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TITLE 18 PROPERTY
SUBTITLE 4 MORTGAGES AND LIENS
CHAPTER 44 MECHANICS’ AND MATERIALMEN’S LIENS
SUBCHAPTER 1 GENERAL PROVISIONS
18-44-101 Persons Entitled to Lien
18-44-102 Extent of Lien on Land
18-44-103 Liens on Leaseholds
18-44-104 Liens for Drainage Improvements
18-44-105 Engineers and Surveyors Liens
18-44-106 “Owner” or “Proprietor”
18-44-107 Definitions
18-44-108 Lists of Persons Performing Work, Certification
18-44-109 Use of Materials as Designated
18-44-110 Priorities, Labor Liens, Foreclosure
18-44-113 Assignment
18-44-114 Preliminary Notice
18-44-115 Notice to Owner
18-44-116 Service of Notice, Recordation
18-44-117 Filing of Account
18-44-118 Release Bond
18-44-119 Limitations
18-44-122 Petition to Foreclose Lien
18-44-123 Parties
18-44-124 Duty of the Contractor to Defend
18-44-125 Court Orders
18-44-126 Publication of Warning Order
18-44-127 Trial
18-44-128 Attorneys Fees
18-44-131 Satisfaction of Lien
18-44-132 Payment by Contractor to Discharge Lien, Felony,
Misdemeanor
18-44-133 Architects, Engineers, Surveyors, Appraisers, Abstractors,
Title Insurance Agents
18-44-134 Landscaping Liens
18-44-135 Joint Ownership
SUBCHAPTER 5 BONDS
18-44-501 Uniform Bonding Procedure
18-44-502 Exclusions from Subchapter
18-44-503 Public Projects, Payment Bonds
18-44-504 Religious and Charitable Organizations, Payment
Bonds
18-44-505 Private Construction, Payment Bonds
18-44-506 Condition of the Bond
18-44-507 Filing Bond
18-44-508 Actions, Limitations
ARKANSAS CODE
TITLE 18 PROPERTY
SUBTITLE 4 MORTGAGES AND LIENS
CHAPTER 44 MECHANICS’ AND MATERIALMEN’S LIENS
SUBCHAPTER 1 GENERAL PROVISIONS
18-44-101 Persons Entitled to Lien
(a) Every contractor, subcontractor, or material supplier
as defined in section 18-44-107, who supplies labor, services,
material, fixtures, engines, boilers, or machinery in the
construction or repair of an improvement to real estate, or
any boat or vessel of any kind, by virtue of a contract with
the owner, proprietor, contractor, or subcontractor, or agent
thereof, upon complying with the provisions of this subchapter,
shall have, to secure payment, a lien upon the improvement
and on up to one (1) acre of land upon which the improvement
is situated, or to the extent of any number of acres of land
upon which work has been done or improvements erected or repaired.
(b) If the improvement is to any boat or vessel, then the
lien shall be upon the boat or vessel to secure the payment
for labor done or materials, fixtures, engines, boilers, or
machinery furnished.
18-44-102 Extent of Lien on Land
The entire land, to the extent stated in section 18-44-101,
upon which any building, erection, or other improvement is
situated including that part of the land which is not covered
with the building, erection, or other improvement as well
as that part of the land which is covered with it, shall be
subject to all liens created by this subchapter to the extent,
and only to the extent, of all the right, title, and interest
owned therein by the owner or proprietor of the building,
erection, or other improvement for whose immediate use or
benefit the labor was done or things were furnished.
18-44-103 Liens on Leaseholds
(a) Every building or other improvement erected or
materials furnished, according to the provisions of this subchapter,
on leased lots or lands shall be held for the debt contracted
for, or on account of it, and also the leasehold term for
the lot and land on which it is erected.
