Arkansas 2023 Regular Session

Arkansas Senate Bill SB263 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1	1		Stricken language would be deleted from and underlined language would be added to present law.
2		-	Act 388 of the Regular Session
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4	3
5	4		State of Arkansas As Engrossed: S3/2/23 1
6	5		94th General Assembly A Bill 2
7	6		Regular Session, 2023 SENATE BILL 263 3
8	7		4
9	8		By: Senator Hester 5
10	9		By: Representative Underwood 6
11	10		7
12	11		For An Act To Be Entitled 8
13	12		AN ACT TO AMEND THE LAW CONCERNING THE P ROCEDURE FOR 9
14	13		THE SALE OF PROPERTY POSSESSED BY CERTAIN 10
15	14		LIENHOLDERS; AND FOR OTHER PURPOSES. 11
16	15		12
17	16		13
18	17		Subtitle 14
19	18		TO AMEND THE LAW CONCERNING THE PROCEDURE 15
20	19		FOR THE SALE OF PROPERTY POSSESSED BY 16
21	20		CERTAIN LIENHOLDERS. 17
22	21		18
23	22		19
24	23		BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF ARKANSAS: 20
25	24		21
26	25		SECTION 1. Arkansas Code § 18 -45-101 is amended to read as follows: 22
27	26		18-45-101. Right of mechanics and artisans to sell personalty held for 23
28	27		debt. 24
29	28		(a) All mechanics and artisans who are in possession of articles of 25
30	29		personal property, and hold them by virtue of a lien thereon for labor and 26
31	30		material, shall have a right to sell them for the satisfaction of the debt 27
32	31		for which the personal property is held. 28
33	32		(b)(1) Lienholders shall: 29
34	33		(A) Determine the fair market value of the personal 30
35	34		property to be sold; and 31
36	35		(B) give File a bond with the circuit clerk in the sum 32
37	36		amount determined under subdivision (b)(1)(A) of this section to be fixed by 33
38	37		a circuit court with proper jurisdiction before they shall proceed to sell, 34
39	38		by proceeding in accordance with the requirements of this section . 35
40	39		(2) The bond shall be executed by one (1) or more sufficient 36 As Engrossed: S3/2/23 SB263
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45	44		sureties of the lienholder so that if the circuit court finds that the 1
46	45		lienholder wrongfully enforced the lien provided for by this subchapter, the 2
47	46		surety shall pay to the debtor damages up to the amount of the bond. 3
48	47		(3) The lienholder shall be liable to the debtor for: 4
49	48		(A) Court costs; and 5
50	49		(B) Any sum of money adjudged as damages to the debtor 6
51	50		which exceed the amount of the bond, not to exceed two (2) times the fair 7
52	51		market value, as determined by a court of competent jurisdiction, of the 8
53	52		personal property. 9
54	53		(4) The circuit court may in its discretion award the debtor 10
55	54		attorneys fees. 11
56	55		(c)(1) The sale shall not take place until the expiration of thirty 12
57	56		(30) days from the time the work is completed date the lienholder makes 13
58	57		demand for the debt by certified letter addressed to the last known r esidence 14
59	58		or post office address of the debtor as required by subsection (e) of this 15
60	59		section. 16
61	60		(2)(A) If the debt is not paid at the end of that time, it shall 17
62	61		be the duty of the lienholder, not less than ten (10) days before making the 18
63	62		sale, to post up: 19
64	63		(i) Post a written notice of the proposed sale at or 20
65	64		near the front door of his or her place of business , or, in case he or she 21
66	65		has no place of business, at five (5) of the most public places in the 22
67	66		township; and 23
68	67		(ii) Notify the debtor of the pr oposed sale by 24
69	68		certified letter addressed to the last known residence or post office address 25
70	69		of the debtor. 26
71	70		(B) This The notice of the proposed sale under subdivision 27
72	71		(c)(2)(A) of this section shall: 28
73	72		(i) specify Specify the personal property to be 29
74	73		sold, the name of the owner or debtor, and the time and place of sale , the 30
75	74		amount of the bond filed with the circuit clerk under § 18 -45-205, and shall 31
76	75		be signed by the lienholder; and 32
77	76		(ii) Be filed by the lienholder with the circuit 33
78	77		clerk in the county in which the lienholder is situated . 34
79	78		(C) The notice shall be signed by the lienholder. 35
80	79		(d) At the sale, which shall be at public auction for cash, the 36 As Engrossed: S3/2/23 SB263
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85	84		lienholder shall have the right to bid not less than the amount of his or her 1
86	85		debt. In case the personal property sells for more than the amount due, he or 2
87	86		she shall pay over the surplus on demand to the person entitled thereto. 3
88	87		(e) In case the place of residence or post office address of the 4
89	88		debtor is known to the lienholder, it It shall be his or her the duty of the 5
90	89		lienholder, besides giving the notice as required in subsection subdivision 6
91	90		(c)(2) of this section, to make demand for the debt before maki ng the sale, 7
92	91		either in person or by letter by certified letter addressed to the last known 8
93	92		residence or post office address of the debtor . 9
