-CITE-
    28 USC CHAPTER 176 - FEDERAL DEBT COLLECTION PROCEDURE      01/03/2007

-EXPCITE-
    TITLE 28 - JUDICIARY AND JUDICIAL PROCEDURE
    PART VI - PARTICULAR PROCEEDINGS
    CHAPTER 176 - FEDERAL DEBT COLLECTION PROCEDURE

-HEAD-
              CHAPTER 176 - FEDERAL DEBT COLLECTION PROCEDURE          

-MISC1-
    Subchapter                                                  Sec.(!1)
    A.      Definitions and general provisions                      3001 
    B.      Prejudgment remedies                                    3101
    C.      Postjudgments (!2) remedies                             3201 
    D.      Fraudulent transfers (!2)                               3301

-FOOTNOTE-
    (!1) Editorially supplied.

    (!2) So in original. Does not conform to subchapter heading.

-End-

-CITE-
    28 USC SUBCHAPTER A - DEFINITIONS AND GENERAL PROVISIONS    01/03/2007

-EXPCITE-
    TITLE 28 - JUDICIARY AND JUDICIAL PROCEDURE
    PART VI - PARTICULAR PROCEEDINGS
    CHAPTER 176 - FEDERAL DEBT COLLECTION PROCEDURE
    SUBCHAPTER A - DEFINITIONS AND GENERAL PROVISIONS

-HEAD-
             SUBCHAPTER A - DEFINITIONS AND GENERAL PROVISIONS         

-MISC1-
    Sec.                                                     
    3001.       Applicability of chapter.                             
    3002.       Definitions.                                          
    3003.       Rules of construction.                                
    3004.       Service of process; enforcement; notice.              
    3005.       Application of chapter to judgments.                  
    3006.       Affidavit requirements.                               
    3007.       Perishable personal property.                         
    3008.       Proceedings before United States magistrate judges.   
    3009.       United States marshals' authority to designate keeper.
    3010.       Co-owned property.                                    
    3011.       Assessment of surcharge on a debt.                    
    3012.       Joinder of additional defendant.                      
    3013.       Modification or protective order; supervision of
                 enforcement.                                         
    3014.       Exempt property.                                      
    3015.       Discovery as to debtor's financial condition.         

-CHANGE-
                              CHANGE OF NAME                          
      "United States magistrate judges" substituted for "United States
    magistrates" in item 3008 pursuant to section 321 of Pub. L. 101-
    650, set out as a note under section 631 of this title.

-End-

-CITE-
    28 USC Sec. 3001                                            01/03/2007

-EXPCITE-
    TITLE 28 - JUDICIARY AND JUDICIAL PROCEDURE
    PART VI - PARTICULAR PROCEEDINGS
    CHAPTER 176 - FEDERAL DEBT COLLECTION PROCEDURE
    SUBCHAPTER A - DEFINITIONS AND GENERAL PROVISIONS

-HEAD-
    Sec. 3001. Applicability of chapter

-STATUTE-
      (a) In General. - Except as provided in subsection (b), the (!1)
    chapter provides the exclusive civil procedures for the United
    States - 

        (1) to recover a judgment on a debt; or
        (2) to obtain, before judgment on a claim for a debt, a remedy
      in connection with such claim.

      (b) Limitation. - To the extent that another Federal law
    specifies procedures for recovering on a claim or a judgment for a
    debt arising under such law, those procedures shall apply to such
    claim or judgment to the extent those procedures are inconsistent
    with this chapter.
      (c) Amounts Owing Other Than Debts. - This chapter shall not
    apply with respect to an amount owing that is not a debt or to a
    claim for an amount owing that is not a debt.

-SOURCE-
    (Added Pub. L. 101-647, title XXXVI, Sec. 3611, Nov. 29, 1990, 104
    Stat. 4933.)

-MISC1-
                              EFFECTIVE DATE                          
      Section 3631 of title XXXVI of Pub. L. 101-647 provided that:
      "(a) Except as provided in subsection (b), this Act [probably
    should be "title", meaning title XXXVI of Pub. L. 101-647, which
    enacted this chapter and section 2044 of this title, amended
    sections 550, 1962, 1963, and 2410 of this title, section 523 of
    Title 11, Bankruptcy, and sections 3142 and 3552 of Title 18,
    Crimes and Criminal Procedure, and enacted provisions set out as a
    note under section 1 of this title] and the amendments made by this
    Act [title] shall take effect 180 days after the date of the
    enactment of this Act [Nov. 29, 1990].
      "(b)(1) The amendments made by title I of this Act [probably
    should be "subtitle A of this title", meaning subtitle A (Secs.
    3611, 3302 [3612]) of title XXXVI of Pub. L. 101-647, which enacted
    this chapter] shall apply with respect to actions pending on the
    effective date of this Act [probably should be title XXXVI of Pub.
    L. 101-647] in any court on - 
        "(A) a claim for a debt; or
        "(B) a judgment for a debt.
      "(2) All notices, writs, orders, and judgments in effect in such
    actions shall continue in effect until superseded or modified in an
    action under chapter 176 of title 28 of the United States Code, as
    added by title I of this Act [subtitle A of this title].
      "(3) For purposes of this subsection - 
        "(A) the term 'court' means a Federal, State, or local court,
      and
        "(B) the term 'debt' has the meaning given such term in section
      and [sic] 3002(3) of such chapter."

-FOOTNOTE-
    (!1) So in original. Probably should be "this".

-End-

-CITE-
    28 USC Sec. 3002                                            01/03/2007

-EXPCITE-
    TITLE 28 - JUDICIARY AND JUDICIAL PROCEDURE
    PART VI - PARTICULAR PROCEEDINGS
    CHAPTER 176 - FEDERAL DEBT COLLECTION PROCEDURE
    SUBCHAPTER A - DEFINITIONS AND GENERAL PROVISIONS

-HEAD-
    Sec. 3002. Definitions

-STATUTE-
      As used in this chapter:
        (1) "Counsel for the United States" means - 
          (A) a United States attorney, an assistant United States
        attorney designated to act on behalf of the United States
        attorney, or an attorney with the United States Department of
        Justice or with a Federal agency who has litigation authority;
        and
          (B) any private attorney authorized by contract made in
        accordance with section 3718 of title 31 to conduct litigation
        for collection of debts on behalf of the United States.

        (2) "Court" means any court created by the Congress of the
      United States, excluding the United States Tax Court.
        (3) "Debt" means - 
          (A) an amount that is owing to the United States on account
        of a direct loan, or loan insured or guaranteed, by the United
        States; or
          (B) an amount that is owing to the United States on account
        of a fee, duty, lease, rent, service, sale of real or personal
        property, overpayment, fine, assessment, penalty, restitution,
        damages, interest, tax, bail bond forfeiture, reimbursement,
        recovery of a cost incurred by the United States, or other
        source of indebtedness to the United States, but that is not
        owing under the terms of a contract originally entered into by
        only persons other than the United States;

      and includes any amount owing to the United States for the
      benefit of an Indian tribe or individual Indian, but excludes any
      amount to which the United States is entitled under section
      3011(a).
        (4) "Debtor" means a person who is liable for a debt or against
      whom there is a claim for a debt.
        (5) "Disposable earnings" means that part of earnings remaining
      after all deductions required by law have been withheld.
        (6) "Earnings" means compensation paid or payable for personal
      services, whether denominated as wages, salary, commission,
      bonus, or otherwise, and includes periodic payments pursuant to a
      pension or retirement program.
        (7) "Garnishee" means a person (other than the debtor) who has,
      or is reasonably thought to have, possession, custody, or control
      of any property in which the debtor has a substantial nonexempt
      interest, including any obligation due the debtor or to become
      due the debtor, and against whom a garnishment under section 3104
      or 3205 is issued by a court.
        (8) "Judgment" means a judgment, order, or decree entered in
      favor of the United States in a court and arising from a civil or
      criminal proceeding regarding a debt.
        (9) "Nonexempt disposable earnings" means 25 percent of
      disposable earnings, subject to section 303 of the Consumer
      Credit Protection Act.
        (10) "Person" includes a natural person (including an
      individual Indian), a corporation, a partnership, an
      unincorporated association, a trust, or an estate, or any other
      public or private entity, including a State or local government
      or an Indian tribe.
        (11) "Prejudgment remedy" means the remedy of attachment,
      receivership, garnishment, or sequestration authorized by this
      chapter to be granted before judgment on the merits of a claim
      for a debt.
        (12) "Property" includes any present or future interest,
      whether legal or equitable, in real, personal (including choses
      in action), or mixed property, tangible or intangible, vested or
      contingent, wherever located and however held (including
      community property and property held in trust (including
      spendthrift and pension trusts)), but excludes - 
          (A) property held in trust by the United States for the
        benefit of an Indian tribe or individual Indian; and
          (B) Indian lands subject to restrictions against alienation
        imposed by the United States.

        (13) "Security agreement" means an agreement that creates or
      provides for a lien.
        (14) "State" means any of the several States, the District of
      Columbia, the Commonwealth of Puerto Rico, the Commonwealth of
      the Northern Marianas, or any territory or possession of the
      United States.
        (15) "United States" means - 
          (A) a Federal corporation;
          (B) an agency, department, commission, board, or other entity
        of the United States; or
          (C) an instrumentality of the United States.

        (16) "United States marshal" means a United States marshal, a
      deputy marshal, or an official of the United States Marshals
      Service designated under section 564.

-SOURCE-
    (Added Pub. L. 101-647, title XXXVI, Sec. 3611, Nov. 29, 1990, 104
    Stat. 4933.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      Section 303 of the Consumer Credit Protection Act, referred to in
    par. (9), is classified to section 1673 of Title 15, Commerce and
    Trade.

-End-

-CITE-
    28 USC Sec. 3003                                            01/03/2007

-EXPCITE-
    TITLE 28 - JUDICIARY AND JUDICIAL PROCEDURE
    PART VI - PARTICULAR PROCEEDINGS
    CHAPTER 176 - FEDERAL DEBT COLLECTION PROCEDURE
    SUBCHAPTER A - DEFINITIONS AND GENERAL PROVISIONS

-HEAD-
    Sec. 3003. Rules of construction

-STATUTE-
      (a) Terms. - For purposes of this chapter - 
        (1) the terms "includes" and "including" are not limiting;
        (2) the term "or" is not exclusive; and
        (3) the singular includes the plural.

      (b) Effect on Rights of the United States. - This chapter shall
    not be construed to curtail or limit the right of the United States
    under any other Federal law or any State law - 
        (1) to collect taxes or to collect any other amount collectible
      in the same manner as a tax;
        (2) to collect any fine, penalty, assessment, restitution, or
      forfeiture arising in a criminal case;
        (3) to appoint or seek the appointment of a receiver; or
        (4) to enforce a security agreement.

      (c) Effect on Other Laws. - This chapter shall not be construed
    to supersede or modify the operation of - 
        (1) title 11;
        (2) admiralty law;
        (3) section 3713 of title 31;
        (4) section 303 of the Consumer Credit Protection Act (15
      U.S.C. 1673);
        (5) a statute of limitation applicable to a criminal
      proceeding;
        (6) the common law or statutory rights to set-off or
      recoupment;
        (7) any Federal law authorizing, or any inherent authority of a
      court to provide, injunctive relief;
        (8) the authority of a court - 
          (A) to impose a sanction under the Federal Rules of Civil
        Procedure;
          (B) to appoint a receiver to effectuate its order; or
          (C) to exercise the power of contempt under any Federal law;

        (9) any law authorizing the United States to obtain partition,
      or to recover possession, of property in which the United States
      holds title; or
        (10) any provision of any other chapter of this title, except
      to the extent such provision is inconsistent with this chapter.

      (d) Preemption. - This chapter shall preempt State law to the
    extent such law is inconsistent with a provision of this chapter.
      (e) Effect on Rights of the United States Under Foreign and
    International Law. - This chapter shall not be construed to curtail
    or limit the rights of the United States under foreign law, under a
    treaty or an international agreement, or otherwise under
    international law.
      (f) Applicability of Federal Rules of Civil Procedure. - Except
    as provided otherwise in this chapter, the Federal Rules of Civil
    Procedure shall apply with respect to actions and proceedings under
    this chapter.

-SOURCE-
    (Added Pub. L. 101-647, title XXXVI, Sec. 3611, Nov. 29, 1990, 104
    Stat. 4935.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      The Federal Rules of Civil Procedure, referred to in subsecs.
    (c)(8)(A) and (f), are set out in the Appendix to this title.

-End-

-CITE-
    28 USC Sec. 3004                                            01/03/2007

-EXPCITE-
    TITLE 28 - JUDICIARY AND JUDICIAL PROCEDURE
    PART VI - PARTICULAR PROCEEDINGS
    CHAPTER 176 - FEDERAL DEBT COLLECTION PROCEDURE
    SUBCHAPTER A - DEFINITIONS AND GENERAL PROVISIONS

-HEAD-
    Sec. 3004. Service of process; enforcement; notice

-STATUTE-
      (a) Manner of Service. - A complaint, notice, writ, or other
    process required to be served in an action or proceeding under this
    chapter shall be served in accordance with the Federal Rules of
    Civil Procedure unless otherwise provided in this chapter.
      (b) Nationwide Enforcement. - (1) Except as provided in paragraph
    (2) - 
        (A) any writ, order, judgment, or other process, including a
      summons and complaint, filed under this chapter may be served in
      any State; and
        (B) such writ, order, or judgment may be enforced by the court
      issuing the writ, order, or process, regardless of where the
      person is served with the writ, order, or process.

