§ 1367 TITLE 29—LABOR Page 540

1So in original. Probably should be followed by a period.

§ 1367. Recovery of liability for plan termination

The corporation is authorized to make arrangements with contributing sponsors and

members of their controlled groups who are or

may become liable under section 1362, 1363, or

1364 of this title for payment of their liability,

including arrangements for deferred payment of

amounts of liability to the corporation accruing

as of the termination date on such terms and for

such periods as the corporation deems equitable

and appropriate.

(Pub. L. 93–406, title IV, §4067, Sept. 2, 1974, 88

Stat. 1032; Pub. L. 99–272, title XI,

§11016(a)(6)(A), Apr. 7, 1986, 100 Stat. 271; Pub. L.

100–203, title IX, §9313(b)(6), Dec. 22, 1987, 101

Stat. 1330–366; Pub. L. 101–239, title VII,

§7893(g)(3), Dec. 19, 1989, 103 Stat. 2448.)

AMENDMENTS

1989—Pub. L. 101–239 amended directory language of

Pub. L. 99–272, §11016(a)(6)(A)(ii), see 1986 Amendment

note below.

1987—Pub. L. 100–203 inserted ‘‘or may become’’ after

‘‘who are’’.

1986—Pub. L. 99–272, §11016(a)(6)(A)(i), (iii), substituted ‘‘of liability’’ for ‘‘of employer liability’’ in

section catchline and inserted ‘‘of amounts of liability

to the corporation accruing as of the termination date’’

in text.

Pub. L. 99–272, §11016(a)(6)(A)(ii), as amended by Pub.

L. 101–239, substituted ‘‘contributing sponsors and

members of their controlled groups’’ for ‘‘employers’’.

EFFECTIVE DATE OF 1989 AMENDMENT

Amendment by Pub. L. 101–239 effective as if included

in the provision of the Single-Employer Pension Plan

Amendments Act of 1986, Pub. L. 99–272, title XI, to

which such amendment relates, see section 7893(h) of

Pub. L. 101–239, set out as a note under section 1002 of

this title.

EFFECTIVE DATE OF 1987 AMENDMENT

Amendment by Pub. L. 100–203 applicable with respect to plan terminations under section 1341 of this

title with respect to which notices of intent to terminate are provided under section 1341(a)(2) of this title

after Dec. 17, 1987, see section 9313(c) of Pub. L. 100–203,

set out as a note under section 1301 of this title.

EFFECTIVE DATE OF 1986 AMENDMENT

Amendment by Pub. L. 99–272 effective Jan. 1, 1986,

with certain exceptions, see section 11019 of Pub. L.

99–272, set out as a note under section 1341 of this title.

§ 1368. Lien for liability

(a) Creation of lien

If any person liable to the corporation under

section 1362, 1363, or 1364 of this title neglects or

refuses to pay, after demand, the amount of such

liability (including interest), there shall be a

lien in favor of the corporation in the amount of

such liability (including interest) upon all property and rights to property, whether real or personal, belonging to such person, except that

such lien may not be in an amount in excess of

30 percent of the collective net worth of all persons described in section 1362(a) of this title 1

(b) Term of lien

The lien imposed by subsection (a) of this section arises on the date of termination of a plan,

and continues until the liability imposed under

section 1362, 1363, or 1364 of this title is satisfied

or becomes unenforceable by reason of lapse of

time.

(c) Priority

(1) Except as otherwise provided under this

section, the priority of a lien imposed under subsection (a) of this section shall be determined in

the same manner as under section 6323 of title 26

(as in effect on April 7, 1986). Such section 6323

shall be applied for purposes of this section by

disregarding subsection (g)(4) and by substituting—

(A) ‘‘lien imposed by section 4068 of the Employee Retirement Income Security Act of 1974

[29 U.S.C. 1368]’’ for ‘‘lien imposed by section

6321’’ each place it appears in subsections (a),

(b), (c)(1), (c)(4)(B), (d), (e), and (h)(5);

(B) ‘‘the corporation’’ for ‘‘the Secretary’’ in

subsections (a) and (b)(9)(C);

(C) ‘‘the payment of the amount on which

the section 4068(a) lien is based’’ for ‘‘the collection of any tax under this title’’ in subsection (b)(3);

(D) ‘‘a person whose property is subject to

the lien’’ for ‘‘the taxpayer’’ in subsections

(b)(8), (c)(2)(A)(i) (the first place it appears),

(c)(2)(A)(ii), (c)(2)(B), (c)(4)(B), and (c)(4)(C) (in

the matter preceding clause (i));

(E) ‘‘such person’’ for ‘‘the taxpayer’’ in subsections (c)(2)(A)(i) (the second place it appears) and (c)(4)(C)(ii);

(F) ‘‘payment of the loan value of the

amount on which the lien is based is made to

the corporation’’ for ‘‘satisfaction of a levy

pursuant to section 6332(b)’’ in subsection

(b)(9)(C);

(G) ‘‘section 4068(a) lien’’ for ‘‘tax lien’’ each

place it appears in subsections (c)(1), (c)(2)(A),

(c)(2)(B), (c)(3)(B)(iii), (c)(4)(B), (d), and (h)(5);

and

(H) ‘‘the date on which the lien is first filed’’

for ‘‘the date of the assessment of the tax’’ in

subsection (g)(3)(A).

(2) In a case under title 11 or in insolvency

proceedings, the lien imposed under subsection

(a) of this section shall be treated in the same

manner as a tax due and owing to the United

States for purposes of title 11 or section 3713 of

title 31.

(3) For purposes of applying section 6323(a) of

title 26 to determine the priority between the

lien imposed under subsection (a) of this section

and a Federal tax lien, each lien shall be treated

as a judgment lien arising as of the time notice

of such lien is filed.

(4) For purposes of this subsection, notice of

the lien imposed by subsection (a) of this section

shall be filed in the same manner as under section 6323(f) and (g) of title 26.

(d) Civil action; limitation period

(1) In any case where there has been a refusal

or neglect to pay the liability imposed under

section 1362, 1363, or 1364 of this title, the corporation may bring civil action in a district

court of the United States to enforce the lien of

the corporation under this section with respect

to such liability or to subject any property, of

whatever nature, of the liable person, or in