Stricken language would be deleted from and underlined language would be added to present law.
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State of Arkansas 1
95th General Assembly A Bill 2
Regular Session, 2025 HOUSE BILL 1271 3
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By: Representative Warren 5
By: Senator C. Penzo 6
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For An Act To Be Entitled 8
AN ACT TO AMEND THE LAW CONCERNING MECHANICS' AND 9
MATERIALMEN'S LIENS; TO CLARIFY THE PRIORITY OF LIENS 10
IN MORTGAGE CONSTRUCTION LOANS; AND FOR OTHER 11
PURPOSES. 12
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Subtitle 15
TO AMEND THE LAW CONCERNING MECHANICS' 16
AND MATERIALMEN'S LIENS; AND TO CLARIFY 17
THE PRIORITY OF LIENS IN MORTGAGE 18
CONSTRUCTION LOANS. 19
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BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF ARKANSAS: 21
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SECTION 1. Arkansas Code ยง 18 -44-110(b)(1), concerning lien attachment 23
and priority, is amended to read as follows: 24
(b)(1)(A) The liens for labor performed or materials or fixtures 25
furnished, as provided for in this subchapter, shall attach to the 26
improvement on which the labor was performed or the materials or fixtures 27
were furnished in preference to any encumbrance existing on the real estate 28
prior to the commencement of construction or repair of the improvement . 29
(B)(i) In all cases in which the prior encumbrance was 30
given for the purpose of funding construction or repair of the improvement, 31
that lien shall have priority over all liens given by this subchapter. 32
(ii) A person who acquires or intends to acquire a 33
mortgage or other security instrument that provides a security interest for 34
the purpose of funding construction or repair of the improvement may 35
conclusively rely on an affidavit made by a licensed appraiser, surveyor, or 36 HB1271
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engineer if the licensed appraiser, surveyor, or engineer has inspected the 1
property at a specified time and work had not been commenced or materials 2
placed at its site at the time of the inspection, if the inspection occurs 3
and the affidavit is filed within four (4) business days before or within 4
four (4) business days after the filing of the mortgage or other security 5
instrument that provides a security interest. 6
(iii) The facts in an affidavit filed under 7
subdivision (b)(1)(B)(ii) of this section: 8
(a) Shall be considered true at the time of 9
the inspection; and 10
(b) Shall remain true at the time of the 11
filing of the mortgage or other security instrument that provides a security 12
interest. 13
(iv) The correctness of the facts contained in an 14
affidavit filed under subdivision (b)(1)(B)(ii) of this section shall not be 15
controverted to affect the priority of the rights of the person to whom or 16
for whom it is given, unless actual fraud by that person is proved. 17
(v) A person who provides a false affidavit under 18
subdivision (b)(1)(B)(ii) of this section shall be responsible for any loss 19
or damage suffered by a person whose rights are adversely affected. 20
(C) Except as provided in subsection (a) of this section, 21
in the event that construction commences before the recordation of the 22
mortgage or other security instrument that provides a security interest for 23
the purpose of funding construction or repair of the improvement, only the 24
liens for providing labor, materials, or supplies before the recordation of 25
the mortgage or other security instrument that provides a security interest 26
shall have priority over the mortgage or other security instrument that 27
provides a security interest. 28
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