80 STAT. ]
PUBLIC LAW 89-719-NOV. 2, 1966
1143
section 7425 (as added by section 109 of this Act) the following new section: "SEC. 7426. CIVIL ACTIONS BY PERSONS OTHER THAN TAXPAYERS. " (a) ACTIONS PERMITTED.— "(1) WRONGFUL, LEVY.—If a levy has been made on property
or property has been sold pursuant to a levy, any person (other than the person against whom is assessed the tax out of which such levy arose) who claims an interest in or lien on such property and that such property was wrongfully levied upon may bring a civil action against the United States in a district court of the United States. Such action may be brought without regard to whether such property has been surrendered to or sold by the Secretary or his delegate. "(2) SURPLUS FROCEEDS.—If property has been sold pursuant to a levy, any person (other than the person against whom is assessed the tax out of which such levy arose) who claims an interest in or lien on such property junior to that of the United States and to be legally entitled to the surplus proceeds of such sale may bring a civil action against the United States in a district court of the United States. "(3) SUBSTITUTED SALE PROCEEDS.—If property has been sold pursuant to an agreement described in section 6325(b)(3) (relat- Ante, p. 1133. ing to substitution of proceeds of sale), any person who claims to be legally entitled to all or any part of the amount held as a fund pursuant to such agreement may bring a civil action against the United States in a district court of the United States. "(b) ADJUDICATION.—The district court shall have jurisdiction to grant only such of the following forms of relief as may be appropriate in the circumstances: "(1) INJUNCTION.—If a levy or sale would irreparably injure rights in property which the court determines to be superior to rights of the United States in such property, the court may grant an injunction to prohibit the enforcement of such levy or to prohibit such sale. " (2) RECOVERY OF PROPERTY.—If the court determines that such property has been wrongfully levied upon, the court may— " (A) order the return of specific property if the United States is in possession of such property; " (B) grant a judgment for the amount of money levied upon; or " (C) grant a judgment for an amount not exceeding the amount received by the United States from the sale of such property. For the purposes of subparagraph (C), if the property was declared purchased by the United States at a sale pursuant to Stat. 785. section 6335(e) (relating to manner and conditions of sale), the 68Au s e 6335. 26 United States shall be treated as having received an amount equal to the minimum price determined pursuant to such section or (if larger) the amount received by the United States from the resale of such property. " (3) SURPLUS PROCEEDS.—If the court determines that the interest or lien of any party to an action under this section was transferred to the proceeds of a sale of such property, the court may grant a judgment in an amount equal to all or any part of the amount of the surplus proceeds of such sale. " (4) SUBSTITUTED SALE PROCEEDS.—If the court determines that a party has an interest in or lien on the amount held as a fund pursuant to an agreement described in section 6325(b)(3) (relat-
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