facility" means real estate, including an improvement, owned, or leased to the extent the lease or the...
• § 23-51-122 - Other Real Estate.
  (a) A state trust company may not acquire real estate except: (1) As permitted by § 23-51-121 or as otherwise provided by this chapter,...
• § 23-51-123 - Securities.
  (a) A state trust company may invest its corporate funds in any type or character of equity or investment securities subject to the limitations...
• § 23-51-124 - Transactions in State Trust Company Shares.
  (a) A state trust company may acquire its own shares if: (1) The amount of its undivided profits is sufficient to fully absorb the...
• § 23-51-125 - Subsidiaries.
  (a) Except as otherwise provided by this chapter or regulations adopted under this chapter, a state trust company may acquire or establish a subsidiary...
• § 23-51-126 - Mutual Funds.
  (a) A state trust company may invest for its own account in equity securities of an investment company registered under the Investment Company Act...
• § 23-51-127 - Engaging in Commerce Prohibited.
  Except as otherwise provided by this chapter or regulations adopted under this chapter, a state trust company may not invest its funds in trade...
• § 23-51-128 - Lending Limits.
  (a) A state trust company's total outstanding loans and extensions of credit to a person other than an insider may not exceed an amount...
• § 23-51-129 - Lease Financing Transactions.
  (a) Subject to regulations adopted under this chapter, a state trust company may become the owner and lessor of tangible personal property for lease...
• § 23-51-130 - Trust Deposit.
  (a) A state trust company may deposit trust funds with itself as an investment if authorized by the settlor or the beneficiary, provided: (1)...
• § 23-51-131 - Common Investment Funds.
  (a) A state trust company may establish common trust funds to provide investment to itself as a fiduciary.(b) The Bank Commissioner may adopt regulations...
• § 23-51-132 - Borrowing Limit.
  Except with the prior written approval of the Bank Commissioner, a state trust company may not have liabilities outstanding exceeding an amount equal to...
• § 23-51-133 - Pledge of Assets.
  A state trust company may not pledge or create a lien on any of its assets except to secure the repayment of money borrowed...
• § 23-51-134 - Acquisition of Control.
  (a) Except as expressly otherwise permitted, a person may not without the prior written approval of the Bank Commissioner directly or indirectly acquire control...
• § 23-51-135 - Application Regarding Acquisition of Control.
  (a) The proposed transferee seeking approval to acquire control of a state trust company or a person that controls a state trust company must...
• § 23-51-136 - Hearing and Decision on Acquisition of Control.
  (a) Not later than sixty (60) days after the application is officially filed, the Bank Commissioner may approve the application or set the application...
• § 23-51-137 - Appeal From Adverse Decision.
  (a) (1) If a hearing has been held, the Bank Commissioner has entered an order denying the application, and the order has become final,...
• § 23-51-138 - Objection to Other Transfer.
  This chapter may not be construed to prevent the Bank Commissioner from investigating, commenting on, or seeking to enjoin or set aside a transfer...
• § 23-51-139 - Civil Enforcement -- Criminal Penalties.
  (a) The Bank Commissioner may bring any appropriate civil action against any person who the commissioner believes has committed or is about to commit...
• § 23-51-140 - Voting Securities Held by State Trust Company.
  (a) Voting securities of a state trust company held by the state trust company in a fiduciary capacity under a will or trust, whether...
• § 23-51-141 - Bylaws.
  Each state trust company shall adopt bylaws and may amend its bylaws from time to time for the purposes and in accordance with the...
• § 23-51-142 - Board of Directors.
  (a) The board of a state trust company shall be governed by the provisions of the Arkansas Business Corporation Act, § 4-27-101 et seq.,...
• § 23-51-143 - Officers.
  The board shall annually elect the officers of the state trust company, who serve at the pleasure of the board. The state trust company...
• § 23-51-144 - Certain Criminal Offenses.
  (a) An officer, director, employee or shareholder of a state trust company commits an offense if the person knowingly: (1) Conceals information or a...
• § 23-51-145 - Transactions With Management and Affiliates.
  (a) Without the prior approval of a disinterested majority of the board recorded in the minutes, or if a disinterested majority cannot be obtained...
• § 23-51-146 - Fiduciary Responsibility.
  The board of a state trust company is responsible for the proper exercise of fiduciary powers by the state trust company and each matter...
• § 23-51-147 - Recordkeeping.
  A state trust company shall keep its fiduciary records separate and distinct from other records of the state trust company. The fiduciary records must...
• § 23-51-148 - Bonding Requirements.
  (a) The board of a state trust company shall require protection and indemnity for clients in reasonable amounts established by regulations adopted under this...
