Section 1240-02-05-.03 - LIENS FOR CHILD SUPPORT ARREARAGES(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.Tenn. Comp. R. & Regs. 1240-02-05-.03
Original rule filed December 18, 2001; effective March 3, 2002.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.