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Can you summarize 23 ARCO Chapter 48, Subchapter 4?
Organization and Operation > Bank Holding Companies
Short Summary
This subchapter of the Arkansas Code governs the organization and operation of Bank Holding Companies. It applies to bank holding companies, banks, and state banks. The subchapter defines a ‘Bank subsidiary’ as a bank that is owned or controlled by a bank holding company through various means. The subchapter also includes a definition of ‘Company’ as any corporation, limited liability company, or business trust doing business in Arkansas, excluding certain corporations. The document provides the legal framework for the establishment and regulation of bank holding companies in Arkansas. There are exemptions to this subchapter, including shares acquired in satisfaction of a debt, shares held in a fiduciary capacity, and shares eligible for investments by state banks. The document specifies penalties for non-compliance or violation of its provisions, including Class A misdemeanors. The Bank Commissioner is authorized to administer and carry out the provisions of this subchapter and issue necessary rules and orders. It is unlawful for a bank holding company to own or control more than one bank subsidiary with a de novo charter in Arkansas. The document also governs the acquisition of bank stock or assets by bank holding companies, prohibiting acquisitions that would result in ownership or control of more than 25% of total deposits held by banks in Arkansas. Bank holding companies domiciled in Arkansas may acquire banks domiciled outside the state if permitted by applicable laws, while bank holding companies domiciled outside Arkansas generally cannot acquire control of banks domiciled within Arkansas without specific authorization.
Whom does it apply to?
Bank holding companies, banks, and state banks
What does it govern?
Organization and operation of Bank Holding Companies
What are exemptions?
Shares acquired by a bank holding company or a bank in satisfaction of a debt previously contracted in good faith, shares held or acquired by a bank in good faith in a fiduciary capacity, and shares eligible for investments by state banks under the provisions of 23-47-401
What are the Penalties?
Any person who willfully violates any provision of this subchapter or order issued by the Bank Commissioner pursuant to this subchapter or any State Bank Department rule is guilty of a Class A misdemeanor. Any person who willfully participates in a violation of any provision of this subchapter is guilty of a Class A misdemeanor.
Jurisdiction
Arkansas