reglab/statecodes huggingface dataset:
Arkansas Code of 1987 (2023) › Title 4 - BUSINESS AND COMMERCIAL LAW (§§ 4-1-101 — 4-119-105) › Subtitle 1 - UNIFORM COMMERCIAL CODE (§§ 4-1-101 — 4-11-106) › Chapter 2A - LEASES (§§ 4-2A-101 — 4-2A-532) › Part 5 - DEFAULT (§§ 4-2A-501 — 4-2A-532) › DEFAULT BY LESSOR (§§ 4-2A-508 — 4-2A-522) › Section 4-2A-519 - Lessee's damages for non-delivery, repudiation, default, and breach of warranty in regard to accepted goods

(1)
Except as otherwise provided with respect to damages liquidated in the lease agreement (§
4-2A-504
) or otherwise determined pursuant to agreement of the parties (§§
4-1-302
and
4-2A-503
), if a lessee elects not to cover or a lessee elects to cover and the cover is by lease agreement that for any reason does not qualify for treatment under §
4-2A-518(2)
, or is by purchase or otherwise, the measure of damages for non-delivery or repudiation by the lessor or for rejection or revocation of acceptance by the lessee is the present value, as of the date of the default, of the then market rent minus the present value as of the same date of the original rent, computed for the remaining lease term of the original lease agreement, together with incidental and consequential damages, less expenses saved in consequence of the lessor's default.
(2)
Market rent is to be determined as of the place for tender or, in cases of rejection after arrival or revocation of acceptance, as of the place of arrival.
(3)
Except as otherwise agreed, if the lessee has accepted goods and given notification (§
4-2A-516(3)
), the measure of damages for non-conforming tender or delivery or other default by a lessor is the loss resulting in the ordinary course of events from the lessor's default as determined in any manner that is reasonable together with incidental and consequential damages, less expenses saved in consequence of the lessor's default.
(4)
Except as otherwise agreed, the measure of damages for breach of warranty is the present value at the time and place of acceptance of the difference between the value of the use of the goods accepted and the value if they had been as warranted for the lease term, unless special circumstances show proximate damages of a different amount, together with incidental and consequential damages, less expenses saved in consequence of the lessor's default or breach of warranty.
Acts 1993, No. 439, § 1; 2005, No. 856, § 24.
Arkansas Code of 1987 (2023) › Title 4 - BUSINESS AND COMMERCIAL LAW (§§ 4-1-101 — 4-119-105) › Subtitle 1 - UNIFORM COMMERCIAL CODE (§§ 4-1-101 — 4-11-106) › Chapter 2A - LEASES (§§ 4-2A-101 — 4-2A-532) › Part 5 - DEFAULT (§§ 4-2A-501 — 4-2A-532) › DEFAULT BY LESSOR (§§ 4-2A-508 — 4-2A-522) › Section 4-2A-520 - Lessee's incidental and consequential damages

(1)
Incidental damages resulting from a lessor's default include expenses reasonably incurred in inspection, receipt, transportation, and care and custody of goods rightfully rejected or goods the acceptance of which is justifiably revoked, any commercially reasonable charges, expenses or commissions in connection with effecting cover, and any other reasonable expense incident to the default.
(2)
Consequential damages resulting from a lessor's default include:
(a)
any loss resulting from general or particular requirements and needs of which the lessor at the time of contracting had reason to know and which could not reasonably be prevented by cover or otherwise; and
(b)
injury to person or property proximately resulting from any breach of warranty.
Acts 1993, No. 439, § 1.
Arkansas Code of 1987 (2023) › Title 4 - BUSINESS AND COMMERCIAL LAW (§§ 4-1-101 — 4-119-105) › Subtitle 1 - UNIFORM COMMERCIAL CODE (§§ 4-1-101 — 4-11-106) › Chapter 2A - LEASES (§§ 4-2A-101 — 4-2A-532) › Part 5 - DEFAULT (§§ 4-2A-501 — 4-2A-532) › DEFAULT BY LESSOR (§§ 4-2A-508 — 4-2A-522) › Section 4-2A-521 - Lessee's right to specific performance or replevin

(1)
Specific performance may be decreed if the goods are unique or in other proper circumstances.
(2)
A decree for specific performance may include any terms and conditions as to payment of the rent, damages, or other relief that the court deems just.
(3)
A lessee has a right of replevin, detinue, sequestration, claim and delivery, or the like for goods identified to the lease contract if after reasonable effort the lessee is unable to effect cover for those goods or the circumstances reasonably indicate that the effort will be unavailing.
Acts 1993, No. 439, § 1.
Arkansas Code of 1987 (2023) › Title 4 - BUSINESS AND COMMERCIAL LAW (§§ 4-1-101 — 4-119-105) › Subtitle 1 - UNIFORM COMMERCIAL CODE (§§ 4-1-101 — 4-11-106) › Chapter 2A - LEASES (§§ 4-2A-101 — 4-2A-532) › Part 5 - DEFAULT (§§ 4-2A-501 — 4-2A-532) › DEFAULT BY LESSOR (§§ 4-2A-508 — 4-2A-522) › Section 4-2A-522 - Lessee's right to goods on lessor's insolvency

(1)
Subject to subsection (2) and even though the goods have not been shipped, a lessee who has paid a part or all of the rent and security for goods identified to a lease contract (§
4-2A-217
) on making and keeping good a tender of any unpaid portion of the rent and security due under the lease contract may recover the goods identified from the lessor if the lessor becomes insolvent within ten (10) days after receipt of the first installment of rent and security.
(2)
A lessee acquires the right to recover goods identified to a lease contract only if they conform to the lease contract.
Acts 1993, No. 439, § 1.
Arkansas Code of 1987 (2023) › Title 4 - BUSINESS AND COMMERCIAL LAW (§§ 4-1-101 — 4-119-105) › Subtitle 1 - UNIFORM COMMERCIAL CODE (§§ 4-1-101 — 4-11-106) › Chapter 2A - LEASES (§§ 4-2A-101 — 4-2A-532) › Part 5 - DEFAULT (§§ 4-2A-501 — 4-2A-532) › DEFAULT BY LESSEE (§§ 4-2A-523 — 4-2A-532) › Section 4-2A-523 - Lessor's remedies