(b) In case the lessee shall have forfeited his lease, the
purchaser of the building and leasehold term, or so much of
it as remains unexpired, under the provisions of this subchapter,
shall be held to the assignee of the leasehold term and, as
such, shall be entitled to pay to the lessor all arrears of
rent or other money, interest, and costs due under the lease,
unless the lessor shall have regained possession of the leasehold
land, or obtained judgment for the possession of it on account
of the noncompliance by the lessee with the terms of the lease,
prior to the commencement of the improvements thereon. In
this case the purchaser of the improvements under this subchapter
shall have the right only to remove the improvements within
sixty (60) days after he shall purchase them, and the owner
of the ground shall receive the rent due him payable out of
the proceeds of the sale, according to the terms of the lease,
down to the time of removing the building.
18-44-104 Liens for Drainage Improvements
(a) Every manufacturer or contractor who shall furnish
to any landowner any soil or drain pipe or tile for drainage
of his land, or who shall put in soil or drain tile for any
land, shall have a lien for each tract of forty (40) acres
or less of the real estate upon which the tile is placed for
the payment of the lien. The lien shall extend for a period
of two (2) years.
(b) The lien for the tile shall attach to the real estate
and all improvements thereon in preference to any subsequent
liens, encumbrance, or mortgage executed upon the land after
the purchase of the tile. The lien shall be enforced in the
same manner as a mechanic’s or contractor’s liens.
18-44-105 Engineers and Surveyors Liens
Every engineer or surveyor who shall do or perform
any engineering or surveying work upon any land, building,
erection, or improvement upon land, under or by virtue of
any contract or agreement with the owner thereof, or his agent,
shall have a lien upon the land, building, erection, or improvement
upon land to the extent of the agreed contract price or a
reasonable price for those services. However, the lien does
not attach to the land, building, erection, or improvement
upon land unless and until the lien is duly filed of record
with the circuit clerk and recorder in the county in which
the land, building, erection, or improvement is located. This
recorded lien will be enforced in the same manner as a mechanic’s
or contractor’s lien.
18-44-106
“Owner” or “Proprietor”
Every person, including all cestui que trust, for
whose immediate use, enjoyment, or benefit a building, erection,
or other improvement is made, shall be concluded by the words
“owner or proprietor thereof,” under this subchapter.
18-44-107
Definitions
As used in this subchapter, unless the context otherwise
requires:
(1) “Contractor” means any person who contracts
orally or in writing directly with a person holding an interest
in real estate, or such person’s agent, for the construction
of any improvement to or repair of real estate;
(2) “Subcontractor” means any person who supplies
labor or services pursuant to a contract with the contractor,
or to a person in direct privity of contract with such person;
(3) “Material supplier” means any person who supplies
materials, goods, fixtures, or any other tangible item to
the contractor or a subcontractor, or an individual having
direct contractual privity with such persons; and
(4) “Person” includes an individual, a partnership,
a corporation, a limited liability organization, a trust,
or any other business entity recognized by law.
18-44-108
Lists of Persons Performing Work, Certification
(a) The owner or proprietor, material supplier, subcontractor,
or anyone interested as mortgagee or trustee in the real estate
upon which improvements are made under this subchapter, may,
at any time, apply to the contractor or subcontractor for
the following:
(1) A list of all parties doing work or furnishing material
for the buildings and the amount due to each of the persons;
(2) Certification that the owner or agent has received the
preliminary notice specified under section 18-44-115.
(b) Any contractor or subcontractor who, upon request, refuses
or fails within five (5) business days to give a correct list
of the parties furnishing material or doing labor, and the
amount due to each, on the building, or who falsely certifies
that an owner or agent has received the preliminary notice
specified under section 18-44-115, shall be guilty of a misdemeanor
and shall be punished by a fine not exceeding two thousand
five hundred dollars ($2,500).
18-44-109
Use of Materials as Designated
Any contractor or subcontractor who shall purchase
materials on credit and represent at the time of purchase
that they are to be used in a designated building or other
improvement and shall thereafter use, or cause to be used,
the materials in the construction of any building or improvement
other than that designated without the written consent of
the person from whom the materials were purchased, with intent
to defraud that person, shall be deemed guilty of a misdemeanor
if the materials were valued at one thousand dollars ($1,000)
or more and shall be punished by a fine not exceeding two
thousand five hundred dollars ($2,500).
