§ 19-3-606 - Loan of securities. - Arkansas Statutes

19-3-606. Loan of securities.

(a) In order to increase investment income with minimal risk, the Treasurer of State may loan securities held by the money management fund, but only if at the time the loan is executed at least one hundred two percent (102%) of the full market value of the security loaned is collateralized by cash or securities guaranteed by the United States Government or an agency thereof.

(b) At all times during the term of the loan, the collateral shall be equal to not less than ninety-eight percent (98%) of the full market value calculated on the total value of all securities on loan.

(c) For purposes of this section, the value of the collateral shall be determined on a daily basis.