(1)
If a lessee wrongfully rejects or revokes acceptance of goods or fails to make a payment when due or repudiates with respect to a part or the whole, then, with respect to any goods involved, and with respect to all of the goods if under an installment lease contract the value of the whole lease contract is substantially impaired (§
4-2A-510
), the lessee is in default under the lease contract and the lessor may:
(a)
cancel the lease contract (§
4-2A-505(1)
);
(b)
proceed respecting goods not identified to the lease contract (§
4-2A-524
);
(c)
withhold delivery of the goods and take possession of goods previously delivered (§
4-2A-525
);
(d)
stop delivery of the goods by any bailee (§
4-2A-526
);
(e)
dispose of the goods and recover damages (§
4-2A-527
), or retain the goods and recover damages (§
4-2A-528
), or in a proper case recover rent (§
4-2A-529
);
(f)
exercise any other rights or pursue any other remedies provided in the lease contract.
(2)
If a lessor does not fully exercise a right or obtain a remedy to which the lessor is entitled under subsection (1), the lessor may recover the loss resulting in the ordinary course of events from the lessee's default as determined in any reasonable manner, together with incidental damages, less expenses saved in consequence of the lessee's default.
(3)
If a lessee is otherwise in default under a lease contract, the lessor may exercise the rights and pursue the remedies provided in the lease contract, which may include a right to cancel the lease. In addition, unless otherwise provided in the lease contract:
(a)
if the default substantially impairs the value of the lease contract to the lessor, the lessor may exercise the rights and pursue the remedies provided in subsections (1) or (2); or
(b)
if the default does not substantially impair the value of the lease contract to the lessor, the lessor may recover as provided in subsection (2).
Acts 1993, No. 439, § 1.
Arkansas Code of 1987 (2023) › Title 4 - BUSINESS AND COMMERCIAL LAW (§§ 4-1-101 — 4-119-105) › Subtitle 1 - UNIFORM COMMERCIAL CODE (§§ 4-1-101 — 4-11-106) › Chapter 2A - LEASES (§§ 4-2A-101 — 4-2A-532) › Part 5 - DEFAULT (§§ 4-2A-501 — 4-2A-532) › DEFAULT BY LESSEE (§§ 4-2A-523 — 4-2A-532) › Section 4-2A-524 - Lessor's right to identify goods to lease contract

(1)
After default by the lessee under the lease contract of the type described in §
4-2A-523(1)
or §
4-2A-523(3)(a)
or, if agreed, after other default by the lessee, the lessor may:
(a)
identify to the lease contract conforming goods not already identified if at the time the lessor learned of the default they were in the lessor's or the supplier's possession or control; and
(b)
dispose of goods (§
4-2A-527(1)
) that demonstrably have been intended for the particular lease contract even though those goods are unfinished.
(2)
If the goods are unfinished, in the exercise of reasonable commercial judgment for the purposes of avoiding loss and of effective realization, an aggrieved lessor or the supplier may either complete manufacture and wholly identify the goods to the lease contract or cease manufacture and lease, sell, or otherwise dispose of the goods for scrap or salvage value or proceed in any other reasonable manner.
Acts 1993, No. 439, § 1.
Arkansas Code of 1987 (2023) › Title 4 - BUSINESS AND COMMERCIAL LAW (§§ 4-1-101 — 4-119-105) › Subtitle 1 - UNIFORM COMMERCIAL CODE (§§ 4-1-101 — 4-11-106) › Chapter 2A - LEASES (§§ 4-2A-101 — 4-2A-532) › Part 5 - DEFAULT (§§ 4-2A-501 — 4-2A-532) › DEFAULT BY LESSEE (§§ 4-2A-523 — 4-2A-532) › Section 4-2A-525 - Lessor's right to possession of goods

(1)
If a lessor discovers the lessee to be insolvent, the lessor may refuse to deliver the goods.
(2)
After a default by the lessee under the lease contract of the type described in §
4-2A-523(1)
or §
4-2A-523(3)(a)
or, if agreed, after other default by the lessee, the lessor has the right to take possession of the goods. If the lease contract so provides, the lessor may require the lessee to assemble the goods and make them available to the lessor at a place to be designated by the lessor which is reasonably convenient to both parties. Without removal, the lessor may render unusable any goods employed in trade or business, and may dispose of goods on the lessee's premises (§
4-2A-527
).
(3)
The lessor may proceed under subsection (2) without judicial process if it can be done without breach of the peace or the lessor may proceed by action.
Acts 1993, No. 439, § 1.
Arkansas Code of 1987 (2023) › Title 4 - BUSINESS AND COMMERCIAL LAW (§§ 4-1-101 — 4-119-105) › Subtitle 1 - UNIFORM COMMERCIAL CODE (§§ 4-1-101 — 4-11-106) › Chapter 2A - LEASES (§§ 4-2A-101 — 4-2A-532) › Part 5 - DEFAULT (§§ 4-2A-501 — 4-2A-532) › DEFAULT BY LESSEE (§§ 4-2A-523 — 4-2A-532) › Section 4-2A-526 - Lessor's stoppage of delivery in transit or otherwise

(1)
A lessor may stop delivery of goods in the possession of a carrier or other bailee if the lessor discovers the lessee to be insolvent and may stop delivery of carload, truckload, planeload, or larger shipments of express or freight if the lessee repudiates or fails to make a payment due before delivery, whether for rent, security or otherwise under the lease contract, or for any other reason the lessor has a right to withhold or take possession of the goods.
(2)
In pursuing its remedies under subsection (1), the lessor may stop delivery until
(a)
receipt of the goods by the lessee;
(b)
acknowledgment to the lessee by any bailee of the goods, except a carrier, that the bailee holds the goods for the lessee; or
(c)
such an acknowledgment to the lessee by a carrier via reshipment or as a warehouse.
(3)
(a)
To stop delivery, a lessor shall so notify as to enable the bailee by reasonable diligence to prevent delivery of the goods.
(b)
After notification, the bailee shall hold and deliver the goods according to the directions of the lessor, but the lessor is liable to the bailee for any ensuing charges or damages.
(c)
A carrier who has issued a nonnegotiable bill of lading is not obliged to obey a notification to stop received from a person other than the consignor.
Acts 1993, No. 439, § 1; 2007, No. 342, § 22.
Arkansas Code of 1987 (2023) › Title 4 - BUSINESS AND COMMERCIAL LAW (§§ 4-1-101 — 4-119-105) › Subtitle 1 - UNIFORM COMMERCIAL CODE (§§ 4-1-101 — 4-11-106) › Chapter 2A - LEASES (§§ 4-2A-101 — 4-2A-532) › Part 5 - DEFAULT (§§ 4-2A-501 — 4-2A-532) › DEFAULT BY LESSEE (§§ 4-2A-523 — 4-2A-532) › Section 4-2A-527 - Lessor's rights to dispose of goods

