Arkansas Code Annotated
Ark. Code Ann. § 4-9-306 (2026)
Law governing perfection and priority of security interests in letter-of-credit rights
✓ current as of May 2026
- Subject to subsection (c), the local law of the issuer's jurisdiction or a nominated person's jurisdiction governs perfection, the effect of perfection or nonperfection, and the priority of a security interest in a letter-of-credit right if the issuer's jurisdiction or nominated person's jurisdiction is a state.
- For purposes of this part, an issuer's jurisdiction or nominated person's jurisdiction is the jurisdiction whose law governs the liability of the issuer or nominated person with respect to the letter-of-credit right as provided in § 4-5-116.
- This section does not apply to a security interest that is perfected only under § 4-9-308(d).
History. Acts 2001, No. 1439, § 1.
Case Notes
Cited: GMAC v. Union Bank & Trust Co., 329 F.3d 594 (8th Cir. 2003).
Notes of Decisions
Cited in 5
cases, 1988–2003 · leading case: Heckathorn Constr. Co. v. Bass Mech. Contractors, Inc. (In Re Bass Mech. Contractors, Inc.), 84 B.R. 1009 (Bankr. W.D. Ark. 1988).
Heckathorn Constr. Co. v. Bass Mech. Contractors, Inc. (In Re Bass Mech. Contractors, Inc.), 84 B.R. 1009 (Bankr. W.D. Ark. 1988). “Heckathorn has also argued that First National is barred from claiming a security interest in the monies in the account under A.C.A. § 4-9-306(4)(d). The Court first will address whether Bass Mechanical’s name change from “Bass Plumbing, Heating and Cooling, Inc.”
Metro. Nat'l Bank v. La Sher Oil Co., 101 S.W.3d 252 (Ark. Ct. App. 2003). “The bank raises three issues on appeal: (1) that the trial court erred by imposing on it an erroneous burden of proof, inconsistent with the Uniform Commercial Code, to show that the funds were “identifiable proceeds”; (2) that the trial court erred in imposing on it a…”
Lawhon Farm Supply, Inc. v. Hayes, 870 S.W.2d 729 (Ark. 1994). “§ 49-9-201 (1987); Ark. Code Ann. § 4-9-306 (2) (1987).”
Bank of Yellville v. Scott (In Re Scott), 113 B.R. 516 (Bankr. W.D. Ark. 1990). “See Ark.Code Ann. §§ 4-9-306, 4-9-402(7) (1987).”
Duke Wholesale, Inc. v. Pitchford, 56 S.W.3d 399 (Ark. Ct. App. 2001). “” Ark. Code Ann. § 4-9-306 (2) (Supp. 1999).”
— Ark. Code Ann. § 4-9-306(1) — 1 case
Metro. Nat'l Bank v. La Sher Oil Co., 101 S.W.3d 252 (Ark. Ct. App. 2003). “The bank raises three issues on appeal: (1) that the trial court erred by imposing on it an erroneous burden of proof, inconsistent with the Uniform Commercial Code, to show that the funds were “identifiable proceeds”; (2) that the trial court erred in imposing on it a…”
— Ark. Code Ann. § 4-9-306(2) — 2 cases
Lawhon Farm Supply, Inc. v. Hayes, 870 S.W.2d 729 (Ark. 1994). “§ 49-9-201 (1987); Ark. Code Ann. § 4-9-306 (2) (1987).”
Metro. Nat'l Bank v. La Sher Oil Co., 101 S.W.3d 252 (Ark. Ct. App. 2003). “The bank raises three issues on appeal: (1) that the trial court erred by imposing on it an erroneous burden of proof, inconsistent with the Uniform Commercial Code, to show that the funds were “identifiable proceeds”; (2) that the trial court erred in imposing on it a…”
— Ark. Code Ann. § 4-9-306(4)(d) — 1 case
Heckathorn Constr. Co. v. Bass Mech. Contractors, Inc. (In Re Bass Mech. Contractors, Inc.), 84 B.R. 1009 (Bankr. W.D. Ark. 1988). “Heckathorn has also argued that First National is barred from claiming a security interest in the monies in the account under A.C.A. § 4-9-306(4)(d). The Court first will address whether Bass Mechanical’s name change from “Bass Plumbing, Heating and Cooling, Inc.”
— Ark. Code Ann. § 4-9-306(4)(d)(i) — 1 case
Heckathorn Constr. Co. v. Bass Mech. Contractors, Inc. (In Re Bass Mech. Contractors, Inc.), 84 B.R. 1009 (Bankr. W.D. Ark. 1988). “Heckathorn has also argued that First National is barred from claiming a security interest in the monies in the account under A.C.A. § 4-9-306(4)(d). The Court first will address whether Bass Mechanical’s name change from “Bass Plumbing, Heating and Cooling, Inc.”
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