      (2) If the debtor so requests, within 20 days after receiving the
    notice described in section 3101(d) or 3202(b), the action or
    proceeding in which the writ, order, or judgment was issued shall
    be transferred to the district court for the district in which the
    debtor resides.
      (c) Notice and Other Process. - At such time as counsel for the
    United States considers appropriate, but not later than the time a
    prejudgment or postjudgment remedy is put into effect under this
    chapter, counsel for the United States shall exercise reasonable
    diligence to serve on the debtor and any person who the United
    States believes, after exercising due diligence, has possession,
    custody, or control of the property, a copy of the application for
    such remedy, the order granting such remedy, and the notice
    required by section 3101(d) or 3202(b).

-SOURCE-
    (Added Pub. L. 101-647, title XXXVI, Sec. 3611, Nov. 29, 1990, 104
    Stat. 4936.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      The Federal Rules of Civil Procedure, referred to in subsec. (a),
    are set out in the Appendix to this title.

-End-

-CITE-
    28 USC Sec. 3005                                            01/03/2007

-EXPCITE-
    TITLE 28 - JUDICIARY AND JUDICIAL PROCEDURE
    PART VI - PARTICULAR PROCEEDINGS
    CHAPTER 176 - FEDERAL DEBT COLLECTION PROCEDURE
    SUBCHAPTER A - DEFINITIONS AND GENERAL PROVISIONS

-HEAD-
    Sec. 3005. Application of chapter to judgments

-STATUTE-
      This chapter shall not apply with respect to a judgment on a debt
    if such judgment is entered more than 10 years before the effective
    date of this chapter.

-SOURCE-
    (Added Pub. L. 101-647, title XXXVI, Sec. 3611, Nov. 29, 1990, 104
    Stat. 4936.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      For effective date of this chapter, referred to in text, see
    section 3631 of Pub. L. 101-647, set out as an Effective Date note
    under section 3001 of this title.

-End-

-CITE-
    28 USC Sec. 3006                                            01/03/2007

-EXPCITE-
    TITLE 28 - JUDICIARY AND JUDICIAL PROCEDURE
    PART VI - PARTICULAR PROCEEDINGS
    CHAPTER 176 - FEDERAL DEBT COLLECTION PROCEDURE
    SUBCHAPTER A - DEFINITIONS AND GENERAL PROVISIONS

-HEAD-
    Sec. 3006. Affidavit requirements

-STATUTE-
      Any affidavit required of the United States by this chapter may
    be made on information and belief, if reliable and reasonably
    necessary, establishing with particularity, to the court's
    satisfaction, facts supporting the claim of the United States.

-SOURCE-
    (Added Pub. L. 101-647, title XXXVI, Sec. 3611, Nov. 29, 1990, 104
    Stat. 4936.)

-End-

-CITE-
    28 USC Sec. 3007                                            01/03/2007

-EXPCITE-
    TITLE 28 - JUDICIARY AND JUDICIAL PROCEDURE
    PART VI - PARTICULAR PROCEEDINGS
    CHAPTER 176 - FEDERAL DEBT COLLECTION PROCEDURE
    SUBCHAPTER A - DEFINITIONS AND GENERAL PROVISIONS

-HEAD-
    Sec. 3007. Perishable personal property

-STATUTE-
      (a) Authority To Sell. - If at any time during any action or
    proceeding under this chapter the court determines on its own
    initiative or upon motion of any party, that any seized or detained
    personal property is likely to perish, waste, or be destroyed, or
    otherwise substantially depreciate in value during the pendency of
    the proceeding, the court shall order a commercially reasonable
    sale of such property.
      (b) Deposit of Sale Proceeds. - Within 5 days after such sale,
    the proceeds shall be deposited with the clerk of the court,
    accompanied by a statement in writing and signed by the United
    States marshal, to be filed in the action or proceeding, stating
    the time and place of sale, the name of the purchaser, the amount
    received, and an itemized account of expenses.
      (c) Presumption. - For purposes of liability on the part of the
    United States, there shall be a presumption that the price paid at
    a sale under subsection (a) is the fair market value of the
    property or portion.

-SOURCE-
    (Added Pub. L. 101-647, title XXXVI, Sec. 3611, Nov. 29, 1990, 104
    Stat. 4937.)

-End-

-CITE-
    28 USC Sec. 3008                                            01/03/2007

-EXPCITE-
    TITLE 28 - JUDICIARY AND JUDICIAL PROCEDURE
    PART VI - PARTICULAR PROCEEDINGS
    CHAPTER 176 - FEDERAL DEBT COLLECTION PROCEDURE
    SUBCHAPTER A - DEFINITIONS AND GENERAL PROVISIONS

-HEAD-
    Sec. 3008. Proceedings before United States magistrate judges

-STATUTE-
      A district court of the United States may assign its duties in
    proceedings under this chapter to a United States magistrate judge
    to the extent not inconsistent with the Constitution and laws of
    the United States.

-SOURCE-
    (Added Pub. L. 101-647, title XXXVI, Sec. 3611, Nov. 29, 1990, 104
    Stat. 4937; amended Pub. L. 101-650, title III, Sec. 321, Dec. 1,
    1990, 104 Stat. 5117.)

-CHANGE-
                              CHANGE OF NAME                          
      "United States magistrate judges" substituted for "United States
    magistrates" in catchline and "United States magistrate judge"
    substituted for "United States magistrate" in text pursuant to
    section 321 of Pub. L. 101-650, set out as a note under section 631
    of this title.

-End-

-CITE-
    28 USC Sec. 3009                                            01/03/2007

-EXPCITE-
    TITLE 28 - JUDICIARY AND JUDICIAL PROCEDURE
    PART VI - PARTICULAR PROCEEDINGS
    CHAPTER 176 - FEDERAL DEBT COLLECTION PROCEDURE
    SUBCHAPTER A - DEFINITIONS AND GENERAL PROVISIONS

-HEAD-
    Sec. 3009. United States marshals' authority to designate keeper

-STATUTE-
      Whenever a United States marshal is authorized to seize property
    pursuant to this chapter, the United States marshal may designate
    another person or Federal agency to hold for safekeeping such
    property seized.

-SOURCE-
    (Added Pub. L. 101-647, title XXXVI, Sec. 3611, Nov. 29, 1990, 104
    Stat. 4937.)

-End-

-CITE-
    28 USC Sec. 3010                                            01/03/2007

-EXPCITE-
    TITLE 28 - JUDICIARY AND JUDICIAL PROCEDURE
    PART VI - PARTICULAR PROCEEDINGS
    CHAPTER 176 - FEDERAL DEBT COLLECTION PROCEDURE
    SUBCHAPTER A - DEFINITIONS AND GENERAL PROVISIONS

-HEAD-
    Sec. 3010. Co-owned property

-STATUTE-
      (a) Limitation. - The remedies available to the United States
    under this chapter may be enforced against property which is co-
    owned by a debtor and any other person only to the extent allowed
    by the law of the State where the property is located. This section
    shall not be construed to limit any right or interest of a debtor
    or co-owner in a retirement system for Federal military or civilian
    personnel established by the United States or any agency thereof or
    in a qualified retirement arrangement.
      (b) Definitions. - For purposes of subsection (a) - 
        (1) the term "retirement system for Federal military or
      civilian personnel" means a pension or annuity system for Federal
      military or civilian personnel of more than one agency, or for
      some or all of such personnel of a single agency, established by
      statute or by regulation pursuant to statutory authority; and
        (2) the term "qualified retirement arrangement" means a plan
      qualified under section 401(a), 403(a), or 409 of the Internal
      Revenue Code of 1986 or a plan that is subject to the
      requirements of section 205 of the Employee Retirement Income
      Security Act of 1974.

-SOURCE-
    (Added Pub. L. 101-647, title XXXVI, Sec. 3611, Nov. 29, 1990, 104
    Stat. 4937.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      Sections 401(a), 403(a), and 409 of the Internal Revenue Code of
    1986, referred to in subsec. (b)(2), are classified to sections
    401(a), 403(a), and 409, respectively, of Title 26, Internal
    Revenue Code.
      Section 205 of the Employee Retirement Income Security Act of
    1974, referred to in subsec. (b)(2), is classified to section 1055
    of Title 29, Labor.

-End-

-CITE-
    28 USC Sec. 3011                                            01/03/2007

-EXPCITE-
    TITLE 28 - JUDICIARY AND JUDICIAL PROCEDURE
    PART VI - PARTICULAR PROCEEDINGS
    CHAPTER 176 - FEDERAL DEBT COLLECTION PROCEDURE
    SUBCHAPTER A - DEFINITIONS AND GENERAL PROVISIONS

-HEAD-
    Sec. 3011. Assessment of surcharge on a debt

-STATUTE-
      (a) Surcharge Authorized. - In an action or proceeding under
    subchapter B or C, and subject to subsection (b), the United States
    is entitled to recover a surcharge of 10 percent of the amount of
    the debt in connection with the recovery of the debt, to cover the
    cost of processing and handling the litigation and enforcement
    under this chapter of the claim for such debt.
      (b) Limitation. - Subsection (a) shall not apply if - 
        (1) the United States receives an attorney's fee in connection
      with the enforcement of the claim; or
        (2) the law pursuant to which the action on the claim is based
      provides any other amount to cover such costs.

-SOURCE-
    (Added Pub. L. 101-647, title XXXVI, Sec. 3611, Nov. 29, 1990, 104
    Stat. 4937.)

-End-

-CITE-
    28 USC Sec. 3012                                            01/03/2007

-EXPCITE-
    TITLE 28 - JUDICIARY AND JUDICIAL PROCEDURE
    PART VI - PARTICULAR PROCEEDINGS
    CHAPTER 176 - FEDERAL DEBT COLLECTION PROCEDURE
    SUBCHAPTER A - DEFINITIONS AND GENERAL PROVISIONS

-HEAD-
    Sec. 3012. Joinder of additional defendant

-STATUTE-
      The United States or the debtor may join as an additional
    defendant in an action or proceeding under this chapter any person
    reasonably believed to owe money (including money owed on account
    of a requirement to provide goods or services pursuant to a loan or
    loan guarantee extended under Federal law) to the debtor arising
    out of the transaction or occurrence giving rise to a debt.

-SOURCE-
    (Added Pub. L. 101-647, title XXXVI, Sec. 3611, Nov. 29, 1990, 104
    Stat. 4938.)

-End-

-CITE-
    28 USC Sec. 3013                                            01/03/2007

-EXPCITE-
    TITLE 28 - JUDICIARY AND JUDICIAL PROCEDURE
    PART VI - PARTICULAR PROCEEDINGS
    CHAPTER 176 - FEDERAL DEBT COLLECTION PROCEDURE
    SUBCHAPTER A - DEFINITIONS AND GENERAL PROVISIONS

-HEAD-
    Sec. 3013. Modification or protective order; supervision of
      enforcement

-STATUTE-
      The court may at any time on its own initiative or the motion of
    any interested person, and after such notice as it may require,
    make an order denying, limiting, conditioning, regulating,
    extending, or modifying the use of any enforcement procedure under
    this chapter.

-SOURCE-
    (Added Pub. L. 101-647, title XXXVI, Sec. 3611, Nov. 29, 1990, 104
    Stat. 4938.)

-End-

-CITE-
    28 USC Sec. 3014                                            01/03/2007

-EXPCITE-
    TITLE 28 - JUDICIARY AND JUDICIAL PROCEDURE
    PART VI - PARTICULAR PROCEEDINGS
    CHAPTER 176 - FEDERAL DEBT COLLECTION PROCEDURE
    SUBCHAPTER A - DEFINITIONS AND GENERAL PROVISIONS

-HEAD-
    Sec. 3014. Exempt property

-STATUTE-
      (a) Election To Exempt Property. - An individual debtor may, in
    an action or proceeding under this chapter, elect to exempt
    property listed in either paragraph (1) or, in the alternative,
    paragraph (2). If such action or proceeding is against debtors who
    are husband and wife, one debtor may not elect to exempt property
    listed in paragraph (1) and the other debtor elect to exempt
    property listed in paragraph (2). If the debtors cannot agree on
    the alternative to be elected, they shall be deemed to elect
    paragraph (1). Such property is either - 
        (1) property that is specified in section 522(d) of title 11,
      as amended from time to time; or
        (2)(A) any property that is exempt under Federal law, other
      than paragraph (1), or State or local law that is applicable on
      the date of the filing of the application for a remedy under this
      chapter at the place in which the debtor's domicile has been
      located for the 180 days immediately preceding the date of the
      filing of such application, or for a longer portion of such 180-
      day period than in any other place; and
        (B) any interest in property in which the debtor had,
      immediately before the filing of such application, an interest as
      a tenant by the entirety or joint tenant, or an interest in a
      community estate, to the extent that such interest is exempt from
      process under applicable nonbankruptcy law.