18-44-110 Priorities, Labor Liens,
Foreclosure
(a)(1) The liens for labor performed or material or
fixtures furnished, as provided for in this subchapter, shall
have equal priority toward each other without regard to the
date of filing the account or lien or the date when the particular
labor or material was performed or furnished. All such liens
shall date from the time that the construction or repair first
commenced.
(2) Construction or repair commences when there is a visible
manifestation of activity on real estate that would lead a
reasonable person to believe that construction or repair of
an improvement to the real estate has begun or will soon begin,
including, but not limited to, the following:
(A) Delivery of a significant amount of lumber, bricks, pipe,
tile, or other building material to the site;
(B) Grading or excavating the site;
(C) Laying out lines or grade stakes; or
(D) Demolition in an existing structure.
(3) In all cases where a sale shall be ordered and the property
sold, and the proceeds arising from the sale are not sufficient
to discharge in full all the liens against the property without
reference to the date of filing the account or lien, the proceeds
shall be paid pro rata on the respective liens.
(b)(1) The liens for labor performed or materials or fixtures
furnished, as provided for in this subchapter, shall attach
to the improvement on which the labor was performed or the
materials or fixtures were furnished in preference to any
encumbrance existing on the real estate prior to the commencement
of construction or repair of the improvement. In all cases
where the prior encumbrance was given for the purpose of funding
construction or repair of the improvement, that lien shall
have priority over all liens given by this subchapter.
(2) The liens, as provided for in this subchapter, shall be
enforced by foreclosure, as further provided for in this subchapter,
and the property ordered sold subject to the lien of the prior
encumbrance on the real estate.
(c) The lien for labor performed and materials or fixtures
furnished, as provided for in this subchapter, shall have
priority over all other encumbrances that attach to the real
estate or improvements thereon subsequent to commencement
of construction or repair.
18-44-113 Assignment
The lien given in this subchapter shall be transferable
and assignable, but it shall not be enforced against the owner
or proprietor of the ground or buildings unless the owner
or proprietor shall have actual notice of the assignment so
as to protect himself.
18-44-114
Preliminary Notice
(a) Every person, except the original contractor,
who may wish to avail himself of the benefit of the provisions
of this subchapter shall give ten (10) days’ notice
before the filing of the lien, as required in section 18-44-117(a),
to the owner, owners, or agent, or either of them, that he
holds a claim against the building or improvement, setting
forth the amount and from whom it is due.
(b)(1) The notice may be served by any officer authorized
by law to serve process in civil actions, by any person who
would be a competent witness, or by any form of mail addressed
to the person to be served with a return receipt requested
and delivery restricted to the addressee or the agent of the
addressee.
(2) When served by an officer, his official return endorsed
thereon shall be proof thereof; when served by any other person,
the fact of the service shall be verified by affidavit of
the person so serving; and when served by mail, the service
shall be verified by a return receipt signed by the addressee
or the agent of the addressee, or a returned envelope, postal
document, or affidavit by a postal employee reciting or showing
refusal of the notice by the addressee. If delivery of the
mailed notice is refused by the addressee, then the person
holding the claim shall immediately mail to the owner, owners,
or agent a copy of the notice by first class mail and may
proceed to file his lien.
18-44-115 Notice to Owner
(a)(1) No lien may be acquired by virtue of this subchapter
unless the owner or his authorized agent has received, by
personal delivery or by certified mail, a copy of the notice
set out in subsection (c) of this section.
(2)
The notice required by this section shall not require the
signature of the owner or his authorized agent in instances
where the notice is delivered by certified mail.
(b)(1)(A) It shall be the duty of the contractor to give the
owner or his authorized agent the notice set out in subsection
(c) of this section on behalf of all potential lien claimants
under his contract prior to the supplying of any materials
or fixtures.
(B) Any potential lien claimant may also give notice.
(2) However, no lien may be claimed by any supplier of material
or fixtures unless the owner or agent has received at least
one (1) copy of the notice, which need not have been given
by the particular lien claimant.
