Title 4 — Business and Commercial Law
88 chapters · 1,044 sections in this title.
Ark. Code Ann. § 4-9-325 Priority of security interests in transferred collateral
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(a) Except as otherwise provided in subsection (b), a security interest created by a debtor is subordinate to a security interest in the same collateral created by another person if:(1) the debtor acquired the collateral subject to the security interest created by the other perso…
Ark. Code Ann. § 4-9-326 Priority of security interests created by new debtor
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(a) Subject to subsection (b), a security interest that is created by a new debtor in collateral in which the new debtor has or acquires rights and is perfected solely by a filed financing statement that would be ineffective to perfect the security interest but for the applicatio…
Ark. Code Ann. § 4-9-326A Priority of security interest in controllable account, controllable electronic record, and controllable payment intangible. [Effective September 1, 2026.]
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A security interest in a controllable account, controllable electronic record, or controllable payment intangible held by a secured party having control of the account, electronic record, or payment intangible has priority over a conflicting security interest held by a secured pa…
Ark. Code Ann. § 4-9-327 Priority of security interests in deposit account
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(1) The following rules govern priority among conflicting security interests in the same deposit account:(1) A security interest held by a secured party having control of the deposit account under § 4-9-104 has priority over a conflicting security interest held by a secured party…
Ark. Code Ann. § 4-9-328 Priority of security interests in investment property
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(1) The following rules govern priority among conflicting security interests in the same investment property:(1) A security interest held by a secured party having control of investment property under § 4-9-106 has priority over a security interest held by a secured party that do…
Ark. Code Ann. § 4-9-329 Priority of security interests in letter-of-credit right
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(1) The following rules govern priority among conflicting security interests in the same letter-of-credit right:(1) A security interest held by a secured party having control of the letter-of-credit right under § 4-9-107 has priority to the extent of its control over a conflictin…
Ark. Code Ann. § 4-9-330 Priority of purchaser of chattel paper or instrument. [Effective until September 1, 2026.]
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(a) A purchaser of chattel paper has priority over a security interest in the chattel paper which is claimed merely as proceeds of inventory subject to a security interest if:(1) in good faith and in the ordinary course of the purchaser's business, the purchaser gives new value a…
Ark. Code Ann. § 4-9-331 Priority of rights of purchasers of instruments, documents, securities, and virtual currencies under other chapters — Priority of interests in financial assets and security entitlements under Chapter 8 and virtual currencies under Chapter 11. [Effective until September 1, 2026.]
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(a) This chapter does not limit the rights of a holder in due course of a negotiable instrument, a holder to which a negotiable document of title has been duly negotiated, a protected purchaser of a security, or a qualifying purchaser of a virtual currency. These holders or purch…
Ark. Code Ann. § 4-9-332 Transfer of money — Transfer of funds from deposit account. [Effective until September 1, 2026.]
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(a) A transferee of money takes the money free of a security interest unless the transferee acts in collusion with the debtor in violating the rights of the secured party. (b) A transferee of funds from a deposit account takes the funds free of a security interest in the deposit …
Ark. Code Ann. § 4-9-333 Priority of certain liens arising by operation of law
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(a) In this section, “possessory lien” means an interest, other than a security interest or an agricultural lien:(1) which secures payment or performance of an obligation for services or materials furnished with respect to goods by a person in the ordinary course of the person's …
Ark. Code Ann. § 4-9-334 Priority of security interests in fixtures and crops. [Effective until September 1, 2026.]
