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16-120-606. Adjustment. [Effective January 1, 2020.]
Arkansas Code — all titles (historical 2020) · legal_authorities
16-120-606. Adjustment. [Effective January 1, 2020.]
(a) Except as provided in subsections (b)-(d) of this section, the fair market value of total gross assets at the time of the merger or consolidation shall increase annually at a rate equal to the sum of:
(1) The prime rate as listed in the first edition of the Wall Street Journal published for each calendar year since the merger or consolidation unless the prime rate is not published in that edition of the Wall Street Journal, in which case any reasonable determination of the prime rate on the first day of the year may be used; and
(2) One percent (1%).
(b) The rate under subsection (a) of this section shall not be compounded.
(c) The adjustment of the fair market value of total gross assets shall continue as provided in subsection (a) of this section until the date the adjusted value is first exceeded by the cumulative amounts of successor asbestos-related liabilities paid or committed to be paid by or on behalf of the successor or a predecessor or by or on behalf of a transferor after the time of the merger or consolidation for which the fair market value of total gross assets is determined.
(d) An adjustment of the fair market value of total gross assets shall not be applied to liability insurance that may be included in the definition of total gross assets by § 16-120-605(c).
Source: Arkansas Code — historical release 78 (November 6, 2020) · 16-120-606
Stored review status: Historical 2020-11-06 source release; later amendments not reconciled; machine-extracted, not independently legally reviewed; source heading status: text_in_historical_source. A text match is a research starting point; applicability is not established.
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Stable record: arkansas_code:legal_authorities:16-120-606
Source file: gov.ar.code.title.16.odt
Pages: Not recorded – Not recorded
Passage SHA-256: 8a34b253585017c3c4199c44a916426802725d0d16bed1c7314ce1873307b24c
Source location: content.xml paragraph 49055
Stored source content
16-120-606. Adjustment. [Effective January 1, 2020.]
(a) Except as provided in subsections (b)-(d) of this section, the fair market value of total gross assets at the time of the merger or consolidation shall increase annually at a rate equal to the sum of:
(1) The prime rate as listed in the first edition of the Wall Street Journal published for each calendar year since the merger or consolidation unless the prime rate is not published in that edition of the Wall Street Journal, in which case any reasonable determination of the prime rate on the first day of the year may be used; and
(2) One percent (1%).
(b) The rate under subsection (a) of this section shall not be compounded.
(c) The adjustment of the fair market value of total gross assets shall continue as provided in subsection (a) of this section until the date the adjusted value is first exceeded by the cumulative amounts of successor asbestos-related liabilities paid or committed to be paid by or on behalf of the successor or a predecessor or by or on behalf of a transferor after the time of the merger or consolidation for which the fair market value of total gross assets is determined.
(d) An adjustment of the fair market value of total gross assets shall not be applied to liability insurance that may be included in the definition of total gross assets by § 16-120-605(c).
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Arkansas Code — all titles (historical 2020) · legal_authorities
16-120-605. Establishing fair market value of total gross assets. [Effective January 1, 2020.]
(a) A successor may establish the fair market value of total gross assets for the purpose of § 16-120-604 through any method reasonable under the circumstances, including:
(1) By reference to the growing concern value of the assets or to the purchase price attributable to or paid for the assets in an arm's-length transaction; or
(2) In the absence of other readily available information from which the fair market value can be determined, by reference to the value of the assets recorded on a balance sheet.
(b) Total gross assets under subsection (a) of this section include intangible assets.
(c)(1) To the extent total gross assets include any liability insurance that was issued to the transferor whose assets are being valued for purposes of this section, the applicability, terms, conditions, and limits of the insurance shall not be affected by this section nor shall this section otherwise affect the rights and obligations of an insurer, transferor, or successor under an insurance contract or any related agreements, including without limitation preenactment settlements resolving coverage-related disputes and the rights of an insurer to:
(A) Seek payment for:
(i) Applicable deductibles;
(ii) Retrospective premiums; or
(iii) Self-insured retentions; or
(B) Seek contribution from a successor for uninsured or self-insured periods or periods where insurance is uncollectible or otherwise unavailable.
(2) Without limiting subdivision (c)(1)(A) of this section, to the extent total gross assets include any liability insurance, a settlement of a dispute concerning any liability insurance coverage entered into by a transferor or successor with the insurers of the trans
Source: Arkansas Code — historical release 78 (November 6, 2020) · 16-120-605
Stored review status: Historical 2020-11-06 source release; later amendments not reconciled; machine-extracted, not independently legally reviewed; source heading status: text_in_historical_source. The source passage cites 16-120-605. This identifies an authority to review, not proof of applicability.