(c) The notice set forth in this subsection may be incorporated
into the contract, or affixed thereto, and shall be conspicuous,
worded exactly as stated, in all capital letters, and shall
read as follows:
“IMPORTANT NOTICE TO OWNER
I UNDERSTAND THAT EACH PERSON SUPPLYING MATERIAL OR FIXTURES
IS ENTITLED TO A LIEN AGAINST PROPERTY IF NOT PAID IN FULL
FOR MATERIALS USED TO IMPROVE THE PROPERTY EVEN THOUGH THE
FULL CONTRACT PRICE MAY HAVE BEEN PAID TO THE CONTRACTOR.
I REALIZE THAT THIS LIEN CAN BE ENFORCED BY THE SALE OF THE
PROPERTY IF NECESSARY. I AM ALSO AWARE THAT PAYMENT MAY BE
WITHHELD TO THE CONTRACTOR IN THE AMOUNT OF THE COST OF ANY
MATERIALS OR LABOR NOT PAID FOR. I KNOW THAT IT IS ADVISABLE
TO, AND I MAY, REQUIRE THE CONTRACTOR TO FURNISH TO ME A TRUE
AND CORRECT FULL LIST OF ALL SUPPLIERS UNDER THE CONTRACT,
AND I MAY CHECK WITH THEM TO DETERMINE IF ALL MATERIALS FURNISHED
FOR THE PROPERTY HAVE BEEN PAID FOR. I MAY ALSO REQUIRE THE
CONTRACTOR TO PRESENT LIEN WAIVERS BY ALL SUPPLIERS, STATING
THAT THEY HAVE BEEN PAID IN FULL FOR SUPPLIES PROVIDED UNDER
THE CONTRACT, BEFORE I PAY THE CONTRACTOR IN FULL. IF A SUPPLIER
HAS NOT BEEN PAID, I MAY PAY THE SUPPLIER AND CONTRACTOR WITH
A CHECK MADE PAYABLE TO THEM JOINTLY.
SIGNED:
ADDRESS
OF PROPERTY
DATE:
I HEREBY CERTIFY THAT THE SIGNATURE ABOVE IS THAT OF THE OWNER
OR AGENT OF THE OWNER OF THE PROPERTY AT THE ADDRESS SET OUT
ABOVE.
CONTRACTOR”
(d) If the contractor supplies a performance and payment bond
or if the transaction is a direct sale to the property owner,
the notice requirement of subsection (a) of this section shall
not apply, and the lien rights arising under this subchapter
shall not be conditioned on the delivery and execution of
the notice. A sale shall be a direct sale only if the owner
orders the materials from the lien claimant or authorizes
another person to do so.
(e)(1)(A) The General Assembly hereby finds that owners and
developers of commercial real estate are generally knowledgeable
and sophisticated in construction law, are aware that unpaid
suppliers of labor and material are entitled to assert liens
against the real estate if unpaid, and know how to protect
themselves against the imposition of mechanics’ and
material suppliers’ liens.
(B) The General Assembly further finds that consumers who
construct or improve residential real estate containing four
(4) or fewer units generally do not possess the same level
of knowledge and awareness and need to be informed of their
rights and responsibilities.
(C) Because supplying the notice specified in subsection (c)
of this section imposes a substantial burden on material suppliers,
the notice requirement mandated under subsection (b) of this
section as a condition precedent to the imposition of a material
supplier’s lien shall only apply to construction of
or improvement to residential real estate containing four
(4) or fewer units.
(2)(A) No material supplier or laborer shall be entitled to
a lien unless the material supplier or laborer notifies the
owner of the commercial real estate being improved, in writing,
that such material supplier or laborer is currently entitled
to payment, but has not been paid.
(B) This notice shall be sent to the owner and to the contractor
by registered mail, return receipt requested, before seventy-five
(75) days have elapsed from the time that the labor was supplied
or the material furnished.