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(a) A security interest under this chapter may be created in goods that are fixtures or may continue in goods that become fixtures. A security interest does not exist under this chapter in ordinary building materials incorporated into an improvement on land. (b) This chapter does…
Ark. Code Ann. § 4-9-335 Accessions
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(a) A security interest may be created in an accession and continues in collateral that becomes an accession. (b) If a security interest is perfected when the collateral becomes an accession, the security interest remains perfected in the collateral. (c) Except as otherwise provi…
Ark. Code Ann. § 4-9-336 Commingled goods
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(a) In this section, “commingled goods” means goods that are physically united with other goods in such a manner that their identity is lost in a product or mass. (b) A security interest does not exist in commingled goods as such. However, a security interest may attach to a prod…
Ark. Code Ann. § 4-9-337 Priority of security interests in goods covered by certificate of title
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(1) If, while a security interest in goods is perfected by any method under the law of another jurisdiction, this state issues a certificate of title that does not show that the goods are subject to the security interest or contain a statement that they may be subject to security…
Ark. Code Ann. § 4-9-338 Priority of security interest or agricultural lien perfected by filed financing statement providing certain incorrect information
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(1) If a security interest or agricultural lien is perfected by a filed financing statement providing information described in § 4-9-516(b)(5) which is incorrect at the time the financing statement is filed:(1) the security interest or agricultural lien is subordinate to a confli…
Ark. Code Ann. § 4-9-339 Priority subject to subordination
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This chapter does not preclude subordination by agreement by a person entitled to priority.
Ark. Code Ann. § 4-9-340 Effectiveness of right of recoupment or set-off against deposit account
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(a) Except as otherwise provided in subsection (c), a bank with which a deposit account is maintained may exercise any right of recoupment or set-off against a secured party that holds a security interest in the deposit account. (b) Except as otherwise provided in subsection (c),…
Ark. Code Ann. § 4-9-341 Bank's rights and duties with respect to deposit account. [Effective until September 1, 2026.]
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(1) Except as otherwise provided in § 4-9-340(c), and unless the bank otherwise agrees in an authenticated record, a bank's rights and duties with respect to a deposit account maintained with the bank are not terminated, suspended, or modified by:(1) the creation, attachment, or …
Ark. Code Ann. § 4-9-342 Bank's right to refuse to enter into or disclose existence of control agreement
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This chapter does not require a bank to enter into an agreement of the kind described in § 4-9-104(a)(2), even if its customer so requests or directs. A bank that has entered into such an agreement is not required to confirm the existence of the agreement to another person unless…
Ark. Code Ann. § 4-9-401 Alienability of debtor's rights
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(a) Except as otherwise provided in subsection (b) and §§ 4-9-406 — 4-9-409, whether a debtor's rights in collateral may be voluntarily or involuntarily transferred is governed by law other than this chapter. (b) An agreement between the debtor and secured party which prohibits a…
Ark. Code Ann. § 4-9-402 Secured party not obligated on contract of debtor or in tort
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The existence of a security interest, agricultural lien, or authority given to a debtor to dispose of or use collateral, without more, does not subject a secured party to liability in contract or tort for the debtor's acts or omissions.
Ark. Code Ann. § 4-9-403 Agreement not to assert defenses against assignee
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(a) In this section, “value” has the meaning provided in § 4-3-303(a). (b) Except as otherwise provided in this section, an agreement between an account debtor and an assignor not to assert against an assignee any claim or defense that the account debtor may have against the assi…
Ark. Code Ann. § 4-9-404 Rights acquired by assignee — Claims and defenses against assignee. [Effective until September 1, 2026.]
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(a) Unless an account debtor has made an enforceable agreement not to assert defenses or claims, and subject to subsections (b)-(e), the rights of an assignee are subject to:(1) all terms of the agreement between the account debtor and assignor and any defense or claim in recoupm…
Ark. Code Ann. § 4-9-405 Modification of assigned contract
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(a) A modification of or substitution for an assigned contract is effective against an assignee if made in good faith. The assignee acquires corresponding rights under the modified or substituted contract. The assignment may provide that the modification or substitution is a brea…
Ark. Code Ann. § 4-9-406 Discharge of account debtor — Notification of assignment — Identification and proof of assignment — Restrictions on assignment of accounts, chattel paper, payment intangibles, and promissory notes ineffective. [Effective until September 1, 2026.]
