§ 23-50-102 - Forfeiture of charter. - Arkansas Statutes

23-50-102. Forfeiture of charter.

(a) (1) If the directors of any institution under the supervision of the State Bank Department shall knowingly violate or knowingly permit any of its officers, agents, or servants to violate any of the laws enacted for the regulation of any such institutions or any department regulations, all rights, privileges, and franchises of the institution shall be subject to forfeiture.

(2) (A) Any violation shall, however, be determined in the first instance by the Bank Commissioner, after notice to the institution of not less than five (5) days, and after hearing thereon, and subject to appeal by the institution to the chancery court of the county wherein the institution has its main office.

(B) Any appeal shall be cognizable and subject to hearing by the chancery court, either in term time or in vacation, at chambers, upon five (5) days' notice of the taking of the appeal and of the time and place for the hearing.

(b) (1) Upon rendition of any decision adverse to any institution, the commissioner shall be authorized, in his discretion, to take charge of the institution and manage and supervise the business thereof, pending any appeal that may be taken from the decision or orders.

(2) Upon affirmance by the chancery court of the decision or orders appealed from, the commissioner shall be authorized to continue supervision, or to suspend the charter, of the institution, pending compliance with the decision or orders.

(3) If the decision or orders are not complied with in the case of a state bank or subsidiary trust company within a reasonable time to be fixed by the commissioner, the department shall proceed to liquidate the business and assets of the state bank or subsidiary trust company in the same manner as is provided in the case of insolvent state banks.