(C) Such notice shall contain the following information:
(i) A general description of the labor, service, or material
furnished, and the amount due and unpaid;
(ii) The name and address of the person furnishing the labor,
service, or materials;
(iii) The name of the person who contracted for purchase of
the labor, service, or materials;
(iv) A description of the job site sufficient for identification;
and
(v) The following statement set out in boldface type:
“NOTICE
TO PROPERTY OWNER
IF
BILLS FOR LABOR, SERVICES, OR MATERIALS USED TO CONSTRUCT
AN IMPROVEMENT TO REAL ESTATE ARE NOT PAID IN FULL, A CONSTRUCTION
LIEN MAY BE PLACED AGAINST THE PROPERTY. THIS COULD RESULT
IN THE LOSS, THROUGH FORECLOSURE PROCEEDINGS, OF ALL OR PART
OF YOUR REAL ESTATE BEING IMPROVED. THIS MAY OCCUR EVEN THOUGH
YOU HAVE PAID YOUR CONTRACTOR IN FULL. YOU MAY WISH TO PROTECT
YOURSELF AGAINST THIS CONSEQUENCE BY PAYING THE ABOVE NAMED
PROVIDER OF LABOR, SERVICES, OR MATERIALS DIRECTLY, OR MAKING
YOUR CHECK PAYABLE TO THE ABOVE NAMED PROVIDER AND CONTRACTOR
JOINTLY.”
3) Any contractor who fails to give the notice required by
this subsection shall be guilty of a misdemeanor and shall
be punished by a fine not exceeding one thousand dollars ($1,000).
18-44-116
Service of Notice, Recordation
(a) Whenever property is sought to be charged with
a lien under this subchapter and the owner of the property
so sought to be charged is not a resident of this state, or
does not have an agent in the county in which the property
is situated, or when the owner is a resident of this state
but not of the county in which the property is situated, or
conceals himself, or has absconded, or absents himself from
the usual place of abode, so that the notice required by section
18-44-114 cannot be served upon him, then, in every such case,
the notice may be filed with the recorder of deeds of the
county in which the property is situated. When filed, it shall
have like effect as if served upon the owner or his agent
in the manner contemplated in section 18-44-114.
(b) A copy of the notice so filed, together with the certificate
of the recorder of deeds that it is a correct copy of the
notice so filed, shall be received in all courts of this state
as evidence of the service, as provided in this section, of
the notice.
(c) The recorder of deeds in each county of this state shall
receive, file, and keep every such notice presented to him
for filing and shall further record it at length in a separate
book appropriately entitled. For service so performed, the
recorder shall receive for each notice, the sum of twenty-five
cents (25 cents), and for each copy certified, as stated in
this section, of each of the notices he shall receive the
sum of fifty cents (50 cents), to be paid by the party so
filing or procuring the certified copy, as the case may be.
(d) The costs of filing and of one (1) certified copy shall
be taxed as costs in any lien suit to which it pertains to
abide the result of the suit.
18-44-117 Filing of Account
(a) It shall be the duty of every person who wishes
to avail himself of the provisions of this subchapter to file,
with the clerk of the circuit court of the county in which
the building, erection, or other improvement to be charged
with the lien is situated and within one hundred twenty (120)
days after the things specified in this subchapter shall have
been furnished or the work or labor done or performed, a just
and true account of the demand due or owing to him after allowing
all credits. This account shall contain a correct description
of the property to be charged with the lien, verified by affidavit.
(b) It shall be the duty of the clerk of the circuit court
to endorse upon every account the date of its filing and to
make an abstract thereof in a book kept by him for that purpose,
properly indexed. This abstract shall contain the date of
the filing, the name of the person laying or imposing the
lien, the amount of the lien, the name of the person against
whose property the lien is filed, and a description of the
property to be charged with it. For this service, he shall
receive the sum of three dollars ($3.00) from the person laying
or imposing the lien, which shall be taxed and collected as
other costs in case there is suit thereon.
18-44-118 Release Bond
(a) In the event any person claiming a lien for labor
or materials upon any property shall file such a lien, within
the time and in the manner required by law with the circuit
clerk or other officer provided by law for the filing of such
liens and if the owner of the property, any mortgagee or other
person having an interest therein, or any contractor, subcontractor,
or other person liable for the payment of such liens shall
desire to contest the lien, then the person so desiring to
contest the lien may file with the circuit clerk or other
officer with whom the lien is filed as required by law a bond
with surety, to be approved by the officer in double the amount
of the lien claimed. The bond shall be conditioned for the
payment of the amount of the lien, or so much thereof as may
be established by suit, together with interest and the costs
of the action, if upon trial it shall bfound that the property
was subject to the lien.
