§ 15-4-926 - Loan policy -- Disposition of funds. - Arkansas Statutes

15-4-926. Loan policy -- Disposition of funds.

(a) A development finance corporation organized under the provisions of this subchapter shall not lend money when credit is readily available elsewhere. Before granting a loan, the directors of the corporation shall endeavor so far as is reasonably possible to ascertain that the first opportunity to grant the loan has been given to the banks, the insurance companies, and to the other lending institutions of the state.

(b) No development finance corporation organized under the provisions of this subchapter shall receive money on deposit.

(c) The development finance corporation shall not deposit any of its funds in any banking institution unless the institution has been designated as a depository by a vote of a majority of the directors present at an authorized meeting of the directors, exclusive of any director who is an officer or director of the depository so designated.