(1)
After a default by a lessee under the lease contract of the type described in §
4-2A-523(1)
or §
4-2A-523(3)(a)
or after the lessor refuses to deliver or takes possession of goods (§
4-2A-525
or §
4-2A-526
), or, if agreed, after other default by a lessee, the lessor may dispose of the goods concerned or the undelivered balance thereof by lease, sale, or otherwise.
(2)
Except as otherwise provided with respect to damages liquidated in the lease agreement (§
4-2A-504
) or otherwise determined pursuant to agreement of the parties (§§
4-1-302
and
4-2A-503
), if the disposition is by lease agreement substantially similar to the original lease agreement and the new lease agreement is made in good faith and in a commercially reasonable manner, the lessor may recover from the lessee as damages (i) accrued and unpaid rent as of the date of the commencement of the term of the new lease agreement, (ii) the present value, as of the same date, of the total rent for the then remaining lease term of the original lease agreement minus the present value, as of the same date, of the rent under the new lease agreement applicable to that period of the new lease term which is comparable to the then remaining term of the original lease agreement, and (iii) any incidental damages allowed under §
4-2A-530
, less expenses saved in consequence of the lessee's default.
(3)
If the lessor's disposition is by lease agreement that for any reason does not qualify for treatment under subsection (2), or is by sale or otherwise, the lessor may recover from the lessee as if the lessor had elected not to dispose of the goods and §
4-2A-528
governs.
(4)
A subsequent buyer or lessee who buys or leases from the lessor in good faith for value as a result of a disposition under this section takes the goods free of the original lease contract and any rights of the original lessee even though the lessor fails to comply with one (1) or more of the requirements of this chapter.
(5)
The lessor is not accountable to the lessee for any profit made on any disposition. A lessee who has rightfully rejected or justifiably revoked acceptance shall account to the lessor for any excess over the amount of the lessee's security interest (§
4-2A-508(5)
).
Acts 1993, No. 439, § 1; 2005, No. 856, § 25.
Arkansas Code of 1987 (2023) › Title 4 - BUSINESS AND COMMERCIAL LAW (§§ 4-1-101 — 4-119-105) › Subtitle 1 - UNIFORM COMMERCIAL CODE (§§ 4-1-101 — 4-11-106) › Chapter 2A - LEASES (§§ 4-2A-101 — 4-2A-532) › Part 5 - DEFAULT (§§ 4-2A-501 — 4-2A-532) › DEFAULT BY LESSEE (§§ 4-2A-523 — 4-2A-532) › Section 4-2A-528 - Lessor's damages for non-acceptance, failure to pay, repudiation, or other default

(1)
Except as otherwise provided with respect to damages liquidated in the lease agreement (§
4-2A-504
) or otherwise determined pursuant to agreement of the parties (§§
4-1-302
and
4-2A-503
), if a lessor elects to retain the goods or a lessor elects to dispose of the goods and the disposition is by lease agreement that for any reason does not qualify for treatment under §
4-2A-527(2)
, or is by sale or otherwise, the lessor may recover from the lessee as damages for a default of the type described in §
4-2A-523(1)
or §
4-2A-523(3)(a)
, or, if agreed, for other default of the lessee, (i) accrued and unpaid rent as of the date of default if the lessee has never taken possession of the goods, or, if the lessee has taken possession of the goods, as of the date the lessor repossesses the goods or an earlier date on which the lessee makes a tender of the goods to the lessor, (ii) the present value as of the date determined under clause (i) of the total rent for the then remaining lease term of the original lease agreement minus the present value as of the same date of the market rent at the place computed for the same lease term, and (iii) any incidental damages allowed under §
4-2A-530
, less expenses saved in consequence of the lessee's default.
(2)
If the measure of damages provided in subsection (1) is inadequate to put a lessor in as good a position as performance would have, the measure of damages is the present value of the profit, including reasonable overhead, the lessor would have made from full performance by the lessee, together with any incidental damages allowed under §
4-2A-530
, due allowance for costs reasonably incurred and due credit for payments or proceeds of disposition.
Acts 1993, No. 439, § 1; 2005, No. 856, § 26.
Arkansas Code of 1987 (2023) › Title 4 - BUSINESS AND COMMERCIAL LAW (§§ 4-1-101 — 4-119-105) › Subtitle 1 - UNIFORM COMMERCIAL CODE (§§ 4-1-101 — 4-11-106) › Chapter 2A - LEASES (§§ 4-2A-101 — 4-2A-532) › Part 5 - DEFAULT (§§ 4-2A-501 — 4-2A-532) › DEFAULT BY LESSEE (§§ 4-2A-523 — 4-2A-532) › Section 4-2A-529 - Lessor's action for the rent

