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31 USC § 3713 - Priority of Government claims

Posted: Sun Apr 15, 2018 1:21 am
by Destry
31 USC § 3713 - Priority of Government claims
(a)
(1) A claim of the United States Government shall be paid first when—
(A) a person indebted to the Government is insolvent and—
(i) the debtor without enough property to pay all debts makes a voluntary assignment of property;
(ii) property of the debtor, if absent, is attached; or
(iii) an act of bankruptcy is committed; or
(B) the estate of a deceased debtor, in the custody of the executor or administrator, is not enough to pay all debts of the debtor.
(2) This subsection does not apply to a case under title 11.
(b) A representative of a person or an estate (except a trustee acting under title 11) paying any part of a debt of the person or estate before paying a claim of the Government is liable to the extent of the payment for unpaid claims of the Government


When Banks transfer mortgages between them, Nothing is paid to the priority of government claim to repay the bankruptcy of 1933 .