• § 23-51-149 - Reports of Apparent Crime.
  A trust company that is the victim of a robbery, has a shortage of corporate or fiduciary funds in excess of five thousand dollars...
• § 23-51-150 - Merger Authority.
  (a) With the prior written approval of the Bank Commissioner, a state trust company may merge or consolidate with a state bank to the...
• § 23-51-151 - Merger Application.
  (a) The original articles of merger, a number of copies of the articles of merger equal to the number of surviving, new, and acquiring...
• § 23-51-152 - Approval of Commissioner.
  (a) If the Bank Commissioner approves the merger and finds that all required filing fees and investigative costs have been paid, the commissioner shall:...
• § 23-51-153 - Rights of Dissenters to Mergers.
  A shareholder may dissent from the merger to the extent and by following the procedure provided by the Arkansas Business Corporation Act, § 4-27-101...
• § 23-51-154 - Authority to Purchase Assets of Another Trust Institution.
  (a) Subject to the provisions of this section, a state trust company may purchase assets of another state trust company or trust-related assets of...
• § 23-51-155 - Sale of Assets.
  (a) The board of a state trust company, with the Bank Commissioner's approval, may cause a state trust company to sell all or substantially...
• § 23-51-156 - Required Vote of Shareholders.
  A state trust company may go into voluntary liquidation and be closed, and may surrender its charter and franchise as a corporation of this...
• § 23-51-157 - Corporate Procedure.
  Shareholder action to liquidate a state trust company shall be taken at a meeting of the shareholders duly called by resolution of the board...
• § 23-51-158 - Authority to Liquidate -- Publication.
  If the Bank Commissioner shall approve the liquidation, the commissioner shall issue to the state trust company under the commissioner's seal, a permit for...
• § 23-51-159 - Examination and Reports.
  When any state trust company shall be in process of voluntary liquidation, it shall be subject to examination by the Bank Commissioner, and shall...
• § 23-51-160 - Unclaimed Property.
  All unclaimed property remaining in the hands of a liquidated state trust company shall be subject to the provisions of the Uniform Disposition of...
• § 23-51-161 - Sale or Transfer of Property.
  Upon the approval of the Bank Commissioner, any state trust company may sell and transfer to any other trust institution, whether state or federally...
• § 23-51-162 - When Commissioner May Take Charge.
  The Bank Commissioner may forthwith take possession of the business and property of any state trust company to which this chapter is applicable whenever...
• § 23-51-163 - Directors May Act.
  Any state trust company may place its assets and business under the control of the Bank Commissioner for liquidation by a resolution of a...
• § 23-51-164 - Application of Arkansas Banking Code of 1997.
  When the Bank Commissioner, or duly appointed agent, shall take possession of any state trust company under § 23-51-162 or § 23-51-163, the commissioner...
• § 23-51-165 - Companies Authorized to Act As Fiduciaries.
  (a) No company shall act as a fiduciary in this state except: (1) A state trust company; (2) A state bank; (3) An association...
• § 23-51-166 - Activities Not Requiring a Charter, Etc.
  Notwithstanding any other provision of this chapter, a company does not engage in the trust business or in any other business in a manner...
• § 23-51-167 - Trust Business of State Trust Institution.
  (a) A state trust institution may act as a fiduciary or otherwise engage in a trust business in this or any other state or...
• § 23-51-168 - Trust Business of Out-Of-state Trust Institution.
  An out-of-state trust institution which establishes or maintains one (1) or more offices in this state under this chapter may conduct any activity at...
• § 23-51-169 - Name of Trust Institution.
  A state trust company or out-of-state trust institution may register any name with the Bank Commissioner in connection with establishing a principal office or...
• § 23-51-170 - Trust Business.
  A state trust company or a state bank may: (1) Perform any act as a fiduciary; (2) Engage in any trust business; (3) Exercise...
• § 23-51-171 - Branches and Offices of State Trust Institutions.
  (a) A state trust institution may act as a fiduciary and engage in a trust business at each trust office as permitted by this...
• § 23-51-172 - State Trust Company Principal Office.
  (a) Each state trust company must have and continuously maintain a principal office in this state.(b) Each executive officer at the principal office is...
• § 23-51-173 - Trust Office.
  (a) A state trust institution may establish or acquire and maintain trust offices anywhere in this state. A state trust institution desiring to establish...
• § 23-51-174 - Out-Of-state Offices.
  (a) A state bank, a state trust company, or a savings association chartered under the laws of this state may establish and maintain a...
• § 23-51-175 - Trust Business At a Branch or Trust Office.
