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Arkansas Code Title 18. Property § 18-45-204. Procedure for sale of property possessed by lienholder

Current as of March 28, 2024 | Updated by Findlaw Staff

(a)(1) The sale shall not take place until the expiration of thirty (30) days from the date the lienholder makes demand for the debt by certified letter addressed to the last known residence or post office address of the debtor as required by subsection (c) of this section.

(2)(A) If the debt is not paid at the end of that time, it shall be the duty of the lienholder, not less than ten (10) days before making the sale, to:

(i) Post written notice of the proposed sale under this subdivision (a)(2)(A) at or near the front door of his or her place of business; and

(ii) Notify the debtor of the proposed sale by certified letter addressed to the last known residence or post office address of the debtor.

(B) The written notice of the proposed sale under subdivision (a)(2)(A) of this section shall:

(i) Specify the property to be sold, the name of the owner or debtor, the time and place of sale, the amount of the bond filed with the circuit clerk under § 18-45-205, and shall be signed by the lienholder; and

(ii) Be filed by the lienholder with the circuit clerk in the county in which the lienholder is situated.

(b)(1) At the sale, which shall be at public auction for cash to the highest and best bidder, the lienholder shall have the right to bid not less than the amount of his or her debt.

(2) In case the property sells for more than the amount of the debt, the lienholder shall pay over the surplus on demand to the person entitled thereto after deducting the amount of his or her debt and the actual cost of the sale.

(c) It shall be the duty of the lienholder, besides giving notice as required in subsection (a) of this section, to make demand for the debt before making the sale by certified letter addressed to the last known residence or post office address of the debtor.

(d) In the lienholder's dealings with the property held by him or her, the lienholder shall act in good faith with the debtor and shall be responsible for any abuse of the power and authority vested in him or her by the provisions of this subchapter.

(e) The provisions of § 27-50-1101 shall govern sales of vehicles subject to the registration laws of this state.

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Cite this article: FindLaw.com - Arkansas Code Title 18. Property § 18-45-204. Procedure for sale of property possessed by lienholder - last updated March 28, 2024 | https://codes.findlaw.com/ar/title-18-property/ar-code-sect-18-45-204/

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