(b) Upon the filing of the bond, if the circuit clerk or other
officer before whom it is filed approves the surety, he shall
give to the person claiming the lien, at his last known address,
three (3) days’ notice of the filing of the bond. The
notice shall be in writing sent by certified mail with return
receipt requested. Within that time, the person claiming the
lien may appear and question the sufficiency of the surety
or form of the bond. At the expiration of three (3) days,
if the person claiming the lien shall not have questioned
the sufficiency of the bond or surety or if the clerk finds
the same to be sufficient, the clerk shall note the filing
of the bond upon the margin of the lien record; the lien thereof
shall thereupon be discharged and the claimant shall have
recourse only against the principal and surety upon the bond.
(c) If no action to enforce the lien shall be filed within
the time prescribed by law for the enforcement of liens against
the surety, the bond shall be null and void, but, if any action
shall be timely commenced, the surety shall be liable in like
manner as the principal.
(d) If the clerk shall determine that the bond tendered is
insufficient, the person tendering the bond shall have twenty-four
(24) hours within which to tender a sufficient bond, and,
unless a sufficient bond shall be so tendered, the lien shall
remain in full force and effect.
(e) Any party aggrieved by the acceptance or rejection of
the bond may apply to any court of competent jurisdiction
by an action which is appropriate. The court shall have jurisdiction
to enter an interlocutory order, upon notice as required by
law, as may be necessary for the protection of the parties
by requiring additional security for the bond, by reinstating
the lien in default thereof, pending trial and hearing, or
by requiring acceptance of the bond as may be necessary for
the protection of the parties.
18-44-119
Limitations
All actions under this subchapter shall be commenced within
fifteen (15) months after filing the lien and prosecuted without
unnecessary delay to final judgment. No lien shall continue
to exist by virtue of the provisions of this subchapter for
more than fifteen (15) months after the lien is filed, unless
within that time an action shall be instituted as described
in this subchapter.
18-44-122
Petition to Foreclose Lien
The petition, among other things, shall allege the facts necessary
for securing a lien under this subchapter and shall contain
a description of the property to be charged with the lien.
18-44-123
Parties
In all suits under this subchapter, the parties to the contract
and all other persons interested in the controversy and in
the property charged with the lien may be made parties to
the suit. Those that are not made parties shall not be bound
by the proceedings.
18-44-124
Duty of the Contractor to Defend
(a) In all cases where a lien shall be filed under the provisions
of this subchapter by any person other than a contractor,
it shall be the duty of the contractor to defend at his own
expense any action brought thereupon. During the pendency
of the action, the owner may withhold from the contractor
the amount of money for which the lien shall be filed.
(b) In case of judgment against the owner or his property
upon the lien, the owner shall be entitled to deduct from
any amount due by him to the contractor the amount of the
judgment and costs. If the owner shall have settled with the
contractor in full, he shall be entitled to recover back from
the contractor any amount so paid by the owner for which the
contractor was originally liable.
18-44-125
Court orders
The
court shall make orders in the case as will protect and enforce
the rights of all interested therein.
18-44-126
Publication of Warning Order
Whenever
the owner of an erection or improvement, or of land on which
an erection or improvement is put, or the owner of any boat
or vessel, is a nonresident of the state or resides out of
the county in which the erection or other improvement is put,
as provided by this subchapter, or when the owner so conceals
himself that personal service of summons cannot be had on
him, then the mechanic, builder, artisan, workman, laborer,
or other persons entitled to a lien under this subchapter,
upon instituting suit, may cause a warning order to issue
and be published as may be prescribed by law for the issuance
of warning orders in proceedings under attachment. Such service
shall be binding and of full force and effect.
