The bill amends Article 9 of the Uniform Commercial Code in Arkansas, specifically addressing the ineffectiveness of certain assignments and legal restrictions on assignments. Key changes include the removal of references to subsection (e) in Arkansas Code 4-9-406(d) and the addition of subsections (k) in both 4-9-406 and 4-9-408, which clarify that the provisions do not apply to security interests in ownership interests in general partnerships, limited partnerships, or limited liability companies. Additionally, the bill modifies the language in subsections (f) and (a) to include new references to subsections (k) and (g), respectively, while also ensuring that terms in agreements that restrict assignments or create defaults are deemed ineffective.

Furthermore, the bill updates the language in Arkansas Code 4-9-408(c) to clarify that certain legal restrictions on assignments are ineffective, with the exception of subsection (g). This comprehensive amendment aims to streamline the legal framework surrounding assignments and security interests, ensuring that unnecessary restrictions do not hinder the creation, attachment, or perfection of security interests in various financial instruments and agreements.

Statutes affected:
HB 1736: 4-9-406(d), 4-9-406(f), 4-9-406, 4-9-408(a), 4-9-408(c), 4-9-408
Act 603: 4-9-406(d), 4-9-406(f), 4-9-406, 4-9-408(a), 4-9-408(c), 4-9-408