      (b) Effect on Assertion and Manner of Determination. - 
        (1) Statement. - A court may order the debtor to file a
      statement with regard to any claimed exemption. A copy of such
      statement shall be served on counsel for the United States. Such
      statement shall be under oath and shall describe each item of
      property for which exemption is claimed, the value and the basis
      for such valuation, and the nature of the debtor's ownership
      interest.
        (2) Hearing. - The United States or the debtor, by application
      to the court in which an action or proceeding under this chapter
      is pending, may request a hearing on the applicability of any
      exemption claimed by the debtor. The court shall determine the
      extent (if any) to which the exemption applies. Unless it is
      reasonably evident that the exemption applies, the debtor shall
      bear the burden of persuasion.
        (3) Stay of Disposition. - Assertion of an exemption shall
      prevent the United States from selling or otherwise disposing of
      the property for which such exemption is claimed until the court
      determines whether the debtor has a substantial nonexempt
      interest in such property. The United States may not take
      possession of, dispose of, sell, or otherwise interfere with the
      debtor's normal use and enjoyment of an interest in property the
      United States knows or has reason to know is exempt.

      (c) Debtors in Joint Cases. - Subject to the limitation in
    subsection (a), this section shall apply separately with respect to
    each debtor in a joint case.

-SOURCE-
    (Added Pub. L. 101-647, title XXXVI, Sec. 3611, Nov. 29, 1990, 104
    Stat. 4938.)

-End-

-CITE-
    28 USC Sec. 3015                                            01/03/2007

-EXPCITE-
    TITLE 28 - JUDICIARY AND JUDICIAL PROCEDURE
    PART VI - PARTICULAR PROCEEDINGS
    CHAPTER 176 - FEDERAL DEBT COLLECTION PROCEDURE
    SUBCHAPTER A - DEFINITIONS AND GENERAL PROVISIONS

-HEAD-
    Sec. 3015. Discovery as to debtor's financial condition

-STATUTE-
      (a) In General. - Except as provided in subsection (b), in an
    action or proceeding under subchapter B or C, the United States may
    have discovery regarding the financial condition of the debtor in
    the manner in which discovery is authorized by the Federal Rules of
    Civil Procedure in an action on a claim for a debt.
      (b) Limitation. - Subsection (a) shall not apply with respect to
    an action or proceeding under subchapter B unless there is a
    reasonable likelihood that the debt involved exceeds $50,000.

-SOURCE-
    (Added Pub. L. 101-647, title XXXVI, Sec. 3611, Nov. 29, 1990, 104
    Stat. 4939.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      The Federal Rules of Civil Procedure, referred to in subsec. (a),
    are set out in the Appendix to this title.

-End-

-CITE-
    28 USC SUBCHAPTER B - PREJUDGMENT REMEDIES                  01/03/2007

-EXPCITE-
    TITLE 28 - JUDICIARY AND JUDICIAL PROCEDURE
    PART VI - PARTICULAR PROCEEDINGS
    CHAPTER 176 - FEDERAL DEBT COLLECTION PROCEDURE
    SUBCHAPTER B - PREJUDGMENT REMEDIES

-HEAD-
                    SUBCHAPTER B - PREJUDGMENT REMEDIES                

-MISC1-
    Sec.                                                     
    3101.       Prejudgment remedies.                                 
    3102.       Attachment.                                           
    3103.       Receivership.                                         
    3104.       Garnishment.                                          
    3105.       Sequestration.                                        

-End-

-CITE-
    28 USC Sec. 3101                                            01/03/2007

-EXPCITE-
    TITLE 28 - JUDICIARY AND JUDICIAL PROCEDURE
    PART VI - PARTICULAR PROCEEDINGS
    CHAPTER 176 - FEDERAL DEBT COLLECTION PROCEDURE
    SUBCHAPTER B - PREJUDGMENT REMEDIES

-HEAD-
    Sec. 3101. Prejudgment remedies

-STATUTE-
      (a) Application. - (1) The United States may, in a proceeding in
    conjunction with the complaint or at any time after the filing of a
    civil action on a claim for a debt, make application under oath to
    a court to issue any prejudgment remedy.
      (2) Such application shall be filed with the court and shall set
    forth the factual and legal basis for each prejudgment remedy
    sought.
      (3) Such application shall - 
        (A) state that the debtor against whom the prejudgment remedy
      is sought shall be afforded an opportunity for a hearing; and
        (B) set forth with particularity that all statutory
      requirements under this chapter for the issuance of the
      prejudgment remedy sought have been satisfied.

      (b) Grounds. - Subject to section 3102, 3103, 3104, or 3105, a
    prejudgment remedy may be granted by any court if the United States
    shows reasonable cause to believe that - 
        (1) the debtor - 
          (A) is about to leave the jurisdiction of the United States
        with the effect of hindering, delaying, or defrauding the
        United States in its effort to recover a debt;
          (B) has or is about to assign, dispose, remove, conceal, ill
        treat, waste, or destroy property with the effect of hindering,
        delaying, or defrauding the United States;
          (C) has or is about to convert the debtor's property into
        money, securities, or evidence of debt in a manner prejudicial
        to the United States with the effect of hindering, delaying, or
        defrauding the United States; or
          (D) has evaded service of process by concealing himself or
        has temporarily withdrawn from the jurisdiction of the United
        States with the effect of hindering, delaying, or defrauding
        the United States; or

        (2) a prejudgment remedy is required to obtain jurisdiction
      within the United States and the prejudgment remedy sought will
      result in obtaining such jurisdiction.

      (c) Affidavit. - (1) The application under subsection (a) shall
    include an affidavit establishing with particularity to the court's
    satisfaction facts supporting the probable validity of the claim
    for a debt and the right of the United States to recover what is
    demanded in the application.
      (2) The affidavit shall state - 
        (A) specifically the amount of the debt claimed by the United
      States and any interest or costs attributable to such debt;
        (B) one or more of the grounds specified in subsection (b); and
        (C) the requirements of section 3102(b), 3103(a), 3104(a), or
      3105(b), as the case may be.

      (3) No bond is required of the United States.
      (d) Notice and Hearing. - (1) On filing an application by the
    United States as provided in this section, the counsel for the
    United States shall prepare, and the clerk shall issue, a notice
    for service on the debtor against whom the prejudgment remedy is
    sought and on any other person whom the United States reasonably
    believes, after exercising due diligence, has possession, custody,
    or control of property affected by such remedy. Three copies of the
    notice shall be served on each such person. The form and content of
    such notice shall be approved jointly by a majority of the chief
    judges of the Federal districts in the State in which the court is
    located and shall be in substantially the following form:

                                  "NOTICE                              
      "You are hereby notified that this [property] is being taken by
    the United States Government ('the Government'), which says that
    [name of debtor] owes it a debt of $ [amount] for [reason for debt]
    and has filed a lawsuit to collect this debt. The Government says
    it must take this property at this time because [recite the
    pertinent ground or grounds from section 3101(b)]. The Government
    wants to make sure [name of debtor] will pay if the court
    determines that this money is owed.
      "In addition, you are hereby notified that there are exemptions
    under the law which may protect some of this property from being
    taken by the Government if [name of debtor] can show that the
    exemptions apply. Below is a summary of the major exemptions which
    apply in most situations in the State of [State where property is
    located]:
        "[A statement summarizing in plain and understandable English
      the election available with respect to such State under section
      3014 and the types of property that may be exempted under each of
      the alternatives specified in paragraphs (1) and (2) of section
      3014(a), and a statement that different property may be so
      exempted with respect to the State in which the debtor resides.]

      "If you are [name of debtor] and you disagree with the reason the
    Government gives for taking your property now, or if you think you
    do not owe the money to the Government that it says you do, or if
    you think the property the Government is taking qualifies under one
    of the above exemptions, you have a right to ask the court to
    return your property to you.
      "If you want a hearing, you must promptly notify the court. You
    must make your request in writing, and either mail it or deliver it
    in person to the clerk of the court at [address]. If you wish, you
    may use this notice to request the hearing by checking the box
    below and mailing this notice to the court clerk. You must also
    send a copy of your request to the Government at [address], so the
    Government will know you want a hearing. The hearing will take
    place within 5 days after the clerk receives your request, if you
    ask for it to take place that quickly, or as soon after that as
    possible.
      "At the hearing you may explain to the judge why you think you do
    not owe the money to the Government, why you disagree with the
    reason the Government says it must take your property at this time,
    or why you believe the property the Government has taken is exempt
    or belongs to someone else. You may make any or all of these
    explanations as you see fit.
      "If you think you live outside the Federal judicial district in
    which the court is located, you may request, not later than 20 days
    after you receive this notice, that this proceeding to take your
    property be transferred by the court to the Federal judicial
    district in which you reside. You must make your request in
    writing, and either mail it or deliver it in person to the clerk of
    the court at [address]. You must also send a copy of your request
    to the Government at [address], so the Government will know you
    want the proceeding to be transferred.
      "Be sure to keep a copy of this notice for your own records. If
    you have any questions about your rights or about this procedure,
    you should contact a lawyer, an office of public legal assistance,
    or the clerk of the court. The clerk is not permitted to give legal
    advice, but can refer you to other sources of information."

      (2) By requesting, at any time before judgment on the claim for a
    debt, the court to hold a hearing, the debtor may move to quash the
    order granting such remedy. The court shall hold a hearing on such
    motion as soon as practicable, or, if requested by the debtor,
    within 5 days after receiving the request for a hearing or as soon
    thereafter as possible. The issues at such hearing shall be limited
    to - 
        (A) the probable validity of the claim for the debt for which
      such remedy was granted and of any defense or claim of exemption
      asserted by such person;
        (B) compliance with any statutory requirement for the issuance
      of the prejudgment remedy granted;
        (C) the existence of any ground set forth in subsection (b);
      and
        (D) the inadequacy of alternative remedies (if any) to protect
      the interests of the United States.

      (e) Issuance of Writ. - On the court's determination that the
    requirements of subsections (a), (b), and (c) have been met, the
    court shall issue all process sufficient to put into effect the
    prejudgment remedy sought.

-SOURCE-
    (Added Pub. L. 101-647, title XXXVI, Sec. 3611, Nov. 29, 1990, 104
    Stat. 4939.)

-End-

-CITE-
    28 USC Sec. 3102                                            01/03/2007

-EXPCITE-
    TITLE 28 - JUDICIARY AND JUDICIAL PROCEDURE
    PART VI - PARTICULAR PROCEEDINGS
    CHAPTER 176 - FEDERAL DEBT COLLECTION PROCEDURE
    SUBCHAPTER B - PREJUDGMENT REMEDIES

-HEAD-
    Sec. 3102. Attachment

-STATUTE-
      (a) Property Subject to Attachment. - (1) Any property in the
    possession, custody, or control of the debtor and in which the
    debtor has a substantial nonexempt interest, except earnings, may
    be attached pursuant to a writ of attachment in an action or
    proceeding against a debtor on a claim for a debt and may be held
    as security to satisfy such judgment, and interest and costs, as
    the United States may recover on such claim.
      (2) The value of property attached shall not exceed the amount by
    which the sum of the amount of the debt claimed by the United
    States and the amount of interest and costs reasonably likely to be
    assessed against the debtor by the court exceeds the aggregate
    value of the nonexempt interest of the debtor in any - 
        (A) property securing the debt; and
        (B) property garnished or in receivership, or income
      sequestered, under this subchapter.

      (b) Availability of Attachment. - If the requirements of section
    3101 are satisfied, a court shall issue a writ authorizing the
    United States to attach property in which the debtor has a
    substantial nonexempt interest, as security for such judgment (and
    interest and costs) as the United States may recover on a claim for
    a debt - 
        (1) in an action on a contract, express or implied, against the
      debtor for payment of money, only if the United States shows
      reasonable cause to believe that - 
          (A) the contract is not fully secured by real or personal
        property; or
          (B) the value of the original security is substantially
        diminished, without any act of the United States or the person
        to whom the security was given, below the amount of the debt;

        (2) in an action against the debtor for damages in tort;
        (3) if the debtor resides outside the jurisdiction of the
      United States; or
        (4) in an action to recover a fine, penalty, or tax.

      (c) Issuance of Writ; Contents. - (1) Subject to subsections (a)
    and (b), a writ of attachment shall be issued by the court
    directing the United States marshal of the district where property
    described in subsection (a) is located to attach the property.
      (2) Several writs of attachment may be issued at the same time,
    or in succession, and sent to different judicial districts until
    sufficient property is attached.
      (3) The writ of attachment shall contain - 
        (A) the date of the issuance of the writ;
        (B) the identity of the court, the docket number of the action,
      and the identity of the cause of action;
        (C) the name and last known address of the debtor;
        (D) the amount to be secured by the attachment; and
        (E) a reasonable description of the property to be attached.

