AR HB1660

Amends Arkansas Code § 4-2A-310(4) regarding the subordination of lessor and lessee interests when goods become accessions to property.

Establishes that lessor or lessee interests are subordinate to buyers or lessees in the ordinary course of business who acquire interests in the whole after goods become accessions.

Maintains subordination to creditors with security interests in the whole that were perfected before the lease contract was made, provided the creditor makes subsequent advances without knowledge of the lease.

Adds new provision making lessor or lessee interests subordinate to financial institutions or secured creditors holding purchase money security interests in automobiles, trucks, tractors, and other motor-propelled conveyances with outstanding purchase money balances.