(1)
After default by the lessee under the lease contract of the type described in §
4-2A-523(1)
or §
4-2A-523(3)(a)
or, if agreed, after other default by the lessee, if the lessor complies with subsection (2), the lessor may recover from the lessee as damages:
(a)
for goods accepted by the lessee and not repossessed by or tendered to the lessor, and for conforming goods lost or damaged within a commercially reasonable time after risk of loss passes to the lessee (§
4-2A-219
), (i) accrued and unpaid rent as of the date of entry of judgment in favor of the lessor, (ii) the present value as of the same date of the rent for the then remaining lease term of the lease agreement, and (iii) any incidental damages allowed under §
4-2A-530
, less expenses saved in consequence of the lessee's default; and
(b)
for goods identified to the lease contract if the lessor is unable after reasonable effort to dispose of them at a reasonable price or the circumstances reasonably indicate that effort will be unavailing, (i) accrued and unpaid rent as of the date of entry of judgment in favor of the lessor, (ii) the present value as of the same date of the rent for the then remaining lease term of the lease agreement, and (iii) any incidental damages allowed under §
4-2A-530
, less expenses saved in consequence of the lessee's default.
(2)
Except as provided in subsection (3), the lessor shall hold for the lessee for the remaining lease term of the lease agreement any goods that have been identified to the lease contract and are in the lessor's control.
(3)
The lessor may dispose of the goods at any time before collection of the judgment for damages obtained pursuant to subsection (1). If the disposition is before the end of the remaining lease term of the lease agreement, the lessor's recovery against the lessee for damages is governed by §
4-2A-527
or §
4-2A-528
, and the lessor will cause an appropriate credit to be provided against a judgment for damages to the extent that the amount of the judgment exceeds the recovery available pursuant to §
4-2A-527
or §
4-2A-528
.
(4)
Payment of the judgment for damages obtained pursuant to subsection (1) entitles the lessee to the use and possession of the goods not then disposed of for the remaining lease term of and in accordance with the lease agreement.
(5)
After default by the lessee under the lease contract of the type described in §
4-2A-523(1)
or §
4-2A-523(3)(a)
or, if agreed, after other default by the lessee, a lessor who is held not entitled to rent under this section must nevertheless be awarded damages for non-acceptance under §
4-2A-527
or §
4-2A-528
.
Acts 1993, No. 439, § 1.
Arkansas Code of 1987 (2023) › Title 4 - BUSINESS AND COMMERCIAL LAW (§§ 4-1-101 — 4-119-105) › Subtitle 1 - UNIFORM COMMERCIAL CODE (§§ 4-1-101 — 4-11-106) › Chapter 2A - LEASES (§§ 4-2A-101 — 4-2A-532) › Part 5 - DEFAULT (§§ 4-2A-501 — 4-2A-532) › DEFAULT BY LESSEE (§§ 4-2A-523 — 4-2A-532) › Section 4-2A-530 - Lessor's incidental damages

Incidental damages to an aggrieved lessor include any commercially reasonable charges, expenses, or commissions incurred in stopping delivery, in the transportation, care and custody of goods after the lessee's default, in connection with return or disposition of the goods, or otherwise resulting from the default.
Acts 1993, No. 439, § 1.
Arkansas Code of 1987 (2023) › Title 4 - BUSINESS AND COMMERCIAL LAW (§§ 4-1-101 — 4-119-105) › Subtitle 1 - UNIFORM COMMERCIAL CODE (§§ 4-1-101 — 4-11-106) › Chapter 2A - LEASES (§§ 4-2A-101 — 4-2A-532) › Part 5 - DEFAULT (§§ 4-2A-501 — 4-2A-532) › DEFAULT BY LESSEE (§§ 4-2A-523 — 4-2A-532) › Section 4-2A-531 - Standing to sue third parties for injury to goods

(1)
If a third party so deals with goods that have been identified to a lease contract as to cause actionable injury to a party to the lease contract (a) the lessor has a right of action against the third party, and (b) the lessee also has a right of action against the third party if the lessee:
(i)
has a security interest in the goods;
(ii)
has an insurable interest in the goods; or
(iii)
bears the risk of loss under the lease contract or has since the injury assumed that risk as against the lessor and the goods have been converted or destroyed.
(2)
If at the time of the injury the party plaintiff did not bear the risk of loss as against the other party to the lease contract and there is no arrangement between them for disposition of the recovery, his or her suit or settlement, subject to his or her own interest, is as a fiduciary for the other party to the lease contract.
(3)
Either party with the consent of the other may sue for the benefit of whom it may concern.
Acts 1993, No. 439, § 1.
Arkansas Code of 1987 (2023) › Title 4 - BUSINESS AND COMMERCIAL LAW (§§ 4-1-101 — 4-119-105) › Subtitle 1 - UNIFORM COMMERCIAL CODE (§§ 4-1-101 — 4-11-106) › Chapter 2A - LEASES (§§ 4-2A-101 — 4-2A-532) › Part 5 - DEFAULT (§§ 4-2A-501 — 4-2A-532) › DEFAULT BY LESSEE (§§ 4-2A-523 — 4-2A-532) › Section 4-2A-532 - Lessor's rights to residual interest

In addition to any other recovery permitted by this chapter or other law, the lessor may recover from the lessee an amount that will fully compensate the lessor for any loss of or damage to the lessor's residual interest in the goods caused by the default of the lessee.
Acts 1993, No. 439, § 1.
Arkansas Code of 1987 (2023) › Title 4 - BUSINESS AND COMMERCIAL LAW (§§ 4-1-101 — 4-119-105) › Subtitle 1 - UNIFORM COMMERCIAL CODE (§§ 4-1-101 — 4-11-106) › Chapter 3 - NEGOTIABLE INSTRUMENTS (§§ 4-3-101 — 4-3-605) › Part 1 - GENERAL PROVISIONS AND DEFINITIONS (§§ 4-3-101 — 4-3-119) › Section 4-3-101 - Short title

This chapter may be cited as Uniform Commercial Code - Negotiable Instruments.
Acts 1991, No. 572, § 5.
Arkansas Code of 1987 (2023) › Title 4 - BUSINESS AND COMMERCIAL LAW (§§ 4-1-101 — 4-119-105) › Subtitle 1 - UNIFORM COMMERCIAL CODE (§§ 4-1-101 — 4-11-106) › Chapter 3 - NEGOTIABLE INSTRUMENTS (§§ 4-3-101 — 4-3-605) › Part 1 - GENERAL PROVISIONS AND DEFINITIONS (§§ 4-3-101 — 4-3-119) › Section 4-3-102 - Subject matter

(a)
This chapter applies to negotiable instruments. It does not apply to money, to payment orders governed by §
4-4A-101
et seq., or to securities governed by §
4-8-101
et seq.
(b)
If there is conflict between this chapter and Chapter 4 or Chapter 9, Chapter 4 and Chapter 9 govern.
(c)
Regulations of the Board of Governors of the Federal Reserve System and operating circulars of the Federal Reserve banks supersede any inconsistent provision of this chapter to the extent of the inconsistency.
Acts 1991, No. 572, § 5.
Arkansas Code of 1987 (2023) › Title 4 - BUSINESS AND COMMERCIAL LAW (§§ 4-1-101 — 4-119-105) › Subtitle 1 - UNIFORM COMMERCIAL CODE (§§ 4-1-101 — 4-11-106) › Chapter 3 - NEGOTIABLE INSTRUMENTS (§§ 4-3-101 — 4-3-605) › Part 1 - GENERAL PROVISIONS AND DEFINITIONS (§§ 4-3-101 — 4-3-119) › Section 4-3-104 - Negotiable instrument

