Section 1240-02-05-.05 - LIEN PRIORITIESThe lien of the Department for child support arrearages shall be superior to all liens and security interests created under Tennessee law except:
(1) County and municipal ad valorem taxes and special assessments upon real estate by county and municipal governments;(2) Deeds of trust which are recorded prior to the recordation of notice of the Department's lien;(3) Security interests created pursuant to Article 9 of the Uniform Commercial Code, compiled in Tennessee Code Annotated, Title 47, Chapter 9, which require filing for perfection and which are properly filed prior to recordation of the notice of the Department's lien;(4) Security interests perfected under the Uniform Commercial Code without filing, as provided in Title 47, Chapter 9 of the Tennessee Code Annotated, which are properly perfected prior to recordation of the notice of the Department's lien;(5) The lien or security interest of a financial institution against an obligor's interest in a deposit account at that institution for any indebtedness to the institution, including but not limited to, that institution's security interest in accounts pledged for loans, its rights under the Uniform Commercial Code or by contract to charge back uncollected deposits, revoke settlements or take other action against said account, its right to recover overdrafts and fees, and its right of offset for mature indebtedness;(6) Other security interests in deposit accounts at a financial institution when such interests are reflected in the records of that financial institution prior to the receipt of an administrative order of seizure;(7) Other liens recorded prior to the recordation of the Department's lien, or concerning which a judicial proceeding was initiated prior to recordation of the Department's lien.(8) Vendors' liens on real estate provided for in Tennessee Code Annotated, Title 66, Chapter 10 which are recorded prior to the recordation of notice of the Department's lien;(9) The tax liens of the Department of Revenue filed pursuant to Tennessee Code Annotated, Title 67 prior to the Department's child support lien;(10) Any deed of trust or any security interest perfected under the Uniform Commercial Code prior to the filing of the notice of Department's child support lien, irrespective of when such child support lien arises. "Filing" for purposes of this subparagraph shall mean that the Department has recorded its notice of lien pursuant to the provisions of Rule 1240-2-5-.03 by filing a document to record its notice of lien in the appropriate office for such recordation or that it has effectively recorded its lien pursuant to the automated recordation method permitted by T.C.A. § 36-5-901(b)(3) or other provisions of the law;(11) A lien on a motor vehicle unless such lien is physically noted on the certificate of title of such motor vehicle; and(12) Any possessory lien including, but not limited to mechanics' and materialmen's liens pursuant to Tennessee Code Annotated, Title 66, Chapter 11, Part 1; artisans' liens pursuant to Tennessee Code Annotated, Title 66, Chapter 14, Part 1; or garagekeepers' and towing firm liens pursuant to Tennessee Code Annotated, Title 66, Chapter 19, Part 1.Tenn. Comp. R. & Regs. 1240-02-05-.05
Original rule filed December 18, 2001; effective March 3, 2002.Authority: T.C.A. §§ 4-5-202; 36-5-901(c) and (d); 36-5-912; 36-5-1001; 71-1-132; 42 USC.§§654a(a), (g) and (h); 659(i), and 666(c)(1)(G) and (c)(3).