      (d) Levy of Attachment. - (1) The United States marshal receiving
    the writ shall proceed without delay to levy upon the property
    specified for attachment if found within the district. The marshal
    may not sell property unless ordered by the court.
      (2) In performing the levy, the United States marshal may enter
    any property owned, occupied, or controlled by the debtor, except
    that the marshal may not enter a residence or other building unless
    the writ expressly authorizes the marshal to do so or upon specific
    order of the court.
      (3) Levy on real property is made by entering the property and
    posting the writ and notice of levy in a conspicuous place upon the
    property.
      (4) Levy on personal property is made by taking possession of it.
    Levy on personal property not easily taken into possession or which
    cannot be taken into possession without great inconvenience or
    expense may be made by affixing a copy of the writ and notice of
    levy on it or in a conspicuous place in the vicinity of it
    describing in the notice of levy the property by quantity and with
    sufficient detail to identify the property levied on.
      (5) The United States marshal shall file a copy of the notice of
    levy in the same manner as provided for judgments in section
    3201(a)(1). The United States marshal shall serve a copy of the
    writ and notice of levy on - 
        (A) the debtor against whom the writ is issued; and
        (B) the person who has possession of the property subject to
      the writ;

    in the same manner that a summons is served in a civil action and
    make the return thereof.
      (e) Return of Writ; Duties of Marshal; Further Return. - (1) A
    United States marshal executing a writ of attachment shall return
    the writ with the marshal's action endorsed thereon or attached
    thereto and signed by the marshal, to the court from which it was
    issued, within 5 days after the date of the levy.
      (2) The return shall describe the property attached with
    sufficient certainty to identify it and shall state the location
    where it was attached, the date and time it was attached, and the
    disposition made of the property. If no property was attached, the
    return shall so state.
      (3) If the property levied on is claimed, replevied under
    subsection (j)(2), or sold under section 3007 after the return, the
    United States marshal shall immediately make a further return to
    the clerk of the court showing the disposition of the property.
      (4) If personal property is replevied, the United States marshal
    shall deliver the replevin bond to the clerk of the court to be
    filed in the action.
      (f) Levy of Attachment as Lien on Property; Satisfaction of Lien.
    - (1) A levy on property under a writ of attachment under this
    section creates a lien in favor of the United States on the
    property or, in the case of perishable property sold under section
    3007, on the proceeds of the sale.
      (2) Such lien shall be ranked ahead of any other security
    interests perfected after the later of the time of levy and the
    time a copy of the notice of levy is filed under subsection (d)(5).
      (3) Such lien shall arise from the time of levy and shall
    continue until a judgment in the action is obtained or denied, or
    the action is otherwise dismissed. The death of the debtor whose
    property is attached does not terminate the attachment lien. Upon
    issuance of a judgment in the action and registration under this
    chapter, the judgment lien so created relates back to the time of
    levy.
      (g) Reduction or Dissolution of Attachment. - (1) If an excessive
    or unreasonable attachment is made, the debtor may submit a motion
    to the court for a reduction of the amount of the attachment or its
    dissolution. Notice of such motion shall be served on the United
    States.
      (2) The court shall order a part of the property to be released,
    if after a hearing the court finds that the amount of the
    attachment is excessive or unreasonable or if the attachment is for
    an amount larger than the sum of the liquidated or ascertainable
    amount of the debt and the amount of interest and costs likely to
    be taxed.
      (3) The court shall dissolve the attachment if the amount of the
    debt is unliquidated and unascertainable by calculation.
      (4) If any property claimed to be exempt is levied on, the debtor
    may, at any time after such levy, request that the court vacate
    such levy. If it appears to the court that the property so levied
    upon is exempt, the court shall order the levy vacated and the
    property returned to the debtor.
      (h) Replevin of Attached Property by Debtor; Bond. - If attached
    property is not sold before judgment, the debtor may replevy such
    property or any part thereof by giving a bond approved by counsel
    for the United States or the court and payable to the United States
    in double the reasonable value of the property to be replevied or
    double the value of the claim, whichever is less.
      (i) Preservation of Personal Property Under Attachment. - If
    personal property in custody of the United States marshal under a
    writ of attachment is not replevied, claimed, or sold, the court
    may make such order for its preservation or use as appears to be in
    the interest of the parties.
      (j) Judgment and Disposition of Attached Property. - 
        (1) Judgment for the united states. - On entry of judgment for
      the United States, the court shall order the proceeds of personal
      property sold pursuant to section 3007 to be applied to the
      satisfaction of the judgment, and shall order the sale of any
      remaining personal property and any real property levied on to
      the extent necessary to satisfy the judgment.
        (2) Judgment for the united states when personal property
      replevied. - With respect to personal property under attachment
      that is replevied, the judgment which may be entered shall be
      against the debtor against whom the writ of attachment is issued
      and also against the sureties on the debtor's replevin bond for
      the value of the property.
        (3) Restoration of property and exoneration of replevin bond. -
      If the attachment is vacated or if the judgment on the claim for
      the debt is for the person against whom the writ attachment is
      issued, the court shall order the property, or proceeds of
      perishable property sold under section 3007, restored to the
      debtor and shall exonerate any replevin bond.

-SOURCE-
    (Added Pub. L. 101-647, title XXXVI, Sec. 3611, Nov. 29, 1990, 104
    Stat. 4942.)

-End-

-CITE-
    28 USC Sec. 3103                                            01/03/2007

-EXPCITE-
    TITLE 28 - JUDICIARY AND JUDICIAL PROCEDURE
    PART VI - PARTICULAR PROCEEDINGS
    CHAPTER 176 - FEDERAL DEBT COLLECTION PROCEDURE
    SUBCHAPTER B - PREJUDGMENT REMEDIES

-HEAD-
    Sec. 3103. Receivership

-STATUTE-
      (a) Appointment of a Receiver. - If the requirements of section
    3101 are satisfied, a court may appoint a receiver for property in
    which the debtor has a substantial nonexempt interest if the United
    States shows reasonable cause to believe that there is a
    substantial danger that the property will be removed from the
    jurisdiction of the court, lost, concealed, materially injured or
    damaged, or mismanaged.
      (b) Powers of Receiver. - (1) The appointing court may authorize
    a receiver - 
        (A) to take possession of real and personal property and sue
      for, collect, and sell obligations upon such conditions and for
      such purposes as the court shall direct; and
        (B) to administer, collect, improve, lease, repair or sell
      pursuant to section 3007 such real and personal property as the
      court shall direct.

    A receiver appointed to manage residential or commercial property
    shall have demonstrable expertise in the management of these types
    of property.
      (2) Unless expressly authorized by order of the court, a receiver
    shall have no power to employ attorneys, accountants, appraisers,
    auctioneers, or other professional persons.
      (c) Duration of Receivership. - A receivership shall not continue
    past the entry of judgment, or the conclusion of an appeal of such
    judgment, unless the court orders it continued under section
    3203(e) or unless the court otherwise directs its continuation.
      (d) Accounts; Requirement to Report. - A receiver shall keep
    written accounts itemizing receipts and expenditures, describing
    the property and naming the depository of receivership funds. The
    receiver's accounts shall be open to inspection by any person
    having an apparent interest in the property. The receiver shall
    file reports at regular intervals as directed by the court and
    shall serve the debtor and the United States with a copy thereof.
      (e) Modification of Powers; Removal. - On motion of the receiver
    or on its own initiative, the court which appointed the receiver
    may remove the receiver or modify the receiver's powers at any
    time.
      (f) Priority. - If more than one court appoints a receiver for
    particular property, the receiver first qualifying under law shall
    be entitled to take possession, control, or custody of the
    property.
      (g) Compensation of Receivers. - (1) A receiver is entitled to
    such commissions, not exceeding 5 percent of the sums received and
    disbursed by him, as the court allows unless the court otherwise
    directs.
      (2) If, at the termination of a receivership, there are no funds
    in the hands of a receiver, the court may fix the compensation of
    the receiver in accordance with the services rendered and may
    direct the party who moved for the appointment of the receiver to
    pay such compensation in addition to the necessary expenditures
    incurred by the receiver which remain unpaid.
      (3) At the termination of a receivership, the receiver shall file
    a final accounting of the receipts and disbursements and apply for
    compensation setting forth the amount sought and the services
    rendered by the receiver.

-SOURCE-
    (Added Pub. L. 101-647, title XXXVI, Sec. 3611, Nov. 29, 1990, 104
    Stat. 4944.)

-End-

-CITE-
    28 USC Sec. 3104                                            01/03/2007

-EXPCITE-
    TITLE 28 - JUDICIARY AND JUDICIAL PROCEDURE
    PART VI - PARTICULAR PROCEEDINGS
    CHAPTER 176 - FEDERAL DEBT COLLECTION PROCEDURE
    SUBCHAPTER B - PREJUDGMENT REMEDIES

-HEAD-
    Sec. 3104. Garnishment

-STATUTE-
      (a) In General. - If the requirements of section 3101 are
    satisfied, a court may issue a writ of garnishment against property
    (excluding earnings) in which the debtor has a substantial
    nonexempt interest and which is in the possession, custody, or
    control of a person other than the debtor in order to satisfy a
    claim for a debt. Co-owned property shall be subject to garnishment
    to the same extent as co-owned property is subject to garnishment
    under the law of the State in which such property is located. A
    court may issue simultaneous separate writs of garnishment to
    several garnishees. A writ of garnishment issued under this
    subsection shall be continuing and shall terminate only as provided
    in section 3205(c)(10).
      (b) Writ. - (1) Subsections (b)(2) and (c) of section 3205 shall
    apply with respect to garnishment under this section, except that
    for purposes of this section - 
        (A) earnings of the debtor shall not be subject to garnishment;
      and
        (B) a reference in such subsections to a judgment debtor shall
      be deemed to be a reference to a debtor.

      (2) The United States shall include in its application for a writ
    of garnishment - 
        (A) the amount of the claim asserted by the United States for a
      debt; and
        (B) the date the writ is issued.

      (c) Limitation. - The value of property garnished shall not
    exceed the amount by which the sum of the amount of the debt
    claimed by the United States and the amount of interest and costs
    reasonably likely to be assessed against the debtor by the court
    exceeds the aggregate value of the nonexempt interest of the debtor
    in any - 
        (1) property securing the debt; and
        (2) property attached or in receivership, or income
      sequestered, under this subchapter.

-SOURCE-
    (Added Pub. L. 101-647, title XXXVI, Sec. 3611, Nov. 29, 1990, 104
    Stat. 4945.)

-End-

-CITE-
    28 USC Sec. 3105                                            01/03/2007

-EXPCITE-
    TITLE 28 - JUDICIARY AND JUDICIAL PROCEDURE
    PART VI - PARTICULAR PROCEEDINGS
    CHAPTER 176 - FEDERAL DEBT COLLECTION PROCEDURE
    SUBCHAPTER B - PREJUDGMENT REMEDIES

-HEAD-
    Sec. 3105. Sequestration

-STATUTE-
      (a) Property Subject to Sequestration. - (1) Any income from
    property in which the debtor has a substantial nonexempt interest
    may be sequestered pursuant to a writ of sequestration in an action
    or proceeding against a debtor on a claim for a debt and may be
    held as security to satisfy such judgment, and interest and costs,
    as the United States may recover on such claim.
      (2) The amount of income sequestered shall not exceed the amount
    by which the sum of the amount of the debt claimed by the United
    States and the amount of interest and costs reasonably likely to be
    assessed against the debtor by the court exceeds the aggregate
    value of the nonexempt interest of the debtor in any - 
        (A) property securing the debt; and
        (B) property attached, garnished, or in receivership under this
      subchapter.

      (b) Availability of Sequestration. - If the requirements of
    section 3101 are satisfied, a court shall issue a writ authorizing
    the United States to sequester income from property in which the
    debtor has a substantial nonexempt interest, as security for such
    judgment (and interest and costs) as the United States may recover
    on a claim for a debt - 
        (1) in an action on a contract, express or implied, against the
      debtor for payment of money, only if the United States shows
      reasonable cause to believe that - 
          (A) the contract is not fully secured by real or personal
        property; or
          (B) the value of the original security is substantially
        diminished, without any act of the United States or the person
        to whom the security was given, below the amount of the debt;

        (2) in an action against the debtor for damages in tort;
        (3) if the debtor resides outside the jurisdiction of the
      United States; or
        (4) in an action to recover a fine, penalty, or tax.

      (c) Issuance of Writ; Contents. - (1) Subject to subsections (a)
    and (b), a writ of sequestration shall be issued by the court
    directing the United States marshal of the district where income
    described in subsection (a) is located to sequester the income.
      (2) Several writs of sequestration may be issued at the same
    time, or in succession, and sent to different judicial districts
    until sufficient income is sequestered.
      (3) The writ of sequestration shall contain - 
        (A) the date of the issuance of the writ;
        (B) the identity of the court, the docket number of the action,
      and the identity of the cause of action;
        (C) the name and last known address of the debtor;
        (D) the amount to be secured by the sequestration; and
        (E) a reasonable description of the income to be sequestered.

