AR HB1736

Amends Arkansas Code §§ 4-9-406 and 4-9-408 to carve out ownership interests in general partnerships, limited partnerships, and limited liability companies from provisions that override anti-assignment clauses in contracts

Allows partnership and LLC operating agreements to enforce restrictions on the assignment or transfer of ownership interests, and to enforce provisions treating such assignments as defaults or grounds for termination

Preserves existing UCC rules that generally render anti-assignment clauses ineffective for accounts, chattel paper, promissory notes, payment intangibles, health-care-insurance receivables, and other general intangibles

Applies to both contractual restrictions and legal restrictions (statutes, regulations, rules of law) on assignments of partnership and LLC ownership interests

Approved April 14, 2025 as Act 603 of the Regular Session