Conditions of use · Every effort has been made to
reproduce the code accurately. However there could be errors which would
change the effect of the code. Permission to use these materials is given
only on the condition that the user will be solely responsible for verifying the
accuracy of the information contained herein.x
Text size · You may adjust the size of the text from
your browser's control bar: View, Text Size.
Printing · If the top menu bar stays at the top of the
window as you scroll in your browser, return the browser to the top of the page
before printing or the menu bar may obscure some text. You may print
selected pages of the web page by printing from File, Page Preview
instead of Print. More printing
tips.
Annotations · We have added notes linking to cases and
other information to some sections of the code. You may chose to
or
the annotations.
Redline Display · The Bankruptcy Code
shown is as amended by The Bankruptcy Abuse Prevention and Consumer
Protection Act of 2005. You may choose to or
the redline version showing the changes made by the act.
Link to the Code · You may link your web page directly
to this version of the code, or to any subsection. More link
information.
TITLE 11.
BANKRUPTCY · UNITED STATES CODE
Chapter 7.
Liquidation
Subchapter II. Collection, Liquidation, and Distribution of
the Estate
11
USC § 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.
[Rev. 5-23-05]
|