TO AMEND ARTICLE 9 OF THE UNIFORM COMMERCIAL CODE.

HB 1736 amends Arkansas' implementation of the Uniform Commercial Code (Article 9) to invalidate certain contractual restrictions on security interest assignments. It specifically makes terms that prohibit or restrict the assignment of accounts, chattel paper, promissory notes, or security interests - such as clauses requiring debtor consent or triggering defaults - unenforceable if they impair security interest enforcement. This affects creditors (like lenders) and debtors in commercial transactions involving these assets, ensuring security interests can be freely transferred without violating existing contracts. The bill is now Act 603 and aligns Arkansas law with the Uniform Commercial Code's standard for enforceable security interests.