40-5-242. Notice of support lien -- civil liability upon failure to honor support lien or to comply with warrant for distraint. (1) The department may, at any time after asserting a support lien, serve a notice of the lien on any person, firm, corporation, association, or political subdivision or department of the state in possession of any real or personal property that is due, owing, or belonging to an obligor. For this purpose, personal property includes the obligor's share of a decedent's estate, workers' compensation benefits, and any proceeds or potential proceeds from suits at law.
     (2) Except as provided in subsection (3), a person or entity is liable to the department in an amount equal to 100% of the value of a support lien or warrant for distraint or the value of real or personal property subject to a support lien or distrained by a warrant for distraint, whichever is less, together with costs, interest, and reasonable attorney fees, if the person or entity:
     (a) pays over, releases, sells, transfers, or conveys real or personal property subject to a support lien, to or for the benefit of the obligor, after the person or entity receives actual notice of filing of the support lien; or
     (b) fails or refuses to surrender upon demand property of an obligor when presented with a warrant for distraint by a sheriff or levying officer under the provisions of 40-5-247.
     (3) A person or entity is not liable to the department under this section when:
     (a) a written release or waiver of the support lien or warrant for distraint issued by the department has been delivered to the person or entity;
     (b) a determination has been made in an adjudicative proceeding, either administrative or judicial, that a support lien does not exist or that the lien has been satisfied; or
     (c) the property subject to a support lien has been transferred to, paid over to, or repossessed by a person or entity holding:
     (i) a prior perfected lien;
     (ii) a mortgage, the proceeds of which were used by the obligor to purchase real property; or
     (iii) a perfected purchase money security interest, as defined by 30-9-107.

     History: En. Sec. 18, Ch. 612, L. 1979; amd. Sec. 17, Ch. 549, L. 1989; amd. Sec. 17, Ch. 631, L. 1993.