§ 15-5-1104 — Contracts with financial institutions - Contents of contract

Arkansas § 15-5-1104

• Jurisdiction: Arkansas
• Title: 15

Text

(a) The Arkansas Development Finance Authority may contract with a financial institution for the purpose of allowing the financial institution to participate in the Arkansas Capital Access Program for Small Business or the Arkansas Credit Reserve Program. (b) A contract between the authority and a financial institution under this section shall provide: (1) For the creation of a loss reserve account by the authority for the benefit of the financial institution; (2) That the financial institution, a qualified business, and the authority will deposit moneys to the credit of the financial institution's loss reserve account when the financial institution makes a qualified loan to the qualified business; (3) That the authority will pay moneys in the loss reserve account, not exceeding an amount equal to the total amount credited to the loss reserve account, to the financial institution to reimburse the financial institution for any financial loss incurred as a result of any qualified loan made under the Arkansas Capital Access Program for Small Business or the Arkansas Credit Reserve Program; (4) That the liability of the authority to the financial institution under the contract is limited to the amount of money credited to the loss reserve account of the financial institution; and (5) For such other terms as the authority may require.

Legislative History

Amended by Act 2013, No. 1222,§ 1, eff. 8/16/2013. Acts 1993, No. 733, § 4; 1993, No. 886, § 4.