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Bill

HB 1746

TO AMEND THE UNIFORM COMMERCIAL CODE.

2025 Regular Session Introduced by Matt Brown and 1 co-sponsor

Act 997 updates Arkansas' Uniform Commercial Code, clarifying terms for businesses, banks, and consumers, ensuring clearer rights and obligations in commercial transactions.

Notification that HB1746 is now Act 997
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WeVote Research Nonpartisan
Bill Summary · HB 1746

Summary of House Bill 1746 (Act 997)

Overview

House Bill 1746, now known as Act 997, was introduced in the Arkansas General Assembly on March 11, 2025. The primary purpose of this legislation is to amend the Uniform Commercial Code (UCC) to clarify definitions and provisions related to commercial transactions in the state of Arkansas.

Key Provisions

The bill includes several important amendments to the UCC, specifically to Arkansas Code § 4-1-201(b). The amendments focus on the following definitions:

  1. Action: Expanded to include various judicial proceedings such as recoupment, counterclaim, and suit in equity.
  2. Aggrieved Party: Defined as a party entitled to pursue a remedy.
  3. Agreement vs. Contract: Clarifies that an "agreement" is the bargain of the parties, while a "contract" is the total legal obligation resulting from that agreement.
  4. Bank: Broadens the definition to include various financial institutions such as savings banks and credit unions.
  5. Buyer in Ordinary Course of Business: Specifies conditions under which a buyer is considered to be acting in good faith and in the ordinary course of business.
  6. Conspicuous Terms: Establishes criteria for what constitutes conspicuous terms in contracts, which must be noticeable to a reasonable person.
  7. Money: Redefines "money" to exclude central bank digital currencies and includes monetary units established by intergovernmental agreements.
  8. Deposit Account: Clarifies that a deposit account does not include central bank digital currency or accounts evidenced by an instrument.

Impact

The amendments made by HB 1746 will affect various stakeholders in commercial transactions, including:

  • Businesses: Companies engaging in the sale of goods will need to understand the clarified definitions to ensure compliance with the UCC.
  • Financial Institutions: Banks and other financial entities will need to adapt to the new definitions and requirements regarding transactions.
  • Consumers: Individuals entering into agreements for personal or household purposes will benefit from clearer definitions and protections under the law.

Legislative Timeline

  • March 11, 2025: Bill filed.
  • March 20, 2025: Passed in the House and transmitted to the Senate.
  • April 9, 2025: Senate amendments adopted.
  • April 22, 2025: Notification that HB 1746 is now Act 997.

Conclusion

Act 997 represents a significant update to the Uniform Commercial Code in Arkansas, aiming to enhance clarity and consistency in commercial transactions. Stakeholders are encouraged to review the changes to ensure compliance and to understand their rights and obligations under the amended law.

Compiled from official sources — confirm details with the bill’s official record.

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