(a)
Except as provided in subsections (c) and (d), "negotiable instrument" means an unconditional promise or order to pay a fixed amount of money, with or without interest or other charges described in the promise or order, if it:
(1)
is payable to bearer or to order at the time it is issued or first comes into possession of a holder;
(2)
is payable on demand or at a definite time; and
(3)
does not state any other undertaking or instruction by the person promising or ordering payment to do any act in addition to the payment of money, but the promise or order may contain (i) an undertaking or power to give, maintain, or protect collateral to secure payment, (ii) an authorization or power to the holder to confess judgment or realize on or dispose of collateral, or (iii) a waiver of the benefit of any law intended for the advantage or protection of an obligor.
(b)
"Instrument" means a negotiable instrument.
(c)
An order that meets all of the requirements of subsection (a), except paragraph (1), and otherwise falls within the definition of "check" in subsection (f) is a negotiable instrument and a check.
(d)
A promise or order other than a check is not an instrument if, at the time it is issued or first comes into possession of a holder, it contains a conspicuous statement, however expressed, to the effect that the promise or order is not negotiable or is not an instrument governed by this chapter.
(e)
An instrument is a "note" if it is a promise and is a "draft" if it is an order. If an instrument falls within the definition of both "note" and "draft," a person entitled to enforce the instrument may treat it as either.
(f)
"Check" means
(i)
a draft, other than a documentary draft, payable on demand and drawn on a bank or
(ii)
a cashier's check or teller's check. An instrument may be a check even though it is described on its face by another term, such as "money order."
(g)
"Cashier's check" means a draft with respect to which the drawer and drawee are the same bank or branches of the same bank.
(h)
"Teller's check" means a draft drawn by a bank (i) on another bank, or (ii) payable at or through a bank.
(i)
"Traveler's check" means an instrument that (i) is payable on demand, (ii) is drawn on or payable at or through a bank, (iii) is designated by the term "traveler's check" or by a substantially similar term, and (iv) requires, as a condition to payment, a countersignature by a person whose specimen signature appears on the instrument.
(j)
"Certificate of deposit" means an instrument containing an acknowledgment by a bank that a sum of money has been received by the bank and a promise by the bank to repay the sum of money. A certificate of deposit is a note of the bank.
Acts 1991, No. 572, § 5.
Arkansas Code of 1987 (2023) › Title 4 - BUSINESS AND COMMERCIAL LAW (§§ 4-1-101 — 4-119-105) › Subtitle 1 - UNIFORM COMMERCIAL CODE (§§ 4-1-101 — 4-11-106) › Chapter 3 - NEGOTIABLE INSTRUMENTS (§§ 4-3-101 — 4-3-605) › Part 1 - GENERAL PROVISIONS AND DEFINITIONS (§§ 4-3-101 — 4-3-119) › Section 4-3-105 - Issue of instrument

(a)
"Issue" means the first delivery of an instrument by the maker or drawer, whether to a holder or nonholder, for the purpose of giving rights on the instrument to any person.
(b)
An unissued instrument, or an unissued incomplete instrument that is completed, is binding on the maker or drawer, but nonissuance is a defense. An instrument that is conditionally issued or is issued for a special purpose is binding on the maker or drawer, but failure of the condition or special purpose to be fulfilled is a defense.
(c)
"Issuer" applies to issued and unissued instruments and means a maker or drawer of an instrument.
Acts 1991, No. 572, § 5.
Arkansas Code of 1987 (2023) › Title 4 - BUSINESS AND COMMERCIAL LAW (§§ 4-1-101 — 4-119-105) › Subtitle 1 - UNIFORM COMMERCIAL CODE (§§ 4-1-101 — 4-11-106) › Chapter 3 - NEGOTIABLE INSTRUMENTS (§§ 4-3-101 — 4-3-605) › Part 1 - GENERAL PROVISIONS AND DEFINITIONS (§§ 4-3-101 — 4-3-119) › Section 4-3-106 - Unconditional promise or order

(a)
Except as provided in this section, for the purposes of §
4-3-104(a)
, a promise or order is unconditional unless it states (i) an express condition to payment, (ii) that the promise or order is subject to or governed by another record, or (iii) that rights or obligations with respect to the promise or order are stated in another record. A reference to another record does not of itself make the promise or order conditional.
(b)
A promise or order is not made conditional (i) by a reference to another record for a statement of rights with respect to collateral, prepayment, or acceleration, or (ii) because payment is limited to resort to a particular fund or source.
(c)
If a promise or order requires, as a condition to payment, a countersignature by a person whose specimen signature appears on the promise or order, the condition does not make the promise or order conditional for the purposes of §
4-3-104(a)
. If the person whose specimen signature appears on an instrument fails to countersign the instrument, the failure to countersign is a defense to the obligation of the issuer, but the failure does not prevent a transferee of the instrument from becoming a holder of the instrument.
(d)
If a promise or order at the time it is issued or first comes into possession of a holder contains a statement, required by applicable statutory or administrative law, to the effect that the rights of a holder or transferee are subject to claims or defenses that the issuer could assert against the original payee, the promise or order is not thereby made conditional for the purposes of §
4-3-104(a)
; but if the promise or order is an instrument, there cannot be a holder in due course of the instrument.
Acts 1991, No. 572, § 5; 2005, No. 856, § 28.
Arkansas Code of 1987 (2023) › Title 4 - BUSINESS AND COMMERCIAL LAW (§§ 4-1-101 — 4-119-105) › Subtitle 1 - UNIFORM COMMERCIAL CODE (§§ 4-1-101 — 4-11-106) › Chapter 3 - NEGOTIABLE INSTRUMENTS (§§ 4-3-101 — 4-3-605) › Part 1 - GENERAL PROVISIONS AND DEFINITIONS (§§ 4-3-101 — 4-3-119) › Section 4-3-107 - Instrument payable in foreign money

