# Arkansas HB1746: TO AMEND THE UNIFORM COMMERCIAL CODE. Arkansas HB1746, TO AMEND THE UNIFORM COMMERCIAL CODE., is a 2025 Regular Session House bill sponsored by Tyler Dees (Republican), Matt Brown (Republican); status enacted, last action 2025-04-22 (Notification that HB1746 is now Act 997) (as of 2026-10-19). - Canonical: https://policyrisk.com/state-bill/AR-HB1746-2025 - As of: 2026-10-19 - Plain-text twin of the page above; the HTML and this file carry the same facts. ## Facts - Bill: Arkansas HB1746 - State: Arkansas - Session: 2025 Regular Session - Title: TO AMEND THE UNIFORM COMMERCIAL CODE. - Status: enacted - Chamber: House - Introduced: 2025-03-11 - Last action: 2025-04-22, Notification that HB1746 is now Act 997 - Sponsors: Tyler Dees (Republican), Matt Brown (Republican) - Cosponsors: 0 - Touches household money: no - Roll calls: 3 (226 yes, 0 no in all) - Economic provisions PRIA read: 41 ## Summary No summary available. ## Bill overview: provisions PRIA read - Buyers and lessees avoid later liens: benefit, low. Beginning September 1, 2026, goods buyers gain protection against collateral claims securing certain later loan advances. Protection covers advances made after the creditor learns of the purchase or 45 days after purchase, whichever comes first. Goods lessees receive similar protection for their le… - Consumers get clearer collateral sale explanations: benefit, low. Beginning September 1, 2026, lenders can offer optional electronic ways to ask about sales of consumer goods pledged for loans. The notice form includes an explanation-charge item only when the specified explanation option is offered and another written explanation carries a charge. Explanations of… - Debtors gain digital collateral safeguards: benefit, low. Beginning September 1, 2026, debtors can demand required releases or return of covered collateral control through a signed demand. The lender's deadline is 10 days after receiving it. Covered assets include electronic chattel-paper records, title documents, electronic money, and controllable electr… - Check users get electronic payment options: benefit, low. Beginning September 1, 2026, sending a check image counts as issuing the check when the payee agrees. The image and details must let a bank collect the check electronically under federal law. Destroying the paper during imaging does not cancel payment when the image and details are later sent for p… - Digital asset buyers gain claim protection: benefit, low. Beginning September 1, 2026, qualifying buyers gain priority protections for controllable electronic records and linked accounts or payment rights. A buyer who obtains control for value, in good faith, and meets the qualifying-purchaser standard can take free of prior property claims. These protect… - Businesses gain flexible letter-of-credit records: benefit, low. Beginning September 1, 2026, letters of credit and related confirmations, transfers, changes, and cancellations can use any signed record. Parties can select the law governing covered letter-of-credit liability, even from a place unrelated to the deal. The choice must appear in a recorded agreement… - Debtors can demand assigned payment releases: benefit, low. Beginning September 1, 2026, a debtor can demand a release after a payer receives notice of assignment to a secured creditor. The debtor's demand must be signed. The creditor must send the payer a signed release within 10 days after receiving the demand. The release ends the payer's further obligat… - Junior creditors can claim collateral proceeds: benefit, low. Beginning September 1, 2026, junior lienholders can claim covered collection proceeds through a signed demand received before distribution ends. Signed demands also govern covered collateral-sale claims by junior lienholders and consignors. Separate authentication is no longer required. When a cons… - Lenders gain clearer electronic asset control: benefit, low. Beginning September 1, 2026, electronic-money control requires identifiable powers to obtain nearly all its benefit, exclude others, and transfer control. Electronic title-document systems must identify authoritative copies and their holders, with exclusive