§ 23-46-205 - Bank Commissioner -- Powers and duties. - Arkansas Statutes

23-46-205. Bank Commissioner -- Powers and duties.

(a) The Bank Commissioner shall be charged with the general supervision of financial institutions, the execution of all laws passed by the State of Arkansas relating to the organization, operations, inspection, supervision, control, liquidation, and dissolution of banks, bank holding companies, subsidiary trust companies, and the general commercial banking business of Arkansas, and such other duties as prescribed by law.

(b) (1) The commissioner shall have the power to issue such rules and regulations as may be necessary or appropriate to carry out the intent and purposes of all those laws and to issue cease and desist orders against any financial institution, or an officer, director, or employee of any financial institution, found to be violating federal banking laws or regulations, violating the banking laws of this state or State Bank Department regulations, violating any regulatory agreement, or jeopardizing the safety and soundness of any financial institution.

(2) (A) The commissioner may issue rules or regulations only with the approval and consent of the State Banking Board, but he or she shall have the power to issue cease and desist orders upon his or her own motion.

(B) Nothing in this section shall be construed to curtail the commissioner's power to issue emergency rules and regulations with the approval and consent of the board.

(3) (A) Any person subject to a cease and desist order issued by the commissioner who refuses or fails to comply with the terms of the order may be assessed a monetary penalty for the failure to comply with the provisions of the cease and desist order after a ten-day notice given by the commissioner to the institution or person subject to the order.

(B) The amount of the monetary penalty shall not exceed one thousand dollars ($1,000) per day of violation against each institution and each officer, director, or employee contributing to the institution's or the individual's failure to comply with the provisions of the cease and desist order.

(C) Subject to such limitation, the amount of the monetary penalty shall be determined by the commissioner.

(4) The commissioner has grounds for and may issue a cease and desist order for the permanent or temporary removal of an officer, director, employee, agent, or any other person participating in the affairs of or otherwise connected with a financial institution, or any affiliate thereof, subject to the supervision of the commissioner from service to any institution or affiliate subject to the supervision of the commissioner if he or she is found by the commissioner to be or to have been:

(A) Violating state or federal law, rules and regulations of a federal financial institution's regulatory agency, or State Bank Department regulations;

(B) Acting incompetently, recklessly, or dishonestly;

(C) Indicted of a crime involving moral turpitude; or

(D) Otherwise impairing the safety and soundness of the financial institution.

(5) (A) Any person aggrieved and directly affected by an order of the commissioner issued pursuant to this section is entitled to judicial review.

(B) A person so aggrieved may seek judicial review by petition to a circuit court having jurisdiction in the matter.

(C) The petition must be filed within thirty (30) days from the date of issuance of the order.

(D) If no petition for review is filed within thirty (30) days from the date of issuance of the order, the order may not be appealed and is permanently binding upon the person until terminated by the commissioner.

(c) State Bank Department regulations shall be distributed, in form and method selected by the commissioner, to all state banks chartered in the State of Arkansas.

(d) In addition to other powers, the commissioner shall have the power and authority to:

(1) Inspect and copy all books, records, and other information relating to the financial institutions he or she regulates;

(2) Restrict withdrawal of deposits from state banks under extraordinary circumstances;

(3) Subpoena witnesses, compel their attendance, require production of evidence, and administer oaths;

(4) Approve or disapprove applications for new state bank charters or branch facilities in connection with failed institutions as provided in 23-48-511;

(5) Approve or disapprove applications for voluntary liquidations as provided in 23-49-119;

(6) Define any term or phrase used in this chapter which is not defined by this chapter;

(7) Issue orders or declaratory statements, disseminate information, and otherwise exercise discretion to effectuate the purposes of this chapter and all laws described in subsection (a) of this section, and to interpret and implement the provisions of those laws consistently with such purposes;

(8) Authorize state banks to engage in any banking activity in which national banks are authorized or may hereafter be authorized by federal legislation or regulations to engage;

(9) Cooperate with federal financial institutions' regulatory agencies;

(10) (A) Perform preemployment state criminal background checks through the Department of Arkansas State Police and preemployment federal criminal background checks through the Federal Bureau of Investigation on all applicants selected for employment as examiners with the State Bank Department.

(B) The federal background check shall include taking fingerprints of the applicant.

(C) The applicant shall sign a release authorizing the Department of Arkansas State Police and the Federal Bureau of Investigation to disclose criminal history information about the applicant to the State Bank Department.

(D) The commissioner shall treat the information as confidential and shall disclose the information only to the applicant; and

(11) Approve and execute on behalf of the State Bank Department:

(A) An agreement issuing bonds under 23-46-202; and

(B) Any documents necessary for issuing bonds under 23-46-202.

(e) (1) As soon as practicable after acceptance of any application referred to either in this chapter or in State Bank Department regulations for filing, regardless of whether the application is of a type referred to in 23-46-403, and receipt of the filing fee therefor, the commissioner shall cause the merits of the application to be investigated.

(2) The investigation shall enable the commissioner to determine the fitness of the applicants and shall address all questions which bear directly or indirectly upon the appropriateness of granting the application and the need from the public standpoint for granting the application.

(3) To the extent that the commissioner deems it appropriate, the scope of the commissioner's investigation of any application may include:

(A) The investigation of those matters described in 23-48-304 pertaining to applications for new state bank charters; and

(B) (i) The performance of state criminal background checks through the Department of Arkansas State Police and federal criminal background checks through the Federal Bureau of Investigation.

(ii) The federal background check shall include the taking of fingerprints.

(iii) The applicant shall sign a release authorizing the Department of Arkansas State Police and the Federal Bureau of Investigation to disclose criminal history information about the applicant to the State Bank Department.

(iv) The commissioner shall treat the information as confidential and shall disclose the information only to the applicant.

(v) The background checks shall be used to determine the applicant's fitness to participate in the affairs of a state bank.

(f) A criminal background check obtained under this section shall be destroyed by the commissioner within six (6) months of the commissioner's receipt of the background check.