94	93		(f) In all the lienholder's dealings with the personal property held 10
95	94		by him or her, the lienholder shall act in good faith with the debtor and 11
96	95		shall be responsible for any abuse of the powers and authority vested in him 12
97	96		or her by the provisions of this section. 13
98	97		14
99	98		SECTION 2. Arkansas Code § 18 -45-204 is amended to read as follows: 15
100	99		18-45-204. Procedure for sale of property possessed by lienholder. 16
101	100		(a)(1) The sale shall not take place until the expiration of thirty 17
102	101		(30) days from the date the lienholder makes demand for the debt by certified 18
103	102		letter addressed to the last known residence or post office address of the 19
104	103		debtor as required by subsection (c) of this section time the work is 20
105	104		completed. 21
106	105		(2)(A) If the debt is not paid at the end of that time, it shall 22
107	106		be the duty of the lienholder, not less than ten (10) days before making the 23
108	107		sale, to post: 24
109	108		(i) Post up written notice of the proposed sale 25
110	109		under subdivision (a)(2)(A) of this section at or near the front door of his 26
111	110		or her place of business and at least five (5) other of the most public 27
112	111		places in the township; and 28
113	112		(ii) Notify the debtor of the proposed sale by 29
114	113		certified letter addressed to the last known residence or post office address 30
115	114		of the debtor. 31
116	115		(B) This The written notice of the proposed sale under 32
117	116		subdivision (a)(2)(A) of this section shall: 33
118	117		(i) specify Specify the property to be sold, the 34
119	118		name of the owner or debtor, the time and place of sale, the amount of the 35
120	119		bond filed with the circuit clerk under § 18 -45-205, and shall be signed by 36 As Engrossed: S3/2/23 SB263
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124	123
125	124		the lienholder; and 1
126	125		(ii) Be filed by the lienholder with the circuit 2
127	126		clerk in the county in which the lienholder is situated . 3
128	127		(b)(1) At the sale, which shall be at public auction for cash to the 4
129	128		highest and best bidder, the lienholder shall have the right to bid not less 5
130	129		than the amount of his or her debt. 6
131	130		(2) In case the property sells for more than the amount of the 7
132	131		debt, the lienholder shall pay over the surplus on demand to the person 8
133	132		entitled thereto after deducting the amount of his or her debt and the actual 9
134	133		cost of the sale. 10
135	134		(c) It shall be the duty of the lienholder, besides giving notice as 11
136	135		required in subsection (a) of this section, to make demand for the debt 12
137	136		before making the sale by registered certified letter addressed to the last 13
138	137		known residence or post office addre ss of the debtor. 14
139	138		(d) In the lienholder's dealings with the property held by him or her, 15
140	139		the lienholder shall act in good faith with the debtor and shall be 16
141	140		responsible for any abuse of the power and authority vested in him or her by 17
142	141		the provisions of th is subchapter. 18
143	142		(e) The provisions of § 27 -50-1101 shall govern sales of vehicles 19
144	143		subject to the registration laws of this state. 20
145	144		21
146	145		SECTION 3. Arkansas Code § 18 -45-205 is amended to read as follows: 22
147	146		18-45-205. Filing of notice and bond required. 23
148	147		(a)(1) The lienholder shall file with a the circuit court having 24
149	148		jurisdiction clerk in the county in which the lienholder is situated a notice 25
150	149		under § 18-45-204 to be posted. 26
151	150		(2) The circuit court shall note in the notice the amount of a 27
152	151		bond, for the protection of the debtor or property owner, if the lienholder 28
153	152		is not entitled to the lien and for the payment of damages if the sale is 29
154	153		wrongfully made. 30
155	154		(b)(1) The lienholder shall : 31
156	155		(A) Determine the fair market value of the property to be 32
157	156		sold; and 33
158	157		(B) file File a bond with the circuit clerk so conditioned 34
159	158		and in such sum in the amount determined under subdivision (b)(1)(A) of this 35
160	159		section with the circuit court, and the surety thereon shall be approved by 36 As Engrossed: S3/2/23 SB263
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165	164		the circuit court before making the sale und er this subchapter. 1
166	165		(2) The bond shall be executed by one (1) or more sufficient 2
167	166		sureties of the lienholder so that if the circuit court finds that the 3
168	167		lienholder wrongfully enforced the lien provided by this subchapter, the 4
169	168		surety shall pay to the debtor: 5
170	169		(A) Damages of up to the amount of the bond; 6
171	170		(B) Court costs; and 7
172	171		(C) Any sums of money adjudged against the lienholder in 8
173	172		an amount that does not exceed two (2) times the value of the property. 9
174	173		10
175	174		/s/Hester 11
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178		-	~~APPROVED: 3/30/23~~ 14
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