powers over holder identification and con… - Electronic money buyers lack general protection: cost, low. Beginning September 1, 2026, electronic money is excluded from a general protection for buyers of listed collateral. That rule lets buyers take certain property free of a creditor's unperfected security interest. Buyers of electronic money cannot rely on that general rule. - Document holders face narrower rights: cost, low. Beginning September 1, 2026, controlling a negotiable electronic title document does not always give a person holder rights. Control under the specific exception in Arkansas Code § 4-7-106(g) does not qualify. For instruments, paper title documents, and official paper copies of goods-backed payment… - Borrowers face clearer creditor transfer rules: mixed, low. Beginning September 1, 2026, covered debtors can pay the original creditor until receiving an effective signed notice identifying transferred rights. After notice, payment to the new creditor clears the obligation; receipt also sets the cutoff for specified claims and defenses. Related proof and pa… - Borrowers face rules for keeping collateral: mixed, low. Beginning September 1, 2026, required borrower and lender consents, and objections to keeping collateral as payment, must be signed. Borrowers have 20 days after a full-payment proposal is sent to object. In consumer transactions, lenders cannot keep collateral as only partial payment of the secure… - Borrowers get account and lien deadlines: mixed, low. Beginning September 1, 2026, borrowers must sign requests for account or collateral information and identify the transaction. The creditor must answer within 14 days. One response every six months is free; extra responses can cost up to $25 each. A signed demand also triggers covered duties to end… - Clearer rules for goods and services: mixed, low. Beginning September 1, 2026, goods-sale rules cover a mixed deal when the goods-sale part is its main focus. Otherwise, only rules mainly related to the goods sale apply; other law can still govern unrelated parts. Earlier or same-time oral agreements cannot contradict a record intended as the fina… - Debtors get signed collateral remedy records: mixed, low. Beginning September 1, 2026, lenders must send reasonable signed sale notices to people entitled to notice. Sending notice to the debtor and any secondary obligor establishes the notification date. Notice is not required for perishable collateral, fast-declining collateral, or collateral customaril… - Electronic signatures and clearer contract notices: mixed, low. Beginning September 1, 2026, electronic symbols, sounds, or processes count as signatures when the signer intends to approve the record. Commercial notices count as sent through usual methods with costs covered and a reasonable address, or through timely receipt. Courts judge whether contract terms… - Signed records support goods lease contracts: mixed, low. Beginning September 1, 2026, goods lease rules recognize signed records instead of only paper writings. A lease generally needs a signed record describing the goods and lease term, unless total payments are below $1,000. Existing exceptions remain, and record-based rules also cover final agreements… - Bank customers face payment security tradeoffs: mixed, low. Beginning September 1, 2026, agreed bank security checks can use symbols, sounds, or biometrics. A signature match or known email, internet address, or phone number alone is not enough. An unauthorized order can bind the customer if the bank proves good-faith compliance with commercially reasonable… - Bank customers get flexible payment communications: mixed, low. Beginning September 1, 2026, payment orders can be oral or recorded and must specify a fixed or determinable amount. Only timing can be a payment condition; the sender must reimburse the bank and use a permitted transmission route. Banks can reject orders orally or in a record stating they will not… - Bank payment disputes keep limited remedies: mixed, low. Beginning September 1, 2026, banks and senders can expressly agree in a record to limit banks' collection or retention of payment. A bank that fails to execute a payment