Title 4 — Business and Commercial Law
88 chapters · 1,044 sections in this title.
Ark. Code Ann. § 4-8-115 Securities intermediary and others not liable to adverse claimant
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(1) A securities intermediary that has transferred a financial asset pursuant to an effective entitlement order, or a broker or other agent or bailee that has dealt with a financial asset at the direction of its customer or principal, is not liable to a person having an adverse c…
Ark. Code Ann. § 4-8-116 Securities intermediary as purchaser for value
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A securities intermediary that receives a financial asset and establishes a security entitlement to the financial asset in favor of an entitlement holder is a purchaser for value of the financial asset. A securities intermediary that acquires a security entitlement to a financial…
Ark. Code Ann. § 4-8-201 Issuer
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(a) With respect to an obligation on or a defense to a security, an “issuer” includes a person that:(1) places or authorizes the placing of its name on a security certificate, other than as authenticating trustee, registrar, transfer agent, or the like, to evidence a share, parti…
Ark. Code Ann. § 4-8-202 Issuer's responsibility and defenses — Notice of defect or defense
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(a) Even against a purchaser for value and without notice, the terms of a certificated security include terms stated on the certificate and terms made part of the security by reference on the certificate to another instrument, indenture, or document or to a constitution, statute,…
Ark. Code Ann. § 4-8-203 Staleness as notice of defect or defense
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(1) After an act or event, other than a call that has been revoked, creating a right to immediate performance of the principal obligation represented by a certificated security or setting a date on or after which the security is to be presented or surrendered for redemption or ex…
Ark. Code Ann. § 4-8-204 Effect of issuer's restriction on transfer
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(1) A restriction on transfer of a security imposed by the issuer, even if otherwise lawful, is ineffective against a person without knowledge of the restriction unless:(1) the security is certificated and the restriction is noted conspicuously on the security certificate; or(2) …
Ark. Code Ann. § 4-8-205 Effect of unauthorized signature on security certificate
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(1) An unauthorized signature placed on a security certificate before or in the course of issue is ineffective, but the signature is effective in favor of a purchaser for value of the certificated security if the purchaser is without notice of the lack of authority and the signin…
Ark. Code Ann. § 4-8-206 Completion or alteration of security certificate
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(a) If a security certificate contains the signatures necessary to its issue or transfer but is incomplete in any other respect:(1) any person may complete it by filling in the blanks as authorized; and(2) even if the blanks are incorrectly filled in, the security certificate as …
Ark. Code Ann. § 4-8-207 Rights and duties of issuer with respect to registered owners
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(a) Before due presentment for registration of transfer of a certificated security in registered form or of an instruction requesting registration of transfer of an uncertificated security, the issuer or indenture trustee may treat the registered owner as the person exclusively e…
Ark. Code Ann. § 4-8-208 Effect of signature of authenticating trustee, registrar, or transfer agent
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(a) A person signing a security certificate as authenticating trustee, registrar, transfer agent, or the like, warrants to a purchaser for value of the certificated security, if the purchaser is without notice of a particular defect, that:(1) the certificate is genuine;(2) the pe…
Ark. Code Ann. § 4-8-209 Issuer's lien
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A lien in favor of an issuer upon a certificated security is valid against a purchaser only if the right of the issuer to the lien is noted conspicuously on the security certificate.
Ark. Code Ann. § 4-8-210 Overissue
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(a) In this section, “overissue” means the issue of securities in excess of the amount the issuer has corporate power to issue, but an overissue does not occur if appropriate action has cured the overissue. (b) Except as otherwise provided in subsections (c) and (d), the provisio…
Ark. Code Ann. § 4-8-301 Delivery
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(a) Delivery of a certificated security to a purchaser occurs when:(1) the purchaser acquires possession of the security certificate;(2) another person, other than a securities intermediary, either acquires possession of the security certificate on behalf of the purchaser or, hav…
Ark. Code Ann. § 4-8-302 Rights of purchaser
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(a) Except as otherwise provided in subsections (b) and (c), a purchaser of a certificated or uncertificated security acquires all rights in the security that the transferor had or had power to transfer. (b) A purchaser of a limited interest acquires rights only to the extent of …
Ark. Code Ann. § 4-8-303 Protected purchaser. [Effective until September 1, 2026.]
