Key provisions of Arkansas Act 50
Act 50 modifies two parts of the Arkansas UCC. First, it amends Arkansas Code § 4-1-201(b)(24), the general UCC definition of “money.” The amended definition continues to describe money as a medium of exchange currently authorized or adopted by a domestic or foreign government, including certain intergovernmental monetary units. It then adds that “money” does not include a central bank digital currency.
Second, the act adds a UCC definition of “central bank digital currency.” The definition covers a digital currency, digital medium of exchange, or digital monetary unit of account issued by the Federal Reserve System, a federal agency, a foreign government, a foreign central bank, or a foreign reserve system when made directly available to a consumer by those entities. It also includes covered digital currency that is processed or validated directly by those entities.
Third, Act 50 amends Arkansas Code § 4-9-102(29), the secured-transactions definition of “deposit account.” Under the revised text, a deposit account remains a demand, time, savings, passbook, or similar account maintained with a bank, but the term does not include investment property, central bank digital currency, or accounts evidenced by an instrument.