it expressly agreed to execute owes transaction expenses, incidental expenses, and resulting interest losses. Additional damages… - Creditors gain another bank account control: mixed, low. Beginning September 1, 2026, someone other than the debtor can acknowledge holding or obtaining bank account control for a creditor. The bank's jurisdiction governs competing security interests, even when the transaction has no connection there. A security interest, the bank's knowledge, or credito… - Business and livestock lenders need notices: mixed, low. Beginning September 1, 2026, lenders financing purchases of inventory or qualifying livestock need signed notices for the specified priority over competing claims. Their claims must be perfected when the borrower receives the goods. Competing creditors must receive inventory notices within five yea… - Protected business units gain legal recognition: mixed, low. Beginning September 1, 2026, a protected series of a business can count as a person under the commercial code. The series must be created under another law that limits creditors' ability to collect claims from its assets. This also applies when that other law makes the asset limits depend on specif… - Signed records support goods sales contracts: mixed, low. Beginning September 1, 2026, goods contracts priced at $500 or more generally need a signed record for enforcement. Exceptions remain for specially made goods, court admissions, and accepted payment or goods. Between merchants, a qualifying confirmation binds the recipient unless they object in a r… - Bank branches count separately in disputes: mixed, low. Beginning September 1, 2026, each bank branch counts as a separate legal entity for specified legal questions. These include court authority, governing law, and recognition of letters of credit between branches. A branch's location is the address in its commitment. If several addresses appear, the… - Buyers gain protection from creditor claims: mixed, low. Beginning September 1, 2026, buyers can acquire specified collateral free of a creditor's security interest. They must give value without knowing about that interest, before the creditor completes the steps that legally protect it. Buyers must also meet delivery or control requirements; for secured… - Control gives digital lenders first claim: mixed, low. Beginning September 1, 2026, control gives a secured creditor priority over a competing secured creditor without control. This rule covers controllable electronic records and the controllable accounts or payment rights tied to them. Creditors without control take a lower place in line for that coll… - Creditors gain rights and control duties: mixed, low. Beginning September 1, 2026, covered collateral rights and duties extend to creditors controlling additional electronic assets. Creditors with possession or qualifying control can keep non-money proceeds as added security. They can apply money or funds to the debt unless they send them to the debto… - Cross-border collateral claims get clearer rules: mixed, low. Beginning September 1, 2026, special rules choose the governing law for controllable electronic records in covered cross-border deals. Contrary agreements work only as far as that chosen law allows. For specified collateral questions, location governs listed physical assets, but not paper records o… - Debtors get digital payment transfer rules: mixed, low. Beginning September 1, 2026, valid signed notices redirect payments on controllable accounts or payment rights to the new holder. Notices must identify the obligation, state that control transferred, identify the new holder, and give a commercially reasonable payment method. Before notice, the paye… - Digital asset claimants face priority changes: mixed, low. Beginning September 1, 2026, amended secured-transaction rules determine which competing collateral claims rank first. Earlier rankings generally remain governed by prior law. Rankings for controllable-record property or electronic money stop applying that day to the extent the new law changes them… - Digital asset holders face new classifications: mixed, low. Beginning September 1, 2026, controllable payment rights join the commercial-code category called payment intangibles. The law also defines electronic money and controllable electronic records. Central bank digital currency does not count as money or a deposit account under these rules. For secured… - Digital record holders get legal location rules: mixed, low. Beginning September 1, 2026, a controllable electronic record's legal location determines the law governing matters covered by this framework. Express statements in the record or its system rules determine that location. The District of Columbia is the default when none of those statements applies.