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(a) “Protected purchaser” means a purchaser of a certificated or uncertificated security, or of an interest therein, who:(1) gives value;(2) does not have notice of any adverse claim to the security; and(3) obtains control of the certificated or uncertificated security. (1) gives…
Ark. Code Ann. § 4-8-304 Indorsement
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(a) An indorsement may be in blank or special. An indorsement in blank includes an indorsement to bearer. A special indorsement specifies to whom a security is to be transferred or who has power to transfer it. A holder may convert a blank indorsement to a special indorsement. (b…
Ark. Code Ann. § 4-8-305 Instruction
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(a) If an instruction has been originated by an appropriate person but is incomplete in any other respect, any person may complete it as authorized and the issuer may rely on it as completed, even though it has been completed incorrectly. (b) Unless otherwise agreed, a person ini…
Ark. Code Ann. § 4-8-306 Effect of guaranteeing signature, indorsement, or instruction
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(a) A person who guarantees a signature of an indorser of a security certificate warrants that at the time of signing:(1) the signature was genuine;(2) the signer was an appropriate person to indorse, or if the signature is by an agent, the agent had actual authority to act on be…
Ark. Code Ann. § 4-8-307 Purchaser's right to requisites for registration of transfer
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Unless otherwise agreed, the transferor of a security on due demand shall supply the purchaser with proof of authority to transfer or with any other requisite necessary to obtain registration of the transfer of the security, but if the transfer is not for value, a transferor need…
Ark. Code Ann. § 4-8-401 Duty of issuer to register transfer
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(a) If a certificated security in registered form is presented to an issuer with a request to register transfer or an instruction is presented to an issuer with a request to register transfer of an uncertificated security, the issuer shall register the transfer as requested if:(1…
Ark. Code Ann. § 4-8-402 Assurance that indorsement or instruction is effective
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(a) An issuer may require the following assurance that each necessary indorsement or each instruction is genuine and authorized:(1) in all cases, a guaranty of the signature of the person making an indorsement or originating an instruction including, in the case of an instruction…
Ark. Code Ann. § 4-8-403 Demand that issuer not register transfer
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(a) A person who is an appropriate person to make an indorsement or originate an instruction may demand that the issuer not register transfer of a security by communicating to the issuer a notification that identifies the registered owner and the issue of which the security is a …
Ark. Code Ann. § 4-8-404 Wrongful registration
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(a) Except as otherwise provided in § 4-8-406, an issuer is liable for wrongful registration of transfer if the issuer has registered a transfer of a security to a person not entitled to it, and the transfer was registered:(1) pursuant to an ineffective indorsement or instruction…
Ark. Code Ann. § 4-8-405 Replacement of lost, destroyed, or wrongfully taken security certificate
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(a) If an owner of a certificated security, whether in registered or bearer form, claims that the certificate has been lost, destroyed, or wrongfully taken, the issuer shall issue a new certificate if the owner:(1) so requests before the issuer has notice that the certificate has…
Ark. Code Ann. § 4-8-406 Obligation to notify issuer of lost, destroyed, or wrongfully taken security certificate
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If a security certificate has been lost, apparently destroyed, or wrongfully taken, and the owner fails to notify the issuer of that fact within a reasonable time after the owner has notice of it and the issuer registers a transfer of the security before receiving notification, t…
Ark. Code Ann. § 4-8-407 Authenticating trustee, transfer agent, and registrar
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A person acting as authenticating trustee, transfer agent, registrar, or other agent for an issuer in the registration of a transfer of its securities, in the issue of new security certificates or uncertificated securities, or in the cancellation of surrendered security certifica…
Ark. Code Ann. § 4-8-501 Securities account — Acquisition of security entitlement from securities intermediary
