Title 4 — Business and Commercial Law
88 chapters · 1,044 sections in this title.
Ark. Code Ann. § 4-9-101 Short title
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This chapter may be cited as Uniform Commercial Code — Secured Transactions.
Ark. Code Ann. § 4-9-102 Definitions and index of definitions. [Effective until September 1, 2026.]
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(a) In this chapter:(1) “Accession” means goods that are physically united with other goods in such a manner that the identity of the original goods is not lost.(2) “Account”, except as used in “account for”, means a right to payment of a monetary obligation, whether or not earne…
Ark. Code Ann. § 4-9-103 Purchase-money security interest — Application of payments — Burden of establishing
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(a) In this section:(1) “purchase-money collateral” means goods or software that secures a purchase-money obligation incurred with respect to that collateral; and(2) “purchase-money obligation” means an obligation of an obligor incurred as all or part of the price of the collater…
Ark. Code Ann. § 4-9-104 Control of deposit account. [Effective until September 1, 2026.]
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(a) A secured party has control of a deposit account if:(1) the secured party is the bank with which the deposit account is maintained;(2) the debtor, secured party, and bank have agreed in an authenticated record that the bank will comply with instructions originated by the secu…
Ark. Code Ann. § 4-9-105 Control of electronic chattel paper. [Effective until September 1, 2026.]
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(a) A secured party has control of electronic chattel paper if a system employed for evidencing the transfer of interests in the chattel paper reliably establishes the secured party as the person to which the chattel paper was assigned. (b) A system satisfies subsection (a) if th…
Ark. Code Ann. § 4-9-105A Control of electronic money. [Effective September 1, 2026.]
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(a) A person has control of electronic money if:(1) the electronic money, a record attached to or logically associated with the electronic money, or a system in which the electronic money is recorded gives the person:(A) power to avail itself of substantially all the benefit from…
Ark. Code Ann. § 4-9-106 Control of investment property
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(a) A person has control of a certificated security, uncertificated security, or security entitlement as provided in § 4-8-106. (b) A secured party has control of a commodity contract if:(1) the secured party is the commodity intermediary with which the commodity contract is carr…
Ark. Code Ann. § 4-9-107 Control of letter-of-credit right — Control of virtual currency
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(a) A secured party has control of a letter-of-credit right to the extent of any right to payment or performance by the issuer or any nominated person if the issuer or nominated person has consented to an assignment of proceeds of the letter of credit under § 4-5-114(c) or otherw…
Ark. Code Ann. § 4-9-107A Control of controllable electronic record, controllable account, or controllable payment intangible. [Effective September 1, 2026.]
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(a) A secured party has control of a controllable electronic record as provided in § 4-12-105. (b) A secured party has control of a controllable account or controllable payment intangible if the secured party has control of the controllable electronic record that evidences the co…
Ark. Code Ann. § 4-9-107B No requirement to acknowledge or confirm – No duties. [Effective September 1, 2026.]
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(a) A person that has control under § 4-9-104, § 4-9-105, or § 4-9-105A is not required to acknowledge that it has control on behalf of another person. (b) If a person acknowledges that it has or will obtain control on behalf of another person, unless the person otherwise agrees …
Ark. Code Ann. § 4-9-108 Sufficiency of description
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(a) Except as otherwise provided in subsections (c), (d), and (e), a description of personal or real property is sufficient, whether or not it is specific, if it reasonably identifies what is described. (b) Except as otherwise provided in subsection (d), a description of collater…
Ark. Code Ann. § 4-9-109 Scope
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(a) Except as otherwise provided in subsections (c) and (d) of this section, this chapter applies to:(1) a transaction, regardless of its form, that creates a security interest in personal property or fixtures by contract;(2) an agricultural lien;(3) a sale of accounts, chattel p…
Ark. Code Ann. § 4-9-110 Security interests arising under Chapter 2 or Chapter 2A
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(1) A security interest arising under § 4-2-401, § 4-2-505, § 4-2-711(3), or § 4-2A-508(5) is subject to this chapter. However, until the debtor obtains possession of the goods:(1) the security interest is enforceable, even if § 4-9-203(b)(3) has not been satisfied;(2) filing is …
Ark. Code Ann. § 4-9-201 General effectiveness of security agreement
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(a) Except as otherwise provided in the Uniform Commercial Code, a security agreement is effective according to its terms between the parties, against purchasers of the collateral, and against creditors. (b) A transaction subject to this chapter is subject to any applicable rule …
Ark. Code Ann. § 4-9-202 Title to collateral immaterial
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Except as otherwise provided with respect to consignments or sales of accounts, chattel paper, payment intangibles, or promissory notes, the provisions of this chapter with regard to rights and obligations apply whether title to collateral is in the secured party or the debtor.
