§ 19-3-521 - Securities Reserve Fund. - Arkansas Statutes

19-3-521. Securities Reserve Fund.

(a) (1) In addition to the several purposes for which the Securities Reserve Fund may be used, as provided in this subchapter, the fund shall be used to absorb any losses in:

(A) Relation to securities at any time held in the Securities Account in the State Treasury; and

(B) The Treasurer of State's account in bank depositories;

(2) The balance in the Securities Reserve Fund shall always be available for such purposes. However, moneys in the Securities Reserve Fund in excess of one hundred thousand dollars ($100,000) shall be available at all times to the Chief Fiscal Officer of the State for transfer to the Budget Stabilization Trust Fund, there to be used as provided by law.

(b) (1) If any loss is sustained in relation to securities held at any time in the Securities Account or in the Treasurer of State's account in any bank depository and the credit balance in the Securities Reserve Fund is insufficient to absorb the loss, the Chief Fiscal Officer of the State shall transfer moneys from the Budget Stabilization Trust Fund to the Securities Reserve Fund of an amount that, when added to the credit balance in the Securities Reserve Fund, equals the amount of any loss.

(2) It is the explicit intent of the General Assembly that no loss shall be sustained by any account, the funds of which were used in making such investments and deposits.

(c) On a quarterly basis, interest earned on federal funds received under the State and Local Fiscal Assistance Act of 1972, 31 U.S.C. 6701 et seq., shall be transferred at the direction of the Chief Fiscal Officer of the State from the Securities Reserve Fund to the federal funds established for the purpose of holding these moneys in trust. Interest to be transferred shall be a pro rata share of total earned interest based on the proportion of the average daily balances of the total federal funds established for the purpose of holding the State and Local Fiscal Assistance Act moneys in trust to the average daily balances of all State Treasury investments.