Arkansas Code
Subpart 1 - Default and Enforcement of Security Interest
§ 4-9-607. Collection and enforcement by secured party

(a) If so agreed, and in any event after default, a secured party:
(1) may notify an account debtor or other person obligated on collateral to make payment or otherwise render performance to or for the benefit of the secured party;
(2) may take any proceeds to which the secured party is entitled under § 4-9-315;
(3) may enforce the obligations of an account debtor or other person obligated on collateral and exercise the rights of the debtor with respect to the obligation of the account debtor or other person obligated on collateral to make payment or otherwise render performance to the debtor, and with respect to any property that secures the obligations of the account debtor or other person obligated on the collateral;
(4) if it holds a security interest in a deposit account perfected by control under § 4-9-104(a)(1), may apply the balance of the deposit account to the obligation secured by the deposit account; and
(5) if it holds a security interest in a deposit account perfected by control under § 4-9-104(a)(2) or (3), may instruct the bank to pay the balance of the deposit account to or for the benefit of the secured party.

(b) If necessary to enable a secured party to exercise under subsection (a)(3) the right of a debtor to enforce a mortgage nonjudicially, the secured party may record in the office in which a record of the mortgage is recorded:
(1) a copy of the security agreement that creates or provides for a security interest in the obligation secured by the mortgage; and
(2) the secured party's sworn affidavit in recordable form stating that:
(A) a default has occurred with respect to the obligation secured by the mortgage; and
(B) the secured party is entitled to enforce the mortgage nonjudicially.


(c) A secured party shall proceed in a commercially reasonable manner if the secured party:
(1) undertakes to collect from or enforce an obligation of an account debtor or other person obligated on collateral; and
(2) is entitled to charge back uncollected collateral or otherwise to full or limited recourse against the debtor or a secondary obligor.

(d) A secured party may deduct from the collections made pursuant to subsection (c) reasonable expenses of collection and enforcement, including reasonable attorney's fees and legal expenses incurred by the secured party.
(e) This section does not determine whether an account debtor, bank, or other person obligated on collateral owes a duty to a secured party.

Structure Arkansas Code

Arkansas Code

Title 4 - Business and Commercial Law

Subtitle 1 - Uniform Commercial Code

Chapter 9 - Secured Transactions

Part 6 - Default

Subpart 1 - Default and Enforcement of Security Interest

§ 4-9-601. Rights after default — Judicial enforcement — Consignor or buyer of accounts, chattel paper, payment intangibles, or promissory notes

§ 4-9-602. Waiver and variance of rights and duties

§ 4-9-603. Agreement on standards concerning rights and duties

§ 4-9-604. Procedure if security agreement covers real property or fixtures

§ 4-9-605. Unknown debtor or secondary obligor

§ 4-9-606. Time of default for agricultural lien

§ 4-9-607. Collection and enforcement by secured party

§ 4-9-608. Application of proceeds of collection or enforcement — Liability for deficiency and right to surplus

§ 4-9-609. Secured party's right to take possession after default

§ 4-9-610. Disposition of collateral after default

§ 4-9-611. Notification before disposition of collateral

§ 4-9-612. Timeliness of notification before disposition of collateral

§ 4-9-613. Contents and form of notification before disposition of collateral: General

§ 4-9-614. Contents and form of notification before disposition of collateral: Consumer-goods transaction

§ 4-9-615. Application of proceeds of disposition — Liability for deficiency and right to surplus

§ 4-9-616. Explanation of calculation of surplus or deficiency

§ 4-9-617. Rights of transferee of collateral

§ 4-9-618. Rights and duties of certain secondary obligors

§ 4-9-619. Transfer of record or legal title

§ 4-9-620. Acceptance of collateral in full or partial satisfaction of obligation — Compulsory disposition of collateral

§ 4-9-621. Notification of proposal to accept collateral

§ 4-9-622. Effect of acceptance of collateral

§ 4-9-623. Right to redeem collateral

§ 4-9-624. Waiver