§ 23-38-216 - Expenses restricted. - Arkansas Statutes

23-38-216. Expenses restricted.

(a) The expenses of any building and loan association operating in Arkansas shall not, in any fiscal year, exceed the total receipts from membership, withdrawal or cancellation fees, fines, plus two percent (2%) of the average amount of loans outstanding during the year on mortgages, shares, and other securities and investments in securities authorized by this act.

(b) However, if any building and loan association operating in the State of Arkansas during any fiscal year has reserve funds on hand of more than ten percent (10%) of the association's assets, it may take three percent (3%) of the average amount of loans outstanding during that fiscal year on mortgages, shares, and other securities and investments in securities authorized by this act, in addition to the total receipts from membership, withdrawal, or cancellation fees, or fines, for expenses of operating.

(c) The term "expenses", as used in this section, shall not be construed to include:

(1) Taxes, assessments, repairs, or insurance on real estate owned by the association, dividends or interest, or the expenses of foreclosure or other litigation;

(2) Expenses of appraisals, attorney's fees for examination of title, premiums for title insurance, recording fees, or other expenses which are usually incurred in connection with loaning funds of the association; and

(3) Premiums paid for the insurance of its shares, cost of examination and audit, or any other expense required by the Securities Commissioner or the Federal Home Loan Bank.