(a) Every association operating under this chapter or any federal association shall have a lien, without further agreement or pledge, upon all savings accounts owned by any borrower, or savings accounts subject to withdrawal by any borrower, to secure the payment of any indebtedness of the borrower to the association. Upon default on any loan, the association may, without notice to or consent of the borrower, cancel on its books all or any part of those savings accounts and apply the withdrawal value of the accounts in payment of any indebtedness of the borrower to the association.
(b) An association may, by written instrument, waive its lien, in whole or in part, on any savings accounts.
(c) An association may take the pledge of savings accounts of the association owned by a person other than the borrower as security or additional security for any loan made or purchased by the association.
Structure Arkansas Code
Title 23 - Public Utilities and Regulated Industries
Subtitle 2 - Financial Institutions And Securities
Chapter 37 - Savings And Loan Associations
Subchapter 5 - Savings Accounts
§ 23-37-501. Accounts of minors
§ 23-37-502. Accounts in the names of two or more persons
§ 23-37-503. Accounts of fiduciaries
§ 23-37-504. Accounts of deceased nonresidents
§ 23-37-505. Withdrawals generally
§ 23-37-506. Conflicting claims to accounts
§ 23-37-507. Damages for refusal to pay withdrawal request
§ 23-37-508. Power of attorney
§ 23-37-509. Lien on account of borrower — Pledge of third party's account as security on loan
§ 23-37-510. Validity of release or acquittance by officers of corporation or association