Bill > HB1746

This bill amends the Uniform Commercial Code (UCC) to update and modernize various sections related to commercial transactions, electronic records, and financial instruments. The bill introduces several key changes, including: The bill modifies definitions and provisions across multiple chapters of the UCC, with a particular focus on electronic transactions and records. Key updates include replacing references to "authenticated" with "signed" records, expanding definitions to include new types of electronic assets like controllable electronic records, and creating new provisions for handling digital financial instruments. The bill adds a new Chapter 12 specifically addressing controllable electronic records, which provides rules for how these digital assets can be transferred, controlled, and protected. Significant changes are made to how security interests, accounts, and payment intangibles can be managed in an increasingly digital commercial landscape. The amendments aim to provide clearer legal frameworks for emerging technologies and digital financial instruments while maintaining core principles of commercial law. The bill also includes transitional provisions to ensure existing transactions and interests remain valid during the implementation of these new rules. Importantly, the bill takes effect on September 1, 2026, giving businesses and legal professionals time to understand and adapt to the new regulations.

Business and Industry

https://arkleg.state.ar.us/Bills/Detail?id=hb1746&ddBienniumSession=2025%2F2025R