Arkansas Code
Subchapter 5 - Investment of Public Funds
§ 19-1-505. Additional authority of certain cities

(a)
(1) A city that has real property assessed valuation in excess of three hundred million dollars ($300,000,000) may invest the city's funds in securities under § 23-47-401 and according to the investment policy adopted by the governing body of the city.
(2) The investment policy adopted by the city's governing body may authorize a maturity term exceeding the term stated in § 19-1-504(a)(1)(A).

(b)
(1) Each investment shall be made with the judgment and care under prevailing circumstances that a person of prudence, discretion, and intelligence would exercise in the management of the person's own affairs, not for speculation but for investment, considering the probable safety of the capital and the probable income to be derived.
(2) Investment of funds shall be governed by the following investment objectives in order of priority:
(A) Preservation and safety of the principal;
(B) Liquidity; and
(C) Yield.


(c) In determining whether an investment officer has exercised prudence with respect to an investment decision, the determination shall be made taking into consideration:
(1) The investment of city funds and funds under the officer's control and over which the officer had responsibility, rather than a consideration as to the prudence of a single investment; and
(2) Whether the investment decision is consistent with the written investment policy of the city.