Arkansas Code § 27-19-707 - Suspension for Nonpayment of Judgments -- Exceptions

(a) The Office of Driver Services, upon receipt of a certified copy of a judgment and a certificate of facts relative to the judgment, on a form provided by the office, shall forthwith suspend the license and registration, and any nonresident's operating privilege, of any person against whom the judgment was rendered, except as otherwise provided in this subchapter.

(b) The provisions of subsection (a) of this section shall not apply with respect to any judgment arising out of an accident caused by the ownership or operation, with permission, of a vehicle owned or leased to the United States, this state, or any political subdivision of this state, or a municipality thereof.

(c) If the judgment creditor consents in writing, in such form as the office may prescribe, that the judgment debtor be allowed license and registration or nonresident's operating privilege, the same may be allowed by the office, in its discretion, for six (6) months from the date of consent and thereafter until consent is revoked in writing, notwithstanding default in the payment of the judgment, or of any installments thereof prescribed in ยง 27-19-710, provided the judgment debtor furnishes proof of financial responsibility.

(d) (1) No license, registration, or nonresident's operating privilege of any person shall be suspended under the provisions of this subchapter if the office shall find that an insurer was obligated to pay the judgment upon which suspension is based, at least to the extent and for the amounts required in this chapter but has not paid the judgment for any reason.

(2) A finding by the office that an insurer is obligated to pay a judgment shall not be binding upon the insurer and shall have no legal effect whatever except for the purpose of administering this subsection.

(3) Whenever in any judicial proceedings it shall be determined by any final judgment, decree, or order that an insurer is not obligated to pay the judgment, the office, notwithstanding any contrary finding made by it, shall forthwith suspend the license and registration and any nonresident's operating privilege of any person against whom the judgment was rendered, as provided in this section.

(e) (1) The license, registration, and nonresident's operating privilege shall remain so suspended and shall not be renewed, nor shall any license or registration be thereafter issued in the name of the person, including any person not previously licensed, unless and until every judgment is stayed, satisfied in full, or to the extent provided and until the person gives proof of financial responsibility subject to the exemptions stated in this section.

(2) Upon the expiration of ten (10) years following the date judgment is rendered, and provided no proof of renewal of judgment has been filed with the office, the office shall reinstate the driving privilege and motor vehicle registration privilege of any person who will provide proof of financial responsibility for the future as required under any section of this subchapter.

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Last modified: November 15, 2016