Ark. Code Ann. § 4-9-203 Attachment and enforceability of security interest — Proceeds — Supporting obligations — Formal requisites
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(a) A security interest attaches to collateral when it becomes enforceable against the debtor with respect to the collateral, unless an agreement expressly postpones the time of attachment. (b) Except as otherwise provided in subsections (c) through (i), a security interest is en…
Ark. Code Ann. § 4-9-204 After-acquired property — Future advances. [Effective until September 1, 2026.]
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(a) Except as otherwise provided in subsection (b), a security agreement may create or provide for a security interest in after-acquired collateral. (b) A security interest does not attach under a term constituting an after-acquired property clause to:(1) consumer goods, other th…
Ark. Code Ann. § 4-9-205 Use or disposition of collateral permissible
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(a) A security interest is not invalid or fraudulent against creditors solely because:(1) the debtor has the right or ability to:(A) use, commingle, or dispose of all or part of the collateral, including returned or repossessed goods;(B) collect, compromise, enforce, or otherwise…
Ark. Code Ann. § 4-9-206 Security interest arising in purchase or delivery of financial asset
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(a) A security interest in favor of a securities intermediary attaches to a person's security entitlement if:(1) the person buys a financial asset through the securities intermediary in a transaction in which the person is obligated to pay the purchase price to the securities int…
Ark. Code Ann. § 4-9-207 Rights and duties of secured party having possession or control of collateral
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(a) Except as otherwise provided in subsection (d), a secured party shall use reasonable care in the custody and preservation of collateral in the secured party's possession. In the case of chattel paper or an instrument, reasonable care includes taking necessary steps to preserv…
Ark. Code Ann. § 4-9-208 Additional duties of secured party having control of collateral
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(a) This section applies to cases in which there is no outstanding secured obligation and the secured party is not committed to make advances, incur obligations, or otherwise give value. (b) Within ten (10) days after receiving an authenticated demand by the debtor:(1) a secured …
Ark. Code Ann. § 4-9-209 Duties of secured party if account debtor has been notified of assignment
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(a) Except as otherwise provided in subsection (c), this section applies if:(1) there is no outstanding secured obligation; and(2) the secured party is not committed to make advances, incur obligations, or otherwise give value. (1) there is no outstanding secured obligation; and …
Ark. Code Ann. § 4-9-210 Request for accounting — Request regarding list of collateral or statement of account
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(a) In this section:(1) “Request” means a record of a type described in paragraph (2), (3), or (4).(2) “Request for an accounting” means a record authenticated by a debtor requesting that the recipient provide an accounting of the unpaid obligations secured by collateral and reas…
Ark. Code Ann. § 4-9-301 Law governing perfection and priority of security interests
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(1) Except as otherwise provided in §§ 4-9-303 — 4-9-306, the following rules determine the law governing perfection, the effect of perfection or nonperfection, and the priority of a security interest in collateral:(1) Except as otherwise provided in this section, while a debtor …
Ark. Code Ann. § 4-9-302 Law governing perfection and priority of agricultural liens
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While farm products are located in a jurisdiction, the local law of that jurisdiction governs perfection, the effect of perfection or nonperfection, and the priority of an agricultural lien on the farm products.
Ark. Code Ann. § 4-9-303 Law governing perfection and priority of security interests in goods covered by a certificate of title
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(a) This section applies to goods covered by a certificate of title, even if there is no other relationship between the jurisdiction under whose certificate of title the goods are covered and the goods or the debtor. (b) Goods become covered by a certificate of title when a valid…
Ark. Code Ann. § 4-9-304 Law governing perfection and priority of security interests in deposit accounts
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(a) The local law of a bank's jurisdiction governs perfection, the effect of perfection or nonperfection, and the priority of a security interest in a deposit account maintained with that bank. (b) The following rules determine a bank's jurisdiction for purposes of this part:(1) …
Ark. Code Ann. § 4-9-305 Law governing perfection and priority of security interests in investment property. [Effective until September 1, 2026.]
