(a)
(1) No state bank shall receive in its trust department deposits of current funds subject to check or the deposit of checks, drafts, bills of exchange, or other items for collection or exchange purposes.
(2) Funds deposited or held in trust by the state bank awaiting investment shall be carried in a separate account and shall not be used by the bank in the conduct of its business unless it shall secure the funds deposited or held in trust with investments in which a state bank may invest without limitation pursuant to § 23-47-401.
(3) No security shall be required to the extent the funds so deposited or held in trust are insured under the provisions of the Federal Deposit Insurance Act.
(b) In the event of the failure of the state bank, the owners of the funds held in trust for investment shall have a first priority lien on the bonds or other securities so set apart in addition to their claim against the estate of the bank.
Structure Arkansas Code
Title 23 - Public Utilities and Regulated Industries
Subtitle 2 - Financial Institutions And Securities
Chapter 47 - Bank Powers — Subsidiaries
§ 23-47-701. Authority of Bank Commissioner
§ 23-47-702. Considerations determinative of grant or denial of applications
§ 23-47-703. Grant and exercise of powers deemed not in contravention of Arkansas law
§ 23-47-704. Segregation of fiduciary and general assets — Separate books and records
§ 23-47-706. Official's oath or affidavit
§ 23-47-707. Loans of trust funds to officers and employees prohibited — Penalties