(1) An action for default under a lease contract, including breach of warranty or indemnity, must be commenced within four (4) years after the cause of action accrued. By the original lease contract the parties may reduce the period of limitation to not less than one year.
(2) A cause of action for default accrues when the act or omission on which the default or breach of warranty is based is or should have been discovered by the aggrieved party, or when the default occurs, whichever is later. A cause of action for indemnity accrues when the act or omission on which the claim for indemnity is based is or should have been discovered by the indemnified party, whichever is later.
(3) If an action commenced within the time limited by subsection (1) is so terminated as to leave available a remedy by another action for the same default or breach of warranty or indemnity, the other action may be commenced after the expiration of the time limited and within six (6) months after the termination of the first action unless the termination resulted from voluntary discontinuance or from dismissal for failure or neglect to prosecute.
(4) This section does not alter the law on tolling of the statute of limitations nor does it apply to causes of action that have accrued before this chapter becomes effective.
Structure Arkansas Code
Title 4 - Business and Commercial Law
Subtitle 1 - Uniform Commercial Code
§ 4-2A-501. Default — Procedure
§ 4-2A-502. Notice after default
§ 4-2A-503. Modification or impairment of rights and remedies
§ 4-2A-504. Liquidation of damages
§ 4-2A-506. Statute of limitations
§ 4-2A-507. Proof of market rent — Time and place
§ 4-2A-509. Lessee's rights on improper delivery — Rightful rejection
§ 4-2A-510. Installment lease contracts — Rejection and default
§ 4-2A-511. Merchant lessee's duties as to rightfully rejected goods
§ 4-2A-512. Lessee's duties as to rightfully rejected goods
§ 4-2A-513. Cure by lessor of improper tender or delivery — Replacement
§ 4-2A-514. Waiver of lessee's objections
§ 4-2A-515. Acceptance of goods
§ 4-2A-517. Revocation of acceptance of goods
§ 4-2A-518. Cover — Substitute goods
§ 4-2A-520. Lessee's incidental and consequential damages
§ 4-2A-521. Lessee's right to specific performance or replevin
§ 4-2A-522. Lessee's right to goods on lessor's insolvency
§ 4-2A-524. Lessor's right to identify goods to lease contract
§ 4-2A-525. Lessor's right to possession of goods
§ 4-2A-526. Lessor's stoppage of delivery in transit or otherwise
§ 4-2A-527. Lessor's rights to dispose of goods
§ 4-2A-528. Lessor's damages for non-acceptance, failure to pay, repudiation, or other default
§ 4-2A-529. Lessor's action for the rent
§ 4-2A-530. Lessor's incidental damages
§ 4-2A-531. Standing to sue third parties for injury to goods