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(a) Except as otherwise provided in subsection (c), the following rules apply:(1) While a security certificate is located in a jurisdiction, the local law of that jurisdiction governs perfection, the effect of perfection or nonperfection, and the priority of a security interest i…
Ark. Code Ann. § 4-9-306 Law governing perfection and priority of security interests in letter-of-credit rights
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(a) Subject to subsection (c), the local law of the issuer's jurisdiction or a nominated person's jurisdiction governs perfection, the effect of perfection or nonperfection, and the priority of a security interest in a letter-of-credit right if the issuer's jurisdiction or nomina…
Ark. Code Ann. § 4-9-306A Law governing perfection and priority of security interests in chattel paper. [Effective September 1, 2026.]
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(a) Except as provided in subsection (d), if chattel paper is evidenced only by an authoritative electronic copy of the chattel paper or is evidenced by an authoritative electronic copy and an authoritative tangible copy, the local law of the chattel paper’s jurisdiction governs …
Ark. Code Ann. § 4-9-306B Law governing perfection and priority of security interests in controllable accounts, controllable electronic records, and controllable payment intangibles. [Effective September 1, 2026.]
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(a) Except as provided in subsection (b), the local law of the controllable electronic record’s jurisdiction specified in § 4-12-107(c) and (d) governs perfection, the effect of perfection or nonperfection, and the priority of a security interest in a controllable electronic reco…
Ark. Code Ann. § 4-9-307 Location of debtor
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(a) In this section, “place of business” means a place where a debtor conducts its affairs. (b) Except as otherwise provided in this section, the following rules determine a debtor's location:(1) A debtor who is an individual is located at the individual's principal residence.(2)…
Ark. Code Ann. § 4-9-308 When security interest or agricultural lien is perfected — Continuity of perfection
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(a) Except as otherwise provided in this section and § 4-9-309, a security interest is perfected if it has attached and all of the applicable requirements for perfection in §§ 4-9-310 — 4-9-316 have been satisfied. A security interest is perfected when it attaches if the applicab…
Ark. Code Ann. § 4-9-309 Security interest perfected upon attachment
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(1) The following security interests are perfected when they attach:(1) a purchase-money security interest in consumer goods, except as otherwise provided in § 4-9-311(b) with respect to consumer goods that are subject to a statute or treaty described in § 4-9-311(a);(2) an assig…
Ark. Code Ann. § 4-9-310 When filing required to perfect security interest or agricultural lien — Security interests and agricultural liens to which filing provisions do not apply. [Effective until September 1, 2026.]
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(a) Except as otherwise provided in subsection (b) and § 4-9-312(b), a financing statement must be filed to perfect all security interests and agricultural liens. (b) The filing of a financing statement is not necessary to perfect a security interest:(1) that is perfected under §…
Ark. Code Ann. § 4-9-311 Perfection of security interests in property subject to certain statutes, regulations, and treaties
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(a) Except as otherwise provided in subsection (d) of this section, the filing of a financing statement is not necessary or effective to perfect a security interest in property subject to:(1) a statute, regulation, or treaty of the United States whose requirements for a security …
Ark. Code Ann. § 4-9-312 Perfection of security interests in chattel paper, deposit accounts, documents, goods covered by documents, instruments, investment property, virtual currencies, letter-of-credit rights, and money — Perfection by permissive filing — Temporary perfection without filing or transfer of possession. [Effective until September 1, 2026.]
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(a) A security interest in chattel paper, negotiable documents, instruments, investment property, and virtual currencies may be perfected by filing. (b) Except as otherwise provided in § 4-9-315(c) and (d) for proceeds:(1) a security interest in a deposit account may be perfected…
Ark. Code Ann. § 4-9-313 When possession by or delivery to secured party perfects security interest without filing. [Effective until September 1, 2026.]
