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 (f), while adding new subsections (k) in both sections, which clarify that the provisions do not apply to security interests in ownership interests in general partnerships, limited partnerships, or limited liability companies. Additionally, amendments to sections 4-9-408(a) and 4-9-408(c) introduce similar exclusions regarding security interests in ownership interests in these business entities.

The bill also modifies the language in several sections to enhance clarity and ensure consistency in the treatment of assignments and security interests. For instance, it replaces the term "A" with "Except as otherwise provided in subsection (g), a" in section 4-9-408(c) to specify the conditions under which certain legal restrictions are deemed ineffective. Overall, these amendments aim to streamline the legal framework governing assignments and security interests under the Uniform Commercial Code in Arkansas.

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