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Ark. Code Ann. § 4-37-608

Application of § 4-37-404 after merger

Known as the Uniform Protected Series Act

The act spans §§ 4–4 (43 sections).

Acts 2019, No. 665, § 1.

(1) A creditor's right that existed under § 4-37-404 immediately before a merger under § 4-37-604 may be enforced after the merger in accordance with the following rules: A creditor's right that existed immediately before the merger against the surviving company, a continuing protected series, or a relocated protected series continues without change after the merger.

(2) A creditor's right that existed immediately before the merger against a nonsurviving company: may be asserted against an asset of the non-surviving company which vested in the surviving company as a result of the merger; and

(3) does not otherwise change.

(4) Subject to subsection (b), the following rules apply: In addition to the remedy stated in subdivision (a)(1), a creditor with a right under § 4-37-404 which existed immediately before the merger against a non-surviving company or a relocated protected series may assert the right against: an asset of the surviving company, other than an asset of the non-surviving company which vested in the surviving company as a result of the merger;

(5) an asset of a continuing protected series; or

(6) an asset of a protected series established by the surviving company as a result of the merger;

(7) if the creditor's right was against an asset of the non-surviving company, an asset of a relocated series; or

(8) if the creditor's right was against an asset of a relocated protected series, an asset of another relocated protected series.

(9) In addition to the remedy stated in subdivision (a)(2), a creditor with a right that existed immediately before the merger against the surviving company or a continuing protected series may assert the right against: an asset of a relocated protected series; or

(10) an asset of a non-surviving company which vested in the surviving company as a result of the merger.

(11) For the purposes of subdivision (a)(3) and § 4-37-404(b)(1)(A), § 4-37-404(b)(2)(A), and § 4-37-404(b)(3)(A), the incurrence date is deemed be the date on which the merger becomes effective.

(12) A merger under § 4-37-604 does not affect the manner in which § 4-37-404 applies to a liability incurred after the merger.

Current official text: Arkansas General Assembly. Digitized from the UniCourt Code Improvement Commission public-domain capture. Reproduced from public-domain Arkansas statutes; confirm against the official source for the current text. Not legal advice.