AR SB242

State banks may acquire loans secured by their own stock or bank holding company stock when merging with a target institution (including other state banks, out-of-state banks, national banks, or other depository institutions)

Acquired loans secured by the bank's own stock may be maintained, renewed, extended, modified, or refinanced if the committed amount is not increased and credit underwriting standards remain at least as stringent as comparable transactions

State banks may make loans secured by securities accounts containing the bank's stock if the bank maintains written policies excluding its own stock from credit underwriting consideration and complies with applicable exemptions under § 23-48-316(b)(3)

Officers, directors, or stockholders violating these provisions face civil penalties of $1,000 per day, up to $100,000 maximum per violation, imposed through cease and desist order procedures

Banks may still acquire their own stock when collecting on debts previously contracted in good faith, provided they complied with lending restrictions at loan origination and divest the stock within two years