AR HB1702

Amends Arkansas Code § 27-14-907 to establish new procedures for vehicle title and registration when ownership transfers by operation of law (such as through repossession).

Requires vehicles acquired by lienholders through repossession to obtain court-ordered titles when the vehicle was last registered outside Arkansas and the lienholder's name does not appear on the original certificate of title.

Creates exceptions for vehicles sold by motor vehicle dealers licensed in Arkansas where the purchaser failed to register, and for vehicles sold through auto auctions with written agreements, allowing lienholders to obtain titles directly upon presentation of required documents.

Requires repossessing lienholders to submit an affidavit confirming vehicles offered for sale at auto auctions, and allows the Office of Motor Vehicle to request verification information from auction facilities.

Declares emergency effective date of July 1, 2015, citing the need to prevent fraud and unauthorized out-of-state vehicle titling in Arkansas without proper security interest recording.