      (d) Execution of Writ. - (1) The United States marshal receiving
    the writ shall proceed without delay to execute the writ.
      (2) The United States marshal shall file a copy of the notice of
    sequestration in the same manner as provided for judgments in
    section 3201(a)(1). The United States marshal shall serve a copy of
    the writ and notice of sequestration on - 
        (A) the debtor against whom the writ is issued; and
        (B) the person who has possession of the income subject to the
      writ;

    in the same manner that a summons is served in a civil action and
    make the return thereof.
      (e) Deposit of Sequestered Income. - A person who has possession
    of the income subject to a writ of sequestration shall deposit such
    income with the clerk of the court, accompanied by a statement in
    writing stating the person's name, the name of the debtor, the
    amount of such income, the property from which such income is
    produced, and the period during which such income is produced.
      (f) Return of Writ; Duties of Marshal; Further Return. - (1) A
    United States marshal executing a writ of sequestration shall
    return the writ with the marshal's action endorsed thereon or
    attached thereto and signed by the marshal, to the court from which
    it was issued, within 5 days after the date of the execution.
      (2) The return shall describe the income sequestered with
    sufficient certainty to identify it and shall state the location
    where it was sequestered, and the date and time it was sequestered.
    If no income was sequestered, the return shall so state.
      (3) If sequestered income is claimed after the return, the United
    States marshal shall immediately make a further return to the clerk
    of the court showing the disposition of the income.
      (g) Reduction or Dissolution of Sequestration. - (1) If an
    excessive or unreasonable sequestration is made, the debtor may
    submit a motion to the court for a reduction of the amount of the
    sequestration or its dissolution. Notice of such motion shall be
    served on the United States.
      (2) The court shall order a part of the income to be released, if
    after a hearing the court finds that the amount of the
    sequestration is excessive or unreasonable or if the sequestration
    is for an amount larger than the sum of the liquidated or
    ascertainable amount of the debt and the amount of interest and
    costs likely to be taxed.
      (3) The court shall dissolve the sequestration if the amount of
    the debt is unliquidated and unascertainable by calculation.
      (h) Preservation of Income Under Sequester. - If personal
    property in custody of the United States marshal under a writ of
    sequestration is not claimed, the court may make such order for its
    preservation or use as appears to be in the interest of the
    parties.
      (i) Judgment and Disposition of Sequestered Income. - 
        (1) Judgment for the united states. - On entry of judgment for
      the United States, the court shall order the sequestered income
      to be applied to the satisfaction of the judgment.
        (2) Restoration of income. - If the sequestration is vacated or
      if the judgment on the claim for the debt is for the person
      against whom the writ of sequestration is issued, the court shall
      order the income restored to the debtor.

-SOURCE-
    (Added Pub. L. 101-647, title XXXVI, Sec. 3611, Nov. 29, 1990, 104
    Stat. 4946.)

-End-

-CITE-
    28 USC SUBCHAPTER C - POSTJUDGMENT REMEDIES                 01/03/2007

-EXPCITE-
    TITLE 28 - JUDICIARY AND JUDICIAL PROCEDURE
    PART VI - PARTICULAR PROCEEDINGS
    CHAPTER 176 - FEDERAL DEBT COLLECTION PROCEDURE
    SUBCHAPTER C - POSTJUDGMENT REMEDIES

-HEAD-
                   SUBCHAPTER C - POSTJUDGMENT REMEDIES               

-MISC1-
    Sec.                                                     
    3201.       Judgment liens.                                       
    3202.       Enforcement of judgments.                             
    3203.       Execution.                                            
    3204.       Installment payment order.                            
    3205.       Garnishment.                                          
    3206.       Discharge.                                            

-End-

-CITE-
    28 USC Sec. 3201                                            01/03/2007

-EXPCITE-
    TITLE 28 - JUDICIARY AND JUDICIAL PROCEDURE
    PART VI - PARTICULAR PROCEEDINGS
    CHAPTER 176 - FEDERAL DEBT COLLECTION PROCEDURE
    SUBCHAPTER C - POSTJUDGMENT REMEDIES

-HEAD-
    Sec. 3201. Judgment liens

-STATUTE-
      (a) Creation. - A judgment in a civil action shall create a lien
    on all real property of a judgment debtor on filing a certified
    copy of the abstract of the judgment in the manner in which a
    notice of tax lien would be filed under paragraphs (1) and (2) of
    section 6323(f) of the Internal Revenue Code of 1986. A lien
    created under this paragraph is for the amount necessary to satisfy
    the judgment, including costs and interest.
      (b) Priority of Lien. - A lien created under subsection (a) shall
    have priority over any other lien or encumbrance which is perfected
    later in time.
      (c) Duration of Lien; Renewal. - (1) Except as provided in
    paragraph (2), a lien created under subsection (a) is effective,
    unless satisfied, for a period of 20 years.
      (2) Such lien may be renewed for one additional period of 20
    years upon filing a notice of renewal in the same manner as the
    judgment is filed and shall relate back to the date the judgment is
    filed if - 
        (A) the notice of renewal is filed before the expiration of the
      20-year period to prevent the expiration of the lien; and
        (B) the court approves the renewal of such lien under this
      paragraph.

      (d) Release of Judgment Lien. - A judgment lien shall be released
    on the filing of a satisfaction of judgment or release of lien in
    the same manner as the judgment is filed to obtain the lien.
      (e) Effect of Lien on Eligibility for Federal Grants, Loans or
    Programs. - A debtor who has a judgment lien against the debtor's
    property for a debt to the United States shall not be eligible to
    receive any grant or loan which is made, insured, guaranteed, or
    financed directly or indirectly by the United States or to receive
    funds directly from the Federal Government in any program, except
    funds to which the debtor is entitled as beneficiary, until the
    judgment is paid in full or otherwise satisfied. The agency of the
    United States that is responsible for such grants and loans may
    promulgate regulations to allow for waiver of this restriction on
    eligibility for such grants, loans, and funds.
      (f) Sale of Property Subject to Judgment Lien. - (1) On proper
    application to a court, the court may order the United States to
    sell, in accordance with sections 2001 and 2002, any real property
    subject to a judgment lien in effect under this section.
      (2) This subsection shall not preclude the United States from
    using an execution sale pursuant to section 3203(g) to sell real
    property subject to a judgment lien.

-SOURCE-
    (Added Pub. L. 101-647, title XXXVI, Sec. 3611, Nov. 29, 1990, 104
    Stat. 4948.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      Section 6323(f) of the Internal Revenue Code of 1986, referred to
    in subsec. (a), is classified to section 6323(f) of Title 26,
    Internal Revenue Code.

-End-

-CITE-
    28 USC Sec. 3202                                            01/03/2007

-EXPCITE-
    TITLE 28 - JUDICIARY AND JUDICIAL PROCEDURE
    PART VI - PARTICULAR PROCEEDINGS
    CHAPTER 176 - FEDERAL DEBT COLLECTION PROCEDURE
    SUBCHAPTER C - POSTJUDGMENT REMEDIES

-HEAD-
    Sec. 3202. Enforcement of judgments

-STATUTE-
      (a) Enforcement Remedies. - A judgment may be enforced by any of
    the remedies set forth in this subchapter. A court may issue other
    writs pursuant to section 1651 of title 28, United States Code, as
    necessary to support such remedies, subject to rule 81(b) of the
    Federal Rules of Civil Procedure.
      (b) Notice. - On the commencement by the United States of an
    action or proceeding under this subchapter to obtain a remedy, the
    counsel for the United States shall prepare, and clerk of the court
    shall issue, a notice in substantially the following form:

                                  "NOTICE                              
      "You are hereby notified that this [property] is being taken by
    the United States Government, which has a court judgment in [case
    docket number and jurisdiction of court] of $[amount] for [reason
    of debt].
      "In addition, you are hereby notified that there are exemptions
    under the law which may protect some of this property from being
    taken by the United States Government if [name of judgment debtor]
    can show that the exemptions apply. Below is a summary of the major
    exemptions which apply in most situations in the State of [State
    where property is located]:
        "[A statement summarizing in plain and understandable English
      the election available with respect to such State under section
      3014 and the types of property that may be exempted under each of
      the alternatives specified in paragraphs (1) and (2) of section
      3014(a) and a statement that different property may be so
      exempted with respect to the State in which the debtor resides.]

      "If you are [name of judgment debtor], you have a right to ask
    the court to return your property to you if you think the property
    the Government is taking qualifies under one of the above
    exemptions [For a default judgment:] or if you think you do not owe
    the money to the United States Government that it says you do.
      "If you want a hearing, you must notify the court within 20 days
    after you receive this notice. You must make your request in
    writing, and either mail it or deliver it in person to the clerk of
    the court at [address]. If you wish, you may use this notice to
    request the hearing by checking the box below and mailing this
    notice to the court clerk. You must also send a copy of your
    request to the Government at [address], so the Government will know
    you want a hearing. The hearing will take place within 5 days after
    the clerk receives your request, if you ask for it to take place
    that quickly, or as soon after that as possible.
      "At the hearing you may explain to the judge why you believe the
    property the Government has taken is exempt [For a default
    judgment:] or why you think you do not owe the money to the
    Government. [For a writ of execution:] If you do not request a
    hearing within 20 days of receiving this notice, your [property]
    may be sold at public auction and the payment used toward the money
    you owe the Government.
      "If you think you live outside the Federal judicial district in
    which the court is located, you may request, not later than 20 days
    after your (!1) receive this notice, that this proceeding to take
    your property be transferred by the court to the Federal judicial
    district in which you reside. You must make your request in
    writing, and either mail it or deliver it in person to the clerk of
    the court at [address]. You must also send a copy of your request
    to the Government at [address], so the Government will know you
    want the proceeding to be transferred.

      "Be sure to keep a copy of this notice for your own records. If
    you have any questions about your rights or about this procedure,
    you should contact a lawyer, an office of public legal assistance,
    or the clerk of the court. The clerk is not permitted to give legal
    advice, but can refer you to other sources of information."

      (c) Service. - A copy of the notice and a copy of the application
    for granting a remedy under this subchapter shall be served by
    counsel for the United States on the judgment debtor against whom
    such remedy is sought and on each person whom the United States,
    after diligent inquiry, has reasonable cause to believe has an
    interest in property to which the remedy is directed.
      (d) Hearing. - By requesting, within 20 days after receiving the
    notice described in section 3202(b), the court to hold a hearing,
    the judgment debtor may move to quash the order granting such
    remedy. The court that issued such order shall hold a hearing on
    such motion as soon as practicable, or, if so requested by the
    judgment debtor, within 5 days after receiving the request or as
    soon thereafter as possible. The issues at such hearing shall be
    limited - 
        (1) to the probable validity of any claim of exemption by the
      judgment debtor;
        (2) to compliance with any statutory requirement for the
      issuance of the postjudgment remedy granted; and
        (3) if the judgment is by default and only to the extent that
      the Constitution or another law of the United States provides a
      right to a hearing on the issue, to - 
          (A) the probable validity of the claim for the debt which is
        merged in the judgment; and
          (B) the existence of good cause for setting aside such
        judgment.

      This subparagraph shall not be construed to afford the judgment
      debtor the right to more than one such hearing except to the
      extent that the Constitution or another law of the United States
      provides a right to more than one such hearing.

      (e) Sale of Property. - The property of a judgment debtor which
    is subject to sale to satisfy the judgment may be sold by judicial
    sale, pursuant to sections 2001, 2002, and 2004 or by execution
    sale pursuant to section 3203(g). If a hearing is requested
    pursuant to subsection (d), property with respect to which the
    request relates shall not be sold before such hearing.

-SOURCE-
    (Added Pub. L. 101-647, title XXXVI, Sec. 3611, Nov. 29, 1990, 104
    Stat. 4949.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      The Federal Rules of Civil Procedure, referred to in subsec. (a),
    are set out in the Appendix to this title.

-FOOTNOTE-
    (!1) So in original. Probably should be "you".

-End-

-CITE-
    28 USC Sec. 3203                                            01/03/2007

-EXPCITE-
    TITLE 28 - JUDICIARY AND JUDICIAL PROCEDURE
    PART VI - PARTICULAR PROCEEDINGS
    CHAPTER 176 - FEDERAL DEBT COLLECTION PROCEDURE
    SUBCHAPTER C - POSTJUDGMENT REMEDIES

-HEAD-
    Sec. 3203. Execution

-STATUTE-
      (a) Property Subject to Execution. - All property in which the
    judgment debtor has a substantial nonexempt interest shall be
    subject to levy pursuant to a writ of execution. The debtor's
    earnings shall not be subject to execution while in the possession,
    custody, or control of the debtor's employer. Co-owned property
    shall be subject to execution to the extent such property is
    subject to execution under the law of the State in which it is
    located.
      (b) Creation of Execution Lien. - A lien shall be created in
    favor of the United States on all property levied on under a writ
    of execution and shall date from the time of the levy. Such lien
    shall have priority over all subsequent liens and shall be for the
    aggregate amount of the judgment, costs, and interest. The
    execution lien on any real property as to which the United States
    has a judgment lien shall relate back to the judgment lien date.
      (c) Writ of Execution. - 
        (1) Issuance. - On written application of counsel for the
      United States, the court may issue a writ of execution. Multiple
      writs may issue simultaneously, and successive writs may issue
      before the return date of a writ previously issued.
        (2) Form of writ. - 
          (A) General contents. - A writ of execution shall specify the
        date that the judgment is entered, the court in which it is
        entered, the amount of the judgment if for money, the amount of
        the costs, the amount of interest due, the sum due as of the
        date the writ is issued, the rate of postjudgment interest, the
        name of the judgment debtor, and the judgment debtor's last
        known address.
          (B) Additional contents. - (i) Except as provided in clauses
        (ii) and (iii), the writ shall direct the United States marshal
        to satisfy the judgment by levying on and selling property in
        which the judgment debtor has a substantial nonexempt interest,
        but not to exceed property reasonably equivalent in value to
        the aggregate amount of the judgment, costs, and interest.
          (ii) A writ of execution issued on a judgment for the
        delivery to the United States of the possession of personal
        property, or for the delivery of the possession of real
        property, shall particularly describe the property, and shall
        require the marshal to deliver the possession of the property
        to the United States.
          (iii) A writ of execution on a judgment for the recovery of
        personal property or its value shall direct the marshal, in
        case a delivery of the specific property cannot be had, to levy
        and collect such value out of any property in which the
        judgment debtor has a substantial nonexempt interest.

