UNITED STATES SUPREME COURT DECISIONS ON-LINE

A bank made a loan secured by a mortgage on real estate. Subsequently, the United States filed notice of a federal tax lien against the mortgagor's property. Thereafter, liens for unpaid real estate taxes and other local assessments attached to the property. The bank instituted foreclosure proceedings, naming the United States as a party.

Held: in distributing the proceeds of a foreclosure sale of the property, the federal tax lien should be given priority over the liens for unpaid real estate taxes and other local assessments, notwithstanding a state law providing that payments to discharge such state tax liens shall be deemed "expenses" of a mortgage foreclosure sale. Pp. 371 U. S. 228-230.

11 N.Y.2d 31,181 N.E.2d 413, reversed.