… - Existing lenders face transition compliance deadlines: mixed, low. Beginning September 1, 2026, amended secured-transaction and controllable-record rules reach older interests, subject to transition protections. Earlier valid transactions generally remain valid and enforceable under prior law; cases begun before that date are unaffected. Existing enforceable, perf… - Investors get clarified custody and communications: mixed, low. Beginning September 1, 2026, covered securities communications can use signed records or a transmission method both sides agree to. Buyers gain control of rights held through a securities intermediary when a non-transferor controls them and acknowledges holding control for the buyer. That person ne… - Lenders get revised payment-right categories: mixed, low. Beginning September 1, 2026, commercial accounts include controllable accounts and health-insurance receivables, but exclude payment rights evidenced by instruments. Someone owing a negotiable instrument is not an account debtor, even when the instrument evidences chattel paper. Chattel paper cover… - Mixed goods leases get clearer rules: mixed, low. Beginning September 1, 2026, the law sets rules for deals combining goods leases with services or other property. When the goods lease is the main part, the lease chapter applies to the deal. Other law can still govern its non-goods parts. When the goods lease is not the main part, only rules mainl… - New collateral rules for secured loans: mixed, low. Beginning September 1, 2026, enforceable collateral claims require value, debtor rights, and a signed agreement or allowed possession or control arrangement. Control-based options cover listed electronic records, payment rights, documents, and money; goods-backed payment records can require possess… - New control rules for financed goods: mixed, low. Beginning September 1, 2026, control rules cover electronic records of debts secured by goods, known as chattel paper. The system must identify official copies and the buyer, and give the buyer specified powers to prevent reassignment and transfer control. Another person, other than the transferor,… - Property consent must support fixture claims: mixed, low. Beginning September 1, 2026, specified priority for loan claims on fixtures requires a signed record. Fixtures are goods attached to real property. The property owner or another party with a property claim must sign consent to the lender's security interest. Alternatively, that party can sign a rec… ## Sponsors and cosponsors - Sponsor: Tyler Dees (Republican), Senate - Sponsor: Matt Brown (Republican), House ## Roll call votes | Date | Chamber | Motion | Result | Yes | No | Other | | --- | --- | --- | --- | --- | --- | --- | | 2025-04-15 | House | House Vote - Tuesday, April 15, 2025 2:54:38 PM | pass | 97 | 0 | | | 2025-04-10 | Senate | Senate Vote - Thursday, April 10, 2025 4:32:57 PM | pass | 34 | 0 | | | 2025-03-20 | House | House Vote - Thursday, March 20, 2025 2:51:28 PM | pass | 95 | 0 | | ## Actions (28) - 2025-04-22: Notification that HB1746 is now Act 997 (House) - 2025-04-16: Correctly enrolled and ordered transmitted to the Governor's Office. (House) - 2025-04-15: TO BE ENROLLED (House) - 2025-04-15: Senate amendment # 1 read and concurred in. (House) - 2025-04-14: Returned by the Committee with the recommendation that it do pass, concur in Senate Amendment No. 1 (House) - 2025-04-10: Re-referred to the Committee on INSURANCE & COMMERCE- HOUSE (House) - 2025-04-10: Returned from Senate as passed, as amended # 1 (House) - 2025-04-10: Returned to