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(a) “Securities account” means an account to which a financial asset is or may be credited in accordance with an agreement under which the person maintaining the account undertakes to treat the person for whom the account is maintained as entitled to exercise the rights that comp…
Ark. Code Ann. § 4-8-502 Assertion of adverse claim against entitlement holder
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An action based on an adverse claim to a financial asset, whether framed in conversion, replevin, constructive trust, equitable lien, or other theory, may not be asserted against a person who acquires a security entitlement under § 4-8-501 for value and without notice of the adve…
Ark. Code Ann. § 4-8-503 Property interest of entitlement holder in financial asset held by securities intermediary
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(a) To the extent necessary for a securities intermediary to satisfy all security entitlements with respect to a particular financial asset, all interests in that financial asset held by the securities intermediary are held by the securities intermediary for the entitlement holde…
Ark. Code Ann. § 4-8-504 Duty of securities intermediary to maintain financial asset
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(a) A securities intermediary shall promptly obtain and thereafter maintain a financial asset in a quantity corresponding to the aggregate of all security entitlements it has established in favor of its entitlement holders with respect to that financial asset. The securities inte…
Ark. Code Ann. § 4-8-505 Duty of securities intermediary with respect to payments and distributions
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(a) A securities intermediary shall take action to obtain a payment or distribution made by the issuer of a financial asset. A securities intermediary satisfies the duty if:(1) the securities intermediary acts with respect to the duty as agreed upon by the entitlement holder and …
Ark. Code Ann. § 4-8-506 Duty of securities intermediary to exercise rights as directed by entitlement holder
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(1) A securities intermediary shall exercise rights with respect to a financial asset if directed to do so by an entitlement holder. A securities intermediary satisfies the duty if:(1) the securities intermediary acts with respect to the duty as agreed upon by the entitlement hol…
Ark. Code Ann. § 4-8-507 Duty of securities intermediary to comply with entitlement order
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(a) A securities intermediary shall comply with an entitlement order if the entitlement order is originated by the appropriate person, the securities intermediary has had reasonable opportunity to assure itself that the entitlement order is genuine and authorized, and the securit…
Ark. Code Ann. § 4-8-508 Duty of securities intermediary to change entitlement holder's position to other form of security holding
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(1) A securities intermediary shall act at the direction of an entitlement holder to change a security entitlement into another available form of holding for which the entitlement holder is eligible, or to cause the financial asset to be transferred to a securities account of the…
Ark. Code Ann. § 4-8-509 Specification of duties of securities intermediary by other statute or regulation — Manner of performance of duties of securities intermediary and exercise of rights of entitlement holder
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(a) If the substance of a duty imposed upon a securities intermediary by §§ 4-8-504 — 4-8-508 is the subject of other statute, regulation, or rule, compliance with that statute, regulation, or rule satisfies the duty. (b) To the extent that specific standards for the performance …
Ark. Code Ann. § 4-8-510 Rights of purchaser of security entitlement from entitlement holder
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(a) In a case not covered by the priority rules in Chapter 9 or the rules stated in subsection (c), an action based on an adverse claim to a financial asset or security entitlement, whether framed in conversion, replevin, constructive trust, equitable lien, or other theory, may n…
Ark. Code Ann. § 4-8-511 Priority among security interests and entitlement holders
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(a) Except as otherwise provided in subsections (b) and (c), if a securities intermediary does not have sufficient interests in a particular financial asset to satisfy both its obligations to entitlement holders who have security entitlements to that financial asset and its oblig…
Ark. Code Ann. § 4-8-603 Savings clause
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(a) This chapter does not affect an action or proceeding commenced before this chapter takes effect. (b) If a security interest in a security is perfected on or before the date this chapter takes effect, and the action by which the security interest was perfected would suffice to…
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…