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Yesterday, Governor Huckabee Sanders signed into law Senate Bill 263. This was priority legislation for the association that updated equipment lien laws to benefit dealers by making enforcement of liens less burdensome.

The legislation eliminates the requirement to file litigation in Circuit Court in order to enforce a repairman’s lien. The change in law modifies the procedure when selling equipment to satisfy a lien. Instead of filing litigation to establish a bond amount, the bill now requires the filing of a notice with the court clerk and filing a bond for the market price of equipment.

By eliminating the need to file litigation to enforce a lien, the bill significantly reduces transaction costs and additional time from the lien enforcement process while still protecting the consumer. For more background information on the bill, you can read NAEDA’s position statement on the legislation Here.

Now that SB 263 has been enacted, it is known as Act 388. The law becomes effective 90 days after the adjournment of the legislature, which would mean the new law would be in effect sometime around August 1st.

NAEDA would like to thank the members of the Arkansas State Advisory Committee for their help and guidance in supporting this legislation, and those that actively worked for its passage.


United States: (800) 762-5616
Canada: (800) 661-2452


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