80 STAT. ]
PUBLIC LAW 89-719-NOV. 2, 1966
1125
Public Law 89-719 AN ACT
November 2, 1966
To amend the Internal Revenue Code of 1954 with respect to the priority and —CH. R. 11256]— effect of Federal tax liens and levies, and for other purposes. Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, SECTION 1. SHORT TITLE, ETC. (a) SHORT TITLE.—This Act may be cited as the "Federal Tax Lien Act of 1966". (b) AMENDMENT or 1954 CODE.—Except as otherwise expressly provided, whenever in this Act an amendment or repeal is expressed in terms of an amendment to, or repeal of, a section or other provision, the reference shall be considered to be made to a section or other provision of the Internal Revenue Code of 1954. ^
Federal Tax L i e n Act of 196f
^SA Stat. 3. 26 USC 1 et
TITLE I—PRIORITY AND EFFECT OF TAX " LIENS AND LEVIES SEC. 101. PRIORITY OF LIENS. (a) AMENDMENT or SECTION 6323.—Section 6323 (relating to validity of tax liens against mortgagees, pledgees, purchasers, and judgment creditors) is amended to read as follows: "SEC. 6323. VALIDITY AND PRIORITY AGAINST CERTAIN PERSONS. " (a) PURCHASES, HOLDERS or SECURITY INTERESTS. MECHANIC'S LIENORS, AND JUDGMENT L I E N CREDITORS.—The lien imposed by sec-
tion 6321 shall not be valid as against any purchaser, liolder of a security interest, mechanic's lienor, or judgment lien creditor until notice thereof which meets the requirements of subsection (f) has been filed by the Secretary or his delegate. "(b)
PROTECTION FOR CERTAIN INTERESTS EVEN THOUGH NOTICE
FILED.—Even though notice of a lien imposed by section 6321 has been filed, such lien shall not be valid— " (1) SECURITIES.—With respect to a security (as defined in subsection (h)(4)) — " (A) as against a purchaser of such security who at the time of purchase did not have actual notice or knowledge of the existence of such lien; and " (B) as against a holder of a security interest in such security who, at the time such interest came into existence, did not have actual notice or knowledge of the existence of such lien. " (2) MOTOR VEHICLES.—With respect to a motor vehicle (as
defined in subsection (h)(3)), as against a purchaser of such motor vehicle, if— " (A) at the time of the purchase such purchaser did not have actual notice or knowledge of the existence of such lien, and " (B) before the purchaser obtains such notice or knowledge, he has acquired possession of such motor vehicle and has not thereafter relinquished possession of such motor vehicle to the seller or his agent. "(3) PERSONAL PROPERTY PURCHASED AT RETAIL.—With respect to tangible personal property purchased at retail, as against a purchaser in the ordinary course of the seller's trade or business, unless at the time of such purchase such purchaser intends such
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