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(a) Subject to subsections (b)-(i), an account debtor on an account, chattel paper, or a payment intangible may discharge its obligation by paying the assignor until, but not after, the account debtor receives a notification, authenticated by the assignor or the assignee, that th…
Ark. Code Ann. § 4-9-407 Restrictions on creation or enforcement of security interest in leasehold interest or in lessor's residual interest
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(a) Except as otherwise provided in subsection (b), a term in a lease agreement is ineffective to the extent that it:(1) prohibits, restricts, or requires the consent of a party to the lease to the assignment or transfer of, or the creation, attachment, perfection, or enforcement…
Ark. Code Ann. § 4-9-408 Restrictions on assignment of promissory notes, health-care-insurance receivables, and certain general intangibles ineffective. [Effective until September 1, 2026.]
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(a) Except as otherwise provided in subsections (b) and (g), a term in a promissory note or in an agreement between an account debtor and a debtor which relates to a health-care-insurance receivable or a general intangible, including a contract, permit, license, or franchise, and…
Ark. Code Ann. § 4-9-409 Restrictions on assignment of letter-of-credit rights ineffective
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(a) A term in a letter of credit or a rule of law, statute, regulation, custom, or practice applicable to the letter of credit which prohibits, restricts, or requires the consent of an applicant, issuer, or nominated person to a beneficiary's assignment of or creation of a securi…
Ark. Code Ann. § 4-9-501 Filing office
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(a) Except as otherwise provided in subsection (b), if the local law of this state governs perfection of a security interest or agricultural lien, the office in which to file a financing statement to perfect the security interest or agricultural lien is:(1) the office designated …
Ark. Code Ann. § 4-9-502 Contents of financing statement — Record of mortgage as financing statement — Time of filing financing statement
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(a) Subject to subsection (b), a financing statement is sufficient only if it:(1) provides the name of the debtor;(2) provides the name of the secured party or a representative of the secured party; and(3) indicates the collateral covered by the financing statement. (1) provides …
Ark. Code Ann. § 4-9-503 Name of debtor and secured party
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(a) A financing statement sufficiently provides the name of the debtor:(1) except as otherwise provided in paragraph (3), if the debtor is a registered organization or the collateral is held in a trust that is a registered organization, only if the financing statement provides th…
Ark. Code Ann. § 4-9-504 Indication of collateral
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(1) A financing statement sufficiently indicates the collateral that it covers if the financing statement provides:(1) a description of the collateral pursuant to § 4-9-108; or(2) an indication that the financing statement covers all assets or all personal property. (1) a descrip…
Ark. Code Ann. § 4-9-505 Filing and compliance with other statutes and treaties for consignments, leases, other bailments, and other transactions
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(a) A consignor, lessor, or other bailor of goods, a licensor, or a buyer of a payment intangible or promissory note may file a financing statement, or may comply with a statute or treaty described in § 4-9-311(a), using the terms “consignor”, “consignee”, “lessor”, “lessee”, “ba…
Ark. Code Ann. § 4-9-506 Effect of errors or omissions
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(a) A financing statement substantially satisfying the requirements of this part is effective, even if it has minor errors or omissions, unless the errors or omissions make the financing statement seriously misleading. (b) Except as otherwise provided in subsection (c), a financi…
Ark. Code Ann. § 4-9-507 Effect of certain events on effectiveness of financing statement
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(a) A filed financing statement remains effective with respect to collateral that is sold, exchanged, leased, licensed, or otherwise disposed of and in which a security interest or agricultural lien continues, even if the secured party knows of or consents to the disposition. (b)…
Ark. Code Ann. § 4-9-508 Effectiveness of financing statement if new debtor becomes bound by security agreement
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(a) Except as otherwise provided in this section, a filed financing statement naming an original debtor is effective to perfect a security interest in collateral in which a new debtor has or acquires rights to the extent that the financing statement would have been effective had …
Ark. Code Ann. § 4-9-509 Persons entitled to file a record. [Effective until September 1, 2026.]
