Ark. Code Ann. § 4-7-207
Goods must be kept separate — Fungible goods
- Unless the warehouse receipt provides otherwise, a warehouse shall keep separate the goods covered by each receipt so as to permit at all times identification and delivery of those goods. However, different lots of fungible goods may be commingled.
- If different lots of fungible goods are commingled, the goods are owned in common by the persons entitled thereto and the warehouse is severally liable to each owner for that owner's share. If, because of overissue, a mass of fungible goods is insufficient to meet all the receipts the warehouse has issued against it, the persons entitled include all holders to which overissued receipts have been duly negotiated.
History. Acts 2007, No. 342, § 1.
Case Notes
In General.
This section establishes ownership priorities in fungible goods where the claims of ownership exceed the amount of available goods. It clearly states that all owners of commingled fungible goods are tenants in common and share pro rata in any distribution of grain when there is a shortage. In re Bearhouse, Inc., 84 B.R. 552 (Bankr. W.D. Ark. 1988).
Notes of Decisions
Cited in 2
cases, 1988–1995 · leading case: Farmers Rice Milling Co. v. Hawkins (In Re Bearhouse, Inc.)
Farmers Rice Milling Co. v. Hawkins (In Re Bearhouse, Inc.) (1988)
“V PRIORITIES OF ALL CLAIMANTS TO RICE SOLD BY TRUSTEE Since there is a shortage of rice to cover the claims of ownership, the priority of claims of ownership in the available rice proceeds is governed by A.C.A. § 4-7-207(2) (1987) which provides as follows: Fungible goods so…”
In Re Childress (1995)
“In Bearhouse the bankruptcy court determined that under Arkansas law, farmers who produced grain stored by the debtor-warehouseman did not have priority over the warehouseman’s creditor who held *554 warehouse receipts as collateral for preexisting loans and ordered pro rata…”
— Ark. Code Ann. § 4-7-207(2) — 2 cases
Farmers Rice Milling Co. v. Hawkins (In Re Bearhouse, Inc.) (1988)
“V PRIORITIES OF ALL CLAIMANTS TO RICE SOLD BY TRUSTEE Since there is a shortage of rice to cover the claims of ownership, the priority of claims of ownership in the available rice proceeds is governed by A.C.A. § 4-7-207(2) (1987) which provides as follows: Fungible goods so…”
In Re Childress (1995)
“In Bearhouse the bankruptcy court determined that under Arkansas law, farmers who produced grain stored by the debtor-warehouseman did not have priority over the warehouseman’s creditor who held *554 warehouse receipts as collateral for preexisting loans and ordered pro rata…”
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