Stricken language would be deleted from and underlined language would be added to present law.
Act 388 of the Regular Session
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State of Arkansas As Engrossed: S3/2/23 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 As Engrossed: S3/2/23 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 damages up to the amount of the bond. 3
(3) The lienholder shall be liable to the debtor for: 4
(A) Court costs; and 5
(B) Any sum of money adjudged as damages to the debtor 6
which exceed the amount of the bond, not to exceed two (2) times the fair 7
market value, as determined by a court of competent jurisdiction, of the 8
personal property. 9
(4) The circuit court may in its discretion award the debtor 10
attorneys fees. 11
(c)(1) The sale shall not take place until the expiration of thirty 12
(30) days from the time the work is completed date the lienholder makes 13
demand for the debt by certified letter addressed to the last known r esidence 14
or post office address of the debtor as required by subsection (e) of this 15
section. 16
(2)(A) If the debt is not paid at the end of that time, it shall 17
be the duty of the lienholder, not less than ten (10) days before making the 18
sale, to post up: 19
(i) Post a written notice of the proposed sale at or 20
near the front door of his or her place of business , or, in case he or she 21
has no place of business, at five (5) of the most public places in the 22
township; and 23
(ii) Notify the debtor of the pr oposed sale by 24
certified letter addressed to the last known residence or post office address 25
of the debtor. 26
(B) This The notice of the proposed sale under subdivision 27
(c)(2)(A) of this section shall: 28
(i) specify Specify the personal property to be 29
sold, the name of the owner or debtor, and the time and place of sale , the 30
amount of the bond filed with the circuit clerk under § 18 -45-205, and shall 31
be signed by the lienholder; and 32
(ii) Be filed by the lienholder with the circuit 33
clerk in the county in which the lienholder is situated . 34
(C) The notice shall be signed by the lienholder. 35
(d) At the sale, which shall be at public auction for cash, the 36 As Engrossed: S3/2/23 SB263
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lienholder shall have the right to bid not less than the amount of his or her 1
debt. In case the personal property sells for more than the amount due, he or 2
she shall pay over the surplus on demand to the person entitled thereto. 3
(e) In case the place of residence or post office address of the 4
debtor is known to the lienholder, it It shall be his or her the duty of the 5
lienholder, besides giving the notice as required in subsection subdivision 6
(c)(2) of this section, to make demand for the debt before maki ng the sale, 7
either in person or by letter by certified letter addressed to the last known 8
residence or post office address of the debtor . 9
(f) In all the lienholder's dealings with the personal property held 10
by him or her, the lienholder shall act in good faith with the debtor and 11
shall be responsible for any abuse of the powers and authority vested in him 12
or her by the provisions of this section. 13
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SECTION 2. Arkansas Code § 18 -45-204 is amended to read as follows: 15
18-45-204. Procedure for sale of property possessed by lienholder. 16
(a)(1) The sale shall not take place until the expiration of thirty 17
(30) days from the date the lienholder makes demand for the debt by certified 18
letter addressed to the last known residence or post office address of the 19
debtor as required by subsection (c) of this section time the work is 20
completed. 21
(2)(A) If the debt is not paid at the end of that time, it shall 22
be the duty of the lienholder, not less than ten (10) days before making the 23
sale, to post: 24
(i) Post up written notice of the proposed sale 25
under subdivision (a)(2)(A) of this section at or near the front door of his 26
or her place of business and at least five (5) other of the most public 27
places in the township; and 28
(ii) Notify the debtor of the proposed sale by 29
certified letter addressed to the last known residence or post office address 30
of the debtor. 31
(B) This The written notice of the proposed sale under 32
subdivision (a)(2)(A) of this section shall: 33
(i) specify Specify the property to be sold, the 34
name of the owner or debtor, the time and place of sale, the amount of the 35
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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the lienholder; and 1
(ii) Be filed by the lienholder with the circuit 2
clerk in the county in which the lienholder is situated . 3
(b)(1) At the sale, which shall be at public auction for cash to the 4
highest and best bidder, the lienholder shall have the right to bid not less 5
than the amount of his or her debt. 6
(2) In case the property sells for more than the amount of the 7
debt, the lienholder shall pay over the surplus on demand to the person 8
entitled thereto after deducting the amount of his or her debt and the actual 9
cost of the sale. 10
(c) It shall be the duty of the lienholder, besides giving notice as 11
required in subsection (a) of this section, to make demand for the debt 12
before making the sale by registered certified letter addressed to the last 13
known residence or post office addre ss of the debtor. 14
(d) In the lienholder's dealings with the property held by him or her, 15
the lienholder shall act in good faith with the debtor and shall be 16
responsible for any abuse of the power and authority vested in him or her by 17
the provisions of th is subchapter. 18
(e) The provisions of § 27 -50-1101 shall govern sales of vehicles 19
subject to the registration laws of this state. 20
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SECTION 3. Arkansas Code § 18 -45-205 is amended to read as follows: 22
18-45-205. Filing of notice and bond required. 23
(a)(1) The lienholder shall file with a the circuit court having 24
jurisdiction clerk in the county in which the lienholder is situated a notice 25
under § 18-45-204 to be posted. 26
(2) The circuit court shall note in the notice the amount of a 27
bond, for the protection of the debtor or property owner, if the lienholder 28
is not entitled to the lien and for the payment of damages if the sale is 29
wrongfully made. 30
(b)(1) The lienholder shall : 31
(A) Determine the fair market value of the property to be 32
sold; and 33
(B) file File a bond with the circuit clerk so conditioned 34
and in such sum in the amount determined under subdivision (b)(1)(A) of this 35
section with the circuit court, and the surety thereon shall be approved by 36 As Engrossed: S3/2/23 SB263
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the circuit court before making the sale und er this subchapter. 1
(2) The bond shall be executed by one (1) or more sufficient 2
sureties of the lienholder so that if the circuit court finds that the 3
lienholder wrongfully enforced the lien provided by this subchapter, the 4
surety shall pay to the debtor: 5
(A) Damages of up to the amount of the bond; 6
(B) Court costs; and 7
(C) Any sums of money adjudged against the lienholder in 8
an amount that does not exceed two (2) times the value of the property. 9
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/s/Hester 11
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APPROVED: 3/30/23 14
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