§ 2410. — Actions affecting property on which United States has lien.
[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
January 24, 2002 and December 19, 2002]
[CITE: 28USC2410]
TITLE 28--JUDICIARY AND JUDICIAL PROCEDURE
PART VI--PARTICULAR PROCEEDINGS
CHAPTER 161--UNITED STATES AS PARTY GENERALLY
Sec. 2410. Actions affecting property on which United States has
lien
(a) Under the conditions prescribed in this section and section 1444
of this title for the protection of the United States, the United States
may be named a party in any civil action or suit in any district court,
or in any State court having jurisdiction of the subject matter--
(1) to quiet title to,
(2) to foreclose a mortgage or other lien upon,
(3) to partition,
(4) to condemn, or
(5) of interpleader or in the nature of interpleader with
respect to,
real or personal property on which the United States has or claims a
mortgage or other lien.
(b) The complaint or pleading shall set forth with particularity the
nature of the interest or lien of the United States. In actions or suits
involving liens arising under the internal revenue laws, the complaint
or pleading shall include the name and address of the taxpayer whose
liability created the lien and, if a notice of the tax lien was filed,
the identity of the internal revenue office which filed the notice, and
the date and place such notice of lien was filed. In actions in the
State courts service upon the United States shall be made by serving the
process of the court with a copy of the complaint upon the United States
attorney for the district in which the action is brought or upon an
assistant United States attorney or clerical employee designated by the
United States attorney in writing filed with the clerk of the court in
which the action is brought and by sending copies of the process and
complaint, by registered mail, or by certified mail, to the Attorney
General of the United States at Washington, District of Columbia. In
such actions the United States may appear and answer, plead or demur
within sixty days after such service or such further time as the court
may allow.
(c) A judgment or decree in such action or suit shall have the same
effect respecting the discharge of the property from the mortgage or
other lien held by the United States as may be provided with respect to
such matters by the local law of the place where the court is situated.
However, an action to foreclose a mortgage or other lien, naming the
United States as a party under this section, must seek judicial sale. A
sale to satisfy a lien inferior to one of the United States shall be
made subject to and without disturbing the lien of the United States,
unless the United States consents that the property may be sold free of
its lien and the proceeds divided as the parties may be entitled. Where
a sale of real estate is made to satisfy a lien prior to that of the
United States, the United States shall have one year from the date of
sale within which to redeem, except that with respect to a lien arising
under the internal revenue laws the period shall be 120 days or the
period allowable for redemption under State law, whichever is longer,
and in any case in which, under the provisions of section 505 of the
Housing Act of 1950, as amended (12 U.S.C. 1701k), and subsection (d) of
section 3720 of title 38 of the United States Code, the right to redeem
does not arise, there shall be no right of redemption. In any case where
the debt owing the United States is due, the United States may ask, by
way of affirmative relief, for the foreclosure of its own lien and where
property is sold to satisfy a first lien held by the United States, the
United States may bid at the sale such sum, not exceeding the amount of
its claim with expenses of sale, as may be directed by the head (or his
delegate) of the department or agency of the United States which has
charge of the administration of the laws in respect to which the claim
of the United States arises. In any case where the United States is a
bidder at the judicial sale, it may credit the amount determined to be
due it against the amount it bids at such sales.
(d) In any case in which the United States redeems real property
under this section or section 7425 of the Internal Revenue Code of 1986,
the amount to be paid for such property shall be the sum of--
(1) the actual amount paid by the purchaser at such sale (which,
in the case of a purchaser who is the holder of the lien being
foreclosed, shall include the amount of the obligation secured by
such lien to the extent satisfied by reason of such sale),
(2) interest on the amount paid (as determined under paragraph
(1)) at 6 percent per annum from the date of such sale, and
(3) the amount (if any) equal to the excess of (A) the expenses
necessarily incurred in connection with such property, over (B) the
income from such property plus (to the extent such property is used
by the purchaser) a reasonable rental value of such property.
(e) Whenever any person has a lien upon any real or personal
property, duly recorded in the jurisdiction in which the property is
located, and a junior lien, other than a tax lien, in favor of the
United States attaches to such property, such person may make a written
request to the officer charged with the administration of the laws in
respect of which the lien of the United States arises, to have the same
extinguished. If after appropriate investigation, it appears to such
officer that the proceeds from the sale of the property would be
insufficient to wholly or partly satisfy the lien of the United States,
or that the claim of the United States has been satisfied or by lapse of
time or otherwise has become unenforceable, such officer may issue a
certificate releasing the property from such lien.
(June 25, 1948, ch. 646, 62 Stat. 972; May 24, 1949, ch. 139, Sec. 119,
63 Stat. 105; Pub. L. 85-508, Sec. 12(h), July 7, 1958, 72 Stat. 348;
Pub. L. 86-507, Sec. 1(20), June 11, 1960, 74 Stat. 201; Pub. L. 89-719,
title II, Sec. 201, Nov. 2, 1966, 80 Stat. 1147; Pub. L. 99-514, Sec. 2,
Oct. 22, 1986, 100 Stat. 2095; Pub. L. 101-647, title XXXVI, Sec. 3630,
Nov. 29, 1990, 104 Stat. 4966; Pub. L. 102-83, Sec. 5(c)(2), Aug. 6,
1991, 105 Stat. 406; Pub. L. 104-316, title I, Sec. 114, Oct. 19, 1996,
110 Stat. 3834.)
Historical and Revision Notes
1948 Act
Based on title 28, U.S.C., 1940 ed., Secs. 901, 902, 904, 905 (Mar.
