Ark. Code Ann. § 27-14-807 (2026)
Methods exclusive — Exception
- The methods provided in this subchapter of giving constructive notice of a lien or encumbrance upon a registered vehicle shall be exclusive except as to liens dependent upon possession and manufactured homes or mobile homes for which the certificate of title has been cancelled under § 27-14-1603.
- A security interest, lien, or encumbrance on a manufactured home or mobile home for which the certificate of title has been cancelled under § 27-14-1603 shall be obtained in the same manner used to perfect a security interest, lien, or encumbrance against other real property.
- Any lien, or encumbrance, or title retention instrument filed as provided in this subchapter, and any documents evidencing them, are exempted from the provisions of law which otherwise require or relate to the recording or filing of instruments creating or evidencing title retention or other liens or encumbrances upon vehicles of the types subject to registration under this chapter.
History. Acts 1981, No. 326, § 1; A.S.A. 1947, § 75-161; Acts 2005, No. 1991, § 5.
Case Notes
In General.
The pluralization of the word “method” in former similar statute clearly indicated a legislative intent to provide alternate methods for perfection of liens and for giving constructive notice. Hill v. Bank of N.E. Ark., 264 Ark. 412, 572 S.W.2d 150 (1978) (decision under prior law).
There was no merit to a trustee's claim that he was allowed under 11 U.S.C.S. § 544 to avoid liens the U.S. Government and a bank held on farm equipment owned by debtors who declared Chapter 7 bankruptcy, and on rice the debtors had harvested that was in storage, because the debtors borrowed money and executed security agreements in the name of a joint venture they created; however, neither the Government nor the bank had a secured interest in vehicles the debtors owned which had titles that did not show a lien in favor of the Government or the bank because Arkansas law provided that creditors' security interests in registered vehicles had to be shown on the vehicle's title. Bank of Eng. v. Rice (In re Webb), 520 B.R. 748 (Bankr. E.D. Ark. 2014).
Liens Dependent upon Possession.
The possession intended by former similar statute regarding a lien dependent upon possession is such open, notorious possession as will give notice to all the world of the claim. In re Ford, 186 F. Supp. 252 (E.D. Ark. 1960) (decision under prior law).
Where bank, which had loaned money to bankrupt, failed to record chattel mortgage on truck given as security, but held certificate of title on truck, its lien of encumbrance was of no effect against subsequent creditors, since mere possession of certificate of title could not be said to be a lien dependent on possession within the meaning of former similar statute. In re Ford, 186 F. Supp. 252 (E.D. Ark. 1960) (decision under prior law).
Cited: Brown v. Arkoma Coal Corp., 276 Ark. 322, 634 S.W.2d 390 (1982).
Subchapter 9 — Transfers of Title and Registration
Effective Dates. Acts 1947, No. 416, § 4: Approved Mar. 28, 1947. Emergency clause provided: “It is found and declared that at the present time operators of vehicles for hire are subjected to discrimination in the fees charged for the replacement of such vehicles; that the Commissioner of Revenues is besieged daily by the operators of vehicles for hire to take remedial action to prevent such discriminatory practices; that owing to the present status of the law a great number of new vehicles are kept off the highways of the State of Arkansas, thus depriving the State and other participants of the revenues incident to the operation of such vehicles; that only the provisions of this act will make it possible to eliminate these discriminatory practices existing under the present law and enable large numbers of new vehicles to be put into operation; that for these reasons it is necessary for the preservation of the public peace, health and safety that this act become effective without delay. It is, therefore, declared that an emergency exists, and that this Act shall take effect and be in force from and after its passage.”
Acts 1955, No. 110, § 4: Effective on passage. Approved Feb. 25, 1955.
Acts 1967, No. 134, § 4: Feb. 23, 1967. Emergency clause provided: “It is hereby found and determined by the General Assembly that the present laws of this State do not permit a person selling a motor vehicle, or who purchases a new vehicle to replace a vehicle destroyed, to remove from the old vehicle the license plates thereon for use on the new vehicle, and this procedure works an undue hardship on the owners of motor vehicles who have paid the applicable tax for a particular license plate and wishes to retain such tag, and that the immediate passage of this Act is necessary to correct this inequity. Therefore, an emergency is hereby declared to exist and this Act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect from and after its passage and approval.”
Acts 1967, No. 465, § 26: Emergency clause failed to pass.
Acts 1981, No. 886, § 4: Mar. 28, 1981. Emergency clause provided: “It is hereby found and determined by the General Assembly that in many instances certificates of title do not exist for old junked vehicles and that salvage dealers are impeded in their ability to scrap such vehicles due to the inability to obtain a certificate of title, and that this Act is immediately necessary to allow the use of a bill of sale in place of a certificate of title in order to dispose of dangerous and unsightly junked vehicles. Therefore, an emergency is hereby declared to exist and this Act being immediately necessary for the preservation of the public peace, health and safety shall be in full force and effect from and after its passage and approval.”