Unless the instrument otherwise provides, an instrument that states the amount payable in foreign money may be paid in the foreign money or in an equivalent amount in dollars calculated by using the current bank-offered spot rate at the place of payment for the purchase of dollars on the day on which the instrument is paid.
Acts 1991, No. 572, § 5.
Arkansas Code of 1987 (2023) › Title 4 - BUSINESS AND COMMERCIAL LAW (§§ 4-1-101 — 4-119-105) › Subtitle 1 - UNIFORM COMMERCIAL CODE (§§ 4-1-101 — 4-11-106) › Chapter 3 - NEGOTIABLE INSTRUMENTS (§§ 4-3-101 — 4-3-605) › Part 1 - GENERAL PROVISIONS AND DEFINITIONS (§§ 4-3-101 — 4-3-119) › Section 4-3-108 - Payable on demand or at definite time

(a)
A promise or order is "payable on demand" if it (i) states that it is payable on demand or at sight, or otherwise indicates that it is payable at the will of the holder, or (ii) does not state any time of payment.
(b)
A promise or order is "payable at a definite time" if it is payable on elapse of a definite period of time after sight or acceptance or at a fixed date or dates or at a time or times readily ascertainable at the time the promise or order is issued, subject to rights of (i) prepayment, (ii) acceleration, (iii) extension at the option of the holder, or (iv) extension to a further definite time at the option of the maker or acceptor or automatically upon or after a specified act or event.
(c)
If an instrument, payable at a fixed date, is also payable upon demand made before the fixed date, the instrument is payable on demand until the fixed date and, if demand for payment is not made before that date, becomes payable at a definite time on the fixed date.
Acts 1991, No. 572, § 5.
Arkansas Code of 1987 (2023) › Title 4 - BUSINESS AND COMMERCIAL LAW (§§ 4-1-101 — 4-119-105) › Subtitle 1 - UNIFORM COMMERCIAL CODE (§§ 4-1-101 — 4-11-106) › Chapter 3 - NEGOTIABLE INSTRUMENTS (§§ 4-3-101 — 4-3-605) › Part 1 - GENERAL PROVISIONS AND DEFINITIONS (§§ 4-3-101 — 4-3-119) › Section 4-3-109 - Payable to bearer or to order

(a)
A promise or order is payable to bearer if it:
(1)
States that it is payable to bearer or to the order of bearer or otherwise indicates that the person in possession of the promise or order is entitled to payment;
(2)
Does not state a payee; or
(3)
States that it is payable to or to the order of cash or otherwise indicates that it is not payable to an identified person.
(b)
A promise or order that is not payable to bearer is payable to order if it is payable (i) to the order of an identified person or (ii) to an identified person or order. A promise or order that is payable to order is payable to the identified person.
(c)
An instrument payable to bearer may become payable to an identified person if it is specially indorsed pursuant to §
4-3-205(a)
. An instrument payable to an identified person may become payable to bearer if it is indorsed in blank pursuant to §
4-3-205(b)
.
Acts 1991, No. 572, § 5.
Arkansas Code of 1987 (2023) › Title 4 - BUSINESS AND COMMERCIAL LAW (§§ 4-1-101 — 4-119-105) › Subtitle 1 - UNIFORM COMMERCIAL CODE (§§ 4-1-101 — 4-11-106) › Chapter 3 - NEGOTIABLE INSTRUMENTS (§§ 4-3-101 — 4-3-605) › Part 1 - GENERAL PROVISIONS AND DEFINITIONS (§§ 4-3-101 — 4-3-119) › Section 4-3-111 - Place of payment

Except as otherwise provided for items in Chapter 4, an instrument is payable at the place of payment stated in the instrument. If no place of payment is stated, an instrument is payable at the address of the drawee or maker stated in the instrument. If no address is stated, the place of payment is the place of business of the drawee or maker. If a drawee or maker has more than one (1) place of business, the place of payment is any place of business of the drawee or maker chosen by the person entitled to enforce the instrument. If the drawee or maker has no place of business, the place of payment is the residence of the drawee or maker.
Acts 1991, No. 572, § 5.
Arkansas Code of 1987 (2023) › Title 4 - BUSINESS AND COMMERCIAL LAW (§§ 4-1-101 — 4-119-105) › Subtitle 1 - UNIFORM COMMERCIAL CODE (§§ 4-1-101 — 4-11-106) › Chapter 3 - NEGOTIABLE INSTRUMENTS (§§ 4-3-101 — 4-3-605) › Part 1 - GENERAL PROVISIONS AND DEFINITIONS (§§ 4-3-101 — 4-3-119) › Section 4-3-112 - Interest

(a)
Unless otherwise provided in the instrument, (i) an instrument is not payable with interest, and (ii) interest on an interest-bearing instrument is payable from the date of the instrument.
(b)
Interest may be stated in an instrument as a fixed or variable amount of money or it may be expressed as a fixed or variable rate or rates. The amount or rate of interest may be stated or described in the instrument in any manner and may require reference to information not contained in the instrument. If an instrument provides for interest, but the amount of interest payable cannot be ascertained from the description, interest is payable at the judgment rate in effect at the place of payment of the instrument and at the time interest first accrues.
Acts 1991, No. 572, § 5.
Arkansas Code of 1987 (2023) › Title 4 - BUSINESS AND COMMERCIAL LAW (§§ 4-1-101 — 4-119-105) › Subtitle 1 - UNIFORM COMMERCIAL CODE (§§ 4-1-101 — 4-11-106) › Chapter 3 - NEGOTIABLE INSTRUMENTS (§§ 4-3-101 — 4-3-605) › Part 1 - GENERAL PROVISIONS AND DEFINITIONS (§§ 4-3-101 — 4-3-119) › Section 4-3-113 - Date of instrument

(a)
An instrument may be antedated or postdated. The date stated determines the time of payment if the instrument is payable at a fixed period after date. Except as provided in §
4-4-401(c)
, an instrument payable on demand is not payable before the date of the instrument.
(b)
If an instrument is undated, its date is the date of its issue or, in the case of an unissued instrument, the date it first comes into possession of a holder.
Acts 1991, No. 572, § 5.
Arkansas Code of 1987 (2023) › Title 4 - BUSINESS AND COMMERCIAL LAW (§§ 4-1-101 — 4-119-105) › Subtitle 1 - UNIFORM COMMERCIAL CODE (§§ 4-1-101 — 4-11-106) › Chapter 3 - NEGOTIABLE INSTRUMENTS (§§ 4-3-101 — 4-3-605) › Part 1 - GENERAL PROVISIONS AND DEFINITIONS (§§ 4-3-101 — 4-3-119) › Section 4-3-114 - Contradictory terms of instrument