18-44-127
Trial
(a)
The court shall ascertain by a fair trial, in the usual way,
the amount of the indebtedness for which the lien is prosecuted
and may render judgment therefore in any sum not exceeding
the amount claimed in the demand filed with the lien, together
with interest and costs, although the creditor may have unintentionally
failed to render in his account when filed the full amount
of credits to which the debtor may have been entitled.
(b)
The judgment, if for plaintiff, shall be that he recover the
amount of the indebtedness found due, to be levied out of
the property charged with the lien therefore, which property
shall be correctly described in the judgment.
18-44-128
Attorneys Fees
When
any contractor, subcontractor, or material supplier who has
filed a lien, as provided for in this chapter, gives notice
thereof to the debtor or owner of property which has been
subjected to the lien in writing sent by registered or certified
mail, and the claim has not been paid within twenty (20) days
from the date of the mailing, and if the contractor, subcontractor,
or material supplier is required to sue for the enforcement
of his claim, the court shall allow the successful party in
the action a reasonable attorney’s fee in addition to
other relief to which he may be entitled.
18-44-131
Satisfaction of Lien
Whenever
any indebtedness which is a lien on any real estate, erection,
building, or other improvement is paid and satisfied, it shall
be the duty of the creditor to enter satisfaction of the lien
upon the record or margin thereof in the office of the clerk
of the circuit court. Any creditor refusing or neglecting
to do so for ten (10) days after payment shall be liable to
any person injured to the amount of injury and for cost of
suit.
18-44-132
Payment by Contractor to Discharge Lien, Felony, Misdemeanor
(a)
It shall be unlawful for any contractor, subcontractor, or
other person who has performed work or furnished materials
for the improvement of any property where the work or materials
may give rise to a mechanic’s, laborer’s, or materialman’s
lien under the laws of this state, this subchapter, Sections
18-44-201 ¾ 18-44-210 and subchapter 3 of this chapter,
or any other statute providing for a mechanic’s, laborer’s,
or materialman’s lien, or the assignee of such person,
knowingly to receive payment of the contract price or any
portion of it without applying the money so received toward
the discharge of any liens known to the person receiving the
payment, or properly record it as required by statutes, with
the intent thereby to deprive the owner or person so paying
the contractor or other person receiving payment of his funds
without discharging the liens and thereby to defraud the owner
or person so paying.
(b)
In any prosecution under this section as against the person
so receiving payment, when it shall be shown in evidence that
any lien for labor or materials existed in favor of any mechanic,
laborer, or materialman and that the lien has been filed within
the time provided by law in the office of the circuit clerk
or other officer provided by law for the filing of such liens,
and that the contractor, subcontractor, or other person charged
has received payment without discharging the lien to the extent
of the funds received by him, then the fact of acceptance
of the payment without having discharged the lien within ten
(10) days after receipt of the payment or the receipt of notice
of the existence of the lien, whichever event shall occur
last, shall be prima facie evidence of intent to defraud on
the part of the person so receiving payment.
(c)
If the amount of the contract price so received and not applied
to the discharge of the liens, with the intent to defraud,
shall exceed the sum of twenty-five dollars ($25.00), the
party so receiving shall be deemed guilty of a felony and
shall be punished by a fine not exceeding one thousand dollars
($1,000) or by imprisonment in the penitentiary for not less
than one (1) year nor more than five (5) years, or by both.
If the amount so received does not exceed the sum of twenty-five
dollars ($25.00), the party shall be deemed guilty of a misdemeanor
and punished by imprisonment in the county jail for not more
than one (1) year or by fine not less than ten dollars ($10.00)
nor more than three hundred dollars ($300), or by both.
18-44-133
Architects, Engineers, Surveyors, Appraisers, Abstractors,
Title Insurance Agents
(a)(1)
Every architect, engineer, surveyor, appraiser, abstractor,
or title insurance agent who shall do or perform any architectural,
engineering, surveying, appraisal, or abstracting work on,
or who shall issue any title insurance policy on any land,
building, erection, or improvement upon land, under or by
virtue of any written agreement for performance of the work
with the owner or his agent thereof shall have a lien upon
the land, building, erection, or improvement to the extent
of the agreed contract price or a reasonable price for those
services.
