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Simple English definitions for legal terms

Arkansas rule

Read a random definition: longa manu

A quick definition of Arkansas rule:

Arkansas rule: When someone borrows money and puts up something valuable as collateral, like a car or a house, the thing they put up is assumed to be worth at least as much as the amount they borrowed. If the lender wants to take the collateral and sell it to get their money back, they have to prove that the thing they're selling isn't worth enough to cover the loan. This is called the Arkansas rule.

A more thorough explanation:

ARKANSAS RULE

The Arkansas rule is a principle in secured transactions that states that the collateral used to secure a loan is assumed to be worth at least as much as the loan's balance. The creditor has the responsibility to prove that selling the collateral would not satisfy the loan amount.

For instance, if a borrower takes out a loan of $10,000 and uses their car as collateral, the Arkansas rule assumes that the car is worth at least $10,000. If the borrower defaults on the loan, the creditor must prove that selling the car would not cover the loan amount.

Another example is if a business takes out a loan and uses their inventory as collateral. The Arkansas rule assumes that the inventory is worth at least the amount of the loan. If the business defaults on the loan, the creditor must prove that selling the inventory would not cover the loan amount.

These examples illustrate how the Arkansas rule protects borrowers by ensuring that creditors cannot take advantage of them by undervaluing their collateral. It also places the burden of proof on the creditor to show that the collateral is not worth the loan amount.

aristodemocracy | arma

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MIAMI A
[] AromaticTroubledDormouse
20:55
How does one know if they are UR1 or UR2?
[] AromaticTroubledDormouse
20:56
CONGRATS MACAQUE!
TY
got a random stanford email and almost had a heart attack
ALSO CONGRATS!
Congrats1!
21:15
Miami A, yall I'm so excited I could cry.
21:15
Feel like I can finally stop holding my breath!! Whew!!!
[] baddestbunny
22:16
every time I get accosted by a strange man who follows me around because my male coworkers were too busy talking to walk me back to my car I get closer to saying we need to bring back traditional gender roles
Dkk
22:32
Nice! @Macaque
Dkk
22:32
@Aromatic, Have to guess.
Dkk
22:33
That sucks @Bunny do you have to go to the hospital?
[] baddestbunny
22:40
I said accosted not assaulted
23:35
guys. my notre dame address just went long is this good or bad
1a2b3c4d26z
23:37
Oooooo me too
23:37
omg is this good or bad
Dkk
23:47
Idk if gender roles are gunna fix that then.
23:49
it looks like most people who applied in october last cycle didn't get a decision until january... does it even mean anything that our addresses went long??
hows ED 2 compared to ED 1?
Dkk
0:10
No idea
windyMagician
0:34
reporting live to say my ndls address also went long
does it mean anything ^
Dkk
2:21
NDLS and Fordham took a very long time last year. It's good info for people to know.
[] baddestbunny
4:29
let’s get after it boys and girls
Dkk
5:21
I gtg to bed soon.
Dkk
5:22
Big day today. Gunna be a crazy one. I will sleep through the first half.
good morning lsd it is 5 am EST
also jazzy my ndls address went long ages ago i sadly do not think it means anything
my stanford address also went long LOL i think at most it's an indicator it's under review
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