Ark. Code § 2-15-302

Current with legislation from 2024 effective through May 3, 2024.

Section 2-15-302 - Definitions

As used in this subchapter:

(1) "Affiliate" means a person that:

(A) Is directly or indirectly controlled by a first purchaser; or

(B) Directly or indirectly controls a first purchaser;

(2) "Agreement to sell" means an enforceable oral or written agreement by which a grain, soybean, or peanut owner, either directly or through a sales agent, agrees to sell grain, soybeans, or peanuts to a first purchaser;

(3) "Control" or "controlled by" means the direct or indirect possession of the power to direct or cause the direction of the management and policies of a person through ownership, by contract, or otherwise;

(4) "First purchaser" means the first person that purchases grain, soybeans, or peanuts, either directly or indirectly through a sales agent, under an agreement to sell;

(5) "Grain, soybean, or peanut owner" means a person owning an interest in grain, soybeans, or peanuts before the acquisition of the grain, soybeans, or peanuts by a first purchaser;

(6) "Owner's lender" means a person that has a valid mortgage lien or security interest in a grain, soybean, or peanut owner's grain, soybeans, or peanuts at the time the grain, soybeans, or peanuts are delivered to the first purchaser;

(7) "Owner's lien" means a lien granted under this subchapter;

(8)

(A) "Permitted lien" means the following liens or security interests:

(i) A mortgage lien or security interest granted by a first purchaser that:

(a) Secures payment under a written instrument of indebtedness signed by the first purchaser and accepted in writing by the payee before July 22, 2015; and

(b) Has a principal amount and a fixed maturity stated in the mortgage lien or security interest; and

(ii) A validly perfected and enforceable lien created by statute in relation to grain, soybeans, or peanuts purchased under an agreement to sell that secures payment of indebtedness incurred by the first purchaser before July 22, 2015.

(B) "Permitted lien" does not include a mortgage lien or security interest that:

(i) Secures payment under a written instrument of indebtedness that is modified, amended, or restated from or after July 22, 2015, by a modification, amendment, or restatement that increases the principal amount that is owed on July 22, 2015;

(ii) Secures payment under a written instrument of indebtedness that is modified, amended, or restated from or after July 22, 2015, by a modification, amendment, or restatement that extends the stated maturity of the written instrument of indebtedness that is in effect on July 22, 2015; or

(iii) Is not validly perfected with a first priority against the claims of all persons under applicable law other than a person holding a statutory or regulatory lien as to which first priority is granted by statute or rule;

(9) "Person" means an individual or business entity, including without limitation an executor, administrator, estate, agent, trust, trustee, institution, receiver, business trust, firm, corporation, partnership, limited liability company, cooperative, joint venture, governmental entity or agency, association, and any other legal entity;

(10) "Proceeds" means:

(A) A right or amount paid or to be paid in consideration of or as a consequence of the sale of grain, soybeans, or peanuts, including without limitation cash proceeds, accounts, chattel paper, instruments, and payment intangibles;

(B) A by-product from the processing of grain, soybeans, or peanuts; and

(C) A right or amount paid or to be paid in consideration of or as a consequence of the sale of a by-product from the processing of grain, soybeans, or peanuts;

(11) "Purchaser" means a person that:

(A) Is not an affiliate of a first purchaser; and

(B) Takes, receives, or purchases grain, soybeans, or peanuts from a first purchaser;

(12) "Sales agent" means a person that is authorized to sell grain, soybeans, or peanuts on behalf of or for the benefit of another person; and

(13) "Sales price" means the amount a first purchaser agrees to pay a grain, soybean, or peanut owner or a sales agent under an agreement to sell.

Ark. Code § 2-15-302

Amended by Act 2019, No. 315,§ 7, eff. 7/24/2019.

Added by Act 2015, No. 1082,§ 1, eff. 7/22/2015.