HB1393 Summary

• Amends Arkansas Code § 19-8-107 to restructure depository agreement requirements, consolidating provisions regarding designation of banks, security agreements, and collateral requirements into standardized forms provided by the State Board of Finance

• Requires depository boards and banks to comply with federal law to ensure governmental entities maintain valid claims in deposits and collateral, preventing avoidance by the Federal Deposit Insurance Corporation or successor agencies

• Mandates that security for public fund deposits take the form of demand deposits, savings deposits, or time deposits for amounts not fully insured by the United States

• Requires county officials to make timely deposits and investments of public funds to earn optimum interest consistent with the prudent investor rule as defined by Arkansas law

• Extends the deadline for county officers, deputies, and employees to deposit collected fees, fines, penalties, and other moneys with the county treasurer from five (5) days to ten (10) days after the first day of each month