On Mar. 20, ARK LEG passed bill on loans involving State bank stock.
ARK LEG passed bill SB 242, amending ARK FIN 23-47-503, Loans involving stock of State bank, to allow loans secured by the State bank’s own stock during a merger.
Bill Provisions
In connection with the merger of a target institution with a State bank, State bank may acquire a loan that is secured, in whole or in part, by the State bank’s own stock.
Outlined circumstances under which it is permissible for loan secured by own stock.
Amendments define a target institution as a State bank, an out-of-State State-chartered bank, national bank, or another depository institution or financial institution.
Legislative History
On Feb. 17, 2025, bill introduced into House; on Mar. 6, 2025, bill passed the House.
On Mar. 6, 2025, bill introduced into Senate; on Mar. 17, 2025, bill passed the Senate.
On Mar. 20, 2025, bill was approved by the governor, and was assigned as Act 344.
Effectiveness
Act effective 91 days after legislature adjourned sine die (May 5), so Aug. 4, 2025.
Regulators
ARK LEG
Entity Types
Bank
Reference
PR, Act 344, Bill SB242, 3/20/2025; Citation: ARK FIN 23-47-503;
Functions
Actuarial and Valuation; Compliance; Financial; Legal; Operations; Underwriting
