Opinion No.

The Honorable David M. Haak State Representative 9 Wood Place Texarkana, AR 71854-3333

Dear Representative Haak:

This is in response to your request for an opinion on the following question:

Can school districts hold their money in financial institutions such as investment brokerage firms, credit unions or savings and loans?

RESPONSE

It appears that the answer to this question is "no" under current law.1

Arkansas Code Annotated § 19-8-104 (Repl. 1998) states that "[e]xcept as provided in subsections (b) and (c) of this section, all public funds asdefined in § 19-8-101 shall be deposited in banks…