USA v. Martin et al
DEFAULT JUDGMENT re 13 Motion, in favor of USA against Kevin P Martin in the sum of $144,000.13 as of 8/23/11, with interest thereafter at the rate of $10.38 per day to the date of entry of this Judgment, with interest on the Judgment at the legal rate of 0.19%. Signed by Chief Judge J. Leon Holmes on 4/10/12. (vjt)
IN THE UNITED STATES DISTRICT COURT
EASTERN DISTRICT OF ARKANSAS
UNITED STATES OF AMERICA
No. 2:11cv00046 JLH
KEVIN P. MARTIN; and
COOK SALES, INC.
Pending before the Court is the motion of the plaintiff, United States of America,
for default judgment, together with affidavit showing that the USDA, FSA, borrower,
defendant Kevin P. Martin, is not an infant or incompetent person and is not in the
military service of the United States. The defendants Kevin P. Martin and Cook Sales,
Inc. have been properly served, have not answered, and are in default. It is therefore,
ORDERED, DECREED AND ADJUDGED:
The Court has jurisdiction over the parties and over the property which is
the subject of this cause of action.
In order to receive loan assistance from the United States of America,
Kevin P. Martin, Defendant herein, executed certain Promissory Notes, representing
loans made, renewed, rescheduled and/or reamortized between May 16, 2003 and
May 19, 2004 and more particularly described as follows:
Due and payable on May 1, 2005
in one (1) installment in the
amount of $89,740.00.
15 annual installments in the
amount of $3,822.00 beginning
May 1, 2005.
*Note: This Note was rescheduled from Note No. 44-01 dated May 16, 2003 in the
amount of $102,580.00.
15 annual installments in the
amount of $6,027.00 beginning
May 1, 2005.
*Note: This Note was rescheduled from Note No. 44-02 dated May 16, 2003 in the
amount of $68,440.00.
The payments due on the above-described promissory notes are in default.
Plaintiff declared the entire balance due and payable. Despite demand, no payment was
received from Kevin P. Martin. There is due and owing on the promissory notes of Kevin
P. Martin payable to the United States of America, U.S. Department of Agriculture, Farm
Service Agency, the total principal sum of $116,572.92, plus interest in the sum of
$27,427.21, accrued to August 23, 2011, for a total balance of $144,000.13 due as of
August 23, 2011, and thereafter at the daily rate of $10.38 to date of this judgment and
thereafter at the statutory rate pursuant to 28 U.S.C. § 1961, plus any additional advances
and recoverable charges made during the pendency of this action for protection and
maintenance of the subject property, and the costs of this action.
Judgment is hereby awarded to the United States of America, acting by and
through the U.S. Department of Agriculture, Farm Service Agency, against Kevin P.
Martin in the sum of $144,000.13 as of August 23, 2011, with interest thereafter at the
rate of $10.38 per day to the date of entry of this Judgment, with interest on the
Judgment at the rate as provided in 28 U.S.C. § 1961, including any deficiency remaining
after sale of the farm machinery and equipment described herein, for which writs of
garnishment, execution and attachment may issue, as provided by law.
The above-described indebtedness due and owing to the plaintiff is secured
by security agreements (chattels and crops) dated May 16, 2003 and May 19, 2004,
respectively, executed by Defendant Kevin P. Martin. Plaintiff’s security interest was
properly perfected by the filing of a UCC Financing Statement on May 16, 2003, with
the Circuit Clerk and Ex-Officio Recorder of Cross County, as Instrument No. 59308,
which was continued on May 8, 2008, and the filing of a UCC Financing Statement on
May 19, 2004 in Cross County, as Instrument No. 59889. By execution of the Security
Agreements, defendant Kevin P. Martin granted and conveyed to plaintiff a security
interest in all farm equipment and farm machinery, then owned or thereafter acquired,
and all replacements, substitutions and additions, including, but not limited to, the
820 — 25’
8’ x 8’
18’ — Do
Defendant Kevin P. Martin, his representatives, employees, and agents, are
directed to surrender and deliver all of the above-described machinery and equipment,
together with all replacements, substitutions and additions, to the U.S. Department of
Agriculture (USDA), Farm Service Agency (FSA) at a time and place designated by
FSA. The above-described farm equipment and machinery shall be sold, or otherwise
disposed of, by USDA, FSA, in a commercially reasonable manner, as provided by
applicable provisions of the Arkansas Uniform Commercial Code, Ark. Code Ann. § 4-9601, et. seq. The proceeds from such sale, or other disposition, after expenses shall be
first paid to USDA, FSA, to the extent of the indebtedness owed to it. Any remaining
proceeds shall be disbursed as provided by applicable provisions of the Arkansas
Uniform Commercial Code.
Any interest held or claimed by defendant Cook Sales, Inc. in the above-
described farm machinery and equipment by virtue of a judgment entered on
February 15, 2007 in the Circuit Court of Cross County, Arkansas in Cook Sales, Inc. v.
Kevin Martin, Case No. CV-2007-31, is subsequent and subordinate to the plaintiff’s
The Court retains jurisdiction of this cause for the making of such further
orders as may be necessary to effectuate this judgment.
DATED this 10th day of April, 2012.
UNITED STATES DISTRICT JUDGE
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