If an instrument contains contradictory terms, typewritten terms prevail over printed terms, handwritten terms prevail over both, and words prevail over numbers.
Acts 1991, No. 572, § 5.
Arkansas Code of 1987 (2023) › Title 4 - BUSINESS AND COMMERCIAL LAW (§§ 4-1-101 — 4-119-105) › Subtitle 1 - UNIFORM COMMERCIAL CODE (§§ 4-1-101 — 4-11-106) › Chapter 3 - NEGOTIABLE INSTRUMENTS (§§ 4-3-101 — 4-3-605) › Part 1 - GENERAL PROVISIONS AND DEFINITIONS (§§ 4-3-101 — 4-3-119) › Section 4-3-115 - Incomplete instrument

(a)
"Incomplete instrument" means a signed writing, whether or not issued by the signer, the contents of which show at the time of signing that it is incomplete but that the signer intended it to be completed by the addition of words or numbers.
(b)
Subject to subsection (c), if an incomplete instrument is an instrument under §
4-3-104
, it may be enforced according to its terms if it is not completed, or according to its terms as augmented by completion. If an incomplete instrument is not an instrument under §
4-3-104
, but, after completion, the requirements of §
4-3-104
are met, the instrument may be enforced according to its terms as augmented by completion.
(c)
If words or numbers are added to an incomplete instrument without authority of the signer, there is an alteration of the incomplete instrument under §
4-3-407
.
(d)
The burden of establishing that words or numbers were added to an incomplete instrument without authority of the signer is on the person asserting the lack of authority.
Acts 1991, No. 572, § 5.
Arkansas Code of 1987 (2023) › Title 4 - BUSINESS AND COMMERCIAL LAW (§§ 4-1-101 — 4-119-105) › Subtitle 1 - UNIFORM COMMERCIAL CODE (§§ 4-1-101 — 4-11-106) › Chapter 3 - NEGOTIABLE INSTRUMENTS (§§ 4-3-101 — 4-3-605) › Part 1 - GENERAL PROVISIONS AND DEFINITIONS (§§ 4-3-101 — 4-3-119) › Section 4-3-116 - Joint and several liability - Contribution

(a)
Except as otherwise provided in the instrument, two (2) or more persons who have the same liability on an instrument as makers, drawers, acceptors, indorsers who indorse as joint payees, or anomalous indorsers are jointly and severally liable in the capacity in which they sign.
(b)
Except as provided in §
4-3-419(e)
or by agreement of the affected parties, a party having joint and several liability who pays the instrument is entitled to receive from any party having the same joint and several liability contribution in accordance with applicable law.
(c)
[Repealed.]
Acts 1991, No. 572, § 5; 2005, No. 856, § 29.
Arkansas Code of 1987 (2023) › Title 4 - BUSINESS AND COMMERCIAL LAW (§§ 4-1-101 — 4-119-105) › Subtitle 1 - UNIFORM COMMERCIAL CODE (§§ 4-1-101 — 4-11-106) › Chapter 3 - NEGOTIABLE INSTRUMENTS (§§ 4-3-101 — 4-3-605) › Part 1 - GENERAL PROVISIONS AND DEFINITIONS (§§ 4-3-101 — 4-3-119) › Section 4-3-117 - Other agreements affecting instrument

Subject to applicable law regarding exclusion of proof of contemporaneous or previous agreements, the obligation of a party to an instrument to pay the instrument may be modified, supplemented, or nullified by a separate agreement of the obligor and a person entitled to enforce the instrument, if the instrument is issued or the obligation is incurred in reliance on the agreement or as part of the same transaction giving rise to the agreement. To the extent an obligation is modified, supplemented, or nullified by an agreement under this section, the agreement is a defense to the obligation.
Acts 1991, No. 572, § 5.
Arkansas Code of 1987 (2023) › Title 4 - BUSINESS AND COMMERCIAL LAW (§§ 4-1-101 — 4-119-105) › Subtitle 1 - UNIFORM COMMERCIAL CODE (§§ 4-1-101 — 4-11-106) › Chapter 3 - NEGOTIABLE INSTRUMENTS (§§ 4-3-101 — 4-3-605) › Part 1 - GENERAL PROVISIONS AND DEFINITIONS (§§ 4-3-101 — 4-3-119) › Section 4-3-118 - Statute of limitations

(a)
Except as provided in subsection (e), an action to enforce the obligation of a party to pay a note payable at a definite time must be commenced within five (5) years after the due date or dates stated in the note or, if a due date is accelerated, within five (5) years after the accelerated due date.
(b)
Except as provided in subsection (d) or (e), if demand for payment is made to the maker of a note payable on demand, an action to enforce the obligation of a party to pay the note must be commenced within five (5) years after the demand. If no demand for payment is made to the maker, an action to enforce the note is barred if neither principal nor interest on the note has been paid for a continuous period of ten (10) years.
(c)
Except as provided in subsection (d), an action to enforce the obligation of a party to an unaccepted draft to pay the draft must be commenced within three (3) years after dishonor of the draft or ten (10) years after the date of the draft, whichever period expires first.
(d)
An action to enforce the obligation of the acceptor of a certified check or the issuer of a teller's check, cashier's check, or traveler's check must be commenced within three (3) years after demand for payment is made to the acceptor or issuer, as the case may be.
(e)
An action to enforce the obligation of a party to a certificate of deposit to pay the instrument must be commenced within five (5) years after demand for payment is made to the maker, but if the instrument states a due date and the maker is not required to pay before that date, the six-year period begins when a demand for payment is in effect and the due date has passed.
(f)
An action to enforce the obligation of a party to pay an accepted draft, other than a certified check, must be commenced (i) within five (5) years after the due date or dates stated in the draft or acceptance if the obligation of the acceptor is payable at a definite time, or (ii) within six (6) years after the date of the acceptance if the obligation of the acceptor is payable on demand.
(g)
Unless governed by other law regarding claims for indemnity or contribution, an action (i) for conversion of an instrument, for money had and received, or like action based on conversion, (ii) for breach of warranty, or (iii) to enforce an obligation, duty, or right arising under this chapter and not governed by this section must be commenced within three (3) years after the cause of action accrues.
Acts 1991, No. 572, § 5; 1997, No. 1164, § 1.
Arkansas Code of 1987 (2023) › Title 4 - BUSINESS AND COMMERCIAL LAW (§§ 4-1-101 — 4-119-105) › Subtitle 1 - UNIFORM COMMERCIAL CODE (§§ 4-1-101 — 4-11-106) › Chapter 3 - NEGOTIABLE INSTRUMENTS (§§ 4-3-101 — 4-3-605) › Part 1 - GENERAL PROVISIONS AND DEFINITIONS (§§ 4-3-101 — 4-3-119) › Section 4-3-119 - Notice of right to defend action