  An out-of-state trust institution may act as a fiduciary in this state or engage in a trust business at an office in this state...
• § 23-51-176 - Establishing an Interstate Trust Office.
  (a) An out-of-state trust institution that does not operate a trust office in this state and that meets the requirements of this chapter may...
• § 23-51-177 - Acquiring an Interstate Trust Office.
  (a) An out-of-state trust institution that does not operate a trust office in this state and that meets the requirements of this chapter may...
• § 23-51-178 - Requirement of Notice.
  An out-of-state trust institution desiring to establish and maintain a new trust office or acquire and maintain a trust office in this state pursuant...
• § 23-51-179 - Conditions for Approval.
  (a) No trust office of an out-of-state trust institution may be acquired or established in this state under this chapter unless: (1) The out-of-state...
• § 23-51-180 - Additional Trust Offices.
  An out-of-state trust institution that maintains a trust office in this state under this chapter may establish or acquire additional trust offices or representative...
• § 23-51-181 - Examinations -- Periodic Reports -- Cooperative Agreements -- Assessment of Fees.
  (a) To the extent consistent with subsection (c) of this section, the Bank Commissioner may make such examinations of any office established and maintained...
• § 23-51-182 - Enforcement.
  (a) (1) Consistent with the Arkansas Administrative Procedure Act, § 25-15-201 et seq., after notice and opportunity for hearing, the Bank Commissioner may determine:...
• § 23-51-183 - Notice of Subsequent Merger, Closing, Etc.
  Each out-of-state trust institution that maintains an office in this state pursuant to this chapter, or the home state regulator of such a trust...
• § 23-51-184 - Commissioner Shall Supervise and Examine Authorized Trust Institutions.
  Every authorized trust institution shall be under the supervision of the Bank Commissioner. The commissioner shall execute and enforce through the State Bank Department...
• § 23-51-185 - Examinations -- Assessments.
  (a) The Bank Commissioner may examine each state trust company every twenty-four (24) months or more often as he or she determines is necessary...
• § 23-51-186 - Statements of Condition and Income.
  Each state trust company shall periodically file with the Bank Commissioner a copy of its statement of condition and income. The commissioner shall have...
• § 23-51-187 - Confidential Records.
  (a) The following records of the State Bank Department shall be confidential and shall not be exhibited or revealed to the public except as...
• § 23-51-188 - Administrative Orders -- Penalties for Violation.
  (a) In addition to any other powers conferred by this chapter, the Bank Commissioner shall have the power to: (1) Order any authorized trust...
• § 23-51-189 - Notice and Opportunity for Hearing.
  Consistent with the Arkansas Administrative Procedure Act, § 25-15-201 et seq., notice and opportunity for hearing shall be provided before any of the foregoing...
• § 23-51-190 - Subpoena Power and Examination Under Oath.
  The Bank Commissioner shall have the power to subpoena witnesses, compel their attendance, require the production of evidence, administer oaths, and examine any person...
• § 23-51-191 - Removal of Directors, Officers, and Employees.
  Consistent with § 23-51-189, the Bank Commissioner shall have the right, and is hereby empowered, to require the immediate removal from office of any...
• § 23-51-192 - Delegation and Fiduciary Responsibility.
  (a) Any person acting as a trustee or as any other fiduciary under the laws of this state may delegate any investment, management, or...
• § 23-51-193 - Affiliates.
  (a) Any person acting as a trustee or in any other fiduciary capacity under § 23-51-192 may hire and compensate, as a delegate, an...
• § 23-51-194 - Fee Determination.
  The compensation arrangement between a client and any person acting as a trustee or as any other fiduciary pursuant to this chapter shall be...
• § 23-51-195 - Disclosure of Potential Conflicts of Interest.
  Any company, proposing to act as a trustee or in any other fiduciary capacity pursuant to a written agreement to be entered into with...
• § 23-51-196 - Interests in Trust Institutions Prohibited.
  (a) Neither the Bank Commissioner nor any employee or officer of the State Bank Department who participates in the examination of a trust institution,...
• § 23-51-197 - Designation of Trustee.
  Any person residing in this state may designate any trust institution to act as a fiduciary on behalf of the person.
• § 23-51-198 - Choice of Law Governing Trusts.
  Any trust institution that maintains a trust office in this state and its affected clients may designate either this state, a state where affected...
• § 23-51-199 - Choice of Law Governing Fiduciary Investments.
  Any trust institution that maintains a trust office in this state and its affected clients may designate either this state, a state where affected...
• § 23-51-200 -- 23-51-211 - [Repealed.]

Last modified: November 15, 2016