§ 28-66-113 — Investments

Arkansas § 28-66-113

• Jurisdiction: Arkansas
• Title: 28

Text

(a) (1) A guardian shall invest the surplus funds of his or her ward's estate in securities or property as authorized under the laws of this state but only upon prior order of the court. (2) However, a guardian may invest surplus funds without prior court authorization in: (A) Direct unconditional interest-bearing obligations of this state or of the United States; (B) Obligations where the interest and principal are unconditionally guaranteed by the United States; (C) Bonds issued by a school district in this state; (D) Notes, bonds, debentures, or other similar obligations issued by a federal land bank, a federal intermediate credit bank, a bank for a cooperative, or any other obligation issued under the Farm Credit Act of 1971, 12 U.S.C. § 2001 et seq., as it existed on January 1, 2019; (E) Bonds issued by a national mortgage association; (F) (i) A certificate of deposit or another interest-bearing deposit account of a bank domiciled in this state that is insured by the Federal Deposit Insurance Corporation. (ii) However, an investment in a certificate of deposit or an interest-bearing deposit account shall not exceed the amount insured; or (G) (i) Shares, share certificates, share accounts, or accounts of a: (a) Building and loan association organized under the laws of this state; (b) Federal savings and loan association domiciled in this state and insured by the Savings Association Insurance Fund; or (c) (1) Credit union in this state for eligible members that is insured by the National Credit Union Administration. (2) Subdivision (a)(2)(G)(i) (c)(1) of this section does not expand the field of membership of a credit union. (ii) However, an investment in shares, share certificates, share accounts, or accounts listed in subdivision (a)(2)(G)(i) of this section shall not exceed the amount insured. (b) A signed duplicate or certified copy of the petition for authority to invest shall be furnished to the proper office of the United States Department of Veterans Affairs and a notice of hearing shall be given to the office for a hearing on a guardian's account. (c) If a guardian of the estate is a state or national bank or trust company authorized by provisions of §§ 28-69-201 - 28-69-204 to establish and maintain common trust funds, the guardian may invest the ward's funds without prior order of the court in: (1) Participation in the common trust funds if they have been established and maintained by the guardian; (2) Shares, securities or other interests of any open-end or closed-end management-type investment company or investment trust registered under the Investment Company Act of 1940, 15 U.S.C. § 80a-1 et seq., as it existed on January 1, 2015; or (3) An exchange-traded fund listed on a national securities exchange.

Legislative History

Amended by Act 2019, No. 591,§ 2, eff. 7/24/2019. Amended by Act 2015, No. 1129,§ 3, eff. 7/22/2015. Acts 1943, No. 177, § 13; 1961, No. 36, § 1; A.S.A. 1947, § 57-513.