§ 19-3-516 - Discontinuance as bank depository. - Arkansas Statutes

19-3-516. Discontinuance as bank depository.

(a) Any depository which shall refuse to cash upon presentation any state warrant of five hundred dollars ($500) or less which is drawn on the State Treasury or any bank check of five hundred dollars ($500) or less which has been issued by a state agency when the check or warrant has been presented for payment within thirty (30) days of the date of issuance by the payee named therein shall immediately be discontinued as a depository of State Treasury funds and, for a period of time to be determined by the State Board of Finance, shall be ineligible for reinstatement as such a depository.

(b) Nothing in this section shall be so construed as to deprive any such depository from taking such reasonable time as it may require to make proper identification of the persons and signatures of payees named in such warrants or checks or to indemnify any such depository for any losses which it may sustain by reason of its cashing any of the warrants or checks for persons other than the payees named therein.