4, 1931, ch. 515, Secs. 1, 2, 4, 5, 46 Stat. 1528, 1529; May 17, 1932,
ch. 190, 47 Stat. 158; June 25, 1936, ch. 804, 49 Stat. 1921; June 6,
1940, ch. 242, 54 Stat. 234; Dec. 2, 1942, ch. 656, Secs. 1-3, 56 Stat.
1026).
Provisions including the districts of Hawaii and Puerto Rico, and
the District Court of the United States for the District of Columbia, in
section 901 of title 28, U.S.C., 1940 ed., were omitted as covered by
``any district court.'' See section 451 of this title.
Provisions in section 902 of title 28, U.S.C., 1940 ed., relating to
process, were omitted as covered by Rule 4 of the Federal Rules of Civil
Procedure.
Changes were made in phraseology.
1949 Act
This amendment conforms the language of section 2410(b) of title 28,
U.S.C., with that of the prior law with respect to service of process
and complaint upon the United States in suits brought in State courts.
This is provided for by rule 4(d)(4) of the Federal Rules of Civil
Procedure with respect to such suits in United States district courts.
References in Text
The internal revenue laws, referred to in subsec. (b), are
classified generally to Title 26, Internal Revenue Code.
Section 7425 of the Internal Revenue Code of 1986, referred to in
subsec. (d), is classified to section 7425 of Title 26.
Amendments
1996--Subsec. (e). Pub. L. 104-316 struck out ``shall so report to
the Comptroller General who'' after ``unenforceable, such officer'' in
second sentence.
1991--Subsec. (c). Pub. L. 102-83 substituted ``section 3720 of
title 38'' for ``section 1820 of title 38''.
1990--Subsec. (c). Pub. L. 101-647 inserted at end ``In any case
where the United States is a bidder at the judicial sale, it may credit
the amount determined to be due it against the amount it bids at such
sales.''
1986--Subsec. (d). Pub. L. 99-514 substituted ``Internal Revenue
Code of 1986'' for ``Internal Revenue Code of 1954''.
1966--Subsec. (a). Pub. L. 89-719 substituted ``subject matter--
``(1) to quiet title to,
``(2) to foreclose a mortgage or other lien upon,
``(3) to partition,
``(4) to condemn, or
``(5) of interpleader or in the nature of interpleader with
respect to,''
for ``subject matter, to quiet title to or for the foreclosure of a
mortgage or other lien upon''.
Subsec. (b). Pub. L. 89-719 substituted ``complaint or pleading
shall set forth'' for ``complaint shall set forth'', and inserted
sentence requiring the complaint or pleading, in actions or suits
involving liens arising under the internal revenue laws, to include the
name and address of the taxpayer whose liability created the lien and,
if a notice of the tax lien was filed, the identity of the internal
revenue office which filed the notice, and the date and place such
notice of lien was filed.
Subsec. (c). Pub. L. 89-719 substituted ``judgment or decree in such
action'' for ``judicial sale in such action'', ``discharge of the
property from the mortgage or other lien'' for ``discharge of the
property from liens and encumbrances'', and ``place where the court is
situated'' for ``place where the property is situated'', and inserted
provisions requiring an action to foreclose a mortgage or other lien, in
which the United States is named as a party under this section, to seek
a judicial sale, providing that the period of redemption where a sale is
made with respect to a lien arising under the internal revenue laws is
120 days or the period allowable for redemption under State law,
whichever is longer, and prohibiting the right of redemption in any case
which, under the provisions of section 1701k of Title 12 and section
1820(d) of Title 38, the right to redeem does not arise.
Subsecs. (d), (e). Pub. L. 89-719 added subsec. (d) and redesignated
former subsec. (d) as (e).
1960--Subsec. (b). Pub. L. 86-507 inserted ``or by certified mail,''
after ``registered mail,''.
1958--Subsec. (a). Pub. L. 85-508 struck out provisions which
extended section to District Court for Territory of Alaska. See section
81A of this title which establishes a United States District Court for
the State of Alaska.
1949--Subsec. (b). Act May 24, 1949, conformed section with that of
prior law with respect to service of process and complaint upon the
United States in suits brought in State courts.
Effective Date of 1990 Amendment
Amendment by Pub. L. 101-647 effective 180 days after Nov. 29, 1990,
see section 3631 of Pub. L. 101-647, set out as an Effective Date note
under section 3001 of this title.
Effective Date of 1966 Amendment
Amendment by Pub. L. 89-719 applicable after Nov. 2, 1966, see
section 203 of Pub. L. 89-719, set out as a note under section 1346 of
this title.
Effective Date of 1958 Amendment
Amendment by Pub. L. 85-508 effective Jan. 3, 1959, on admission of
Alaska into the Union pursuant to Proc. No. 3269, Jan. 3, 1959, 24 F.R.
81, 73 Stat. c16, as required by sections 1 and 8(c) of Pub. L. 85-508,
see notes set out under section 81A of this title and preceding section
21 of Title 48, Territories and Insular Possessions.
Section Referred to in Other Sections
This section is referred to in sections 1444, 2409a of this title;
title 12 section 1017k; title 26 sections 6327, 7424, 7425, 7437, 7810;
title 38 section 3720.
