(a) As used in this section:

(1) "Lender applicant" means an individual or entity that intends to sever a manufactured home or mobile home from the real estate to which it is affixed and is a lender that holds a lien, security interest, or encumbrance against the manufactured home or mobile home for which a title has been cancelled under § 27-14-1603; and

(2) "Owner applicant" means an individual or entity that intends to sever a manufactured home or mobile home from the real estate to which it is affixed and is the owner or purchaser of the manufactured home or mobile home.

(b) The Department of Finance and Administration shall issue a new certificate of title for a manufactured home or mobile home to be severed from the real estate to which it is affixed upon receipt of the following from a lender applicant or an owner applicant:

(1) A completed application for title accompanied by payment of a registration fee of twenty-six dollars ($26.00) and a title fee of ten dollars ($10.00);

(2) Proof of payment of the current year's property taxes, if any;

(3) The following information:

(A) A statement from:

(i) The owner applicant that there are no liens, security interests, or encumbrances upon the manufactured home or mobile home; or

(ii) The lender applicant that there are no liens, security interests, or encumbrances upon the manufactured home or mobile home other than that of the lender applicant; and

(B) A statement from an attorney licensed to practice law in Arkansas or a title insurance agent licensed in Arkansas that the manufactured home or mobile home is free and clear of, or has been released from, all recorded liens, security interests, or encumbrances other than that of a lender applicant;

(4)

(A) A copy of an affidavit of severance to be recorded under § 14-15-402 in the county in which the manufactured home or mobile home was affixed.

(B) The affidavit of severance shall include the name, residence, and mailing address of the applicant and a description of the manufactured home or mobile home, including without limitation the name of the manufacturer, make, model name, model year, dimensions, and the manufacturer's serial number of the manufactured home or mobile home; and

(5) Relevant supporting documents and recording information concerning a lien, security interest, or encumbrance upon the manufactured home or mobile home if requested by the department.

(c) The department shall record the lien of a lender applicant on the certificate of title to be issued under this section upon receipt of a copy of the instrument creating and evidencing the lien as required under § 27-14-802.

(d) The department shall also issue a new certificate of title for a manufactured home or mobile home to be severed from the real estate to which it is affixed if the applicant:

(1) Presents a court order directing the department to issue a new title and submits an application for issuance of a new certificate of title or manufacturer's certificate of origin and a copy of an affidavit of severance to be recorded under § 14-15-402 in the county in which the manufactured home or mobile home is to be affixed; or

(2) Follows the bonded title procedure under § 27-14-409(c), and submits an application for cancellation of title or manufacturer's certificate of origin and a copy of an affidavit of affixation to be recorded under § 14-15-402 in the county in which the manufactured home or mobile home is to be affixed.

(e) The Director of the Department of Finance and Administration may promulgate rules to implement and administer this section.