Arkansas § 2-32-402 - Definitions.

§ 2-32-402. Definitions.

As used in this subchapter: “Affiliate” means a person that: Is directly or indirectly controlled by a first purchaser; or Directly or indirectly controls a first purchaser; “Agreement to sell” means an enforceable oral or written agreement by which a livestock owner, either directly or through a sales agent, agrees to sell livestock to a first purchaser; “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; “First purchaser” means the first person that purchases livestock, either directly or indirectly through a sales agent, under an agreement to sell; “Livestock” means cattle, bison, horses, sheep, goats, asses, mules, swine, domesticated rabbits, chickens, turkeys, and other domesticated animals raised primarily for human food consumption; “Livestock owner” means a person owning an interest in livestock before the acquisition of the livestock by a first purchaser; “Owner's lender” means a person that has a valid mortgage lien or security interest in a livestock owner's livestock at the time the livestock is delivered to the first purchaser; “Owner's lien” means a lien granted under this subchapter; “Permitted lien” means the following liens or security interests: A mortgage lien or security interest granted by a first purchaser that: Secures payment under a written instrument of indebtedness signed by the first purchaser and accepted in writing by the payee before August 16, 2013; and Has a principal amount and a fixed maturity stated in the mortgage lien or security interest; and A validly perfected and enforceable lien created by statute in relation to livestock purchased under an agreement to sell that secures payment of indebtedness incurred by the first purchaser before August 16, 2013. “Permitted lien” does not include a mortgage lien or security interest that: Secures payment under a written instrument of indebtedness that is modified, amended, or restated from or after August 16, 2013, by a modification, amendment, or restatement that increases the principal amount that is owed on August 16, 2013; Secures payment under a written instrument of indebtedness that is modified, amended, or restated from or after August 16, 2013, by a modification, amendment, or restatement that extends the stated maturity of the written instrument of indebtedness that is in effect on August 16, 2013; or 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; “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; “Proceeds” means: A right or amount paid or to be paid in consideration of or as a consequence of the sale of livestock, including without limitation cash proceeds, accounts, chattel paper, instruments, and payment intangibles; A by-product from the slaughter of livestock; and 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 slaughter of livestock; “Purchaser” means a person that: Is not an affiliate of a first purchaser; and Takes, receives, or purchases livestock from a first purchaser; “Sales agent” means a person that is authorized to sell livestock on behalf of or for the benefit of another person. “Sales agent” includes without limitation a livestock auction, auctioneer, commission company, or broker; and “Sales price” means the amount a first purchaser agrees to pay a livestock owner or a sales agent under an agreement to sell.