Release of lien or partial discharge of property

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    • Release of lien

      • (a) Subject to such rules or regulations as the Director may prescribe, the Director may issue a certificate of release of any lien imposed with respect to any internal revenue tax if—

        • (1) Liability satisfied or unenforceable. The Director finds that the liability for the amount assessed, together with all interest in respect thereof, has been fully satisfied or has become legally unenforceable; or

        • (2) Bond accepted. There is furnished to the Director and accepted by him a bond that is conditioned upon the payment of the amount assessed, together with all interest in respect thereof, within the time prescribed by law (including any extension of such time), and that is in accordance with such requirements relating to terms, conditions, and form of the bond and sureties thereon, as may be specified by such rules or regulations.

    • Partial discharge of property

      • (b) Property double the amount of the liability.

        • (1) Subject to such rules or regulations as the Commissioner may prescribe, the Director may issue a certificate of discharge of any part of the property subject to any lien imposed under this chapter if the Director finds that the fair market value of that part of such property remaining subject to the lien is at least double the amount of the unsatisfied liability secured by such lien and the amount of all other liens upon such property which have priority to such lien.

        • (2) Part payment or interest of Virgin Islands valueless. Subject to such rules or regulations as the Director may prescribe, the Director may issue a certificate of discharge of any part of the property subject to the lien if—

          • (A) there is paid over to the Director in part satisfaction of the liability secured by the lien an amount determined by the Director which shall not be less than the value, as determined by the Director of the interest of the government of the Virgin Islands in the part to be so discharged; or

          • (B) the Director determines at any time that the interest of the government of the United States Virgin Islands in the part to be so discharged has no value.

            In determining the value of the interest of the government of the United States Virgin Islands in the part to be so discharged, the Director shall give consideration to the fair market value of such part and to such liens thereon as have priority to the lien of the government of the United States Virgin Islands.
    • Effect of certificate of release or partial discharge

      • (c) A certificate of release or of partial discharge issued under this section shall be held conclusive that the lien upon the property covered by the certificate is extinguished.


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