2012 Arkansas Code
Title 23 - Public Utilities and Regulated Industries
Subtitle 2 - Financial Institutions And Securities
Chapter 38 - Building and Loan Associations -- Miscellaneous Provisions
Subchapter 2 - -- Organization and Operation
§ 23-38-220 - Foreign associations.

(a) Foreign building and loan associations may be permitted to transact business in the State of Arkansas in the manner provided in this section, and a foreign association which is not admitted according to the provisions of this section shall not transact any business whatever in this state.

(b) (1) A foreign association applying for permit to do business in the State of Arkansas shall file with the Securities Commissioner a copy of its articles of incorporation, bylaws, plan of operation, and its most recent financial statement.

(2) It shall deposit with the commissioner one hundred thousand dollars ($100,000) of bonds of the State of Arkansas or of some subdivision thereof, or other evidence of obligations of the State of Arkansas or some subdivision thereof, or certificates of full paid shares in Arkansas building and loan associations, or United States bonds, which securities so filed shall be subject to the approval of the commissioner. However, any foreign corporation authorized to do business in Arkansas on January 1, 1929, shall not be required to deposit the securities required in this subdivision.

(c) The securities thus filed with the commissioner under the provisions of this section shall be held by him or her in trust for the exclusive benefit and security of the creditors and shareholders of the association who are residents of this state. The interest or income of any securities so deposited shall accrue to and be used by the association depositing them, so long as the association fulfills its obligations and complies with the provisions of this chapter.

(d) After the articles of incorporation, bylaws, plan of operation, and financial statement shall have been approved, together with the approval of the securities required by the provisions of this section, the commissioner may issue a certificate of authority to do business in the State of Arkansas. The certificates shall be for one (1) year from March 1, and must be renewed annually. A fee of two hundred fifty dollars ($250) for each certificate of authority and each renewal thereof shall be charged and collected from each foreign association admitted.

(e) The commissioner may, however, before issuing the certificate of authority, exercise the right of examinations, and the expense and fees for the examination shall be paid by the association applying, regardless of whether the application is granted or denied.

(f) (1) All securities delivered to the commissioner under the terms of this section shall be deposited with the Treasurer of State, who, with his or her sureties, shall be responsible for the safekeeping thereof. The Treasurer of State shall surrender the securities only upon the written order of the commissioner.

(2) If the commissioner shall become convinced at any time that any securities held under the terms of this section have suffered depreciation in value, he or she shall require additional securities.

(3) The commissioner may also, upon request of the owner, permit exchanges of securities upon proper approval of the new securities by the commissioner.

(g) Every foreign association admitted to do business in Arkansas shall file with the commissioner an instrument in writing properly executed, agreeing that any summons or other process of any court of competent jurisdiction may issue against it from any county in the State of Arkansas, and when served upon the commissioner shall be accepted by him or her, irrevocably, as a valid service upon the foreign association. However, the commissioner shall send, by registered mail, a copy of the legal process served upon the commissioner to the home office of the foreign association, and the commissioner shall, within six (6) days after service upon him or her, certify to the court from which the summons or process issued the fact of the acceptance of service and mailing.

(h) No foreign association shall be admitted to do business in this state if it has a name identical with that of any domestic association or with any other foreign association previously admitted or has a name so similar as to cause confusion.

(i) The provisions of this section shall not apply to any foreign association, a majority of whose directors are residents of the State of Arkansas.