US Lawyer Database

For Lawyer-Seekers

YOU DESERVE THE BEST LAWYER

§ 24-2-601. Investment authority and limitations generally

(a) All investments of the retirement systems covered by this subchapter shall be in strict compliance with the provisions of this subchapter. (b) The term “trust” as used in this subchapter refers to the following Arkansas retirement systems: (1) The State Police Retirement System; (2) The Arkansas Public Employees’ Retirement System; (3) The Arkansas Teacher […]

§ 24-2-602. Investment authority and limitations — Permissible investments

(a) The boards of trustees of the State Police Retirement System, the Arkansas Public Employees’ Retirement System, the Arkansas Teacher Retirement System, the Arkansas State Highway Employees’ Retirement System, and the Arkansas Judicial Retirement System shall have full power to invest and reinvest the moneys of the respective systems and to hold, purchase, sell, assign, […]

§ 24-2-603. Investment authority and limitations — Default setoff

(a) In the event of default in payment of the principal or interest of any investment obligation held by any state retirement system where the issuer of the obligation receives moneys from the state, the default shall be certified by the board of the respective system to the Treasurer of State. (b) The Treasurer of […]

§ 24-2-604. Investment authority and limitations — Conflict of interest

Except as to the rights of a member, retirant, or beneficiary, no trustee and no officer or employee of the board of any state retirement system shall have any interest, directly or indirectly, in the gains or profits of any investment made by the respective board. Nor shall any retirement system trustee, officer, or employee, […]

§ 24-2-605. Investment authority and limitations — Fidelity bonds

(a) The boards of trustees of the respective retirement systems shall provide for a blanket fidelity bond of one million dollars ($1,000,000) covering the employees of the systems or such others as may be responsible for administering the funds. (b) The boards may pay the premiums for the bond from funds of the systems.

§ 24-2-606. Investment authority and limitations — Custodianship of assets

(a) The Treasurer of State shall be the legal custodian of the securities of the respective retirement systems. However, the systems may deposit with the Treasurer of State, in lieu of securities, safekeeping receipts or evidence of federal bookkeeping entries. (b) The financial institution or depository issuing the safekeeping receipts, unless issued by an agency […]

§ 24-2-607. Investment authority and limitations — Trust account

(a) In addition to the various retirement systems funds established as trust funds in the State Treasury, a bank trust fund or funds may be established and maintained in such depository bank or banks as may be designated by the boards of trustees of the respective retirement systems. (b) Each bank fund shall consist of […]

§ 24-2-608. Investment authority and limitations — Arkansas-related investments

(a) In acquiring, investing, reinvesting, exchanging, retaining, selling, and managing funds held by each of the trusts, fiduciaries administering the systems shall manage the funds so as to favorably impact the economic condition of and maximize capital investment in the State of Arkansas when appropriate investment alternatives are available. (b) It is the intention of […]

§ 24-2-610. Prudent investor rule

(a) Except as otherwise provided in subsection (b) of this section, trustees who invest and manage trust assets owe a duty to the beneficiaries of the trust to comply with the prudent investor rule set forth in §§ 24-2-610 — 24-2-619. (b) (1) The prudent investor rule, a default rule, may be expanded, restricted, eliminated, […]

§ 24-2-611. Standard of care — Portfolio strategy — Risk and return objectives

(a) Trustees shall invest and manage trust assets as a prudent investor would, by considering the purposes, terms, distribution requirements, and other circumstances of the trust. In satisfying this standard, the trustees shall exercise reasonable care, skill, and caution. (b) The trustees’ investment and management decisions respecting individual assets must be evaluated not in isolation […]

§ 24-2-612. Diversification

Trustees shall diversify the investments of the trust unless the trustees reasonably determine that, because of special circumstances, the purposes of the trust are better served without diversifying.

§ 24-2-613. Duties at inception of trusteeship

(a) Within a reasonable time after accepting a trusteeship or receiving trust assets, trustees shall review the trust assets and make and implement decisions concerning the retention and disposition of assets in order to bring the trust portfolio into compliance with the purposes, terms, distribution requirements, and other circumstances of the trust and with the […]

§ 24-2-614. Loyalty

Trustees shall invest and manage the trust assets solely in the interest of the members and benefit recipients of the trust.

§ 24-2-615. Impartiality

If a trust has two (2) or more beneficiaries, the trustees shall act impartially in investing and managing the trust assets, taking into account any differing interests of the beneficiaries.

§ 24-2-616. Investment costs — Limitations on investment authority

(a) In investing and managing trust assets, trustees may only incur costs that are appropriate and reasonable in relation to the assets, the purposes of the trust, and the skills of the trustee. (b) Trustees may delegate investment functions to an agent that a prudent trustee of comparable skills could properly delegate as provided in […]

§ 24-2-617. Reviewing compliance

Compliance with the prudent investor rule is determined in light of the facts and circumstances existing at the time of the trustees’ decisions or actions and is not determined by hindsight.

§ 24-2-618. Delegation of investment and management functions

(a) Trustees may delegate investment and management functions that a prudent trustee of comparable skills could properly delegate under the circumstances. The trustees shall exercise reasonable care, skill, and caution in: (1) Selecting an agent; (2) Establishing the scope and terms of the delegation, consistent with the purposes and terms of the trust; and (3) […]

§ 24-2-619. Language invoking standard of subchapter

The following terms or comparable language in the provisions of a trust, unless otherwise limited or modified, authorizes any investment or strategy permitted under this subchapter: (1) “Investments permissible by law for investment of trust funds”; (2) “Legal investments”; (3) “Authorized investments”; (4) “Using the judgment and care under the circumstances then prevailing that persons […]