§ 19-5-905 - Securities Reserve Fund. - Arkansas Statutes

19-5-905. Securities Reserve Fund.

(a) There is established on the books of the Treasurer of State, the Auditor of State, and the Chief Fiscal Officer of the State a trust fund to be known as the Securities Reserve Fund. This fund shall consist of moneys derived from savings effected in the retirement in advance of maturity of nonhighway direct general obligation bonds of the state, of discounts received in the purchase of securities, and of premiums and interest derived from the sale of securities held in the Securities Account by the Treasurer of State as custodian. It shall be used for:

(1) Paying premiums and the purchase and absorbing of discounts in the sale of securities held in the Securities Account, not to exceed five hundred thousand dollars ($500,000) in any one (1) fiscal year;

(2) Guaranteeing bonds in an aggregate principal amount not to exceed five million dollars ($5,000,000) outstanding at any time, with no bond bearing interest at a rate exceeding eight percent (8%) per annum, of the Museum and Cultural Commission Fund authorized, and in the manner prescribed, by 13-5-301 et seq., not to exceed five hundred thousand dollars ($500,000) in any one (1) fiscal year;

(3) Guaranteeing bonds of any other park or recreation facility approved by the Governor and the Department of Parks and Tourism, not to exceed five hundred thousand dollars ($500,000) in the aggregate, after seeking advice of the Legislative Council and the Legislative Joint Auditing Committee;

(4) Guaranteeing industrial development bonds as authorized by 15-4-702 -- 15-4-710;

(5) Absorbing losses incurred in the investing of securities held in the Securities Account in the State Treasury and in bank depositories. The balance of this fund shall always be available for this purpose; and

(6) Guaranteeing loans to students to attend truck driving school at the Arkansas Commercial Driver Training Institute at Arkansas State University-Newport, in an aggregate principal amount not to exceed four hundred thousand dollars ($400,000) outstanding at any one (1) time.

(b) Moneys in this fund in excess of one hundred thousand dollars ($100,000) shall, at all times, be available to the Chief Fiscal Officer of the State for transfer to the Budget Stabilization Trust Fund, there to be used as provided by law.

(c) In the event any loss shall be sustained in relation to securities at any time held in the Securities Account or in any bank depository and in the event the credit balance in the Securities Reserve Fund shall be insufficient to absorb such loss, the Chief Fiscal Officer of the State shall cause a transfer of moneys to be made from the Budget Stabilization Trust Fund to the Securities Reserve Fund in such amount as shall, when added to the credit balance in the Securities Reserve Fund, equal the amount of such loss. It is the 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.