(2)
However, the lien does not attach to the land, building, erection,
or improvement unless and until the lien is duly filed of
record with the circuit clerk and recorder in the county in
which the land, building, erection, or improvement is located.
(b)
This recorded lien will be enforced in the same manner as
a mechanic’s or contractor’s lien.
18-44-134
Landscaping Liens
(a)(1)
Every person who shall do or perform landscaping services
or provide landscaping supplies on any land, building, erection,
or improvement upon land, under or by virtue of any written
agreement for performance with the owner or his agent thereof
shall have a lien upon the land, building, erection, or improvement
to the extent of the agreed contract price or a reasonable
price for those services.
(2)
However, the lien does not attach to the land, building, erection,
or improvement unless and until the lien is duly filed of
record with the circuit clerk and recorder in the county in
which the land, building, erection, or improvement is located.
(b)
This recorded lien will be enforced in the same manner as
a mechanic’s or contractor’s lien.
18-44-135
Joint Ownership
In
the event that property is jointly owned, the signature of
one (1) of the owners is sufficient for the purposes of this
chapter.
SUBCHAPTER
5 BONDS
18-44-501
Uniform Bonding Procedure
The
bond required or authorized in this subchapter shall in itself
be a full compliance with all other statutes of this state
in effect relating to bond requirements on contracts for the
repair, alteration, or erection of any building, structure,
or improvement, public or private, it being the intention
of this subchapter to provide a uniform bonding procedure
in conjunction with such contracts.
18-44-502
Exclusions from Subchapter
This
subchapter shall not apply to any contract executed by the
Arkansas State Highway and Transportation Department.
18-44-503
Public Projects, Payment Bonds
(a)
No contract in any sum exceeding twenty thousand dollars ($20,000)
providing for the repair, alteration, or erection of any public
building, public structure, or public improvement shall be
entered into by the State of Arkansas or any subdivision thereof,
by any county, municipality, school district, or other local
taxing unit, or by any agency of any of the foregoing, unless
the contractor shall furnish to the party letting the contract
a bond in a sum equal to the amount of the contract.
(b)
All persons, firms, associations, and corporations who have
valid claims against the bond may bring an action on the bond
against the corporate surety, provided that no action shall
be brought on the bond after twelve (12) months from the date
on which the Arkansas State Building Services approves final
payment on the state contract, nor shall any action be brought
outside the State of Arkansas.
18-44-504
Religious and Charitable Organizations, Payment Bonds
(a)
No contract in any sum exceeding one thousand dollars ($1,000)
providing for the repair, alteration, or erection of any building,
structure, or improvement shall be entered into by any church,
religious organization, charitable institution, or by any
agency of the foregoing, unless the contractor shall furnish
to the party letting the contract a bond in a sum equal to
the amount of the contract.
(b)
The bond shall be filed in the office of the clerk of the
circuit court in the county in which the property is situated.
Any person or his assigns to whom there is due any sum for
labor or material furnished may bring an action on the bond
for the recovery of the indebtedness. No action shall be brought
after six (6) months from the completion of the church, hospital,
orphanage, charitable institution, or benevolent institution.
If the bond is not filed as provided in this subsection, any
person performing labor or furnishing material, except the
principal contractor, shall have a lien upon the property
for the unpaid amount of the claim.
18-44-505
Private Construction, Payment Bonds
Any
person, firm, corporation, or association entering into a
contract for the repair, alteration, or erection of any building,
structure, or improvement may, at his or its option, require
the contractor to furnish a bond in a sum equal to the amount
of the contract.
18-44-506
Condition of the Bond
The
bond required or authorized in this subchapter shall be executed
by a solvent corporate surety company authorized to do business
in the State of Arkansas. The bond shall be conditioned that
the contractor shall faithfully perform his contract and shall
pay all indebtedness for labor and materials furnished or
performed in the repair, alteration, or erection.
18-44-507
Filing Bond
Before
any work is performed under the contract, the bond shall be
filed with the clerk of the circuit court of the county in
which the repairs, alterations, or erection of any building,
structure, or improvements are made.
18-44-508
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. |
