Page:United States Statutes at Large Volume 56 Part 1.djvu/1054

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PUBLIC LAWS-CH. 656-DEC. 2, 1942 [CHAPTER 656] December 2, 1942 [H. R . 5578] [Public Law 780] U. S. as party de- fendant in certain cases. Government liens on real estate or per- sonal property. Suits to quiet title or foreclose. Effect of Judicial sale. Provisos. Lien inferior to that ofU.S. Lien prior to that of U. S. Foreclosure of Gov- ernment's lien, etc. Service of process. AN ACT To permit the United States to be made a party defendant in certain cases. Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That section 1 of the Act entitled "An Act to permit the United States to be made a party defendant in certain cases", approved March 4, 1931, as amended (46 Stat. 1528, U. S. C ., title 28, sec. 901), be, and the same is hereby, amended to read as follows: "SECTION 1. Upon the conditions herein prescribed for the pro- tection of the United States, the consent of the United States is given to be named a party in any suit which is now pending or which may hereafter be brought in any United States district court, including those for the districts of Alaska, Hawaii, and Puerto Rico, and the District Court of the United States for the District of Columbia, and in any State court having jurisdiction of the subject matter, to quiet title to or for the foreclosure of a mortgage or other lien upon real estate or personal property, for the purpose of securing an adjudication touching any mortgage or other lien the United States may have or claim on the premises or personal property involved." SEC. 2. Section 4 of the Act entitled "An Act to permit the United States to be made a party defendant in certain cases", approved March 4, 1931, as amended (46 Stat. 1529, U. S . C .,-title 28, sec. 904), is amended to read as follows: "SEC. 4 . Except as herein otherwise provided, a judicial sale made in pursuance of a judgment in such a suit shall have the same effect respecting the discharge of the property from liens and encumbrances held by the United States as may be provided with respect to such matters by the law of the State, Territory, or District in which the land or personal property is situated: Provided, That a sale to satisfy a lien inferior to one of the United States, shall be made subject to and without disturbing the lien of the United States, unless the United States, by its attorneys, consents that the property may be sold free of its mortgage or lien and the proceeds divided as the parties may be entitled: And provided further, That where a sale of real estate is made to satisfy a lien prior to that of the United States, the United States shall have one year from the date of sale within which to redeem. In any case where the debt owing the United States is due, the United States may ask, by way of affirmative relief, for the foreclosure of its own lien or mortgage and in any case where property is sold to satisfy a first mortgage or first lien held by the United States, the United States may bid at the sale such sum not exceeding the amount of its claim with expenses of sale, as may be directed by the chief of the department, bureau, or other agency of the Government which has charge of the administration of the laws in respect of which the claim of the United States arises." SEC. 3 . Section 2 of the Act entitled "An Act to permit the United States to be made a party defendant in certain cases", approved March 4, 1931, as amended (46 Stat. 1528, U. S . C., title 28, sec. 902), is hereby amended to read as follows: "SEC. 2. Service upon the United States shall be made by serving the process of the court with a copy of the bill of complaint upon the United States attorney for the district or division in which the suit has been or may be brought, or upon an assistant United States attorney or a clerical employee designated by the United States attorney in writing filed with the clerk of the court in which suit is brought, and by sending copies of the process and bill, by regis- 1026 [56 STAT.