TO PROVIDE THAT A LIEN CREATED BY THE ENTRY OF CERTIFICATE OF INDEBTEDNESS ISSUED BY THE SECRETARY OF THE DEPARTMENT OF FINANCE AND ADMINISTRATION IS NOT SUPERIOR TO A PURCHASE MONEY MORTGAGE.

HB 1273 clarifies that a property claim held by Arkansas' Department of Finance and Administration (for unpaid taxes or fees) cannot take priority over a mortgage used to purchase the property itself. Specifically, it amends state law to remove the previous rule that allowed this state claim to override all other liens except purchase money mortgages, instead making the mortgage explicitly superior. This directly affects homeowners who have both an active mortgage for their property purchase and a state claim for unpaid debts. The bill ensures that homebuyers' mortgages retain priority in property disputes, rather than state claims being enforced ahead of them.