268
PUBLIC LAW 89-495-JULY 5, 1966
[80 STAT.
P u b l i c Law 89-495 July 5, 196 6 [H. R. X36]
Bankruptcy. Statutory l i e n s. 30 Stat. 544; 5 2 Stat. 840.
Debts having priority.
66 Stat. 427. 11 USC 96.
Post, p. 269.
AN
ACT
.To amend sections 1, 17a, 64a(5), 67(b), 67c, and 70c of the Bankruptcy Act, and for other purposes.
Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That section. 1 (11 U.S.C. 1) of the Bankruptcy Act approved July 1, 1898, as amended, is amended by inserting after paragraph 29 the following new paragraph: "(29a) 'Statutory lien' shall mean a lien arising solely by force of statute upon specified circumstances or conditions, but shall not include any lien provided by or dependent upon an agreement to give security, whether or not such lien is also provided by or is also dependent upon statute and whether or not the agreement or lien is made fully effective by statute." SEC. 2. Clause (5) of subsection a of section 64 of said Act (11 U.S.C. 104(a)) is amended to read as follows: "(5) debts other than for taxes owing to any person, including the United States, who by the laws of the United States is entitled to priority, and rent owing to a landlord who is entitled to priority by applicable State law or who is entitled to priority by paragraph (2) of subdivision c of section 67 of this Act: Provided., however., That such priority for rent to a landlord shall be restricted to the rent which is legally due and owing for the actual use and occupancy of the premises affected, and which accrued within three months before the date of bankruptcy." SEC. 3. Subsection b of section 67 of said Act (11 U.S.C. 107(b)), is amended to read as follows: "b. The provisions of section 60 of this Act to the contrary notwithstanding and except as otherwise provided in subdivision c of this section, statutory liens in favor of employees, contractors, mechanics, or any other class of persons, and statutory liens for taxes and debts owing to the United States or to any State or any subdivision thereof, created or recognized by the laws of the United States or any State, may be valid against the trustee, even though arising or perfected while the debtor is insolvent and within four months prior to the filing of the petition initiating a proceeding under this Act by or against him." SEC. 4. Subsection c of section 67 of said Act (11 U.S.C. 107(c)) is amended to read as follows: "c. (1) The following liens shall be invalid against the trustee: " (A) every statutory lien which first becomes effective upon the insolvency of the debtor, or upon distribution or liquidation of his property, or upon execution against his property levied at the instance of One other than the lienor; " (B) every statutory lien which is not perfected or enforceable at the date of bankruptcy against one acquiring the rights of a bona fide purchaser from the debtor on that date, whether or not such purchaser exists: Provided., That where a statutory lien is not invalid at the date of bankruptcy against the trustee under subdivision c of section 70 of this Act and is required by applicable lien law to be perfected in order to be valid against a subsequent bona fide purchaser, such a lien may nevertheless be valid under this subdivision if perfected within the time permitted by and in accordance with the requirements of such law: And 'provided further., That if applicable lien law requires a lien valid against the trustee under section 70, subdivision c, to be perfected by the seizure of property, it shall instead be perfected
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