the House as passed as amended # 1 . (Senate) - 2025-04-10: Read the third time and passed. (Senate) - 2025-04-10: Rules suspended. (Senate) - 2025-04-10: Receded from Amendment No. 2 (Senate) - 2025-04-10: Amendment # 2 read the first time, rules suspended, read the second time and adopted, ordered engrossed. (Senate) - 2025-04-10: Placed on second reading for purpose of amendment. (Senate) - 2025-04-10: Rules suspended. (Senate) - 2025-04-10: Returned by the Committee with the recommendation that it Do Pass as amended, Amendment # 2 (Senate) - 2025-04-09: Re-referred to INSURANCE & COMMERCE - SENATE (Senate) - 2025-04-09: REPORTED CORRECTLY ENGROSSED (Senate) - 2025-04-09: Amendment # 1 read the first time, rules suspended, read the second time and adopted, ordered engrossed. (Senate) - 2025-04-09: Withdrawn from Committee and placed on 2nd reading for purpose of amendment # 1 (Senate) - 2025-04-09: Rules suspended. (Senate) - 2025-04-08: Re-referred to INSURANCE & COMMERCE - SENATE (Senate) - 2025-04-03: Returned by the Committee, with the recommendation that it Do Pass (Senate) - 2025-03-20: Read first time, rules suspended, read second time, referred to INSURANCE & COMMERCE - SENATE (Senate) - 2025-03-20: Received from the House. (Senate) - 2025-03-20: Read the third time and passed and ordered transmitted to the Senate. (House) - 2025-03-19: Returned by the Committee Do Pass (House) - 2025-03-12: Read the first time, rules suspended, read the second time and referred to the Committee on INSURANCE & COMMERCE- HOUSE (House) - 2025-03-11: Filed (House) ## Bill text - HB1746 - Introduced, 2025-03-11: [PDF](https://www.arkleg.state.ar.us/Home/FTPDocument?path=%2FBills%2F2025R%2FPublic%2FHB1746.pdf) - Act Version: [PDF](https://www.arkleg.state.ar.us/Acts/FTPDocument?path=%2FACTS%2F2025R%2FPublic%2F&file=997.pdf&ddBienniumSession=2025%2F2025R) ## Related bills - HB1265: AN ACT FOR THE UNIVERSITY OF ARKANSAS AT LITTLE ROCK APPROPRIATION FOR THE 2025-2026 FISCAL YEAR. (enacted) - HB1237: TO PROHIBIT MEDICAL PROFESSIONALS FROM SOLICITING INJURED INDIVIDUALS; AND TO SET PENALTIES FOR A VIOLATION OF THE PROHIBITION OF SOLICITATION OF INJURED INDIV… (failed) - HB1686: TO AMEND THE LAW CONCERNING LICENSES TO CARRY CONCEALED HANDGUNS. (failed) - SB440: TO AMEND THE LAW CONCERNING EMBALMERS AND FUNERAL DIRECTORS; TO REGULATE THE USE OF ALKALINE HYDROLYSIS; AND TO REGULATE ALKALINE HYDROLYSIS FACILITIES. (failed) - HB1695: TO CLARIFY THE FORECLOSURE PROCESS FOR PROPERTY SUBJECT TO A MUNICIPAL LIEN; TO ALLOW A MUNICIPALITY TO PETITION TO SET ASIDE THE SALE OF PROPERTY TO CERTAIN P… (failed) - HR1012: TO AMEND THE RULES OF THE HOUSE OF REPRESENTATIVES OF THE NINETY-FIFTH GENERAL ASSEMBLY; TO REQUIRE THAT A MEMBER OF THE HOUSE OF REPRESENTATIVES BE SELECTED A… (failed) ## Sources - [HB1746 - Introduced (PDF)](https://www.arkleg.state.ar.us/Home/FTPDocument?path=%2FBills%2F2025R%2FPublic%2FHB1746.pdf) - [Act Version (PDF)](https://www.arkleg.state.ar.us/Acts/FTPDocument?path=%2FACTS%2F2025R%2FPublic%2F&file=997.pdf&ddBienniumSession=2025%2F2025R) ## Related - [HB1265: AN ACT FOR THE UNIVERSITY OF ARKANSAS AT LITTLE ROCK APPROPRIATION FOR THE 2025…](https://policyrisk.com/state-bill/AR-HB1265-2025) - [HB1237: TO PROHIBIT MEDICAL PROFESSIONALS FROM SOLICITING INJURED INDIVIDUALS; AND TO S…](https://policyrisk.com/state-bill/AR-HB1237-2025) - [HB1686: TO AMEND THE LAW CONCERNING LICENSES TO CARRY CONCEALED HANDGUNS.](https://policyrisk.com/state-bill/AR-HB1686-2025) - [SB440: TO AMEND THE LAW CONCERNING EMBALMERS AND FUNERAL DIRECTORS; TO REGULATE THE US…](https://policyrisk.com/state-bill/AR-SB440-2025) - [HB1695: TO CLARIFY THE FORECLOSURE PROCESS FOR PROPERTY SUBJECT TO A MUNICIPAL LIEN; TO…](https://policyrisk.com/state-bill/AR-HB1695-2025) - [HR1012: TO AMEND THE RULES OF THE HOUSE OF REPRESENTATIVES OF THE NINETY-FIFTH GENERAL…](https://policyrisk.com/state-bill/AR-HR1012-2025) - [Arkansas bills](https://policyrisk.com/states/arkansas/bills) - [Arkansas state hub](https://policyrisk.com/states/arkansas) - [All state legislation](https://policyrisk.com/state-bills) Source: PRIA, https://policyrisk.com/state-bill/AR-HB1746-2025 (as of 2026-10-19).