Page:United States Statutes at Large Volume 80 Part 1.djvu/305

 80 STAT. ]

PUBLIC LAW 89-495-JULY 5, 1966

269

as permitted by this subdivision c of section 67 by filing notice thereof with the court; " (C) every statutory lien for rent and every lien of distress for rent, whether statutory or not. A right of distress for rent which creates a security interest in property shall be deemed a lien for the purposes of this subdivision c. " (2) The court may, on due notice, order any of the aforesaid liens invalidated against the trustee to be preserved for the benefit of the estate and in that event the lien shall pass to the trustee. A lien not preserved for the benefit of the estate but invalidated against the trustee shall be invalid as against all liens indefeasible in bankruptcy, so as to have the effect of promoting liens indefeasible in bankruptcy which would otherwise be subordinate to such invalidated lien. Claims for wages, taxes, and rent secured b^^ liens hereby invalidated ciaims for or preserved shall be respectively allowable with priority and '^^^^^' restricted as are debts therefor entitled to priority under clauses (2), (4), and (5) of subdivision a of section 64 of this Act, even though p^l^^^^^l'^'^' Post, p. 271. not otherwise granted priority. Liens on pei^ "(3) Every tax lien on personal property not accompanied by sonal property. possession shall be postponed in payment to the debts specified in clauses (1) and (2) of subdivision a of section 64 of this Act. Where such a tax lien is prior in right to liens indefeasible in bankruptcy, the court shall order payment from the proceeds derived from the sale of the personal property to which the tax lien attaches, less the actual cost of that sale, of an amount not in excess of the tax lien, to the debts specified in clauses (1) and (2) of subdivision a of section 64 of this Act. If the amount realized from the sale exceeds the total of such debts, after allowing for prior indefeasible liens and the cost of the sale, the excess up to the amount of the difference between the total paid to the debts specified in clauses (1) and (2) of subdivision a of section 64 of this Act and the amount of the tax lien, is to be paid to the holder of the tax lien. " (4) Where a penalty not allowable under subdivision j of section 57 is secured by a lien, the portion of the lien securing such penalty 11 USC 93. shall not be eligible for preservation under this subdivision c. "(5) This suodivision c shall not apply to liens enforced by sale before the filing of the petition, nor to liens against property set aside to the bankrupt as exempt, nor to liens against property abandoned by the trustee or unadministered in bankruptcy for any reason and shall not apply in proceedings under section 77 of this Act, nor in ^^ ^^^ ^°^proceedings under chapter X of this Act unless an order has been entered directing that bankruptcy be proceeded with." SEC. 5. Subsection c of section 70 of said Act (11 U.S.C. 110(c)).Jr'^^^^t' ^ ,,,

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IS amended to read as rollows: "c. The trustee may have the benefit of all defenses available to the bankrupt as against third persons, including statutes of limitation, statutes of frauds, usury, and other personal defenses; and a waiver of any such defense by the bankrupt after bankruptcy shall not bind the trustee. The trustee shall have as of the date of bankruptcy the rights and powers of: (1) a creditor who obtained a judgment against the bankrupt upon the date of bankruptcy, whether or not such a creditor exists, (2) a creditor who upon the date of bankruptcy obtained an execution returned unsatisfied against the bankrupt, whether or not such a creditor exists, and (3) a creditor who upon the date of bankruptcy obtained a lien by legal or equitable proceedings upon all property, whether or not coming into possession or control of the court, upon which a creditor of the oankrupt upon a simple contract could have obtained such a lien, whether or not such a creditor exists. Tf a transfer is valid in part against creditors whose rights 65-300 0-67—20

t e n s e s; rigiits and

powers.

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