Title 4 — Business and Commercial Law
88 chapters · 1,044 sections in this title.
Ark. Code Ann. § 4-3-413 Obligation of acceptor
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(a) The acceptor of a draft is obliged to pay the draft (i) according to its terms at the time it was accepted, even though the acceptance states that the draft is payable “as originally drawn” or equivalent terms, (ii) if the acceptance varies the terms of the draft, according t…
Ark. Code Ann. § 4-3-414 Obligation of drawer
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(a) This section does not apply to cashier's checks or other drafts drawn on the drawer. (b) If an unaccepted draft is dishonored, the drawer is obliged to pay the draft (i) according to its terms at the time it was issued or, if not issued, at the time it first came into possess…
Ark. Code Ann. § 4-3-415 Obligation of indorser
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(a) Subject to subsections (b), (c), and (d) and to § 4-3-419(d), if an instrument is dishonored, an indorser is obliged to pay the amount due on the instrument (i) according to the terms of the instrument at the time it was indorsed, or (ii) if the indorser indorsed an incomplet…
Ark. Code Ann. § 4-3-416 Transfer warranties
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(a) A person who transfers an instrument for consideration warrants to the transferee and, if the transfer is by indorsement, to any subsequent transferee that:(1) the warrantor is a person entitled to enforce the instrument;(2) all signatures on the instrument are authentic and …
Ark. Code Ann. § 4-3-417 Presentment warranties
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(a) If an unaccepted draft is presented to the drawee for payment or acceptance and the drawee pays or accepts the draft, (i) the person obtaining payment or acceptance, at the time of presentment, and (ii) a previous transferor of the draft, at the time of transfer, warrant to t…
Ark. Code Ann. § 4-3-418 Payment or acceptance by mistake
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(a) Except as provided in subsection (c), if the drawee of a draft pays or accepts the draft and the drawee acted on the mistaken belief that (i) payment of the draft had not been stopped pursuant to § 4-4-403 or (ii) the signature of the drawer of the draft was authorized, the d…
Ark. Code Ann. § 4-3-419 Instruments signed for accommodation
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(a) If an instrument is issued for value given for the benefit of a party to the instrument (“accommodated party”) and another party to the instrument (“accommodation party”) signs the instrument for the purpose of incurring liability on the instrument without being a direct bene…
Ark. Code Ann. § 4-3-420 Conversion of instrument
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(a) The law applicable to conversion of personal property applies to instruments. An instrument is also converted if it is taken by transfer, other than a negotiation, from a person not entitled to enforce the instrument or a bank makes or obtains payment with respect to the inst…
Ark. Code Ann. § 4-3-501 Presentment
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(a) “Presentment” means a demand made by or on behalf of a person entitled to enforce an instrument (i) to pay the instrument made to the drawee or a party obliged to pay the instrument or, in the case of a note or accepted draft payable at a bank, to the bank, or (ii) to accept …
Ark. Code Ann. § 4-3-502 Dishonor
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(a) Dishonor of a note is governed by the following rules:(1) If the note is payable on demand, the note is dishonored if presentment is duly made to the maker and the note is not paid on the day of presentment.(2) If the note is not payable on demand and is payable at or through…
Ark. Code Ann. § 4-3-503 Notice of dishonor
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(a) The obligation of an indorser stated in § 4-3-415(a) and the obligation of a drawer stated in § 4-3-414(d) may not be enforced unless (i) the indorser or drawer is given notice of dishonor of the instrument complying with this section or (ii) notice of dishonor is excused und…
Ark. Code Ann. § 4-3-504 Excused presentment and notice of dishonor
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(a) Presentment for payment or acceptance of an instrument is excused if (i) the person entitled to present the instrument cannot with reasonable diligence make presentment, (ii) the maker or acceptor has repudiated an obligation to pay the instrument or is dead or in insolvency …
Ark. Code Ann. § 4-3-505 Evidence of dishonor
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(a) The following are admissible as evidence and create a presumption of dishonor and of any notice of dishonor stated:(1) a document regular in form as provided in subsection (b) which purports to be a protest;(2) a purported stamp or writing of the drawee, payor bank, or presen…
Ark. Code Ann. § 4-3-601 Discharge and effect of discharge
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(a) The obligation of a party to pay the instrument is discharged as stated in this chapter or by an act or agreement with the party which would discharge an obligation to pay money under a simple contract. (b) Discharge of the obligation of a party is not effective against a per…
Ark. Code Ann. § 4-3-602 Payment
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(a) Subject to subsection (e), an instrument is paid to the extent payment is made by or on behalf of a party obliged to pay the instrument, and to a person entitled to enforce the instrument. (b) Subject to subsection (e), a note is paid to the extent payment is made by or on be…
Ark. Code Ann. § 4-3-603 Tender of payment
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(a) If tender of payment of an obligation to pay an instrument is made to a person entitled to enforce the instrument, the effect of tender is governed by principles of law applicable to tender of payment under a simple contract. (b) If tender of payment of an obligation to pay a…
Ark. Code Ann. § 4-3-604 Discharge by cancellation or renunciation. [Effective until September 1, 2026.]
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(a) A person entitled to enforce an instrument, with or without consideration, may discharge the obligation of a party to pay the instrument (i) by an intentional voluntary act, such as surrender of the instrument to the party, destruction, mutilation, or cancellation of the inst…
Ark. Code Ann. § 4-3-605 Discharge of secondary obligors
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(a) If a person entitled to enforce an instrument releases the obligation of a principal obligor in whole or in part, and another party to the instrument is a secondary obligor with respect to the obligation of that principal obligor, the following rules apply:(1) any obligations…