      (d) Levy of Execution. - 
        (1) In general. - Levy on property pursuant to a writ of
      execution issued under this section shall be made in the same
      manner as levy on property is made pursuant to a writ of
      attachment issued under section 3102(d).
        (2) Death of judgment debtor. - The death of the judgment
      debtor after a writ of execution is issued stays the execution
      proceedings, but any lien acquired by levy of the writ shall be
      recognized and enforced by the court for the district in which
      the estate of the deceased is located. The execution lien may be
      enforced - 
          (A) against the executor, administrator, or personal
        representative of the estate of the deceased; or
          (B) if there be none, against the deceased's property coming
        to the heirs or devisees or at their option against cash in
        their possession, but only to the extent of the value of the
        property coming to them.

        (3) Records of united states marshal. - (A) A United States
      marshal receiving a writ of execution shall endorse thereon the
      exact hour and date of receipt.
        (B) The United States marshal shall make a written record of
      every levy, specify the property on which levy is made, the date
      on which levy is made, and the marshal's costs, expenses, and
      fees.
        (C) The United States marshal shall make a written return to
      the court on each writ of execution stating concisely what is
      done pursuant to the writ and shall deliver a copy to counsel for
      the United States who requests the writ. The writ shall be
      returned not more than - 
          (i) 90 days after the date of issuance if levy is not made;
        or
          (ii) 10 days after the date of sale of property on which levy
        is made.

      (e) Appointment of Receiver. - Pending the levy of execution, the
    court may appoint a receiver to manage property described in such
    writ if there is a substantial danger that the property will be
    removed from the jurisdiction of the court, lost, materially
    injured or damaged, or mismanaged.
      (f) Replevy; Redemption. - 
        (1) Before execution sale. - (A) Before execution sale, the
      United States marshal may return property (!1) to the judgment
      debtor any personal property taken in execution, on - 

          (i) satisfaction of the judgment, interest, and costs, and
        any costs incurred in connection with scheduling the sale; or
          (ii) receipt from the judgment debtor of a bond - 
            (I) payable to the United States, with 2 or more good and
          sufficient sureties to be approved by the marshal,
          conditioned on the delivery of the property to the marshal at
          the time and place named in the bond to be sold under
          subsection (g); or
            (II) for the payment to the marshal of a fair value thereof
          which shall be stated in the bond.

        (B) A judgment debtor who sells or disposes of property
      replevied under subparagraph (A) shall pay the United States
      marshal the stipulated value of such property.
        (C) If the judgment debtor fails to deliver such property to
      the United States marshal pursuant to the terms of the delivery
      described in subparagraph (A)(ii)(I) and fails to pay the United
      States marshal the stipulated value of such property, the United
      States marshal shall endorse the bond "forfeited" and return it
      to the court from which the writ of execution issued. If the
      judgment is not fully satisfied, the court shall issue a writ of
      execution against the judgment debtor and the sureties on the
      bond for the amount due, not exceeding the stipulated value of
      the property, on which execution no delivery bond shall be taken,
      which instruction shall be endorsed on the writ.
        (2) After execution sale. - The judgment debtor shall not be
      entitled to redeem the property after the execution sale.

      (g) Execution Sale. - 
        (1) General procedures. - An execution sale under this section
      shall be conducted in a commercially reasonable manner - 
          (A) Sale of real property. - 
            (i) In general. - (I) Except as provided in clause (ii),
          real property, or any interest therein, shall be sold, after
          the expiration of the 90-day period beginning on the date of
          levy under subsection (d), for cash at public auction at the
          courthouse of the county, parish, or city in which the
          greater part of the property is located or on the premises or
          some parcel thereof.
            (II) The court may order the sale of any real property
          after the expiration of the 30-day period beginning on the
          date of levy under subsection (d) if the court determines
          that such property is likely to perish, waste, be destroyed,
          or otherwise substantially depreciate in value during the 90-
          day period beginning on the date of levy.
            (III) The time and place of sale of real property, or any
          interest therein, under execution shall be advertised by the
          United States marshal, by publication of notice, once a week
          for at least 3 weeks prior to the sale, in at least one
          newspaper of general circulation in the county or parish
          where the property is located. The first publication shall
          appear not less than 25 days preceding the day of sale. The
          notice shall contain a statement of the authority by which
          the sale is to be made, the time of levy, the time and place
          of sale, and a brief description of the property to be sold,
          sufficient to identify the property (such as a street address
          for urban property and the survey identification and location
          for rural property), but it shall not be necessary for the
          notice to contain field notes. Such property shall be open
          for inspection and appraisal, subject to the judgment
          debtor's reasonable objections, for a reasonable period
          before the day of sale.
            (IV) The United States marshal shall serve written notice
          of public sale by personal delivery, or certified or
          registered mail, to each person whom the marshal has
          reasonable cause to believe, after a title search is
          conducted by the United States, has an interest in property
          under execution, including lienholders, co-owners, and
          tenants, at least 25 days before the day of sale, to the last
          known address of each such person.
            (ii) Sale of city lots. - If the real property consists of
          several lots, tracts, or parcels in a city or town, each lot,
          tract, or parcel shall be offered for sale separately, unless
          not susceptible to separate sale because of the character of
          improvements.
            (iii) Sale of rural property. - If the real property is not
          located in a city or town, the judgment debtor may - 
              (I) divide the property into lots of not less than 50
            acres or in such greater or lesser amounts as ordered by
            the court;
              (II) furnish a survey of such prepared by a registered
            surveyor; and
              (III) designate the order in which those lots shall be
            sold.

          When a sufficient number of lots are sold to satisfy the
          amount of the execution and costs of sale, the marshal shall
          stop the sale.

          (B) Sale of personal property. - (i) Personal property levied
        on shall be offered for sale on the premises where it is
        located at the time of levy, at the courthouse of the county,
        parish or city wherein it is located, or at another location if
        ordered by the court. Personal property susceptible of being
        exhibited shall not be sold unless it is present and subject to
        the view of those attending the sale unless - 
            (I) the property consists of shares of stock in
          corporations;
            (II) by reason of the nature of the property, it is
          impractical to exhibit it; or
            (III) the debtor's interest in the property does not
          include the right to the exclusive possession.

          (ii)(I) Except as provided in subclause (II), personal
        property, or any interest therein, shall be sold after the
        expiration of the 30-day period beginning on the date of levy
        under subsection (d).
          (II) The court may order the sale of any personal property
        before the expiration of such 30-day period if the court
        determines that such property is likely to perish, waste, be
        destroyed, or otherwise substantially depreciate in value
        during such 30-day period.
          (iii) Notice of the time and place of the sale of personal
        property shall be given by the United States marshal by posting
        notice thereof for not less than 10 days successively
        immediately before the day of sale at the courthouse of any
        county, parish, or city, and at the place where the sale is to
        be made.
          (iv) The United States marshal shall serve written notice of
        public sale by personal delivery, or registered or certified
        mail at their last known addresses, on the judgment debtor and
        other persons who the marshal has reasonable cause to believe,
        after diligent inquiry, have a substantial interest in the
        property.

        (2) Postponement of sale. - The United States marshal may
      postpone an execution sale from time to time by continuing the
      required posting or publication of notice until the date to which
      the sale is postponed, and appending, at the foot of each such
      notice of a current copy of the following:
        "The above sale is postponed until the        day of          ,
      19  , at    o'clock   .M.,            , United States Marshal for
      the District of            , by                , Deputy, dated   
              ."
        (3) Sale procedures. - 
          (A) Bidding requirements. - A bidder at an execution sale of
        property, may be required by the United States marshal to make
        a cash deposit of as much as 20 percent of the sale price
        proposed before the bid is accepted.
          (B) Resale of property. - If the terms of the sale are not
        complied with by the successful bidder, the United States
        marshal shall proceed to sell the property again on the same
        day if there is sufficient time. If there is insufficient time,
        the marshal shall schedule and notice a subsequent sale of the
        property as provided in paragraphs (1) and (2).

        (4) Rights and liabilities of purchasers. - 
          (A) Transfer of title after sale. - 
            (i) If property is sold under this subsection and the
          successful bidder complies with the terms of the sale, the
          United States marshal shall execute and deliver all documents
          necessary to transfer to the successful bidder, without
          warranty, all the rights, titles, interests, and claims of
          the judgment debtor in the property.
            (ii) If the successful bidder dies before execution and
          delivery of the documents needed to transfer ownership, the
          United States marshal shall execute and deliver them to the
          successful bidder's estate. Such delivery to the estate shall
          have the same effect as if accomplished during the lifetime
          of the purchaser.

          (B) Purchaser considered innocent purchaser without notice. -
        The purchaser of property sold under execution shall be deemed
        to be an innocent purchaser without notice if the purchaser
        would have been considered an innocent purchaser without notice
        had the sale been made voluntarily and in person by the
        judgment debtor.
          (C) Liability of successful bidder who fails to comply. - A
        successful bidder at an execution sale who fails to comply with
        the terms of the sale shall forfeit to the United States the
        cash deposit or, at the election of the United States, shall be
        liable to the United States, on a subsequent sale of the
        property, for all net losses incurred by the United States as a
        result of such failure.

      (h) Disposition of Proceeds; Further Levy. - 
        (1) Distribution of sale proceeds. - (A) The United States
      marshal shall first deliver to the judgment debtor such amounts
      to which the judgment debtor is entitled from the sale of
      partially exempt property.
        (B) The United States marshal shall next deduct from the
      proceeds of an execution sale of property an amount equal to the
      reasonable expenses incurred in making the levy of execution and
      in keeping and maintaining the property.
        (C) Except as provided in subparagraph (D), the United States
      marshal shall deliver the balance of the proceeds to the counsel
      for the United States as soon as practicable.
        (D) If more proceeds are received from the execution sale than
      is necessary to satisfy the executions held by the United States
      marshal, the marshal shall pay the surplus to the judgment
      debtor.
        (2) Further levy if execution not satisfied. - If the proceeds
      of the execution sale of the property levied on are insufficient
      to satisfy the execution, the United States marshal shall proceed
      on the same writ of execution to levy other property of the
      judgment debtor.

-SOURCE-
    (Added Pub. L. 101-647, title XXXVI, Sec. 3611, Nov. 29, 1990, 104
    Stat. 4950.)

-FOOTNOTE-
    (!1) So in original. The word "property" probably should not appear.

-End-

-CITE-
    28 USC Sec. 3204                                            01/03/2007

-EXPCITE-
    TITLE 28 - JUDICIARY AND JUDICIAL PROCEDURE
    PART VI - PARTICULAR PROCEEDINGS
    CHAPTER 176 - FEDERAL DEBT COLLECTION PROCEDURE
    SUBCHAPTER C - POSTJUDGMENT REMEDIES

-HEAD-
    Sec. 3204. Installment payment order

-STATUTE-
      (a) Authority To Issue Order. - Subject to subsection (c), if it
    is shown that the judgment debtor - 
        (1) is receiving or will receive substantial nonexempt
      disposable earnings from self employment that are not subject to
      garnishment; or
        (2) is diverting or concealing substantial earnings from any
      source, or property received in lieu of earnings;

    then upon motion of the United States and notice to the judgment
    debtor, the court may, if appropriate, order that the judgment
    debtor make specified installment payments to the United States.
    Notice of the motion shall be served on the judgment debtor in the
    same manner as a summons or by registered or certified mail, return
    receipt requested. In fixing the amount of the payments, the court
    shall take into consideration after a hearing, the income,
    resources, and reasonable requirements of the judgment debtor and
    the judgment debtor's dependents, any other payments to be made in
    satisfaction of judgments against the judgment debtor, and the
    amount due on the judgment in favor of the United States.
      (b) Modification of Order. - On motion of the United States or
    the judgment debtor, and upon a showing that the judgment debtor's
    financial circumstances have changed or that assets not previously
    disclosed by the judgment debtor have been discovered, the court
    may modify the amount of payments, alter their frequency, or
    require full payment.
      (c) Limitation. - (1) An order may not be issued under subsection
    (a), and if so issued shall have no force or effect, against a
    judgment debtor with respect to whom there is in effect a writ of
    garnishment of earnings issued under this chapter and based on the
    same debt.
      (2) An order may not be issued under subsection (a) with respect
    to any earnings of the debtor except nonexempt disposable earnings.

-SOURCE-
    (Added Pub. L. 101-647, title XXXVI, Sec. 3611, Nov. 29, 1990, 104
    Stat. 4955.)

-End-

-CITE-
    28 USC Sec. 3205                                            01/03/2007

-EXPCITE-
    TITLE 28 - JUDICIARY AND JUDICIAL PROCEDURE
    PART VI - PARTICULAR PROCEEDINGS
    CHAPTER 176 - FEDERAL DEBT COLLECTION PROCEDURE
    SUBCHAPTER C - POSTJUDGMENT REMEDIES

-HEAD-
    Sec. 3205. Garnishment

-STATUTE-
      (a) In General. - A court may issue a writ of garnishment against
    property (including nonexempt disposable earnings) in which the
    debtor has a substantial nonexempt interest and which is in the
    possession, custody, or control of a person other than the debtor,
    in order to satisfy the judgment against the debtor. Co-owned
    property shall be subject to garnishment to the same extent as co-
    owned property is subject to garnishment under the law of the
    State in which such property is located. A court may issue
    simultaneous separate writs of garnishment to several garnishees. A
    writ of garnishment issued under this subsection shall be
    continuing and shall terminate only as provided in subsection
    (c)(10).
      (b) Writ. - 
        (1) General requirements. - The United States shall include in
      its application for a writ of garnishment - 
          (A) the judgment debtor's name, social security number (if
        known), and last known address;
          (B) the nature and amount of the debt owed and the facts that
        not less than 30 days has elapsed since demand on the debtor
        for payment of the debt was made and the judgment debtor has
        not paid the amount due; and
          (C) that the garnishee is believed to have possession of
        property (including nonexempt disposable earnings) in which the
        debtor has a substantial nonexempt interest.

