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28-42-108. Payment of claims — Insolvent estates.
Arkansas Code — all titles (historical 2020) · legal_authorities
28-42-108. Payment of claims — Insolvent estates.
(a)Equality Subject to Preferences and Security.
(1) If the estate, either in this state or as a whole, is insolvent, it shall be disposed of so that, as far as possible, each creditor whose claim has been allowed, either in this state or elsewhere, shall receive an equal proportion of his or her claim, subject to preferences and priorities and to any security which a creditor has as to particular assets.
(2) If a preference or priority is allowed in another jurisdiction but not in this state, the creditor so benefited shall receive dividends from local assets only upon the balance of his or her claim after deducting the amount of the benefit.
(3) The validity and effect of any security held in this state shall be determined by the law of this state, but a secured creditor who has not released or surrendered his or her security shall be entitled only to a proportion computed upon the balance due after the value of all security not exempt from the claims of unsecured creditors is determined and credited upon the claim secured by it.
(b)Procedure.
(1) In case of insolvency and if local assets permit, each claim allowed in this state shall be paid its proportion, and any balance of assets shall be disposed of in accordance with § 28-42-109.
(2) If local assets are not sufficient to pay all claims allowed in this state the full amount to which they are entitled under this section, local assets shall be marshaled so that each claim allowed in this state shall be paid its proportion as far as possible, after taking into account all dividends on claims allowed in this state from assets in other jurisdictions.
Source: Arkansas Code — historical release 78 (November 6, 2020) · 28-42-108
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:28-42-108
Source file: gov.ar.code.title.28.odt
Pages: Not recorded – Not recorded
Passage SHA-256: 07815ad5c017474c4eda09a6a39063a6cb16b1c0296be492a5f0b1fa73d57d9f
Source location: content.xml paragraph 4948
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28-42-108. Payment of claims — Insolvent estates.
(a)Equality Subject to Preferences and Security.
(1) If the estate, either in this state or as a whole, is insolvent, it shall be disposed of so that, as far as possible, each creditor whose claim has been allowed, either in this state or elsewhere, shall receive an equal proportion of his or her claim, subject to preferences and priorities and to any security which a creditor has as to particular assets.
(2) If a preference or priority is allowed in another jurisdiction but not in this state, the creditor so benefited shall receive dividends from local assets only upon the balance of his or her claim after deducting the amount of the benefit.
(3) The validity and effect of any security held in this state shall be determined by the law of this state, but a secured creditor who has not released or surrendered his or her security shall be entitled only to a proportion computed upon the balance due after the value of all security not exempt from the claims of unsecured creditors is determined and credited upon the claim secured by it.
(b)Procedure.
(1) In case of insolvency and if local assets permit, each claim allowed in this state shall be paid its proportion, and any balance of assets shall be disposed of in accordance with § 28-42-109.
(2) If local assets are not sufficient to pay all claims allowed in this state the full amount to which they are entitled under this section, local assets shall be marshaled so that each claim allowed in this state shall be paid its proportion as far as possible, after taking into account all dividends on claims allowed in this state from assets in other jurisdictions.
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Arkansas Code — all titles (historical 2020) · legal_authorities
28-42-109. Transfer of residue to domiciliary personal representative.
(a)(1) Any movable assets remaining in the hands of the ancillary personal representative after the payment of all claims allowed in this state may by the court be ordered transferred to the personal representative in the domiciliary jurisdiction.
(2) This transfer may be conditioned upon satisfactory evidence being furnished to the court that the domiciliary personal representative has given bond sufficient for the protection of the estate and persons interested in the estate with respect to the property so transferred.
(b) Upon good cause shown, the court may order the sale of local assets by the ancillary personal representative for the purpose of transmitting the proceeds to the domiciliary personal representative.
Source: Arkansas Code — historical release 78 (November 6, 2020) · 28-42-109
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 28-42-109. This identifies an authority to review, not proof of applicability.