Ark. Code Ann. § 18-44-508 (2026)
Actions — Limitations
- All persons, firms, associations, and corporations who have valid claims against the bond may bring an action thereon against the corporate surety.
- No action shall be brought on the bond after six (6) months from the date final payment is made on the contract, nor outside the State of Arkansas.
History. Acts 1953, No. 351, § 5; A.S.A. 1947, § 51-636.
Cross References. Actions on bonds, § 16-107-201 et seq.
Case Notes
Contractual Limitations.
Where contractual limitation in a contractor's bond provided a shorter time limitation than this section provided, the longer statutory period was controlling. Hartford Accident & Indem. Co. v. Stewart Bros. Hdwe. Co., 285 Ark. 352, 687 S.W.2d 128 (1985).
Final Payment.
The final payment as used in this section means the last payment and where a retainage is retained the payment of less than 100% on the finish of the contracted construction would not constitute the final payment within the meaning of this section; the limitation for an action on the bond would run from the date of the payment of the amount retained. Tucker Paving Corp. v. Armco Steel Corp., 242 Ark. 49, 411 S.W.2d 888 (1967).
Interim payment made on a contract was not a final payment within meaning of this section and supplier of construction materials was not, therefore, bringing suit under a performance bond where the suit was not filed within six months from the date such interim payment was made. Credit Gen. Ins. Co. v. Atlas Asphalt, Inc., 304 Ark. 522, 803 S.W.2d 903 (1991).
Parties.
Contractor was not a necessary party in suit. Holcomb v. American Sur. Co., 184 Ark. 449, 42 S.W.2d 765 (1931) (decision under prior law).
Cited: United States v. Trigg, 465 F.2d 1264 (8th Cir. 1972).