Arkansas Code
Subchapter 5 - Loans
§ 23-47-502. Loan limits — Inclusions and exceptions

(a) The following loans and other forms of indebtedness shall not be included in the limitation of twenty percent (20%) imposed by § 23-47-501 and may be made or acquired without being subject to any loan limit:
(1) Obligations in the form of drafts or bills of exchange drawn in good faith against actually existing values;
(2) Nonconforming assets acquired as a result of acquisition of a failed bank or savings and loan association, so long as a plan for divestiture within a reasonable amount of time is approved by the Bank Commissioner;
(3) Obligations drawn in good faith against actually existing values and fully secured by goods or commodities in process of shipment may be acquired without limit;
(4) Obligations in the form of bankers' acceptances of other banks; and
(5) Obligations secured by investments which the state bank, pursuant to § 23-47-401 could invest in without limit, having a market value at all times at least equal to the principal balance of the obligation.

(b)
(1) The loan limit of twenty percent (20%) provided by § 23-47-501 shall be modified so that a loan limit not to exceed sixty percent (60%) shall apply to obligations secured by transferable documents of title covering:
(A) Livestock; or
(B) Readily marketable and nonperishable commodities or staples fully insured, if of a type that is customarily insured.

(2) The property in each instance must have a value of at least one hundred fifteen percent (115%) of the amount of the secured obligation.
(3) An obligation secured in this manner shall not be deemed non- conforming on the grounds that, for the purpose of loading, unloading, storing, shipping, or transshipping, the title documents or the property covered thereby may be released under trust receipt to the possession of the obligor or borrower if, within twenty-one (21) days after the release, the property or valid title documents covering the property is redelivered to the state bank, and provided that, during the interim, the bank holds a perfected security interest in all such property under the Uniform Commercial Code, § 4-1-101 et seq.
(4) The standard twenty percent (20%) loan limit will apply even to the obligations secured by transferable documents of title if the warehouser who issued the documents of title under applicable law can transfer marketable title to the commodities described in the documents to a purchaser in the ordinary course of business.