Arkansas 2025 Regular Session

Arkansas House Bill HB1659 Compare Versions

Only one version of the bill is available at this time.

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1	1	Stricken language would be deleted from and underlined language would be added to present law.
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3	3	State of Arkansas 1
4	4	95th General Assembly A Bill 2
5	5	Regular Session, 2025 HOUSE BILL 1659 3
6	6	4
7	7	By: Representative S. Meeks 5
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10	10	For An Act To Be Entitled 8
11	11	AN ACT TO AMEND THE UNIFORM COMMERCIAL CODE; TO 9
12	12	CLARIFY THE PRIORITY AMONG SECURITY INTERESTS AND 10
13	13	ENTITLEMENT HOLDERS UNDER THE UNIFORM COMMERCIAL 11
14	14	CODE; AND FOR OTHER PURPOSES. 12
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17	17	Subtitle 15
18	18	TO AMEND THE UNIFORM COMMERCIAL CODE; 16
19	19	AND TO CLARIFY THE PRIORITY AMONG 17
20	20	SECURITY INTERESTS AND ENTITLEMENT 18
21	21	HOLDERS UNDER THE UNIFORM COMMERCIAL 19
22	22	CODE. 20
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24	24	BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF ARKANSAS: 22
25	25	23
26	26	SECTION 1. Arkansas Code § 4 -8-503(a), concerning property interest of 24
27	27	entitlement holder in financial asset held by securities intermediary, is 25
28	28	amended to read as follows: 26
29	29	(a) To the extent necessary for a securities intermediary to satisfy 27
30	30	all security entitlements with respect to a particular financial asset, all 28
31	31	interests in that financial asset held by the securities intermediary are 29
32	32	held by the securities intermediary for the entitlement holders, are not 30
33	33	property of the securities intermediary, and are not subject to claims of 31
34	34	creditors of the securities intermediary , except as otherwise provided in § 32
35	35	4-8-511. 33
36	36	34
37	37	SECTION 2. Arkansas Code § 4 -8-511 is amended to read as follows: 35
38	38	4-8-511. Priority among security interests and entitlement holders. 36 HB1659
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41	41	(a)(1) Except as otherwise provided in subsections (b) and (c), if If 1
42	42	a securities intermediary does not have sufficient interests in a particular 2
43	43	financial asset to satisfy both its obligations to entitlement holders who 3
44	44	have security entitlements to that financial asset and its obligation to a 4
45	45	creditor of the securities intermediary who has a security interest in that 5
46	46	financial asset, the claims of entitlement holders, other than the creditor, 6
47	47	have priority over the claim of the creditor. 7
48	48	(2) A claim of or a cause of action of an entitlement holder 8
49	49	under subdivision (a)(1) of this section shall be litigated in this state. 9
50	50	(b) A claim of a creditor of a securities intermediary who has a 10
51	51	security interest in a financial asset held by a securities intermediary has 11
52	52	priority over claims of the securities intermediary's entitlement holders who 12
53	53	have security entitlements with respect to that financial asset if the 13
54	54	creditor has control over the financial asset On and after January 1, 2026, a 14
55	55	dispute, case, claim, or controversy resulting from a contract or agreement 15
56	56	entered into under subsection (a) of this section shall be resolved or 16
57	57	litigated in this state . 17
58	58	(c) If a clearing corporation does not have sufficient financial 18
59	59	assets to satisfy both its obligations to entitlement holders who have 19
60	60	security entitlements with respect to a financial asset and its obligation to 20
61	61	a creditor of the clearing corporation who has a security interest in that 21
62	62	financial asset, the claim of the creditor has priority over the claims of 22
63	63	entitlement holders. 23
64	64	24
65	65	SECTION 3. Arkansas Code § 4 -9-305(a), concerning the law governing 25
66	66	perfection and priority of security interests in investment property, is 26
67	67	amended to read as follows: 27
68	68	(a) Except as otherwise provided in subsection (c), the following 28
69	69	rules apply: 29
70	70	(1) While a security certificate is located in a jurisdiction, 30
71	71	the local law of that jurisdiction governs perfection, the effect of 31
72	72	perfection or nonperfection, and the priority of a security interest in the 32
73	73	certificated security represented thereby. 33
74	74	(2) The local law of the issuer's jurisdiction as specified in § 34
75	75	4-8-110(d) governs perfection, the effect of perfection or nonperfection, and 35
76	76	the priority of a security interest in an uncertificated security. 36 HB1659
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79	79	(3) The local law of the securities intermediary's jurisdiction 1
80	80	as specified in § 4-8-110(e) governs perfection, the effect of perfection or 2
81	81	nonperfection, and the priority of a security interest in a security 3
82	82	entitlement or securities account. 4
83	83	(4) The local law of the commodity intermediary's jurisdiction 5
84	84	governs perfection, the effect of perfection or nonperfection, and the 6
85	85	priority of a security interest in a commodity contract or commodity account. 7
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