Any officer or director of any state bank who shall knowingly make or approve a loan in violation of §§ 23-47-501 — 23-47-504 or who shall knowingly permit such a loan to be made, or who shall fail to exercise his or her authority to prevent the making of the loan shall be personally liable to the bank, or to the Bank Commissioner, for the full amount thereof. However, written notice of disapproval of the loan, served on the board of directors and also the commissioner at the time the making or existence of the loan first comes to his or her knowledge, shall relieve any officer or director from personal liability.
Structure Arkansas Code
Title 23 - Public Utilities and Regulated Industries
Subtitle 2 - Financial Institutions And Securities
Chapter 47 - Bank Powers — Subsidiaries
§ 23-47-501. Loan limits — Maximum generally
§ 23-47-502. Loan limits — Inclusions and exceptions
§ 23-47-503. Loans involving stock of state bank
§ 23-47-504. Loans to affiliates and insiders
§ 23-47-505. Illegal loans — Liability of officer or director
§ 23-47-506. Sale of certain mortgage loans
§ 23-47-507. Power to hold and sell collateral
§ 23-47-508. Disposition of real estate acquired through debt collection