Potter Stewart

“ Relying on this statement, the United States urges us to read Security Trust as establishing the proposition that federal tax liens are entitled to priority, not only over 'a lis pendens notice that a right to perfect a lien exists', but over any antecedent lien which is not sufficiently perfected to prevail against the explicit priority which R.S. § 3466 gives to claims of the United States in situations involving insolvency. ”

“ In 1961, the United States brought the present action in the Federal District Court for Vermont to foreclose the federal lien against the property of Cutting & Trimming held by the Trust Company. Vermont's answer alleged that the state assessment of October 21, 1958, gave its lien priority over the federal lien. On cross-motions for judgment on the pleadings, the District Court held that the state lien had priority, and directed the Trust Company to apply the moneys which it held first to the payment of principal and interest on that lien, and to pay any balance to the United States. ”

“ But the New Britain case, 347 U.S. 81, 74 S.Ct. 367, in which ' (t) he taxpayer had not been divested by the Town of either title or possession', makes quite clear that different standards apply where the United States' claim is based on a tax lien existing under §§ 6321 and 6322. [9] 'When the debtor is insolvent, Congress has expressly given priority to the payment of indebtedness owing the United States, whether secured by liens or otherwise, by § 3466 of the Revised Statutes, 31 U.S.C. * * * § 191. ”