Act l03 of l985 How should consideration of each class of applications be made in determining which prospective bidders for a failed institution should prevail? Can an acquiring bank located outside the county in which the failed bank is located acquire the failed institution according to

STEVE CLARK ATTORNEY GENERAL STATE OF ARKANSAS OFFICE OF THE ATTORNEY GENERAL oS JUSTICE BUILDING, LITTLE ROCK 72201 OPINION NO. 85-120 May 28, 1985 ; i Marlin Jackson Bank Commissioner One Capitol Mall - 6D305 Little Rock, Arkansas 72201 Dear Commissioner Jackson: This is in response to your request for an opinion regarding Ark. Stat. Ann. § 67-2114(c). . Saws Your first question is: How should consideration of each class of applications be made in determining which prosective bidders for a failed institution should prevail? Opinion #85-51, a copy of which is enclosed, addresses the application of the priorities set forth in §67-2114(c). Your next question is: Whether an acquiring bank located outside the county in which a failed bank is located may acquire the failed institution according to Ark. Stat. §67-2114 and operate the failed institituion as a branch of the acquiring institution? The provisions of Ark. Stat. Ann. §67-2114 apply only to emergency situations where there is a necessity to transfer the assets of a bank on a very rapid basis. These provisions may conflict with other provisions of the State Banking Law but should prevail because of the emergency situation involved in such a transfer. Accordingly, while a bank cannot in ordinary situations establish a branch outside the county where its main office fis located, Ark. Stat. Ann. §67-360(d), a reasonable inter- pretation of §67-2114 appears to permit the operation of a (501) 371-2007 Marlin Jackson May 28, 1985 Page 2 failed institution as a branch of a bank located in another county. Such a construction should be in the public interest by improving the terms of bids for the failed bank and does not conflict with §67-360(d) which is limited to establish-~ ment of branches in the ordinary course of busgness. This intent in §67-360 is further demonstrated by its” 1985 amend- ment in Act 103 which permits branches outside the county where the facility to be operated as a branch was formerly a bank and which was closed by order of the State-Banking Commission or Comptroller of the Currency. This opinion, which I hereby approve, was prepared by Assistant Attorney General Thomas S. Gay. Sincgrely, Attorney General JSC: TSG:jk