(a) For purposes of this section, a lien or encumbrance is satisfied when the lienholder receives final payment under § 4-4-215.
(b) (1) Upon the satisfaction of any lien or encumbrance on a vehicle for which the certificate of title is in the possession of the lienholder, the lienholder shall within ten (10) business days after receipt of final payment under § 4-4-215 execute a release of the lien or encumbrance in the space provided in the certificate of title, or as the Office of Motor Vehicle prescribes, and mail or deliver the certificate of title and the release of lien or encumbrance to the next lienholder named in the certificate of title or, if none, to the owner or to any person who delivers to the lienholder an authorization from the owner to receive the certificate of title.
(2) Upon the satisfaction of a lien or encumbrance on a vehicle for which the certificate of title is in the possession of a prior lienholder, the lienholder whose lien or encumbrance is paid in full shall within ten (10) business days after receipt of final payment under § 4-4-215 execute a release of lien or encumbrance in the form the office prescribes and deliver the release of lien or encumbrance to the owner or to any person who delivers to the lienholder an authorization from the owner to receive it.
(c) This section shall not be construed to apply to manufactured housing or mobile homes.
(d) A lienholder named in a certificate of title shall upon written request of the owner or of another lienholder named on the certificate of title disclose any pertinent information as to his or her security agreement and the indebtedness secured.
(e) (1) Any lienholder who fails to comply with subsection (b) of this section shall pay to the person or persons satisfying the lien or encumbrance twenty-five dollars ($25.00) for the first five (5) business days after expiration of the time period prescribed in subsection (b) of this section, and the payment shall double for each five (5) days thereafter in which there is continued noncompliance, up to a maximum of five hundred dollars ($500) for each lien.
(2) If delivery of the certificate of title is by mail, the delivery date is the date of the postmark for purposes of this subsection (e).
History. Acts 1949, No. 142, § 55; 1959, No. 307, § 10; A.S.A. 1947, § 75-155; Acts 1999, No. 1305, § 1; 2007, No. 589, § 1.
Amendments. The 1999 amendment rewrote this section.
The 2007 amendment deleted former (a)(2); substituted “final payment under § 4-4-215” for “payment in full” in (a); in (b)(1), substituted “final payment under § 4-4-215” for “payment in full by certified funds and within thirty (30) business days after receipt of payment in full by noncertified funds,” “of title and the release of lien or encumbrance” for “and release,” and “in the certificate of title” for “therein”; in (b)(2), substituted “final payment under § 4-4-215” for “payment in full by certified funds and within thirty (30) business days after receipt of payment in full by noncertified funds,” and inserted “of lien or encumbrance” twice; inserted “of title” in (d); and made related and stylistic changes.
Cross References. Penalty for violation of 1959 amendatory act, § 27-50-305.
Research References
Ark. L. Rev.
Leary and Sperling, The Outer Limits of Entrusting, 35 Ark. L. Rev. 50.