AR HB1586

Modifies municipal depository board composition to allow the city council to replace one of the three board members (mayor, city clerk/recorder, or city council member) with a city finance officer or other official.

Requires depository agreements to use standardized forms provided by the State Board of Finance that create an enforceable perfected security interest in collateral for deposits.

Specifies that depository agreements and banks must comply with federal law to protect governmental entities' claims in deposits and collateral against the Federal Deposit Insurance Corporation or successor agencies acting as receiver or conservator.

Extends security requirements for public fund deposits to both county and municipal officials for amounts not fully insured by the United States, requiring eligible securities under specified statutes.

Clarifies that public officials may require financial data (including quarterly statements and capital-to-assets ratios) as a condition for placing or keeping deposits with banks.