Ark. Code Ann. » Title 4 Chapter 09
Arkansas Code Annotated

Ark. Code Ann. § 4-9-318 (2020)

No interest retained in right to payment that is sold — Rights and title of seller of account or chattel paper with respect to creditors and purchasers

✓ Arkansas Code release r76: Acts through about 2020 (2021-2025 sessions missing)
Find cases: SyfertCases citing this section JustiaArk. Code CornellLII Search CasesGoogle Scholar
  1. A debtor that has sold an account, chattel paper, payment intangible, or promissory note does not retain a legal or equitable interest in the collateral sold.
  2. For purposes of determining the rights of creditors of, and purchasers for value of an account or chattel paper from, a debtor that has sold an account or chattel paper, while the buyer's security interest is unperfected, the debtor is deemed to have rights and title to the account or chattel paper identical to those the debtor sold.

History. Acts 2001, No. 1439, § 1.

Notes of Decisions
Cited in 3 cases, 1988–2003 · leading case: Am. Transp. Corp. v. Exch. Capital Corp., 129 S.W.3d 312 (Ark. Ct. App. 2003).
Sort: Relevance Newest Treatment
Am. Transp. Corp. v. Exch. Capital Corp., 129 S.W.3d 312 (Ark. Ct. App. 2003). · cites it 8× “Appellant argues two points on appeal: (1) the trial court failed to properly apply Ark. Code Ann. § 4-9-318 2 and allowed appellee to recover in a situation where its assignor would not be able to recover; (2) the trial court erred in awarding appellee its attorney’s fees.”
First Nat'l Bank v. Massachusetts Gen. Life Ins., 752 S.W.2d 1 (Ark. 1988). · cites it 2× “The Uniform Commercial Code recognizes this principle in Ark. Code Ann. § 4-9-318 (l)(a), which provides: [T]he rights of an assignee are subject to: (a) All the terms of the contract between the account debtor and assignor and any defense or claim arising therefrom; .”
Nw. Nat'l Bank v. Merrill Lynch, Pierce, Fenner & Smith, Inc., 757 S.W.2d 182 (Ark. Ct. App. 1988). · cites it 2× “When accounts receivable are assigned to secure the performance of a debt, the account debtor, under Ark. Code Ann. § 4-9-318 (3) (1987) “is authorized to pay the assignor until the account debtor receives notification that the amount due or to become due has been assigned and…”
Ark. Code Ann. § 4-9-318(l)(a): 1 case
Am. Transp. Corp. v. Exch. Capital Corp., 129 S.W.3d 312 (Ark. Ct. App. 2003). “Appellant argues two points on appeal: (1) the trial court failed to properly apply Ark. Code Ann. § 4-9-318 2 and allowed appellee to recover in a situation where its assignor would not be able to recover; (2) the trial court erred in awarding appellee its attorney’s fees.”
Annotations are extracted automatically from the opinions in the Syfert caselaw corpus and ranked by authority, recency, and treatment. Dots show Syfertize treatment of the citing case itself.