Stricken language would be deleted from and underlined language would be added to present law.
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State of Arkansas 1
94th General Assembly A Bill 2
Regular Session, 2023 SENATE BILL 263 3
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By: Senator Hester 5
By: Representative Underwood 6
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For An Act To Be Entitled 8
AN ACT TO AMEND THE LAW CONCERNING THE P ROCEDURE FOR 9
THE SALE OF PROPERTY POSSESSED BY CERTAIN 10
LIENHOLDERS; AND FOR OTHER PURPOSES. 11
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Subtitle 14
TO AMEND THE LAW CONCERNING THE PROCEDURE 15
FOR THE SALE OF PROPERTY POSSESSED BY 16
CERTAIN LIENHOLDERS. 17
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BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF ARKANSAS: 20
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SECTION 1. Arkansas Code § 18 -45-101 is amended to read as follows: 22
18-45-101. Right of mechanics and artisans to sell personalty held for 23
debt. 24
(a) All mechanics and artisans who are in possession of articles of 25
personal property, and hold them by virtue of a lien thereon for labor and 26
material, shall have a right to sell them for the satisfaction of the debt 27
for which the personal property is held. 28
(b)(1) Lienholders shall: 29
(A) Determine the fair market value of the personal 30
property to be sold; and 31
(B) give File a bond with the circuit clerk in the sum 32
amount determined under subdivision (b)(1)(A) of this section to be fixed by 33
a circuit court with proper jurisdiction before they shall proceed to sell, 34
by proceeding in accordance with the requirements of this section . 35
(2) The bond shall be executed by one (1) or more sufficient 36 SB263
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sureties of the lienholder so that if the circuit court f inds that the 1
lienholder wrongfully enforced the lien provided for by this subchapter, the 2
surety shall pay to the debtor: 3
(A) Damages of up to the amount of the bond; 4
(B) Court costs; and 5
(C) Any sums of money adjudged against the lienholder i n 6
an amount that does not exceed two (2) times the value of the personal 7
property. 8
(c)(1) The sale shall not take place until the expiration of thirty 9
(30) days from the time the work is completed date the lienholder makes 10
demand for the debt by registe red letter addressed to the last known 11
residence or post office address of the debtor as required by subsection (e) 12
of this section. 13
(2)(A) If the debt is not paid at the end of that time, it shall 14
be the duty of the lienholder, not less than ten (10) d ays before making the 15
sale, to post up: 16
(i) Post a written notice of the proposed sale at or 17
near the front door of his or her place of business , or, in case he or she 18
has no place of business, at five (5) of the most public places in the 19
township; and 20
(ii) Notify the debtor of the proposed sale by 21
registered letter addressed to the last known residence or post office 22
address of the debtor . 23
(B) This The notice of the proposed sale under subdivision 24
(c)(2)(A) of this section shall: 25
(i) specify Specify the personal property to be 26
sold, the name of the owner or debtor, and the time and place of sale , the 27
amount of the bond filed with the circuit clerk under § 18 -45-205, and shall 28
be signed by the lienholder; and 29
(ii) Be filed by the l ienholder with the circuit 30
clerk in the county in which the lienholder is situated . 31
(C) The notice shall be signed by the lienholder. 32
(d) At the sale, which shall be at public auction for cash, the 33
lienholder shall have the right to bid not less than the amount of his or her 34
debt. In case the personal property sells for more than the amount due, he or 35
she shall pay over the surplus on demand to the person entitled thereto. 36 SB263
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(e) In case the place of residence or post office address of the 1
debtor is known to the lienholder, it It shall be his or her the duty of the 2
lienholder, besides giving the notice as required in subsection subdivision 3
(c)(2) of this section, to make demand for the debt before making the sale , 4
either in person or by letter by registered letter addressed to the last 5
known residence or post office address of the debtor . 6
(f) In all the lienholder's dealings with the personal property held 7
by him or her, the lienholder shall act in good faith with the debtor and 8
shall be responsible fo r any abuse of the powers and authority vested in him 9
or her by the provisions of this section. 10
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SECTION 2. Arkansas Code § 18 -45-204 is amended to read as follows: 12
18-45-204. Procedure for sale of property possessed by lienholder. 13
(a)(1) The sale shall not take place until the expiration of thirty 14
(30) days from the date the lienholder makes demand for the debt by 15
registered letter addressed to the last known residence or post office 16
address of the debtor as required by subsection (c) of this section time the 17
work is completed. 18
(2)(A) If the debt is not paid at the end of that time, it shall 19
be the duty of the lienholder, not less than ten (10) days before making the 20
sale, to post: 21
(i) Post up written notice of the proposed sale 22
under subdivision (a)(2)(A) of this section at or near the front door of his 23
or her place of business and at least five (5) other of the most public 24
places in the township ; and 25
(ii) Notify the debtor of the proposed sale by 26
registered letter addressed to the last known residence or post office 27
address of the debtor . 28
(B) This The written notice of the proposed sale under 29
subdivision (a)(2)(A) of this section shall: 30
(i) specify Specify the property to be sold, the 31
name of the owner or d ebtor, the time and place of sale, the amount of the 32
bond filed with the circuit clerk under § 18 -45-205, and shall be signed by 33
the lienholder; and 34
(ii) Be filed by the lienholder with the circuit 35
clerk in the county in which the lienholder is situat ed. 36 SB263
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(b)(1) At the sale, which shall be at public auction for cash to the 1
highest and best bidder, the lienholder shall have the right to bid not less 2
than the amount of his or her debt. 3
(2) In case the property sells for more than the amount of the 4
debt, the lienholder shall pay over the surplus on demand to the person 5
entitled thereto after deducting the amount of his or her debt and the actual 6
cost of the sale. 7
(c) It shall be the duty of the lienholder, besides giving notice as 8
required in subsection (a) of this section, to make demand for the debt 9
before making the sale by registered letter addressed to the last known 10
residence or post office address of the debtor. 11
(d) In the lienholder's dealings with the property held by him or her, 12
the lienholder shall act in good faith with the debtor and shall be 13
responsible for any abuse of the power and authority vested in him or her by 14
the provisions of this subchapter. 15
(e) The provisions of § 27 -50-1101 shall govern sales of vehicles 16
subject to the registration laws of this state. 17
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SECTION 3. Arkansas Code § 18 -45-205 is amended to read as follows: 19
18-45-205. Filing of notice and bond required. 20
(a)(1) The lienholder shall file with a the circuit court having 21
jurisdiction clerk in the county in whi ch the lienholder is situated a notice 22
under § 18-45-204 to be posted. 23
(2) The circuit court shall note in the notice the amount of a 24
bond, for the protection of the debtor or property owner, if the lienholder 25
is not entitled to the lien and for the pay ment of damages if the sale is 26
wrongfully made. 27
(b)(1) The lienholder shall : 28
(A) Determine the fair market value of the property to be 29
sold; and 30
(B) file File a bond with the circuit clerk so conditioned 31
and in such sum in the amount determined u nder subdivision (b)(1)(A) of this 32
section with the circuit court, and the surety thereon shall be approved by 33
the circuit court before making the sale under this subchapter . 34
(2) The bond shall be executed by one (1) or more sufficient 35
sureties of the lienholder so that if the circuit court finds that the 36 SB263
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lienholder wrongfully enforced the lien provided by this subchapter, the 1
surety shall pay to the debtor: 2
(A) Damages of up to the amount of the bond; 3
(B) Court costs; and 4
(C) Any sums of money adjudged against the lienholder in 5
an amount that does not exceed two (2) times the value of the property. 6
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