Acts 1991, No. 293, § 5: Mar. 1, 1991. Emergency clause provided: “It is hereby found and determined by the General Assembly that the Revenue Commissioner should be authorized to permit lenders to make application on behalf of their borrowers for certificates of title for motor vehicles financed by the lenders; that this Act grants such authority to the Revenue Commissioner; and that this Act should go into effect as soon as possible in order to grant the Revenue Commissioner the authority to relieve and undue burden which now exists upon motor vehicle lienholder. Therefore, an emergency is hereby declared to exist and this Act being immediately necessary for the preservation of the public peace, health and safety shall be in full force and effect from and after its passage and approval.”
Acts 1995, No. 268, § 11: Feb. 13, 1995. Emergency clause provided: “It is hereby found and determined by the General Assembly that current law imposes a 10% penalty on late payment of sales or use tax on motor vehicles and trailers; that current law disallows the isolated sales exemption to a purchase of a motor vehicle or trailer; that each of these provisions are in need of clarification to ensure the original legislative intent is fulfilled; and that Sections 6 and 7 of this act should be effective immediately to prevent possible confusion among the taxpayers of this state. Therefore, an emergency is hereby declared to exist and Sections 6 and 7 of this act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect immediately upon its passage and approval.”
Acts 1999, No. 1305, § 5: Apr. 9, 1999. Emergency clause provided: “It is hereby found and determined by the Eighty-second General Assembly that the failure of lienholders to release liens and encumbrances on motor vehicles in a timely manner after satisfaction of such liens or encumbrances is injurious to the motor vehicle dealers of this state and interrupts the flow of commerce in this state; that there is currently no statutory provision to require lienholders to release liens or encumbrances on motor vehicles in a timely manner upon satisfaction of such lien or encumbrance by payment in full; and that until lienholders are required to release liens or encumbrances on motor vehicles in a timely manner, the motor vehicle dealers of this state will continue to be injured. Therefore, an emergency is declared to exist and this act being immediately necessary for the preservation of the public peace, health and safety shall become effective on the date of its approval by the Governor. If the bill is neither approved nor vetoed by the Governor, it shall become effective on the expiration of the period of time during which the Governor may veto the bill. If the bill is vetoed by the Governor and the veto is overridden, it shall become effective on the date the last house overrides the veto.”
Acts 1999, No. 1307, § 3: Jan. 1, 2000.
Acts 2005, No. 1175, § 2: Mar. 22, 2005. Emergency clause provided: “It is found and determined by the General Assembly of the State of Arkansas that Act 165 of 2005 eliminating the verification of vehicle identification numbers has inadvertently created the possibility that out-of-state vehicles may be titled and registered in the State of Arkansas without being present in the state or without the security interest against the motor vehicle being recorded in Arkansas; and that this act is immediately necessary to prevent citizens of the State of Arkansas from being defrauded by out-of-state sellers of motor vehicles. Therefore, an emergency is declared to exist and this act being immediately necessary for the preservation of the public peace, health, and safety shall become effective on: (1) The date of its approval by the Governor; (2) If the bill is neither approved nor vetoed by the Governor, the expiration of the period of time during which the Governor may veto the bill; or (3) If the bill is vetoed by the Governor and the veto is overridden, the date the last house overrides the veto.”
Acts 2015, No. 726, § 2: July 1, 2015. Emergency clause provided: “It is found and determined by the General Assembly of the State of Arkansas that the current procedure for registering motor vehicles acquired by lienholders through operation of law creates the possibility that out-of-state vehicles may be titled and registered in the State of Arkansas without being present in the state or without the security interest against the motor vehicle being recorded in Arkansas; and that this act is immediately necessary to prevent citizens of the State of Arkansas from being defrauded by out-of-state sellers of motor vehicles. Therefore, an emergency is declared to exist, and this act being immediately necessary for the preservation of the public peace, health, and safety shall become effective on July 1, 2015.”
Acts 2019, No. 910, § 6346(b): July 1, 2019. Emergency clause provided: “It is found and determined by the General Assembly of the State of Arkansas that this act revises the duties of certain state entities; that this act establishes new departments of the state; that these revisions impact the expenses and operations of state government; and that the sections of this act other than the two uncodified sections of this act preceding the emergency clause titled ‘Funding and classification of cabinet-level department secretaries’ and ‘Transformation and Efficiencies Act transition team’ should become effective at the beginning of the fiscal year to allow for implementation of the new provisions at the beginning of the fiscal year. Therefore, an emergency is declared to exist, and Sections 1 through 6343 of this act being necessary for the preservation of the public peace, health, and safety shall become effective on July 1, 2019”.
Research References
Ark. L. Rev.
Insurance — Liability of Automobile Insurer Under “Sale and Unconditional Ownership” Clause to Bona Fide Purchaser of Stolen Vehicle, 4 Ark. L. Rev. 492.
Conflict of Laws — Effect on Title of New Transaction After Unpermitted Removal of Chattel to Another State, 6 Ark. L. Rev. 223.