This text of Arkansas § 23-37-404 (Branch offices) is published on Counsel Stack Legal Research, covering Arkansas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.
(a)The Supervisor of Savings and Loan Associations in either a protested or an unprotested application shall not approve the application for an association to open a branch unless the association satisfactorily establishes that the volume of business in the proposed service area for the branch office is such as to indicate a successful operation.
(b)An association shall furnish satisfactory evidence to the supervisor that it has opened a branch office for business within one (1) year from:
(1)The date the granting of authority for the opening of the branch office is approved by the Supreme Court if the matter is appealed to the Supreme Court; or (2) The date on which the time period for perfecting an appeal from a decision of the supervisor or a lower court approving the granting of aut
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(a) The Supervisor of Savings and Loan Associations in either a protested or an unprotested application shall not approve the application for an association to open a branch unless the association satisfactorily establishes that the volume of business in the proposed service area for the branch office is such as to indicate a successful operation. (b) An association shall furnish satisfactory evidence to the supervisor that it has opened a branch office for business within one (1) year from: (1) The date the granting of authority for the opening of the branch office is approved by the Supreme Court if the matter is appealed to the Supreme Court; or (2) The date on which the time period for perfecting an appeal from a decision of the supervisor or a lower court approving the granting of authority for opening of the branch office expires. (c) (1) If any association fails to open the branch office for business within the one-year period as required by subsection (b) of this section and the supervisor so finds after notice and hearing, the supervisor shall enter an order cancelling the authority for opening of the branch office for business unless good cause is shown for the failure, in which event the supervisor shall grant a reasonable extension of time for opening the branch office for business, not to exceed one (1) year, to give the association an opportunity to overcome the cause for the delay. (2) (A) Parties other than the affected association shall not be heard regarding any extension of authority for opening a branch office. (B) However, any party that appeared before the supervisor protesting the granting of authority for opening the branch office for business shall be notified upon written request of the determination of the supervisor on the extension request. (d) (1) If any association closes a branch office and the branch office remains closed for one (1) year, the supervisor after notice and hearing shall enter an order cancelling the authority for continued operation of that branch unless good cause is shown for the failure to continue operation. In this event the supervisor shall grant a reasonable extension of time for reopening the branch for business, not to exceed one (1) year. (2) Parties other than the affected association shall not be heard regarding any extension of time to reopen the closed branch. (e) Any association legally chartered by the proper state authority may establish one (1) or more full service branches, provided that its supervisory authority approves, in the following locations: (1) Anywhere within the county in which the establishing savings and loan association's principal office is located; (2) In addition to the provision of subsection (d) of this section, after December 31, 1993, anywhere within any counties contiguous to the county in which its principal office is located; and (3) After December 31, 1998, anywhere within this state. (f) (1) Without regard to the exceptions for location of a branch of an association as provided in this section, an association may purchase the business and assets and assume the liabilities of or merge or consolidate with another association located in any incorporated city or town within this state and operate the acquired association as a branch, provided that a branch shall not be established pursuant to purchase, merger, or consolidation with another association should either association have a de novo charter. (2) (A) As used in this section, "de novo charter" means a charter for an association that has been in existence for less than ten (10) years. (B) However, a de novo charter does not include a charter that is issued in connection with the acquisition of assets and liabilities from a predecessor financial institution that is acquired through federal or state regulatory action. (g) Nothing contained in this section shall be construed to prevent any association from retaining branch locations, wherever located, in operation prior to June 30, 1988.