(a) A bank depository that refuses to cash upon presentation by the payee within thirty (30) days of issuance a state warrant of five hundred dollars ($500) or less drawn upon the State Treasury or a bank check of five hundred dollars ($500) or less issued by a state agency shall: (1) Be discontinued immediately as a bank depository; and(2) For a period of time determined by the State Board of Finance, be ineligible for reinstatement as a bank depository.(b) This section does not prevent a bank depository from: (1) Taking a reasonable time to make proper identification of the persons and signatures of payees named in warrants or checks; or(2) Seeking indemnification for losses from cashing warrants or checks for persons other than the payees named in the warrants or checks.Amended by Act 2013, No. 1088,§ 2, eff. 8/16/2013.Acts 1997, No. 847, § 1.
Arkansas Legal Code