Document: 347 U.S. 81 74 S.Ct. 367 98 L.Ed. 520 UNITED STATESv.CITY OF NEW BRITAIN, CONN., et al. No. 92. Argued Dec. 1, 1953. Decided Feb. 1954. Mr. Marvin E. Frankel, Washington, D.C., for petitioner. Frank R. Kennedy, Iowa City, Iowa, respondent. Justice MINTON delivered the opinion of Court. 1 The question presented by this writ involves relative priority statutory federal and municipal liens to proceeds a mortgage foreclosure sale property which attached. 2 Two mortgages on real corporation located in City New Britain, Connecticut, were foreclosed judgment Superior Court Hartford County, gross sum $28,071.24 was realized. Against fund, there claims some $31,000, including expenses sale, two mortgages, record, various asserted United States. liens, securing unpaid withholding unemployment taxes insurance contributions totaling $8,475.13, created § 3670 Internal Revenue Code.1 They arose at times assessment lists received office Collector Connecticut2 dates between April 26, 1948, September 21, 1950. City's attached specific estate sold total $3,587.71, are delinquent real-estate water rent. became due 1947 through 1951, attaching each case as October or other date prior year;3 water-rent upon failure pay4 from December 1947, June 1951. 3 A Connecticut statute provides that tax 'shall take precedence all transfers incumbrances' any manner affecting subject line.5 Another state law gives 'precedence over incumbrances except taxes' liens.6 funds available distribution being insufficient pay claimants full, directed expenses, lien, States' be paid order. States appealed insofar given those Supreme Errors affirmed, Brown v. General Laundry Service, 139 Conn. 363, 94 A.2d 10, we granted certiorari, 346 809, 27. 4 We here dealing with several owned Federal Government, estate. stated perfected. Such characterization lien State is not, course, conclusive against Government. Security Trust & Savings Bank, 340 47, 49, 71 111, 112, 95 53; People Illinois ex rel. Gordon Campbell, 329 362, 371, 67 340, 345, 91 348. However, accept holding specificity since they pieces assessed rent due. may also perfected sense nothing more done have choate lien—when identity lienor, amount established. general and, above indicated, But fact one group itself no significance these cases involving only. Greenville, Cir., 118 F.2d 963, 964. yet '(a) binding mortgage, has same capacity hold land so long preserves it force.' Rankin Scott, 12 Wheat. 177, 179, 6 592. 5 Thus, City. gains its while general. Obviously, cannot behalf impair standing without consent Congress. Michigan States, 317 338, 63 302, 303, 87 312; Oklahoma, 261 253, 260, 43 295, 297, 638; Snyder, 149 210, 214, 13 846, 847, 37 705. On hand, statutes do not attempt give under paramount authority creating involved, I.R.C. 3670, does terms confer them. When debtor insolvent, Congress expressly payment indebtedness owing whether secured otherwise, 3466 Revised Statutes, 31 U.S.C. (1946 ed.) 191, U.S.C.A. 191. In circumstance, where protected revenues imposing an absolute priority.7 Where failed provide priority, certain exceptions relevant here,8 although free pursue whole debtor's wherever situated. State, having only within boundaries, reach beyond line fasten property. record establish taxpayer insolvent. 7 It follow, however, must receive whole. believe determined another principle law, namely, 'the first time right.' As Chief Marshall supra: 8 'The believed universal, claim, entitled satisfaction out binds, unless intrinsically defective, displaced act party it, shall postpone him equity subsequent claimant.' page 9 This widely accepted applied, absence legislation contrary. 33 Am.Jur., Liens, s 33; 53 C.J.S., 10b. think had cardinal rule mind when enacted schedule set forth therein. contested depend choate. 10 claiming relies heavily recent Court, supra, Gilbert Associates, 345 361, 73 701. inconsistent our decision case. 11 involved inchoate attachment ripened into noted '(n)umerous contingencies might arise would present ever becoming awarded recorded.' 50, 113. 'merely lis pendens notice right perfect exists.' Ibid. become amount, thereto attach then permitted displace such liens. Otherwise, could affect contrary established doctrine, simply causing arbitrary even before tax, assessment, etc., determined.9 Accordingly, concluded 'that superior * *.' Id., 51, 114. instant case, apparently both holders Associates did because personal insolvency taxpayer. said case: 'Where Town Government general, (Revised Statutes) clearly awards States.' 366, 14 Here contest groups estate, involved; therefore, 15 finds 'first time, right' applicable 3672 Code,10 makes invalid recorded points mortgagee rent, part debt covered lien,11 suggests therefore virtue 3672.12 From belief intend, giving judgments supersede laws making interests judgments, enacting 'expressed intention should subordinated described therein consequently, liens.'13 16 agree. interested receives rents mortgagees creditors. That matter law. excess necessary creditors, intended assert lien. There language show antecedent rank behind but categories therein, legislative history lends support impression.14 17 Under circumstances, vacate remand court determine order asserted, accordance opinion. 18 Judgment vacated. '§ 3670. Property 'If person liable neglects refuses after demand, (including interest, penalty, additional addition together costs accrue thereto) favor rights property, personal, belonging person.' 26 3671, 3671. Conn.Gen.Stat.1949, c. 88, 1853. 34, 758. construed term 'taxes' 758 includes 'only subdivision thereof which, property.' 367, 12. 701; Waddill, Holland Flinn, 323 353, 65 304, 89 294. E.g., 2800(e), 2800(e) (distilled spirits lien). See Sarner, Correlation Priority Lien Rights Collection Taxes, U. Pa.L.Rev. 739, 755—761. 3672. Validity mortgagees, pledgees, purchasers, creditors Invalidity notice. valid mortgagee, pledgee, purchaser, creditor until been filed collector 3672, amended, Stat. 882, 7192. need now pass merits suggestion situation 373, 15. 364, 701, 703; 113, (concurring opinion).

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