§ 19-5-905 — Securities Reserve Fund

Arkansas § 19-5-905

• Jurisdiction: Arkansas
• Title: 19

Text

(a) There is established on the books of the Treasurer of State, the Auditor of State, and the Chief Fiscal Officer of the State a trust fund to be known as the "Securities Reserve Fund". The Securities Reserve Fund shall consist of moneys derived from savings effected in the retirement in advance of maturity of nonhighway direct general obligation bonds of the state, of discounts received in the purchase of securities, and of premiums and interest derived from the sale of securities held in the Securities Account by the Treasurer of State as custodian. The Securities Reserve Fund shall be used as follows: (1) To pay premiums and the purchase and absorbing of discounts in the sale of securities held in the Securities Account, not to exceed five hundred thousand dollars ($500,000) in any one (1) fiscal year; (2) To guarantee bonds in an aggregate principal amount not to exceed five million dollars ($5,000,000) outstanding at any time, with no bond bearing interest at a rate exceeding eight percent (8%) per annum, of the Museum and Cultural Commission Fund authorized, and in the manner prescribed in the Arkansas Museum and Cultural Center Act, § 13-5-301 et seq., not to exceed five hundred thousand dollars ($500,000) in any one (1) fiscal year; (3) To guarantee bonds of any other park or recreation facility approved by the Governor and the Department of Parks, Heritage, and Tourism, not to exceed five hundred thousand dollars ($500,000) in the aggregate, after seeking advice of the Legislative Council and the Legislative Joint Auditing Committee; (4) To guarantee industrial development bonds as authorized by §§ 15-4-702 - 15-4-710 ; (5) To absorb losses incurred in the investing of securities held in the Securities Account in the State Treasury and in bank depositories. The balance of the Securities Reserve Fund shall always be available for this purpose; (6) To guarantee loans to students to attend truck driving school at the Arkansas Commercial Driver Training Institute at Arkansas State University-Newport, in an aggregate principal amount not to exceed four hundred thousand dollars ($400,000) outstanding at any one (1) time; (7) To distribute: (A) Interest income earned on investment of balances of the following: (i) The State Highway and Transportation Department Fund, as authorized by § 27-70-204 ; (ii) The Game Protection Fund, as authorized by § 15-41-110 ; (iii) The funds deposited into the State Treasury by state agencies, boards, and commissions that were previously held as cash funds in a bank depository or investment depository, as authorized by § 19-3-518(d) ; and (iv) State and Local Fiscal Assistance Act of 1972, 31 U.S.C. § 6701 et seq., as authorized by § 19-3-521(c) ; and (B) Interest income earned from investment of State Treasury balances by any other laws enacted by the General Assembly; (8) After the distributions enumerated in subdivision (a)(7) of this section, for a one-time transfer by the Chief Fiscal Officer of the State of one million five hundred thousand dollars ($1,500,000) to the Arkansas Highway Transfer Fund, to be transferred only in Fiscal Year 2017; (9) After the distributions enumerated in subdivisions (a)(7) and (8) of this section, for a transfer by the Chief Fiscal Officer of the State of five million dollars ($5,000,000) each fiscal year to the Budget Stabilization Trust Fund; (10) After the transfer to the Budget Stabilization Trust Fund enumerated in subdivision (a)(9) of this section, for a transfer by the Chief Fiscal Officer of the State of twenty million dollars ($20,000,000) beginning in Fiscal Year 2018 and each fiscal year thereafter to the Arkansas Highway Transfer Fund; (11) For a transfer by the Chief Fiscal Officer of the State on the last business day of the fiscal year to the Budget Stabilization Trust Fund to reimburse the Budget Stabilization Trust Fund for any current fiscal year transfers that have been made to the following: (A) The Division of Correction Farm Fund under § 19-5-501(b)(1) ; (B) The Department of the Military Fund Account under § 19-5-501(b)(3) ; (C) The Disaster Assistance Fund under § 19-5-1006 ; (D) The Miscellaneous Revolving Fund under § 19-5-1009 ; (E) The State Central Services Fund under § 19-5-501(d) ; and (F) The State Board of Election Commissioners, as authorized by law; and (12) After all distributions and transfers under this section, less one hundred thousand dollars ($100,000) under § 19-3-521(a)(2) , for a transfer by the Chief Fiscal Officer of the State on the last business day of the fiscal year of the fund balance to the Catastrophic Reserve Fund. (b) If any loss is sustained in relation to securities at any time held in the Securities Account or in any bank depository and if the credit balance in the Securities Reserve Fund is insufficient to absorb the loss, the Chief Fiscal Officer of the State shall cause a transfer of moneys to be made from the Budget Stabilization Trust Fund to the Securities Reserve Fund in such amount as shall, when added to the credit balance in the Securities Reserve Fund, equal the amount of the loss. It is the intent of the General Assembly that no loss shall be sustained by any account the funds of which were used in making such investments and deposits.

Legislative History

Amended by Act 2021EX2, No. 2,§ 2, eff. 12/9/2021. Amended by Act 2021EX2, No. 1,§ 2, eff. 12/9/2021. Amended by Act 2019, No. 910,§ 986, eff. 7/1/2019. Amended by Act 2017, No. 555,§ 5, eff. 7/1/2017. Amended by Act 2016EX3, No. 1,§ 8, eff. 7/1/2016. Acts 1973, No. 750, § 8; 1975, No. 868, § 14; 1975 (Extended Sess., 1976), No. 1018, § 1; A.S.A. 1947, § 13-531; reen. Acts 1987, No. 860, § 1; 1995, No. 1084, § 1.