§ 15-4-1028 - Supervision of capital development companies. - Arkansas Statutes

15-4-1028. Supervision of capital development companies.

(a) Each capital development company shall be subject to the supervision, examination, and control of the Bank Commissioner in the same manner, so far as applicable, as provided in 23-46-501 et seq., and shall make reports of its condition to the commissioner as the commissioner shall prescribe, but the company shall not be deemed a financial institution.

(b) The commissioner shall have the power to:

(1) Make rules and regulations to regulate the safety and soundness of capital development companies;

(2) Conduct investigations that may be necessary to determine whether any person has engaged in or is about to engage in any act or practice constituting noncompliance with any provision of this subchapter or of other laws of this state; and

(3) (A) Classify as confidential records and information obtained by the State Bank Department from an investigation or examination by the department's staff under 23-46-101.

(B) However, for purposes of this subchapter, applications for approval under 15-4-1004 are public documents.

(c) (1) Whenever it appears, upon sufficient grounds or evidence satisfactory to the commissioner, that any company has engaged in or is about to engage in any act or practice that is noncompliant with this subchapter or any rule, regulation, or order under this subchapter or that the assets or capital of any company is impaired or a company's affairs are in an unsafe condition, the commissioner may:

(A) Refer the evidence that is available concerning noncompliance with this subchapter or any rule, regulation, or order under this subchapter to the appropriate agency; or

(B) (i) Summarily order the company to cease and desist from the act or practice during the time the commissioner may apply to the Pulaski County Circuit Court or the circuit court in the county in which the company is situated, has its principal office or place of business, or in which its chief officer resides to enjoin the act or practice and to enforce compliance with this subchapter or any rule, regulation, or order under this subchapter.

(ii) However, the commissioner may apply directly to Pulaski County Circuit Court or the circuit court in the county in which the company is situated or has its principal office or place of business or in which its chief officer resides for injunctive relief without issuing a cease and desist order.

(2) Upon the entry of the order, the commissioner shall promptly notify the company that the order has been entered, of the reasons for the entry of the order, and of the right to a hearing on the order.

(3) (A) A hearing shall be held on the written request of the company aggrieved by the order if the request is received by the commissioner within thirty (30) days after the date of the entry of the order or if ordered by the commissioner.

(B) If no hearing is requested and none is ordered by the commissioner, the order shall remain in effect until it is modified or vacated by the commissioner.

(C) If a hearing is requested or ordered, the commissioner, after notice of and an opportunity for hearing, may affirm, modify, or vacate the order.

(4) Upon a proper showing, the circuit court shall grant a permanent or temporary injunction, restraining order, or writ of mandamus and may appoint a receiver or conservator for the company or its assets.

(5) The circuit court shall not require the commissioner to post a bond.

(6) In addition to any other remedy provided in this subchapter or under other applicable law, the circuit court may impose as additional damages payable by the company the costs incurred by the commissioner in successfully pursuing acts of noncompliance with this subchapter.

(7) The commissioner shall forward a copy of all reports of the investigation or other proceedings conducted under this section to the Director of the Department of Finance and Administration.

(d) Each company shall deliver a quarterly report to the commissioner and the Department of Finance and Administration that describes each investment transaction made by the company in the previous quarter and the economic benefits and any tax credits allowed under this subchapter.

(e) Each company shall deliver an annual report to the commissioner and the Department of Finance and Administration within six (6) months after the close of its fiscal year that shall include an annual audit of the activities conducted by the company and shall list any tax credits allowed under this subchapter.