Page:United States Statutes at Large Volume 80 Part 1.djvu/1163

 80 STAT.]

PUBLIC LAW 89-7 1 9 - N O V. 2, 1966

1127

deliveis to such or^jinization a norice, executed afte)- ihe date of such satisfaction, of the existence of such lien. "(10) PASSBOOK U)ANS.—With respect to a savings deposit, share, or other account, evidenced by a passbook, with an institution described in section oSl or 591, to the extent of any loan made 26^ulc'*58^i°^' by such institution without actual notice or knowledge of the 591. existence of such lien, as apiinst such institution, if such loan is secured by such account and if such institution has been continuously ill possession of such passbook from the time the loan is made. "•(c)

PROTPXTION FOR CERTAIN COMMERCIAL TRANSACTIONS F I N A N < -

JNO AOREEMENTS. ETC.—

"(1) IN GENERAL.—To the extent provided in this subsection, even though notice of a lien imposed by section 6821 has been filed, such lien shall not be valid with respect to a security interest which came into existence after tax lien filing but which— ' ' (A) is in qualified property covered by the terms of a written agreement entered into before tax lien filing and constituting— " (i) a commercial transactions financing agreement, "(ii) a real property construction or improvement financing agreement, or "(iii) an obligatory disbursement agreement, and "(B) is protected under local law against a judgment lien arising, as of the time of tax lien filing, out of an unsecured obligation. "•(2) COMMERCIAL TRANSACTIONS FINANCING? AGREEMENT.—For

purposes of this subsection— " (A) DEFINITION.—The term 'commercial transactions financing agreement' means an agreement (entered into by a person in the course of his trade or business) — "(i) to make loans to the taxpayer to be secured by commercial financing security acquired by the taxpayer in the ordinary course of his trade or business, or "(ii) to purchase commercial financing security (other than inventory) acquired by the taxpayer in the ordinary course of his trade or business; but such an agreement shall be treated as coming within the term only to the extent that such loan or purchase is made before the 46th day after the date of tax lien filing or (if earlier) before the lender or purchaser had actual notice oi* knowledge of such tax lien filing. " (B) LIMITATION ON QUALIFIED PROPERTY.—The term 'qualified property', when used with respect to a commercial transactions financing agreement, includes only commercial financing security acquired by the taxpayer before the 46th day after the date of tax lien filing. "(C)

COMMERCIAL FINANCING

SECURITY

DEFINED.—The

term 'commercial financing security' means (i) paper of a kind ordinarily arising in commercial transactions, (ii) accounts receivable, (iii) mortgages on real property, and (iv) inventory. "(D)

PURCHASER TREATED AS ACQUIRING SECURITY INTER-

EST.—A person who satisfies subparagraph (A) by reason of clause (ii) thereof shall be treated as having acquired a security interest in commercial financing security. •' (3) REAL PROPERTY CONSTRUCTION OR IMPROVEMENT FINANCING

\<;REEMENT.—For purposes of this subsection—

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