§ 23-38-101 - Definitions. - Arkansas Statutes

23-38-101. Definitions.

As used in this act, unless the context otherwise requires:

(1) "Building and loan association" means any association or corporation which is chartered under any building and loan law, which is principally in the business of assisting its members to buy, improve, or build homes or to remove encumbrances therefrom, and which accumulates the funds loaned through the issuance or sale of its own shares or certificates;

(2) "Domestic association" means any association chartered under the laws of this state;

(3) "Foreign association" means any association chartered under the laws of any other state or territory of the United States;

(4) (A) "Guaranty, or permanent stock building and loan association" means a financial institution incorporated by the state which has for its purposes those outlined in subdivision (1) of this section and which issues a class of stock known as "guaranty capital stock", "permanent capital stock", or "reserve capital stock", as provided in Acts 1929, No. 128, 18 [repealed].

(B) Par funds derived from the sale of the shares shall be set apart and be a fixed and permanent guaranty or reserve to holders of all other shares or certificates and to all other customers of the association that the association will fulfill its agreement as per terms of contract with them.

(C) "Guaranty", "permanent", or "reserve capital stock" cannot be withdrawn until final liquidation of the association, and no loans shall ever be made by the association upon the pledge of the stock as security; and

(5) "Mutual building and loan association" means a mutual, cooperative financial institution, incorporated by the state and composed of members who associate themselves together for mutual benefit and the purposes outlined in subdivision (1) of this section.