TO AMEND THE UNIFORM COMMERCIAL CODE; AND TO CLARIFY THE PRIORITY AMONG SECURITY INTERESTS AND ENTITLEMENT HOLDERS UNDER THE UNIFORM COMMERCIAL CODE.

House Bill 1659 proposed to amend Arkansas's Uniform Commercial Code to clarify the priority among security interests and entitlement holders regarding financial assets held by securities intermediaries. The bill specified that if a securities intermediary lacks sufficient assets, the claims of entitlement holders (investors) generally have priority over those of the intermediary's creditors with a security interest. However, a creditor's claim would gain priority if that creditor had "control" over the financial asset. It also included a provision for certain disputes arising from contracts on or after January 1, 2026, to be litigated in Arkansas.