Current through September 24, 2024
(1) Scope of the
Lien.
(a) In any case of child or spousal
support enforced by the Department or its contractors under Title IV-D of the
Social Security Act in which arrears are owed by an obligor who resides or owns
property in this state, a lien shall arise by operation of law against all real
and personal property, tangible or intangible, then owned or subsequently
acquired by the obligor against whom the lien arises for the amounts of overdue
support owed and the amount of penalties, costs or fees as provided in this
Chapter.
(b) The personal or real
property, tangible or intangible, of the obligor that is subjected to the lien
required by this part shall include all existing property at the time of the
lien's perfection, or acquired thereafter, even if a prior order for overdue
support or arrears only specifies a certain amount of overdue support or
arrears that was owed by the obligor at the time of such order.
(c) The notice of lien required to be filed
or recorded under this Chapter and T.C.A. §
36-5-901(b), or
any renewal of the lien, shall be effective until the duty of child or spousal
support is completely paid.
(2) The Department may file its notice of
lien, which shall be effective and perfected upon filing against all real and
personal property of the child support obligor:
(a) Directly with the person or entity
holding the assets of the obligor;
1. The
receipt of such notice by that person or entity shall be adequate notice of the
Department's lien upon the obligor's assets of any kind which are held by the
person or entity or which may come into that person's or entity's possession or
control.
2. Subject to the
priorities of 1240-2-5-.05, or the subordination of these liens to orders or
judgments pursuant to T.C.A. §
36-5-905(c)(1)(A) and
(c)(1)(B), and subject to any exemptions
allowed by T.C.A. §
36-5-906, payment or transfer to
the obligor or other persons or entities of the funds, property, or other
assets of any kind which are encumbered by the lien subsequent to the receipt
of such notice, the person or entity receiving such notice shall be liable to
the Department for any assets transferred after notice of the lien to the
extent of the overdue support, penalties, costs or fees as allowed by this
chapter or by law, up to the value of the transferred assets, in an action in
the appropriate court of the county in which the order of support is being
enforced.
3. The Department may
choose, in its sole discretion, to enforce the overdue obligation against
either the obligor, the transferee, or both; or
(b) Through exclusive use the establishment
of an internet application maintained by the Department on the Department of
Human Services' Tennessee Child Support Enforcement System (TSCES) system, or
in combination with other methods provided by this Chapter or by law;
or
(c) With the register of deeds
office in the appropriate county by any means provided by existing law;
or
(d) By means of a computer
terminal arrangement in the office of the register of deeds, or other state or
local office where information regarding the existence of a lien on real or
personal property is maintained; or
(e) By any combination of the above, or by
any other means provided by law for the filing and perfecting of
liens.
(3) The notice,
or other evidence of the lien, shall show the existence, amount and date of the
lien or security interest involving an obligor for persons researching the
title to real or personal property or who may be seeking the status of any
security interests or liens affecting any real or personal property possessed
or controlled by, or titled to, an obligor.
(4) When necessary to perfect the lien with
third parties when perfection has not occurred by automated means or where the
notice or order of seizure, encumbrance or sale is inappropriate, the
Department may use the Notice of Lien form issued by the United States
Department of Health and Human Services' Office of Child Support Enforcement on
April 4, 2001 in Action Transmittal 01-06, or any subsequently modified forms,
for the filing of notice of any administratively issued liens pursuant to this
Chapter. Rule 1240-2-5-.16 contains the Notice of Lien. Modification of any
existing Federal forms shall not invalidate any form used pursuant to these
rules.
(5) Nothing herein shall
require the Department to file a notice of lien for the seizure of,
encumbrance, or levy on an obligor's assets held by a state or local agency, by
a court or administrative tribunal, by a lottery, by a financial institution or
by a public or private retirement fund pursuant to T.C.A. §
36-5-904(a)(1)-(3)
and Rule 1240-2-5-.03(2)(a)-(e), or to
obtain any income withholding from any employer or other payer of income as
otherwise permitted under Tennessee Code Annotated, Title 36, Chapter 5, Part
5.
(6) Nothing herein shall limit
the Department's authority to file or enforce its liens for support by any
method otherwise provided by law for the establishment or enforcement of
liens.
Authority: T.C.A. §§
4-5-202; 36-5-901(a)(1); 36-5-904;
36-5-912; 36-5-1001; 45-19-101; 50-6-223; 71-1-132; 29 USC § 1056(d), 42
USC §§ 654a(a), (g) and (h); 659(i) and 666(c)(1)(G) and (c)(3); U.S.
Department of Health and Human Services, Office of Child Support Enforcement,
Action Transmittal, 01-06, April 4, 2001.
