B-235853, Aug 14, 1989

B-235853: Aug 14, 1989

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Sec. 2410(e) the Comptroller General may issue a certificate releasing property from a junior lien held by the United States when the statutory requirements have been met. The contract seller's interest is a senior lien arising from a contract for deed. that contract for deed for the sale of property. The buyer agreed to pay the purchase price in installments and the seller retained legal title to the property as security for such payment until payment is completed and the seller transfers legal title to the buyer. Who is responsible for the administration of the laws giving rise to the lien of the United States in this matter. Has reported to the Comptroller General that the lien of the United States is junior to the applicant's senior lien and is not a tax lien.

B-235853, Aug 14, 1989

PRECIS-UNAVAILABLE DIGEST: Under 28 U.S.C. Sec. 2410(e) the Comptroller General may issue a certificate releasing property from a junior lien held by the United States when the statutory requirements have been met. The contract seller's interest is a senior lien arising from a contract for deed. that contract for deed for the sale of property, the buyer agreed to pay the purchase price in installments and the seller retained legal title to the property as security for such payment until payment is completed and the seller transfers legal title to the buyer. The United States Attorney for the Northern District of Iowa, who is responsible for the administration of the laws giving rise to the lien of the United States in this matter, has reported to the Comptroller General that the lien of the United States is junior to the applicant's senior lien and is not a tax lien. The United States Attorney has also reported that the proceeds from the sale of the property will be insufficient to satisfy in whole or in part the junior lien of the United States. The statutory requirements have been met and the Comptroller General has issued a certificate of release.

Willis A. Buell, Esq.:

By letter of May 30, 1989, you formally requested consideration by this office of an application for a release of a federal lien. The senior lien holder, Mr. Donald A. Sorensen, has requested that this lien be released. This lien is on real property located in Woodbury County, Iowa, and is being purchased under a contract for deed by Mr. Peter M. Murphy, against whom the United States Government obtained a judgment of $5,148.24 for the balance due on a student loan.

As you know, our authority to issue Certificates of Release of junior liens on real property held by the United States is granted by 28 U.S.C. Sec. 2410(e). Based on our review of the documents submitted, the requirements of the statute appear to have been satisfied. Accordingly, the Certificate of Release has been prepared and is enclosed.

OFFICE OF THE COMPTROLLER GENERAL OF THE UNITED STATES

Washington, D.C.

CERTIFICATE OF RELEASE

KNOW ALL MEN BY THESE PRESENTS THAT: WHEREAS, title 28, United States Code, section 2410(e) provides as follows:

"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 shall so report to the Comptroller General who may issue a certificate releasing the property from such lien:" and

WHEREAS, on November 10, 1988, a judgment in the amount of $1, 148.24 was entered against Peter M. Murphy in favor of United States of America in the United States District Court for the Northern District of Iowa, Civil Action No. C88-40996; and

WHEREAS, as a result of this judgment, a lien attached to certain property located in the county of Woodbury and state of Iowa and more particularly described as:

Lots Nine (9) and Ten (10) in Block Eighteen (18), Floyd Park Addition to Sioux City, in the County of Woodbury and State of Iowa, said lien being filed on November 21, 1988 in the Woodbury County district Court at Entry 182 against Peter M. Murphy in the amount of $5,148.24 with interest at 7% from April 27, 1988 through November 10, 1988 and at the legal rate thereafter and for costs of $24.20; and

WHEREAS, at the time the Government's lien attached to this property there was a senior lien, the contract seller's interest arising from a contract for deed entered into by Donald A. Sorensen as seller, and Peter M. Murphy, as buyer, for the sale of the above-described property whereby the buyer agreed to pay the purchase price in installments and the seller retained legal title to the property as security for such payment with legal title to the property to be transferred when all payments were made; and

WHEREAS, Peter M. Murphy, the buyer, has agreed to sell his interest in the above-described contract for deed to Wayne R. and Vickie L. Samuelson and Wayne and Vickie Samuelson have agreed to pay the contract balance in installments until payment is completed and they receive legal title from Donald A. Sorensen, who will continue to retain legal title as security for such payment; and

WHEREAS, the holder of the senior lien, Donald A. Sorensen, has applied for release of the Government's lien on the above-described property; and

WHEREAS, the United States Attorney, Northern District of Iowa, is the officer charged with the administration of the laws in respect of which the lien of the United States arises; and

WHEREAS, the United States Attorney has reported that the lien of the United States is junior to the contract interest of the applicant and is not a tax lien; and

WHEREAS, the United States Attorney has found that the proceeds from the sale of the involved property will be insufficient to satisfy in whole or in part the junior lien held by the United States; and

WHEREAS, the United States Attorney has found that the proceeds from the sale, after payment of the contract balance and expenses, in the amount of $674.00 in consideration for the release of the federal lien, would be acceptable and in the best interest of the United States Government;

NOW THEREFORE, under authority of the above-quoted statutory provision, 28 U.S.C. Sec. 2410(e), I hereby issue the certificate of release of the property hereinbefore described from such lien in the amount of $5,148.24 with interest at 7% from April 27, 1988 through November 10, 1988 and at the legal rate thereafter and for costs of $24.20 as arose in favor of the United States on account of the aforesaid federal judgment, insofar as the same may be a lien or charge upon or against said property. This certificate is not intended to and shall not operate as a release, satisfaction, or discharge of any lien of the United States arising out of the aforementioned judgment of November 10, 1988, except with respect to the property described.

IN WITNESS WHEREOF, I hereunto set my hand and seal this 14th day of August, 1989.