(1) Except as provided in subsection (b) of this section, all public funds as defined in § 19-8-101 shall be deposited into banks located in the state.
(2) A school district may seek a hardship waiver from the Legislative Joint Auditing Committee from this section and deposit public funds into an out-of-state bank if: The school district is designated as an isolated school district under §§ 6-20-601 and 6-20-602;
(3) The school district lies on the borders of the state line;
(4) The nearest Arkansas bank is located at least eighteen (18) miles from the administrative offices of the district;
(5) The administrative offices of the district are located within six (6) miles from an out-of-state bank; and
(6) The out-of-state bank meets all other requirements concerning collateralization of state funds.