1. (a) The Arkansas Banking Code imposes no restriction upon a bank's borrowing power except the issuance of capital notes.
2. (b) Excessive borrowing by a bank can affect its capital adequacy and may subject the bank to administrative action by the Bank Commissioner.
3. (c) Except in the case of capital notes, borrowing by a bank does not require prior approval by the commissioner.

Codification Notes: This section was promulgated as Section 47-101.8 of the State Bank Department Rules prior to codification into the Code of Arkansas Rules. This section as promulgated prior to codification into the Code of Arkansas Rules provided as follows: "(Reference A.C.A. § 23-47-101)"