        (2) Proper garnishee for particular property. - 
          (A) If the property consists of a right to or share in the
        stock of an association or corporation, or interests or profits
        therein, for which a certificate of stock or other negotiable
        instrument is not outstanding, the corporation, or the
        president or treasurer of the association shall be the
        garnishee.
          (B) If the property consists of an interest in a partnership
        interest, any partner other than the debtor shall be the
        garnishee on behalf of the partnership.
          (C) If the property or a debt is evidenced by a negotiable
        instrument for the payment of money, a negotiable document of
        title or a certificate of stock of an association or
        corporation, the instrument, document, or certificate shall be
        treated as property capable of delivery and the person holding
        it shall be the garnishee, except that - 
            (i) subject to clause (ii), in the case of a security which
          is transferable in the manner set forth in State law, the
          entity that carries on its books an account in the name of
          the debtor in which is reflected such security shall be the
          garnishee; and
            (ii) notwithstanding clause (i), the pledgee shall be the
          garnishee if such security is pledged.

      (c) Procedures Applicable to Writ. - 
        (1) Court determination. - If the court determines that the
      requirements of this section are satisfied, the court shall issue
      an appropriate writ of garnishment.
        (2) Form of writ. - The writ shall state - 
          (A) The nature and amount of the debt, and any cost and
        interest owed with respect to the debt.
          (B) The name and address of the garnishee.
          (C) The name and address of counsel for the United States.
          (D) The last known address of the judgment debtor.
          (E) That the garnishee shall answer the writ within 10 days
        of service of the writ.
          (F) That the garnishee shall withhold and retain any property
        in which the debtor has a substantial nonexempt interest and
        for which the garnishee is or may become indebted to the
        judgment debtor pending further order of the court.

        (3) Service of writ. - The United States shall serve the
      garnishee and the judgment debtor with a copy of the writ of
      garnishment and shall certify to the court that this service was
      made. The writ shall be accompanied by - 
          (A) an instruction explaining the requirement that the
        garnishee submit a written answer to the writ; and
          (B) instructions to the judgment debtor for objecting to the
        answer of the garnishee and for obtaining a hearing on the
        objections.

        (4) Answer of the garnishee. - In its written answer to the
      writ of garnishment, the garnishee shall state under oath - 
          (A) whether the garnishee has custody, control or possession
        of such property;
          (B) a description of such property and the value of such
        interest;
          (C) a description of any previous garnishments to which such
        property is subject and the extent to which any remaining
        property is not exempt; and
          (D) the amount of the debt the garnishee anticipates owing to
        the judgment debtor in the future and whether the period for
        payment will be weekly or another specified period.

      The garnishee shall file the original answer with the court
      issuing the writ and serve a copy on the debtor and counsel for
      the United States.
        (5) Objections to answer. - Within 20 days after receipt of the
      answer, the judgment debtor or the United States may file a
      written objection to the answer and request a hearing. The party
      objecting shall state the grounds for the objection and bear the
      burden of proving such grounds. A copy of the objection and
      request for a hearing shall be served on the garnishee and all
      other parties. The court shall hold a hearing within 10 days
      after the date the request is received by the court, or as soon
      thereafter as is practicable, and give notice of the hearing date
      to all the parties.
        (6) Garnishee's failure to answer or pay. - If a garnishee
      fails to answer the writ of garnishment or to withhold property
      in accordance with the writ, the United States may petition the
      court for an order requiring the garnishee to appear before the
      court to answer the writ and to so withhold property before the
      appearance date. If the garnishee fails to appear, or appears and
      fails to show good cause why the garnishee failed to comply with
      the writ, the court shall enter judgment against the garnishee
      for the value of the judgment debtor's nonexempt interest in such
      property (including nonexempt disposable earnings). The court may
      award a reasonable attorney's fee to the United States and
      against the garnishee if the writ is not answered within the time
      specified therein and a petition requiring the garnishee to
      appear is filed as provided in this section.
        (7) Disposition order. - After the garnishee files an answer
      and if no hearing is requested within the required time period,
      the court shall promptly enter an order directing the garnishee
      as to the disposition of the judgment debtor's nonexempt interest
      in such property. If a hearing is timely requested, the order
      shall be entered within 5 days after the hearing, or as soon
      thereafter as is practicable.
        (8) Priorities. - Judicial orders and garnishments for the
      support of a person shall have priority over a writ of
      garnishment issued under this section. As to any other writ of
      garnishment or levy, a garnishment issued under this section
      shall have priority over writs which are issued later in time.
        (9) Accounting. - (A) While a writ of garnishment is in effect
      under this section, the United States shall give an annual
      accounting on the garnishment to the judgment debtor and the
      garnishee.
        (B) Within 10 days after the garnishment terminates, the United
      States shall give a cumulative written accounting to the judgment
      debtor and garnishee of all property it receives under a writ of
      garnishment. Within 10 days after such accounting is received,
      the judgment debtor or garnishee may file a written objection to
      the accounting and a request for hearing. The party objecting
      shall state grounds for the objection. The court shall hold a
      hearing on the objection within 10 days after the court receives
      the request for a hearing, or as soon thereafter as is
      practicable.
        (10) Termination of garnishment. - A garnishment under this
      chapter is terminated only by - 
          (A) a court order quashing the writ of garnishment;
          (B) exhaustion of property in the possesion,(!1) custody, or
        control of the garnishee in which the debtor has a substantial
        nonexempt interest (including nonexempt disposable earnings),
        unless the garnishee reinstates or reemploys the judgment
        debtor within 90 days after the judgment debtor's dismissal or
        resignation; or

          (C) satisfaction of the debt with respect to which the writ
        is issued.

-SOURCE-
    (Added Pub. L. 101-647, title XXXVI, Sec. 3611, Nov. 29, 1990, 104
    Stat. 4956.)

-FOOTNOTE-
    (!1) So in original. Probably should be "possession,".

-End-

-CITE-
    28 USC Sec. 3206                                            01/03/2007

-EXPCITE-
    TITLE 28 - JUDICIARY AND JUDICIAL PROCEDURE
    PART VI - PARTICULAR PROCEEDINGS
    CHAPTER 176 - FEDERAL DEBT COLLECTION PROCEDURE
    SUBCHAPTER C - POSTJUDGMENT REMEDIES

-HEAD-
    Sec. 3206. Discharge

-STATUTE-
      A person who pursuant to an execution or order issued under this
    chapter by a court pays or delivers to the United States, a United
    States marshal, or a receiver, money or other personal property in
    which a judgment debtor has or will have an interest, or so pays a
    debt such person owes the judgment debtor, is discharged from such
    debt to the judgment debtor to the extent of the payment or
    delivery.

-SOURCE-
    (Added Pub. L. 101-647, title XXXVI, Sec. 3611, Nov. 29, 1990, 104
    Stat. 4959.)

-End-

-CITE-
    28 USC SUBCHAPTER D - FRAUDULENT TRANSFERS INVOLVING
           DEBTS                                           01/03/2007

-EXPCITE-
    TITLE 28 - JUDICIARY AND JUDICIAL PROCEDURE
    PART VI - PARTICULAR PROCEEDINGS
    CHAPTER 176 - FEDERAL DEBT COLLECTION PROCEDURE
    SUBCHAPTER D - FRAUDULENT TRANSFERS INVOLVING DEBTS

-HEAD-
            SUBCHAPTER D - FRAUDULENT TRANSFERS INVOLVING DEBTS        

-MISC1-
    Sec.                                                     
    3301.       Definitions.                                          
    3302.       Insolvency.                                           
    3303.       Value for a transfer or obligation.(!1)                
    3304.       Transfer fraudulent as to a debt to the United States.
    3305.       When transfer is made or obligation is incurred.      
    3306.       Remedies of the United States.                        
    3307.       Defenses, liability and protection of transferee.(!1) 
    3308.       Supplementary provision.                              

-FOOTNOTE-
    (!1) So in original. Does not conform to section catchline.

-End-

-CITE-
    28 USC Sec. 3301                                            01/03/2007

-EXPCITE-
    TITLE 28 - JUDICIARY AND JUDICIAL PROCEDURE
    PART VI - PARTICULAR PROCEEDINGS
    CHAPTER 176 - FEDERAL DEBT COLLECTION PROCEDURE
    SUBCHAPTER D - FRAUDULENT TRANSFERS INVOLVING DEBTS

-HEAD-
    Sec. 3301. Definitions

-STATUTE-
      As used in this subchapter:
        (1) "Affiliate" means - 
          (A) a person who directly or indirectly owns, controls, or
        holds with power to vote, 20 percent or more of the outstanding
        voting securities of the debtor, other than a person who holds
        the securities - 
            (i) as a fiduciary or agent without sole discretionary
          power to vote the securities; or
            (ii) solely to secure a debt, if the person has not
          exercised the power to vote;

          (B) a corporation 20 percent or more of whose outstanding
        voting securities are directly or indirectly owned, controlled,
        or held with power to vote, by the debtor or a person who
        directly or indirectly owns, controls, or holds with power to
        vote, 20 percent or more of the outstanding voting securities
        of the debtor, other than the person who holds securities - 
            (i) as a fiduciary or agent without sole power to vote the
          securities; or
            (ii) solely to secure a debt, if the person has not in fact
          exercised the power to vote;

          (C) a person whose business is operated by the debtor under a
        lease or other agreement, or a person substantially all of
        whose assets are controlled by the debtor; or
          (D) a person who operates the debtor's business under a lease
        or other agreement or controls substantially all of the
        debtor's assets.

        (2) "Asset" means property of a debtor, but does not include - 
          (A) property to the extent it is encumbered by a valid lien;
          (B) property to the extent it is generally exempt under
        nonbankruptcy law; or
          (C) an interest in real property held in tenancy by the
        entirety, or as part of a community estate, to extent such
        interest is not subject to process by the United States holding
        a claim against only one tenant or co-owner.

        (3) "Claim" means a right to payment, whether or not the right
      is reduced to judgment, liquidated, unliquidated, fixed,
      contingent, matured, unmatured, disputed, undisputed, legal,
      equitable, secured, or unsecured.
        (4) "Creditor" means a person who has a claim.
        (5) "Insider" includes - 
          (A) if the debtor is an individual - 
            (i) a relative of the debtor or of a general partner of the
          debtor;
            (ii) a partnership in which the debtor is a general
          partner;
            (iii) a general partner in a partnership described in
          clause (ii); or
            (iv) a corporation of which the debtor is a director,
          officer, or person in control;

          (B) if the debtor is a corporation - 
            (i) a director of the debtor;
            (ii) an officer of the debtor;
            (iii) a person in control of the debtor;
            (iv) a partnership in which the debtor is a general
          partner;
            (v) a general partner in a partnership described in clause
          (iv); or
            (vi) a relative of a general partner, director, officer, or
          person in control of the debtor;

          (C) if the debtor is a partnership - 
            (i) a general partner in the debtor;
            (ii) a relative of a general partner in, a general partner
          of, or a person in control of the debtor;
            (iii) another partnership in which the debtor is a general
          partner;
            (iv) a general partner in a partnership described in clause
          (iii); or
            (v) a person in control of the debtor.(!1)

          (D) an affiliate, or an insider of an affiliate as if the
        affiliate were the debtor; and
          (E) a managing agent of the debtor.

        (4) (!2) "Lien" means a charge against or an interest in
      property to secure payment of a debt and includes a security
      interest created by agreement, a judicial lien obtained by legal
      or equitable process or proceedings, a common law lien, or a
      statutory lien.

        (5) (!3) "Relative" means an individual related, by
      consanguinity or adoption, within the third degree as determined
      by the common law, a spouse, or an individual so related to a
      spouse within the third degree as so determined.

        (6) (!4) "Transfer" means every mode, direct or indirect,
      absolute or conditional, voluntary or involuntary, of disposing
      of or parting with an asset or an interest in an asset, and
      includes payment of money, release, lease, and creation of a lien
      or other encumbrance.

        (7) (!5) "Valid lien" means a lien that is effective against
      the holder of a judicial lien subsequently obtained in legal or
      equitable proceeding.

-SOURCE-
    (Added Pub. L. 101-647, title XXXVI, Sec. 3611, Nov. 29, 1990, 104
    Stat. 4959.)

-FOOTNOTE-               

    (!1) So in original. The period probably should be a semicolon.

    (!2) So in original. Probably should be "(6)".

    (!3) So in original. Probably should be "(7)".

    (!4) So in original. Probably should be "(8)".

    (!5) So in original. Probably should be "(9)".

