§ 19-8-104 - Investment of public funds. - Arkansas Statutes

19-8-104. Investment of public funds.

(a) Except as provided in subsections (b) and (c) of this section, all public funds as defined in 19-8-101 shall be deposited into banks located in the State of Arkansas.

(b) A school district may seek a hardship waiver from the Legislative Joint Auditing Committee from the provisions of this section and deposit state funds in an out-of-state bank under the following conditions:

(1) The school district is designated as an isolated school district under 6-20-601 and 6-20-602 [repealed];

(2) The school district lies on the borders of the state line;

(3) The nearest Arkansas bank is located at least eighteen (18) miles from the administrative offices of the district;

(4) The administrative offices of the district are located within six (6) miles from an out-of-state bank; and

(5) The out-of-state bank meets all other requirements concerning collateralization of state funds.

(c) Any private donations to cities of the first class or the second class or incorporated towns, unless restrictions are established by the donor, may be invested in accordance with the "prudent man rule" established by 28-71-105.