On Apr. 14, ARK LEG approved bill to address assignments of debtors.
ARK LEG approved HB 1736 re ineffectiveness in Uniform Commercial Code (UCC).
Amends ARK LEG 4-9-406(d) (discharge/assignment of account debtor), and ARK LEG 4-9-408 (restrictions re promissory notes, INS receivables and general intangibles).
Specifies that subsections (d), (f), and (j) of ARK LEG 4-9-406 do not apply to security interest in an ownership interest in a general partnership, limited partnership, or LLC.
Legislative History
On Mar. 11, 2025, bill introduced in House; on Mar. 20, 2025, bill was passed in House.
On Mar. 20, 2025, bill delivered to Senate; on Apr. 8, 2025, bill was passed in Senate.
On Apr. 9, 2025, bill delivered to governor; on Apr. 14, bill HB 1736 became Act 603.
Effectiveness
Act effective 91 days after legislature adjourned sine die (May 5), so Aug. 4, 2025.