In an action for breach of an obligation for which a third person is answerable over pursuant to this chapter or Chapter 4, the defendant may give the third person notice of the litigation in a record, and the person notified may then give similar notice to any other person who is answerable over. If the notice states (i) that the person notified may come in and defend and (ii) that failure to do so will bind the person notified in an action later brought by the person giving the notice as to any determination of fact common to the two litigations, the person notified is so bound unless after seasonable receipt of the notice the person notified does come in and defend.
Acts 1991, No. 572, § 5; 2005, No. 856, § 30.
Arkansas Code of 1987 (2023) › Title 4 - BUSINESS AND COMMERCIAL LAW (§§ 4-1-101 — 4-119-105) › Subtitle 1 - UNIFORM COMMERCIAL CODE (§§ 4-1-101 — 4-11-106) › Chapter 3 - NEGOTIABLE INSTRUMENTS (§§ 4-3-101 — 4-3-605) › Part 2 - NEGOTIATION, TRANSFER, AND INDORSEMENT (§§ 4-3-201 — 4-3-207) › Section 4-3-201 - Negotiation

(a)
"Negotiation" means a transfer of possession, whether voluntary or involuntary, of an instrument by a person other than the issuer to a person who thereby becomes its holder.
(b)
Except for negotiation by a remitter, if an instrument is payable to an identified person, negotiation requires transfer of possession of the instrument and its indorsement by the holder. If an instrument is payable to bearer, it may be negotiated by transfer of possession alone.
Acts 1991, No. 572, § 5.
Arkansas Code of 1987 (2023) › Title 4 - BUSINESS AND COMMERCIAL LAW (§§ 4-1-101 — 4-119-105) › Subtitle 1 - UNIFORM COMMERCIAL CODE (§§ 4-1-101 — 4-11-106) › Chapter 3 - NEGOTIABLE INSTRUMENTS (§§ 4-3-101 — 4-3-605) › Part 2 - NEGOTIATION, TRANSFER, AND INDORSEMENT (§§ 4-3-201 — 4-3-207) › Section 4-3-202 - Negotiation subject to rescission

(a)
Negotiation is effective even if obtained (i) from an infant, a corporation exceeding its powers, or a person without capacity, (ii) by fraud, duress, or mistake, or (iii) in breach of duty or as part of an illegal transaction.
(b)
To the extent permitted by other law, negotiation may be rescinded or may be subject to other remedies, but those remedies may not be asserted against a subsequent holder in due course or a person paying the instrument in good faith and without knowledge of facts that are a basis for rescission or other remedy.
Acts 1991, No. 572, § 5.
Arkansas Code of 1987 (2023) › Title 4 - BUSINESS AND COMMERCIAL LAW (§§ 4-1-101 — 4-119-105) › Subtitle 1 - UNIFORM COMMERCIAL CODE (§§ 4-1-101 — 4-11-106) › Chapter 3 - NEGOTIABLE INSTRUMENTS (§§ 4-3-101 — 4-3-605) › Part 2 - NEGOTIATION, TRANSFER, AND INDORSEMENT (§§ 4-3-201 — 4-3-207) › Section 4-3-203 - Transfer of instrument - Rights acquired by transfer

(a)
An instrument is transferred when it is delivered by a person other than its issuer for the purpose of giving to the person receiving delivery the right to enforce the instrument.
(b)
Transfer of an instrument, whether or not the transfer is a negotiation, vests in the transferee any right of the transferor to enforce the instrument, including any right as a holder in due course, but the transferee cannot acquire rights of a holder in due course by a transfer, directly or indirectly, from a holder in due course if the transferee engaged in fraud or illegality affecting the instrument.
(c)
Unless otherwise agreed, if an instrument is transferred for value and the transferee does not become a holder because of lack of indorsement by the transferor, the transferee has a specifically enforceable right to the unqualified indorsement of the transferor, but negotiation of the instrument does not occur until the indorsement is made.
(d)
If a transferor purports to transfer less than the entire instrument, negotiation of the instrument does not occur. The transferee obtains no rights under this chapter and has only the rights of a partial assignee.
Acts 1991, No. 572, § 5.
Arkansas Code of 1987 (2023) › Title 4 - BUSINESS AND COMMERCIAL LAW (§§ 4-1-101 — 4-119-105) › Subtitle 1 - UNIFORM COMMERCIAL CODE (§§ 4-1-101 — 4-11-106) › Chapter 3 - NEGOTIABLE INSTRUMENTS (§§ 4-3-101 — 4-3-605) › Part 2 - NEGOTIATION, TRANSFER, AND INDORSEMENT (§§ 4-3-201 — 4-3-207) › Section 4-3-204 - Indorsement

(a)
"Indorsement" means a signature, other than that of a signer as maker, drawer, or acceptor, that alone or accompanied by other words is made on an instrument for the purpose of (i) negotiating the instrument, (ii) restricting payment of the instrument, or (iii) incurring indorser's liability on the instrument, but regardless of the intent of the signer, a signature and its accompanying words is an indorsement unless the accompanying words, terms of the instrument, place of the signature, or other circumstances unambiguously indicate that the signature was made for a purpose other than indorsement. For the purpose of determining whether a signature is made on an instrument, a paper affixed to the instrument is a part of the instrument.
(b)
"Indorser" means a person who makes an indorsement.
(c)
For the purpose of determining whether the transferee of an instrument is a holder, an indorsement that transfers a security interest in the instrument is effective as an unqualified indorsement of the instrument.
(d)
If an instrument is payable to a holder under a name that is not the name of the holder, indorsement may be made by the holder in the name stated in the instrument or in the holder's name or both, but signature in both names may be required by a person paying or taking the instrument for value or collection.
Acts 1991, No. 572, § 5.