(a)

(1) In the event of any distribution of an employer's assets pursuant to an order of any court under the laws of this state, including any receivership, assignment for benefit of creditors, adjudicated insolvency, composition, or similar proceeding, contributions then or thereafter due shall be paid in full prior to all claims except taxes and claims for wages of not more than two hundred fifty dollars ($250) to each claimant, earned within six (6) months of the commencement of the proceedings.

(2) In the event of an employer's adjudication in bankruptcy, judicially confirmed extension proposal, or composition, under the Federal Bankruptcy Reform Act of 1978 contributions then or thereafter due shall be entitled to such priority as is provided in § 507 of that act.

(b) (1) (A) If any person liable for the payment of any tax or contributions due under this chapter neglects or refuses to pay the tax or contribution after a demand, the amount, including any interest, penalty, additional amount, or additions to the tax, together with any costs that may accrue in addition thereto, shall be a lien in favor of the State of Arkansas upon all property and rights to property, whether real or personal, belonging to the person.

(B)

(i) The proceedings for enforcing the lien herein provided for shall be brought in the name of the Director of the Department of Workforce Services.

(ii) All liens issued under this chapter by the Director of the Department of Labor shall remain in full force and effect and shall be fully enforceable by the Director of the Department of Workforce Services.

(2) Unless another date is specifically fixed by law, the lien shall arise at the time of the notice of the delinquency to the employer and shall continue until the liability of the amount is satisfied or becomes unenforceable by reason of the statute of limitations as fixed in this chapter.

(3) The lien shall not be valid against any mortgagee, pledgee, purchaser, or judgment creditor until the certificate of assessment provided for in § 11-10-720 has been filed with the clerk of the circuit court of the county wherein the employer domiciles or has a place of business, or suit has been filed by the Director of the Department of Workforce Services in a court of competent jurisdiction under § 11-10-717.

(4) If any person, firm, or corporation shall become delinquent in the payment of any contributions, interest, or penalties required to be paid by this chapter and shall transfer title or ownership of the assets of the business, then the delinquent contributions, interest, or penalties shall be collected by means of a levy against the assets as provided in § 11-10-720.

(c) (1) Upon written application by any person, the Director of the Department of Workforce Services or his or her designee may release from a lien any property or part of the property subject to the lien described in subdivision (b)(1) of this section, provided that:

(A) The Director of the Department of Workforce Services or his or her designee determines at any time that the interest of the Department of Workforce Services has no value; or

(B) The Director of the Department of Workforce Services or his or her designee determines that the lien is clouding the title of the property because of an error in the description of properties or similarity in names.

(2) In determining the value of the interest of the department in the property to be released, the Director of the Department of Workforce Services or his or her designee shall give consideration to the value of the property and to the liens thereon having priority over the lien of the department.