Department taking possession — Procedure

  1. Law
  2. Arkansas Code
  3. Public Utilities and Regulated Industries
  4. Financial Institutions And Securities
  5. Dissolution and Liquidation
  6. Department taking possession — Procedure

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  1. (a) In addition to the powers conferred upon the Bank Commissioner and the State Bank Department, the commissioner may take possession of the business and property of any institution which the commissioner supervises whenever it appears to the commissioner that the institution:

    1. (1) Is insolvent or in imminent danger of insolvency;

    2. (2) Is in an unsafe or unsound condition;

    3. (3) Has refused to pay its deposits or obligations in accordance with the terms under which those deposits or obligations were incurred;

    4. (4) Has concealed or refused to submit books, papers, records, or affairs of the institution for inspection to any examiner or to any lawful agent of the appropriate federal financial institution regulatory agency or of the department;

    5. (5) Has substantially dissipated assets or earnings due to:

      1. (A) Any violation of any law or rule; or

      2. (B) An unsafe or unsound practice;

    6. (6) Has requested through its board of directors that the department take possession for the benefit of depositors, other creditors, shareholders, or other persons;

    7. (7) Has an impairment of its capital as is currently required to be maintained by the department;

    8. (8) Has neglected or refused, for a period of at least thirty (30) days, to comply with the terms of a final order of the department or final order of a federal financial institution's regulatory agency essential to preserve the solvency of the institution; or

    9. (9) Has failed to pay the fees charged by the department under § 23-46-509 after due notice of the amount of the fee has been given.

  2. (b) Whenever it appears to the department that any one (1) or more of the conditions in subsection (a) of this section exists as to any institution, the department shall cause a certified notice to be served on the president or other executive officer actively in charge of the institution and demand possession of the business, property, and records of the institution from the officer citing the reasons for such a demand from subsection (a) of this section. The institution shall immediately surrender the possession to the commissioner.


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