Validity against mortgagees, pledgees, purchasers and judgment creditors

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    • Invalidity of lien without notice

      • (a) Except as otherwise provided in subsection (b) of this section, the lien imposed by section 1031 of this title shall not be valid as against any mortgagee, pledgee, purchaser or judgment creditor until notice thereof has been filed by the Director in the office of the recorder of deeds in the judicial division in which the property is located.

    • Exception in case of securities

      • (b) Exception.

        • (1) Even though notice of a lien provided in section 1031 of this title has been filed in the manner prescribed in subsection (a) of this section, the lien shall not be valid with respect to a security, as defined in paragraph (2) of this subsection, as against any mortgagee, pledgee, or purchaser of such security, for an adequate and full consideration in money or money's worth, if at the time of such mortgage, pledge, or purchase such mortgagee, pledgee, or purchaser is without notice or knowledge of the existence of such lien.

        • (2) Definition of security. As used in this subsection, the term “security” means any bond, debenture, note, or certificate or other evidence of indebtedness, issued by any corporation (including one issued by a government or political subdivision thereof), with interest coupons or in registered form, share of stock, voting trust certificate, or any certificate of interest or participation in, certificate of deposit or receipt for, temporary or interim certificate for, or warrant or right to subscribe to or purchase, any of the foregoing; negotiable instrument; or money.

      • (c) Disclosure of amount of outstanding lien. If a notice of lien has been filed under subsection (a) of this section, the Director is authorized to provide by rules or regulations the extent to which, and the conditions under which, information as to the amount of the outstanding obligations secured by the lien may be disclosed.


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