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Arkansas Code of 1987 (2023)
Title 4 - BUSINESS AND COMMERCIAL LAW (§§ 4-1-101 — 4-119-105)
Subtitle 1 - UNIFORM COMMERCIAL CODE (§§ 4-1-101 — 4-11-106)
Chapter 11 - VIRTUAL CURRENCY (§§ 4-11-101 — 4-11-106)
Section 4-11-104 - Rights in virtual currency
Universal Citation:
AR Code § 4-11-104 (2023)
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This media-neutral citation is based
on the American Association of Law Libraries Universal Citation Guide and is not
necessarily the official citation.
- (a) In this section:
- (1) "Adverse claim" means a claim that a claimant has a property interest in a virtual currency and that it is a violation of the rights of the claimant for another person to hold, transfer, or deal with the virtual currency.
- (2) "Qualifying purchaser" means a purchaser that obtains control of a virtual currency for value and without notice of any adverse claim.
- (b) Subject to subsections (c) through (h), law other than this chapter determines whether a person acquires rights in a virtual currency and the rights that the person acquires.
- (c) A purchaser of a virtual currency acquires all rights in the virtual currency that the transferor had or had power to transfer.
- (d) A purchaser of a limited interest in a virtual currency acquires rights only to the extent of the interest purchased.
- (e) In addition to acquiring the rights of a purchaser, a qualifying purchaser acquires its rights in a virtual currency free of any adverse claim.
- (f) An action based on an adverse claim to a virtual currency, whether framed in conversion, replevin, constructive trust, equitable lien, or other theory, may not be asserted against a qualifying purchaser that acquires its interest in, and obtains control of, the virtual currency for value and without notice of the adverse claim.
- (g) A person has notice of an adverse claim if:
- (1) the person knows of the adverse claim; or
- (2) the person is aware of facts sufficient to indicate that there is a significant probability that the adverse claim exists and deliberately avoids information that would establish the existence of the adverse claim.
- (h) Filing of a financing statement under Chapter 9 is not notice of an adverse claim to a virtual currency.
Added by Act 2021, No. 1078,§ 7, eff. 7/28/2021.
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