Arkansas § 23-47-505 Illegal loans - Liability of officer or director

Arkansas Statutes

§ 23-47-505 — Illegal loans - Liability of officer or director

Arkansas § 23-47-505

Title23

This text of Arkansas § 23-47-505 (Illegal loans - Liability of officer or director) 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.

Bluebook

Ark. Code Ann. § 23-47-505 (2026).

Text

Any officer or director of any state bank who shall knowingly make or approve a loan in violation of §§ 23-47-501 - 23-47-504 or who shall knowingly permit such a loan to be made, or who shall fail to exercise his or her authority to prevent the making of the loan shall be personally liable to the bank, or to the Bank Commissioner, for the full amount thereof. However, written notice of disapproval of the loan, served on the board of directors and also the commissioner at the time the making or existence of the loan first comes to his or her knowledge, shall relieve any officer or director from personal liability.

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Any officer or director of any state bank who shall knowingly make or approve a loan in violation of §§ 23-47-501 - 23-47-504 or who shall knowingly permit such a loan to be made, or who shall fail to exercise his or her authority to prevent the making of the loan shall be personally liable to the bank, or to the Bank Commissioner, for the full amount thereof. However, written notice of disapproval of the loan, served on the board of directors and also the commissioner at the time the making or existence of the loan first comes to his or her knowledge, shall relieve any officer or director from personal liability.