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U.S. Code as of:
01/19/04
Section 724. Treatment of certain liens
(a) The trustee may avoid a lien that secures a claim of a kind
specified in section 726(a)(4) of this title.
(b) Property in which the estate has an interest and that is
subject to a lien that is not avoidable under this title and that
secures an allowed claim for a tax, or proceeds of such property,
shall be distributed -
(1) first, to any holder of an allowed claim secured by a lien
on such property that is not avoidable under this title and that
is senior to such tax lien;
(2) second, to any holder of a claim of a kind specified in
section 507(a)(1), 507(a)(2), 507(a)(3), 507(a)(4), 507(a)(5),
507(a)(6), or 507(a)(7) of this title, to the extent of the
amount of such allowed tax claim that is secured by such tax
lien;
(3) third, to the holder of such tax lien, to any extent that
such holder's allowed tax claim that is secured by such tax lien
exceeds any amount distributed under paragraph (2) of this
subsection;
(4) fourth, to any holder of an allowed claim secured by a lien
on such property that is not avoidable under this title and that
is junior to such tax lien;
(5) fifth, to the holder of such tax lien, to the extent that
such holder's allowed claim secured by such tax lien is not paid
under paragraph (3) of this subsection; and
(6) sixth, to the estate.
(c) If more than one holder of a claim is entitled to
distribution under a particular paragraph of subsection (b) of this
section, distribution to such holders under such paragraph shall be
in the same order as distribution to such holders would have been
other than under this section.
(d) A statutory lien the priority of which is determined in the
same manner as the priority of a tax lien under section 6323 of the
Internal Revenue Code of 1986 shall be treated under subsection (b)
of this section the same as if such lien were a tax lien.
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