Citations
- 239 F. Supp. 433
Full opinion text
CRAVEN, Chief Judge:
This case arises on cross-motions for summary judgment. There are no genuine issues as to the material facts, which appear to be, from the stipulations, as follows:
On December 27, 1961, Leo M. Kuy-Kendall purchased a 1962 model automobile from Murphy Chevrolet, Inc., of Canton, North Carolina. As part of this sale, and on the same day, he executed and delivered to Murphy a conditional sale contract, which provided, in part: “For the purpose of securing payment of' the obligation hereunder, seller reserves title, and shall have a security interest in said property until said obligation is fully paid in cash.”
Shortly after December 27, 1961, GMAC purchased the conditional sale contract, and KuyKendall thereafter made payments to GMAC reducing the balance under the agreement to $2,-187.60, which amount is presently due and owing.
On August 26, 1963, the United States, through the District Director of Internal Revenue, levied upon and seized the automobile in KuyKendall’s possession to satisfy unpaid taxes for the years 1956, 1958 and 1959 in the total amount of $2,487.25, plus interest and lien fees. The subsequent attempted sale of the automobile by the United States was restrained, on motion of GMAC, by this court.
Thereafter, pursuant to a stipulation of the parties, the automobile was advertised and sold at public auction for $1,675.00, the proceeds being paid into the registry of the United States District Court pending the outcome of this action.
The conditional sale contract has not been recorded in the county where KuyKendall resides. On January 11, 1962, the North Carolina Department of Motor Vehicles issued to KuyKen-dall a certificate of title which indicated that a lien existed in favor of GMAC in the form of a conditional sale contract.
Notice of the federal tax lien for the year 1956 was filed in the Buncombe County Register of Deeds office on April 22, 1959; notice of the tax lien for 1958 was filed on November 2,1959, and notice of the lien for 1959 was filed on August 23,1962. It does not matter that the last filing date was after the GMAC loan. The first two liens amount to more than the property produced at sale.
Section 6321 of the Internal Revenue Code of 1954 (Title 26 U.S.C.A. § 6321) provides: “If any person liable to pay any tax neglects or refuses to pay * * * the amount (together with interest and penalties, if any) * * * shall be a lien in favor of the United States upon all property and rights to property, whether real or personal, belonging to such person.” The lien arises as of the date of assessment. 26 U.S. C.A. § 6322. When it arises, the lien is good against any interest except that of a mortgagee, pledgee, purchaser, or judgment creditor of the taxpayer. It is not valid against these special interests until notice is filed in the office authorized by the l