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(a) A person may file an initial financing statement, amendment that adds collateral covered by a financing statement, or amendment that adds a debtor to a financing statement only if:(1) the debtor authorizes the filing in an authenticated record or pursuant to subsection (b) or…
Ark. Code Ann. § 4-9-510 Effectiveness of filed record
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(a) A filed record is effective only to the extent that it was filed by a person that may file it under § 4-9-509 or by the filing office under § 4-9-529. (b) A record authorized by one (1) secured party of record does not affect the financing statement with respect to another se…
Ark. Code Ann. § 4-9-511 Secured party of record
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(a) A secured party of record with respect to a financing statement is a person whose name is provided as the name of the secured party or a representative of the secured party in an initial financing statement that has been filed. If an initial financing statement is filed under…
Ark. Code Ann. § 4-9-512 Amendment of financing statement
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(a) Subject to § 4-9-509, a person may add or delete collateral covered by, continue or terminate the effectiveness of, or, subject to subsection (e), otherwise amend the information provided in, a financing statement by filing an amendment that:(1) identifies, by its file number…
Ark. Code Ann. § 4-9-513 Termination statement. [Effective until September 1, 2026.]
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(a) A secured party shall cause the secured party of record for a financing statement to file a termination statement for the financing statement if the financing statement covers consumer goods and:(1) there is no obligation secured by the collateral covered by the financing sta…
Ark. Code Ann. § 4-9-514 Assignment of powers of secured party of record
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(a) Except as otherwise provided in subsection (c), an initial financing statement may reflect an assignment of all of the secured party's power to authorize an amendment to the financing statement by providing the name and mailing address of the assignee as the name and address …
Ark. Code Ann. § 4-9-515 Duration and effectiveness of financing statement — Effect of lapsed financing statement
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(a) Except as otherwise provided in subsections (b), (e), (f), and (g), a filed financing statement is effective for a period of five (5) years after the date of filing. (b) Except as otherwise provided in subsections (e), (f), and (g), an initial financing statement filed in con…
Ark. Code Ann. § 4-9-516 What constitutes filing — Effectiveness of filing
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(a) Except as otherwise provided in subsection (b), communication of a record to a filing office and tender of the filing fee or acceptance of the record by the filing office constitutes filing. (b) Filing does not occur with respect to a record that a filing office refuses to ac…
Ark. Code Ann. § 4-9-517 Effect of indexing errors
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The failure of the filing office to index a record correctly does not affect the effectiveness of the filed record.
Ark. Code Ann. § 4-9-518 Claim concerning inaccurate or wrongfully filed record
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(a) A person may file in the filing office an information statement with respect to a record indexed there under the person's name if the person believes that the record is inaccurate or was wrongfully filed. (b) An information statement under subsection (a) must:(1) identify the…
Ark. Code Ann. § 4-9-519 Numbering, maintaining, and indexing records — Communicating information provided in records
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(a) For each record filed in a filing office, the filing office shall:(1) assign a unique number to the filed record;(2) create a record that bears the number assigned to the filed record and the date and time of filing;(3) maintain the filed record for public inspection; and(4) …
Ark. Code Ann. § 4-9-520 Acceptance and refusal to accept record
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(a) A filing office shall refuse to accept a record for filing for a reason set forth in § 4-9-516(b) and may refuse to accept a record for filing only for a reason set forth in § 4-9-516(b). (b) If a filing office refuses to accept a record for filing, it shall communicate to th…
Ark. Code Ann. § 4-9-521 Uniform form of written financing statement and amendment
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(a) A filing office that accepts written records may not refuse to accept a written initial financing statement in the following form and format except for a reason set forth in § 4-9-516(b):Click here to view form. (b) A filing office that accepts written records may not refuse …
Ark. Code Ann. § 4-9-522 Maintenance and destruction of records
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(a) The filing office shall maintain a record of the information provided in a filed financing statement for at least one (1) year after the effectiveness of the financing statement has lapsed under § 4-9-515 with respect to all secured parties of record. The record must be retri…