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(a) Except as otherwise provided in subsection (b), a secured party may perfect a security interest in tangible negotiable documents, goods, instruments, money, or tangible chattel paper by taking possession of the collateral. A secured party may perfect a security interest in ce…
Ark. Code Ann. § 4-9-314 Perfection by control. [Effective until September 1, 2026.]
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(a) A security interest in investment property, deposit accounts, letter-of-credit rights, virtual currencies, electronic chattel paper, or electronic documents may be perfected by control of the collateral under § 4-7-106, § 4-9-104, § 4-9-105, § 4-9-106, or § 4-9-107. (b) A sec…
Ark. Code Ann. § 4-9-314A Perfection by possession and control of chattel paper. [Effective September 1, 2026.]
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(a) A secured party may perfect a security interest in chattel paper by taking possession of each authoritative tangible copy of the record evidencing the chattel paper and obtaining control of each authoritative electronic copy of the electronic record evidencing the chattel pap…
Ark. Code Ann. § 4-9-315 Secured party's rights on disposition of collateral and in proceeds
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(a) Except as otherwise provided in this chapter and in § 4-2-403(2):(1) a security interest or agricultural lien continues in collateral notwithstanding sale, lease, license, exchange, or other disposition thereof unless the secured party authorized the disposition free of the s…
Ark. Code Ann. § 4-9-316 Effect of change in governing law. [Effective until September 1, 2026.]
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(a) A security interest perfected pursuant to the law of the jurisdiction designated in § 4-9-301(1) or § 4-9-305(c) remains perfected until the earliest of:(1) the time perfection would have ceased under the law of that jurisdiction;(2) the expiration of four (4) months after a …
Ark. Code Ann. § 4-9-317 Interests that take priority over or take free of security interest or agricultural lien. [Effective until September 1, 2026.]
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(a) A security interest or agricultural lien is subordinate to the rights of:(1) a person entitled to priority under § 4-9-322; and(2) except as otherwise provided in subsection (e), a person that becomes a lien creditor before the earlier of the time:(A) the security interest or…
Ark. Code Ann. § 4-9-318 No interest retained in right to payment that is sold — Rights and title of seller of account or chattel paper with respect to creditors and purchasers
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(a) A debtor that has sold an account, chattel paper, payment intangible, or promissory note does not retain a legal or equitable interest in the collateral sold. (b) For purposes of determining the rights of creditors of, and purchasers for value of an account or chattel paper f…
Ark. Code Ann. § 4-9-319 Rights and title of consignee with respect to creditors and purchasers
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(a) Except as otherwise provided in subsection (b), for purposes of determining the rights of creditors of, and purchasers for value of goods from, a consignee, while the goods are in the possession of the consignee, the consignee is deemed to have rights and title to the goods i…
Ark. Code Ann. § 4-9-320 Buyer of goods
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(a) Except as otherwise provided in subsection (e), a buyer in ordinary course of business, other than a person buying farm products from a person engaged in farming operations, takes free of a security interest created by the buyer's seller, even if the security interest is perf…
Ark. Code Ann. § 4-9-321 Licensee of general intangible and lessee of goods in ordinary course of business
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(a) In this section, “licensee in ordinary course of business” means a person that becomes a licensee of a general intangible in good faith, without knowledge that the license violates the rights of another person in the general intangible, and in the ordinary course from a perso…
Ark. Code Ann. § 4-9-322 Priorities among conflicting security interests in and agricultural liens on same collateral
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(a) Except as otherwise provided in this section, priority among conflicting security interests and agricultural liens in the same collateral is determined according to the following rules:(1) Conflicting perfected security interests and agricultural liens rank according to prior…
Ark. Code Ann. § 4-9-323 Future advances. [Effective until September 1, 2026.]
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(a) Except as otherwise provided in subsection (c), for purposes of determining the priority of a perfected security interest under § 4-9-322(a)(1), perfection of the security interest dates from the time an advance is made to the extent that the security interest secures an adva…
Ark. Code Ann. § 4-9-324 Priority of purchase-money security interests. [Effective until September 1, 2026.]
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(a) Except as otherwise provided in subsection (g), a perfected purchase-money security interest in goods other than inventory or livestock has priority over a conflicting security interest in the same goods, and, except as otherwise provided in § 4-9-327, a perfected security in…