Arkansas Code of 1987 (2023) › Title 27 - TRANSPORTATION (§§ 27-1-101 — 27-117-105) › Subtitle 2 - MOTOR VEHICLE REGISTRATION AND LICENSING (§§ 27-13-101 — 27-25-113) › Chapter 14 - UNIFORM MOTOR VEHICLE ADMINISTRATION, CERTIFICATE OF TITLE, AND ANTITHEFT ACT (§§ 27-14-101 — 27-14-2401) › Subchapter 23 - DISCLOSURE OF DAMAGE AND REPAIR ON THE CERTIFICATE OF TITLE (§§ 27-14-2301 — 27-14-2308) › Section 27-14-2302 - Issuance of damage certificate

(a)
(1)
(A)
When an insurer acquires the ownership of a salvage vehicle for which a salvage vehicle title has not been issued, the insurer shall surrender the certificate of title for the salvage vehicle to the Office of Motor Vehicle within thirty (30) days following the acquisition of the certificate of title to the salvage vehicle.
(B)
When an insurer acquires the ownership of a vehicle eight (8) or more model years old before the calendar year of the occurrence, the insurer may surrender the certificate of title for the vehicle to the Office of Motor Vehicle in exchange for a salvage certificate of title or a parts-only title.
(2)
(A)
If a motor vehicle becomes a salvage vehicle and an insurer indemnifies under the insurance policy but the insurer does not take title to the salvage vehicle, the insurer shall notify the Office of Motor Vehicle that the motor vehicle is a salvage vehicle pursuant to the notification procedure required under this subsection.
(B)
The Office of Motor Vehicle shall attach a note or stamp to any copy of a title issued by the Office of Motor Vehicle or to any reissued or changed title.
(C)
The note or stamp shall state that the motor vehicle is a salvage vehicle and shall remain in place until the owner of the vehicle surrenders the certificate of title on the salvage vehicle and a salvage vehicle title or prior salvage vehicle title is issued by the Office of Motor Vehicle.
(3)
(A)
If a person other than an insurer owns a salvage vehicle for which a salvage vehicle title has not been issued, the owner shall surrender the certificate of title for the salvage vehicle to the Office of Motor Vehicle within thirty (30) days following the date that the motor vehicle became a salvage vehicle.
(B)
If a person other than an insurer owns a vehicle that is eight (8) or more model years old before the calendar year of the occurrence, the owner may surrender the certificate of title for the vehicle to the Office of Motor Vehicle in exchange for a salvage certificate of title or a parts-only title.
(b)
Upon receipt of the title, there shall be issued a new certificate of title with the word "salvage" printed in the remarks section on the face of the title.
(c)
(1)
An Arkansas certificate of title issued from an out-of-state certificate of title or comparable ownership document that carries a designation such as "damaged", "salvaged", "water-damaged", "reconstructed", "rebuilt", or other similar classification shall have a brand notation printed in the remarks section on its face as would be required by this subchapter to be printed on an Arkansas certificate of title issued under the provisions of either subsection (b) or subsection (e) of this section.
(2)
(A)
Provided, however, an Arkansas certificate of title shall not be issued from an out-of-state junking certificate or other ownership document bearing a designation of "junk", "parts only", "nonrepairable", or similar classification, it being the intent of this section that any motor vehicle damaged to the extent that it has been so designated shall be dismantled for parts or scrap and shall not be registered in the State of Arkansas but may receive a "parts only" title.
(B)
(i)
An Arkansas title may be issued only if the state that placed the designation on the certificate of title or issued the junking certificate removes the designation or cancels the junking certificate and replaces it with a certificate of title.
(ii)
The designation placed on the certificate of title or issuance of junking certificate may be modified or removed only by that state.
(iii)
A court of this state shall not have jurisdiction to change or modify the designation or finding of another state issuing a certificate of title or the junking certificate.
(d)
(1)
When any motor vehicle issued a "salvage" certificate of title or similar branded title by another state is rebuilt or reconstructed, the owner shall, within ten (10) working days, make application to the Office of Motor Vehicle for the registration and issuance of a new certificate of title to the motor vehicle.
(2)
The application shall be accompanied by the "salvage" certificate of title or similar title issued by another state, a fee in the amount now or hereafter prescribed by law for the registration and issuance of a certificate of title, and a sworn statement executed by the rebuilder or restorer on a form prescribed by the Office of Motor Vehicle describing the types of repairs performed, listing all parts replaced, and including the vehicle identification number of any parts bearing such a number or a derivative thereof.
(e)
(1)
Upon receipt of such "salvage" certificate of title or similar title issued by another state and the sworn statement required to be submitted by subsection (d) of this section, there shall be issued a new certificate of title with the word "rebuilt" printed in the remarks section on the face of the title.
(2)
The brand shall be carried forward and printed in the remarks section on the face of all titles issued thereafter for the motor vehicle.
(f)
The sworn statement submitted pursuant to subsection (d) of this section shall be maintained by the Office of Motor Vehicle as a part of the permanent title record of the motor vehicle in question, and the information contained therein shall be made available to any prospective buyer or transferee upon request.
(g)
(1)
If an insurer has the responsibility under this subchapter to surrender the certificate of title on a salvage vehicle for which it has taken title or to notify the Office of Motor Vehicle that a motor vehicle is a salvage vehicle, prior salvage vehicle, or "parts only" vehicle, the insurer may delegate its responsibility to surrender the certificate of title or to notify the Office of Motor Vehicle to a servicing organization or to a buyer of the salvage vehicle from the insurer.
(2)
The insurer shall remain responsible under Arkansas law if the servicing organization or buyer fails to properly surrender the title or notify the Office of Motor Vehicle.
(h)
(1)
The Office of Motor Vehicle may issue a "parts only" title to the owner of a salvage vehicle under the following conditions:
(A)
The owner of the salvage vehicle decides that the salvage vehicle has no resale value except as a source for parts or scrap; and
(B)
The owner surrenders the current certificate of title to the salvage vehicle to the Office of Motor Vehicle.
(2)
An owner under this subsection may be an insurer that owns the salvage vehicle.
(3)
(A)
The salvage vehicle shall be dismantled for parts or scrap and issued a "parts only" title in the State of Arkansas.
(B)
The "parts only" brand shall be carried forward and printed in the remarks section on the face of all titles subsequently issued for the motor vehicle without regard to the claim of any person that the salvage vehicle has been rebuilt or reconstructed.
Amended by Act 2017, No. 651,§ 1, eff. 8/1/2017.
Acts 1993, No. 614, § 2; 2001, No. 328, § 2; 2007, No. 410, § 2; 2009, No. 445, §§ 1, 2; 2009, No. 483, § 1.