AR SB535

Amends Arkansas Code § 19-8-111(a) to allow state and local governments and trusts created under the Local Government Joint Investment Trust Act to invest public funds in certificates of deposit through eligible banks.

Requires each certificate of deposit to be insured by the Federal Deposit Insurance Corporation for 100% of the principal and accrued interest.

Mandates that the eligible bank act as custodian, maintaining segregated records of all certificates of deposit and ensuring proper care and documentation of each custodial account.

Requires that at the time funds are deposited, the bank must receive deposits from other financial institutions' customers equal to or greater than the amount invested by the state or local government.

Declares an emergency, making the act effective upon the Governor's approval, expiration of the veto period, or override of a gubernatorial veto.