§ 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 property to the trust company, including a relationship in which the trust company acts as trustee, executor, administrator, guardian, custodian, conservator, bailee, receiver, registrar, or agent, but excluding a relationship in […]

§ 23-51-103. Rules

The Bank Commissioner may promulgate such rules as he or she determines to be necessary or appropriate in order to implement the provisions of this chapter.

§ 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 company may perform any act as a fiduciary or engage in any trust business within or without this state. (b) Subject to § 23-51-111, a state trust company may exercise the […]

§ 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 the state trust company; (2) The period of its duration, which may be perpetual; (3) The powers of the state trust company, which may be stated as: (A) All powers granted […]

§ 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 must be supported by information, data, records, and opinions of counsel that the commissioner requires. The application must be accompanied by a non-refundable filing fee of not less than three thousand […]

§ 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 been paid. Upon filing of an application with the commissioner, the organizers of the proposed state trust company shall give notice of filing through publication by one (1) insertion in a […]

§ 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 application within thirty (30) days of the date of the notice of the filing of the application. The protest must state the grounds for objection and must be accompanied by a […]

§ 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 not deliver the charter until the state trust company has: (1) Elected or qualified the initial officers and directors named in the application for charter or other officers and directors approved […]

§ 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), except as provided in subsection (b) of this section. (b) The commissioner may require additional capital for a proposed or existing state trust company or, on application in the exercise of […]

§ 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 the proper business of a trust company, except that any reference to the Secretary of State means the Bank Commissioner unless the context requires otherwise. (b) Unless expressly authorized by this […]

§ 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 before the Bank Commissioner that is required or authorized by law may be conducted by a hearing officer on behalf of the commissioner. A matter made confidential by law must be […]

§ 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 Arkansas Banking Code of 1997 may be converted to a state trust company under this chapter, if the charter, or evidence satisfactory to the Bank Commissioner that the corporation is still […]

§ 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 of association for any lawful purpose, including the creation of authorized but unissued shares in one or more classes or series. (b) An amendment authorizing the issuance of shares in series […]

§ 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 series of shares, the board may do so only on compliance with this section and any rules adopted under this chapter. (b) A series of shares may be established in the […]

§ 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 approval of the Bank Commissioner, except as permitted by this section or rules adopted under this chapter. (b) Unless otherwise restricted by rules, prior approval is not required for an increase […]

§ 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 without requiring action of its shareholders, issue and sell its capital notes or debentures, which must be subordinate to the claims of depositors and may be subordinate to other claims, including […]

§ 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 to a trust company unless expressly exempted therefrom in writing by the Bank Commissioner pursuant to this section or by rule adopted by the commissioner. (b) A private trust company or […]

§ 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 with the Bank Commissioner containing the following: (A) A non-refundable application fee on an amount not less than three thousand dollars ($3,000) nor more than five thousand dollars ($5,000), as set […]

§ 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 trust company desiring to commence transacting business with the general public shall file a notice on a form prescribed by the Bank Commissioner, which shall set forth the name of the […]