HB1736

House Bill 1736 amends Article 9 of the Uniform Commercial Code (UCC) in Arkansas, specifically regarding the assignment of security interests in various types of property. The bill clarifies that certain statutory prohibitions or restrictions on assigning accounts, chattel paper, payment intangibles, promissory notes, and health-care-insurance receivables are ineffective when they hinder the creation, attachment, or perfection of a security interest. Furthermore, the bill introduces a specific exception to these provisions. It stipulates that the rules rendering such restrictions ineffective do not apply to security interests held in the ownership interests of general partnerships, limited partnerships, or limited liability companies. This aligns Arkansas law with updated uniform commercial standards regarding commercial financing and asset collateralization.