AR HB1659

Entitlement holders' claims receive priority over creditors' claims when a securities intermediary lacks sufficient financial assets to satisfy both obligations, removing previous exceptions that allowed creditors with control to have priority

Claims or causes of action by entitlement holders must be litigated in Arkansas

Beginning January 1, 2026, any dispute, case, claim, or controversy arising from contracts or agreements under these provisions must be resolved or litigated in Arkansas

Eliminates the provision that gave clearing corporations' creditors priority over entitlement holders when the clearing corporation had insufficient assets

Amends Arkansas Code sections 4-8-503(a), 4-8-511, and 4-9-305(a) governing investment property security interests