Arkansas Code
Subchapter 5 - Reports and Examinations
§ 23-46-503. When examinations made

(a) The Bank Commissioner shall, as often as may be deemed necessary or proper, appoint suitable persons to make an examination of each state bank or subsidiary trust company.
(b)
(1) A thorough examination into the affairs of each state bank or subsidiary trust company shall be made at least once every twenty-four-month period. Provided, however, the twenty-four-month period may be extended to a thirty-six-month period if an interim thorough examination is performed by the state bank's or subsidiary trust company's primary federal regulatory authority.
(2) The commissioner may authorize examinations at more frequent intervals if he or she shall deem it proper.

(c)
(1) The commissioner shall direct the State Bank Department to make an annual examination into the affairs of nonprofit corporations that have registered with the commissioner to be a regulated economic development enterprise under this subsection and that registration has been approved by the State Banking Board.
(2) A nonprofit corporation electing to be a regulated economic development enterprise shall certify in its registration to the commissioner that the nonprofit corporation:
(A) Was previously registered under the Arkansas Development Finance Corporation Act, § 15-4-901 et seq. [repealed];
(B) Is a domestic nonprofit corporation with a total equity of the nonprofit corporation and any subsidiaries exceeding five million dollars ($5,000,000);
(C) Provides financing for the promotion, development, and conduct of Arkansas business;
(D) Together with any of its subsidiaries, has loan receivables that exceed fifteen million dollars ($15,000,000); and
(E) Shall provide reasonable cooperation and assistance to the department during an examination.

(3)
(A) A regulated economic development enterprise registered under this subsection shall pay to the department, within ten (10) days after notice from the commissioner in the months of January and July of each year, an assessment fee in accordance with an assessment fee schedule approved by the commissioner.
(B) The commissioner, with the approval of the board, shall also have the authority to establish a schedule of fees to be charged by the department relative to registrations which are reviewed by the department, as well as a schedule of other fees to be charged for service performed by the department.
(C) The assessments may be increased if not sufficient in connection with other fees received as mentioned in this section to defray the expenses of the department.

(4)
(A) The commissioner shall be charged with the general supervision of regulated economic development enterprises, with the power to issue cease-and-desist orders against any regulated economic development enterprise, or an officer, director, or employee of a regulated economic development enterprise, found to be violating state or federal law, rules, or regulations of a federal regulatory agency, violating any regulatory agreement, or jeopardizing the safety and soundness of the regulated economic development enterprise.
(B) The commissioner has grounds for and may issue a cease-and-desist order for the permanent or temporary removal of an officer, director, employee, agent, or any other person participating in the affairs of or otherwise connected with a regulated economic development enterprise, or any affiliate thereof, if he or she is found by the commissioner to be or to have been:
(i) Violating state or federal law, rules and regulations of a federal regulatory agency, or department rules;
(ii) Acting incompetently, recklessly, or dishonestly;
(iii) Indicted of a crime involving moral turpitude; or
(iv) Otherwise impairing the safety and soundness of the regulated economic development enterprise.

(C)
(i) A person who is subject to a cease-and-desist order issued by the commissioner who refuses or fails to comply with the terms of the order may be assessed a monetary penalty for the failure to comply with the cease-and-desist order after a ten-day notice given by the commissioner to the regulated economic development enterprise or person who is subject to the order.
(ii) The amount of the monetary penalty shall not exceed one thousand dollars ($1,000) per day of the violation against each regulated economic development enterprise and each officer, director, or employee contributing to the regulated economic development enterprise's or the person's failure to comply with the cease-and-desist order.
(iii) Subject to the limitation described in subdivision (c)(4)(C)(ii) of this section, the amount of the monetary penalty shall be determined by the commissioner.

(D) The commissioner may revoke a nonprofit corporation's status as a regulated economic development enterprise under this subsection if the commissioner determines, after examination and investigation, that the regulated economic development enterprise:
(i) Is or has been violating state or federal law;
(ii) Is violating the rules and regulations of a federal regulatory agency;
(iii) Fails to meet the minimum equity requirements under subdivision (c)(2) of this section; or
(iv) Is operating or has been operated in a manner that jeopardizes the safety and soundness of the regulated economic development enterprise.

(E)
(i) The commissioner shall have the power to issue such rules as may be necessary or appropriate with the approval and consent of the board.
(ii) This section shall not be construed to curtail the commissioner's power to issue emergency rules with the approval and consent of the board.

(F) In addition to other powers under this section, the commissioner shall have the power and authority to:
(i) Inspect and copy all books, records, and other information relating to a regulated economic development enterprise; and
(ii) Subpoena witnesses, compel their attendance, require production of evidence, and administer oaths.

(G)
(i) A person or regulated economic development enterprise aggrieved and directly affected by an order of the commissioner issued under this subsection is entitled to judicial review.
(ii) A person or regulated economic development enterprise may seek judicial review by petition to a circuit court of competent jurisdiction.
(iii) The petition shall be filed within thirty (30) days from the date of issuance of the order.
(iv) If a petition is not filed within thirty (30) days from the date of issuance of the order, the order shall not be appealed and is permanently binding upon the person until terminated by the commissioner.

(5) A nonprofit corporation that is registered as a regulated economic development enterprise, that is in compliance with federal and state laws, rules, and regulations, and that does not have any regulatory proceeding pending against it may withdraw its registration as a regulated economic development enterprise.