§ 23-32-202 - Investment in and loans to capital development companies. - Arkansas Statutes

23-32-202. Investment in and loans to capital development companies.

(a) In addition to the powers conferred upon building and loan associations, savings and loan associations, or credit unions organized under the laws of this state, each such entity shall have the power to:

(1) (A) Acquire and own on its own behalf any stock or equity interest issued by a capital development company.

(B) However, no such entity under this subsection shall invest more than ten percent (10%) of its capital and unimpaired surplus in the stock or equity interest; and

(2) Make loans to a capital development company, subject, however, to the rules and regulations promulgated by the institutions' primary regulator.

(b) Any investment in stock or equity interest made pursuant to this section shall be considered an asset of the investing institution or association at a value of at least its original purchase price. The asset shall not be valued by any regulatory body in this state at less than at least the purchase price regardless of the failure of a capital development company to pay dividends or distributions of equity to the investors.