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Arkansas Code Title 2. Agriculture § 2-17-226. Warehousemen grain delivery responsibilities

Current as of March 28, 2024 | Updated by Findlaw Staff

(a)(1) It shall be the duty of the public grain warehouseman to deliver grain to the holder of a warehouse receipt within ten (10) days of the demand for the redemption of the receipt if no lawful excuse for not delivering the grain exists.

(2)(A) In the event the public grain warehouseman fails to deliver grain to the holder of a warehouse receipt within ten (10) days of the demand, the holder of the warehouse receipt may make demand of the surety for payment under the bond.

(B)(i) The surety has the responsibility to pay within fifteen (15) days following receipt by the surety of the notice of the demand for redemption.

(ii) Any holder of a warehouse receipt issued by a public grain warehouseman who had made demand for redemption of the receipt, which demand was, without lawful excuse, not satisfied within ten (10) days, shall notify the Public Grain Warehouse Commissioner in writing. The holder of the receipt shall have the right to bring action against the public grain warehouseman and the surety on the public grain warehouseman's bond for payment of the market value of the grain represented by the warehouse receipt. The market value shall be determined as of the date of the demand, plus legal interest accrued from the date of the demand.

(3)(A) In the event the public grain warehouseman is a self-insurer as provided in § 2-17-209, the holder of a warehouse receipt shall have the right to bring action against the public grain warehouseman to the extent of the amount posted in lieu of the bond.

(B)(i) The commissioner shall pay to the holder of the warehouse receipt, to the extent of the bond posted, any judgment obtained by the holder of a warehouse receipt against a self-insurer.

(ii) The commissioner may also pay to the holder of a warehouse receipt the amount of the market value of the grain if the public grain warehouseman agrees to the payment.

(4) The license of the public grain warehouseman shall be suspended upon the payment until such time as the warehouseman posts a bond under this subchapter or posts with the commissioner a sum equivalent to that paid by the commissioner on behalf of the warehouseman.

(b)(1) In all actions in which judgment is rendered against any surety company under the provisions of this section, if it appears from evidence that the surety company has willfully and without just cause refused to pay the loss upon demand, the court, in rendering judgment, shall allow the plaintiff the amount of the plaintiff's expenses, including court costs and attorney's fees, to be recovered and collected as part of the costs.

(2) The amount of any payment of costs and attorney's fees under this subsection will not reduce the surety's liability on its bond.

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Cite this article: FindLaw.com - Arkansas Code Title 2. Agriculture § 2-17-226. Warehousemen grain delivery responsibilities - last updated March 28, 2024 | https://codes.findlaw.com/ar/title-2-agriculture/ar-code-sect-2-17-226/

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