-End-

-CITE-
    28 USC Sec. 3302                                            01/03/2007

-EXPCITE-
    TITLE 28 - JUDICIARY AND JUDICIAL PROCEDURE
    PART VI - PARTICULAR PROCEEDINGS
    CHAPTER 176 - FEDERAL DEBT COLLECTION PROCEDURE
    SUBCHAPTER D - FRAUDULENT TRANSFERS INVOLVING DEBTS

-HEAD-
    Sec. 3302. Insolvency

-STATUTE-
      (a) In General. - Except as provided in subsection (c), a debtor
    is insolvent if the sum of the debtor's debts is greater than all
    of the debtor's assets at a fair valuation.
      (b) Presumption. - A debtor who is generally not paying debts as
    they become due is presumed to be insolvent.
      (c) Calculation. - A partnership is insolvent under subsection
    (a) if the sum of the partnership's debts is greater than the
    aggregate, at a fair valuation, of - 
        (1) all of the partnership's assets; and
        (2) the sum of the excess of the value of each general
      partner's non-partnership assets over the partner's non-
      partnership debts.

      (d) Assets. - For purposes of this section, assets do not include
    property that is transferred, concealed, or removed with intent to
    hinder, delay, or defraud creditors or that has been transferred in
    a manner making the transfer voidable under this subchapter.
      (e) Debts. - For purposes of this section, debts do not include
    an obligation to the extent such obligation is secured by a valid
    lien on property of the debtor not included as an asset.

-SOURCE-
    (Added Pub. L. 101-647, title XXXVI, Sec. 3611, Nov. 29, 1990, 104
    Stat. 4961.)

-End-

-CITE-
    28 USC Sec. 3303                                            01/03/2007

-EXPCITE-
    TITLE 28 - JUDICIARY AND JUDICIAL PROCEDURE
    PART VI - PARTICULAR PROCEEDINGS
    CHAPTER 176 - FEDERAL DEBT COLLECTION PROCEDURE
    SUBCHAPTER D - FRAUDULENT TRANSFERS INVOLVING DEBTS

-HEAD-
    Sec. 3303. Value for transfer or obligation

-STATUTE-
      (a) Transaction. - Value is given for a transfer or an obligation
    if, in exchange for the transfer or obligation, property is
    transferred or an antecedent debt is secured or satisfied, but
    value does not include an unperformed promise made otherwise than
    in the ordinary course of the promisor's business to furnish
    support to the debtor or another person.
      (b) Reasonably Equivalent Value. - For the purposes of sections
    3304 and 3307, a person gives a reasonably equivalent value if the
    person acquires an interest of the debtor in an asset pursuant to a
    regularly conducted, noncollusive foreclosure sale or execution of
    a power of sale for the acquisition or disposition of such interest
    upon default under a mortgage, deed of trust, or security
    agreement.
      (c) Present Value. - A transfer is made for present value if the
    exchange between the debtor and the transferee is intended by them
    to be contemporaneous and is in fact substantially contemporaneous.

-SOURCE-
    (Added Pub. L. 101-647, title XXXVI, Sec. 3611, Nov. 29, 1990, 104
    Stat. 4961.)

-End-

-CITE-
    28 USC Sec. 3304                                            01/03/2007

-EXPCITE-
    TITLE 28 - JUDICIARY AND JUDICIAL PROCEDURE
    PART VI - PARTICULAR PROCEEDINGS
    CHAPTER 176 - FEDERAL DEBT COLLECTION PROCEDURE
    SUBCHAPTER D - FRAUDULENT TRANSFERS INVOLVING DEBTS

-HEAD-
    Sec. 3304. Transfer fraudulent as to a debt to the United States

-STATUTE-
      (a) Debt Arising Before Transfer. - Except as provided in section
    3307, a transfer made or obligation incurred by a debtor is
    fraudulent as to a debt to the United States which arises before
    the transfer is made or the obligation is incurred if - 
        (1)(A) the debtor makes the transfer or incurs the obligation
      without receiving a reasonably equivalent value in exchange for
      the transfer or obligation; and
        (B) the debtor is insolvent at that time or the debtor becomes
      insolvent as a result of the transfer or obligation; or
        (2)(A) the transfer was made to an insider for an antecedent
      debt, the debtor was insolvent at the time; and
        (B) the insider had reasonable cause to believe that the debtor
      was insolvent.

      (b) Transfers Without Regard to Date of Judgment. - (1) Except as
    provided in section 3307, a transfer made or obligation incurred by
    a debtor is fraudulent as to a debt to the United States, whether
    such debt arises before or after the transfer is made or the
    obligation is incurred, if the debtor makes the transfer or incurs
    the obligation - 
        (A) with actual intent to hinder, delay, or defraud a creditor;
      or
        (B) without receiving a reasonably equivalent value in exchange
      for the transfer or obligation if the debtor - 
          (i) was engaged or was about to engage in a business or a
        transaction for which the remaining assets of the debtor were
        unreasonably small in relation to the business or transaction;
        or
          (ii) intended to incur, or believed or reasonably should have
        believed that he would incur, debts beyond his ability to pay
        as they became due.

      (2) In determining actual intent under paragraph (1),
    consideration may be given, among other factors, to whether - 
        (A) the transfer or obligation was to an insider;
        (B) the debtor retained possession or control of the property
      transferred after the transfer;
        (C) the transfer or obligation was disclosed or concealed;
        (D) before the transfer was made or obligation was incurred,
      the debtor had been sued or threatened with suit;
        (E) the transfer was of substantially all the debtor's assets;
        (F) the debtor absconded;
        (G) the debtor removed or concealed assets;
        (H) the value of the consideration received by the debtor was
      reasonably equivalent to the value of the asset transferred or
      the amount of the obligation incurred;
        (I) the debtor was insolvent or became insolvent shortly after
      the transfer was made or the obligation was incurred;
        (J) the transfer occurred shortly before or shortly after a
      substantial debt was incurred; and
        (K) the debtor transferred the essential assets of the business
      to a lienor who transferred the assets to an insider of the
      debtor.

-SOURCE-
    (Added Pub. L. 101-647, title XXXVI, Sec. 3611, Nov. 29, 1990, 104
    Stat. 4961.)

-End-

-CITE-
    28 USC Sec. 3305                                            01/03/2007

-EXPCITE-
    TITLE 28 - JUDICIARY AND JUDICIAL PROCEDURE
    PART VI - PARTICULAR PROCEEDINGS
    CHAPTER 176 - FEDERAL DEBT COLLECTION PROCEDURE
    SUBCHAPTER D - FRAUDULENT TRANSFERS INVOLVING DEBTS

-HEAD-
    Sec. 3305. When transfer is made or obligation is incurred

-STATUTE-
      For the purposes of this subchapter:
        (1) A transfer is made - 
          (A) with respect to an asset that is real property (other
        than a fixture, but including the interest of a seller or
        purchaser under a contract for the sale of the asset), when the
        transfer is so far perfected that a good-faith purchaser of the
        asset from the debtor against whom applicable law permits the
        transfer to be perfected cannot acquire an interest in the
        asset that is superior to the interest of the transferee; and
          (B) with respect to an asset that is not real property or
        that is a fixture, when the transfer is so far perfected that a
        creditor on a simple contract cannot acquire, otherwise than
        under this subchapter, a judicial lien that is superior to the
        interest of the transferee.

        (2) If applicable law permits the transfer to be perfected as
      approved in paragraph (1) and the transfer is not so perfected
      before the commencement of an action or proceeding for relief
      under this subchapter, the transfer is deemed made immediately
      before the commencement of the action or proceeding.
        (3) If applicable law does not permit the transfer to be
      perfected as provided in paragraph (1), the transfer is made when
      it becomes effective between the debtor and the transferee.
        (4) A transfer is not made until the debtor has acquired rights
      in the asset transferred.
        (5) An obligation is incurred - 
          (A) if oral, when it becomes effective between the parties;
        or
          (B) if evidenced by a writing executed by the obligor, when
        such writing is delivered to or for the benefit of the obligee.

-SOURCE-
    (Added Pub. L. 101-647, title XXXVI, Sec. 3611, Nov. 29, 1990, 104
    Stat. 4962.)

-End-

-CITE-
    28 USC Sec. 3306                                            01/03/2007

-EXPCITE-
    TITLE 28 - JUDICIARY AND JUDICIAL PROCEDURE
    PART VI - PARTICULAR PROCEEDINGS
    CHAPTER 176 - FEDERAL DEBT COLLECTION PROCEDURE
    SUBCHAPTER D - FRAUDULENT TRANSFERS INVOLVING DEBTS

-HEAD-
    Sec. 3306. Remedies of the United States

-STATUTE-
      (a) In General. - In an action or proceeding under this
    subchapter for relief against a transfer or obligation, the United
    States, subject to section 3307 and to applicable principles of
    equity and in accordance with the Federal Rules of Civil Procedure,
    may obtain - 
        (1) avoidance of the transfer or obligation to the extent
      necessary to satisfy the debt to the United States;
        (2) a remedy under this chapter against the asset transferred
      or other property of the transferee; or
        (3) any other relief the circumstances may require.

      (b) Limitation. - A claim for relief with respect to a fraudulent
    transfer or obligation under this subchapter is extinguished unless
    action is brought - 
        (1) under section 3304(b)(1)(A) within 6 years after the
      transfer was made or the obligation was incurred or, if later,
      within 2 years after the transfer or obligation was or could
      reasonably have been discovered by the claimant;
        (2) under subsection (a)(1) or (b)(1)(B) of section 3304 within
      6 years after the transfer was made or the obligation was
      incurred; or
        (3) under section 3304(a)(2) within 2 years after the transfer
      was made or the obligation was incurred.

-SOURCE-
    (Added Pub. L. 101-647, title XXXVI, Sec. 3611, Nov. 29, 1990, 104
    Stat. 4963.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      The Federal Rules of Civil Procedure, referred to in subsec. (a),
    are set out in the Appendix to this title.

-End-

-CITE-
    28 USC Sec. 3307                                            01/03/2007

-EXPCITE-
    TITLE 28 - JUDICIARY AND JUDICIAL PROCEDURE
    PART VI - PARTICULAR PROCEEDINGS
    CHAPTER 176 - FEDERAL DEBT COLLECTION PROCEDURE
    SUBCHAPTER D - FRAUDULENT TRANSFERS INVOLVING DEBTS

-HEAD-
    Sec. 3307. Defenses, liability, and protection of transferee

-STATUTE-
      (a) Good Faith Transfer. - A transfer or obligation is not
    voidable under section 3304(b) with respect to a person who took in
    good faith and for a reasonably equivalent value or against any
    transferee or obligee subsequent to such person.
      (b) Limitation. - Except as provided in subsection (d), to the
    extent a transfer is voidable in an action or proceeding by the
    United States under section 3306(a)(1), the United States may
    recover judgment for the value of the asset transferred, but not to
    exceed the judgment on a debt. The judgment may be entered against -
     
        (1) the first transferee of the asset or the person for whose
      benefit the transfer was made; or
        (2) any subsequent transferee, other than a good faith
      transferee who took for value or any subsequent transferee of
      such good-faith transferee.

      (c) Value of Asset. - For purposes of subsection (b), the value
    of the asset is the value of the asset at the time of the transfer,
    subject to adjustment as the equities may require.
      (d) Rights of Good Faith Transferees and Obligees. -
    Notwithstanding voidability of a transfer or an obligation under
    this subchapter, a good-faith transferee or obligee is entitled, to
    the extent of the value given the debtor for the transfer or
    obligation, to - 
        (1) a lien on or a right to retain any interest in the asset
      transferred;
        (2) enforcement of any obligation incurred; or
        (3) a reduction in the amount of the liability on the judgment.

      (e) Exceptions. - A transfer is not voidable under section
    3304(a) or section 3304(b)(2) if the transfer results from - 
        (1) termination of a lease upon default by the debtor when the
      termination is pursuant to the lease and applicable law; or
        (2) enforcement of a security interest in compliance with
      article 9 of the Uniform Commercial Code or its equivalent in
      effect in the State where the property is located.

      (f) Limitation of Voidability. - A transfer is not voidable under
    section 3304(a)(2) - 
        (1) to the extent the insider gives new value to or for the
      benefit of the debtor after the transfer is made unless the new
      value is secured by a valid lien;
        (2) if made in the ordinary course of business or financial
      affairs of the debtor and the insider; or
        (3) if made pursuant to a good-faith effort to rehabilitate the
      debtor and the transfer secured both present value given for that
      purpose and an antecedent debt of the debtor.

-SOURCE-
    (Added Pub. L. 101-647, title XXXVI, Sec. 3611, Nov. 29, 1990, 104
    Stat. 4963.)

-End-

-CITE-
    28 USC Sec. 3308                                            01/03/2007

-EXPCITE-
    TITLE 28 - JUDICIARY AND JUDICIAL PROCEDURE
    PART VI - PARTICULAR PROCEEDINGS
    CHAPTER 176 - FEDERAL DEBT COLLECTION PROCEDURE
    SUBCHAPTER D - FRAUDULENT TRANSFERS INVOLVING DEBTS

-HEAD-
    Sec. 3308. Supplementary provision

-STATUTE-
      Except as provided in this subchapter, the principles of law and
    equity, including the law merchant and the law relating to
    principal and agent, estoppel, laches, fraud, misrepresentation,
    duress, coercion, mistake, insolvency, or other validating or
    invalidating cause shall apply to actions and proceedings under
    this subchapter.

-SOURCE-
    (Added Pub. L. 101-647, title XXXVI, Sec. 3611, Nov. 29, 1990, 104
    Stat. 4964.)

-End-