29 U.S.C. § 1368 : US Code - Section 1368: Lien for liability

Search 29 U.S.C. § 1368 : US Code - Section 1368: Lien for liability

(a) Creation of lien
If any person liable to the corporation under section 1362, 1363,
or 1364 of this title neglects or refuses to pay, after demand, the
amount of such liability (including interest), there shall be a
lien in favor of the corporation in the amount of such liability
(including interest) upon all property and rights to property,
whether real or personal, belonging to such person, except that
such lien may not be in an amount in excess of 30 percent of the
collective net worth of all persons described in section 1362(a) of
this title (!1)
(b) Term of lien
The lien imposed by subsection (a) of this section arises on the
date of termination of a plan, and continues until the liability
imposed under section 1362, 1363, or 1364 of this title is
satisfied or becomes unenforceable by reason of lapse of time.
(c) Priority
(1) Except as otherwise provided under this section, the priority
of a lien imposed under subsection (a) of this section shall be
determined in the same manner as under section 6323 of title 26 (as
in effect on April 7, 1986). Such section 6323 shall be applied for
purposes of this section by disregarding subsection (g)(4) and by
substituting -
(A) "lien imposed by section 4068 of the Employee Retirement
Income Security Act of 1974 [29 U.S.C. 1368]" for "lien imposed
by section 6321" each place it appears in subsections (a), (b),
(c)(1), (c)(4)(B), (d), (e), and (h)(5);
(B) "the corporation" for "the Secretary" in subsections (a)
and (b)(9)(C);
(C) "the payment of the amount on which the section 4068(a)
lien is based" for "the collection of any tax under this title"
in subsection (b)(3);
(D) "a person whose property is subject to the lien" for "the
taxpayer" in subsections (b)(8), (c)(2)(A)(i) (the first place it
appears), (c)(2)(A)(ii), (c)(2)(B), (c)(4)(B), and (c)(4)(C) (in
the matter preceding clause (i));
(E) "such person" for "the taxpayer" in subsections
(c)(2)(A)(i) (the second place it appears) and (c)(4)(C)(ii);
(F) "payment of the loan value of the amount on which the lien
is based is made to the corporation" for "satisfaction of a levy
pursuant to section 6332(b)" in subsection (b)(9)(C);
(G) "section 4068(a) lien" for "tax lien" each place it appears
in subsections (c)(1), (c)(2)(A), (c)(2)(B), (c)(3)(B)(iii),
(c)(4)(B), (d), and (h)(5); and
(H) "the date on which the lien is first filed" for "the date
of the assessment of the tax" in subsection (g)(3)(A).
(2) In a case under title 11 or in insolvency proceedings, the
lien imposed under subsection (a) of this section shall be treated
in the same manner as a tax due and owing to the United States for
purposes of title 11 or section 3713 of title 31.
(3) For purposes of applying section 6323(a) of title 26 to
determine the priority between the lien imposed under subsection
(a) of this section and a Federal tax lien, each lien shall be
treated as a judgment lien arising as of the time notice of such
lien is filed.
(4) For purposes of this subsection, notice of the lien imposed
by subsection (a) of this section shall be filed in the same manner
as under section 6323(f) and (g) of title 26.
(d) Civil action; limitation period
(1) In any case where there has been a refusal or neglect to pay
the liability imposed under section 1362, 1363, or 1364 of this
title, the corporation may bring civil action in a district court
of the United States to enforce the lien of the corporation under
this section with respect to such liability or to subject any
property, of whatever nature, of the liable person, or in which he
has any right, title, or interest to the payment of such liability.
(2) The liability imposed by section 1362, 1363, or 1364 of this
title may be collected by a proceeding in court if the proceeding
is commenced within 6 years after the date upon which the plan was
terminated or prior to the expiration of any period for collection
agreed upon in writing by the corporation and the liable person
before the expiration of such 6-year period. The period of
limitations provided under this paragraph shall be suspended for
the period the assets of the liable person are in the control or
custody of any court of the United States, or of any State, or of
the District of Columbia, and for 6 months thereafter, and for any
period during which the liable person is outside the United States
if such period of absence is for a continuous period of at least 6
months.
(e) Release or subordination
If the corporation determines that release of the lien or
subordination of the lien to any other creditor of the liable
person would not adversely affect the collection of the liability
imposed under section 1362, 1363, or 1364 of this title, or that
the amount realizable by the corporation from the property to which
the lien attaches will ultimately be increased by such release or
subordination, and that the ultimate collection of the liability
will be facilitated by such release or subordination, the
corporation may issue a certificate of release or subordination of
the lien with respect to such property, or any part thereof.
(f) Definitions
For purposes of this section -
(1) The collective net worth of persons subject to liability in
connection with a plan termination shall be determined as
provided in section 1362(d)(1) of this title.
(2) The term "pre-tax profits" has the meaning provided in
section 1362(d)(2) of this title.