AR HB1914

Adds Arkansas Code 4-92-108 to address situations when rental merchandise becomes attached to a consumer's personal property that is subject to a secured creditor's lien.

Requires lessors to install substitute new or used factory quality equipment at the time of repossession to keep the consumer's personal property usable and operable, or face liability to the secured creditor for the cost and installation.

If a secured creditor repossesses collateral before the consumer owns the attached merchandise and before resale, the secured creditor must either work with the lessor to comply with the substitute equipment requirement or pay the lessor the lesser of: the original merchandise cost or the total remaining rental payments owed.

Approved April 10, 2019.