25-516. Lien; notice; priority; recording; reciprocity

A. Notwithstanding section 25-514, in a title IV-D case if a person obligated to pay child support is in arrears for an amount equal to at least two months' child support, the unpaid amounts constitute a lien by operation of law on all property presently owned and later acquired by the obligor. The department may perfect a lien by filing a notice of lien with the county recorder in the county in which the obligor has property or with a state agency or a political subdivision of this state that files personal property liens for recording on its official record. The notice of lien recorded under this section shall specify the nature of the debt, the amount, and the name and last known address of the obligor. A liquidated judgment is not required to establish a lien. Recordation is constructive notice of the lien to the creditors of the owner or subsequent purchasers, against the personal or real property presently owned or later acquired. The lien has priority over other liens against this property except for liens arising from mortgages, deeds of trust, contracts, conveyances or security agreements created by the property owner and previously recorded or filed.

B. The department shall notify an obligor who is at least two months in arrears in making child support payments, periodic payments on a support arrearage or periodic payments pursuant to a court order of support that a notice of lien may be filed against the obligor. The department shall notify the obligor by first class mail at the obligor's current address, or after a reasonable attempt to ascertain the obligor's location, at the obligor's last known address. The notice shall state the following:

1. The obligor is at least two months in arrears in making child support payments.

2. The obligor may request in writing an administrative review to contest the arrears pursuant to section 25-522.

3. The obligor may request in writing an administrative review within fifteen days from the date of mailing of the notice.

4. If the obligor requests an administrative review, the department shall stay further action until a determination has been made at the administrative review.

5. If the obligor fails to respond to the notice, the department shall file a notice of lien against the obligor.

6. The address and telephone number of the department.

7. The obligor may request a copy of the order.

C. If an obligor fails to respond to the notice within fifteen days from the date of mailing, the department shall send the obligor a second notice by first class mail. The second notice shall include the information under subsection B of this section and shall state the following:

1. If the obligor fails to contact the department within fifteen days from the date of mailing of the second notice, a notice of lien shall be filed against the obligor.

2. This is the final notice the obligor will receive.

D. If the obligor requests an administrative review pursuant to this section, the department shall determine whether to proceed with filing the notice of lien based on whether the obligor is required to pay child support, whether the obligor is in arrears, and any other information relevant to the case. The decision of the department shall be in writing, and the department shall provide a copy to the obligor.

E. If the department determines that the obligor is at least two months in arrears and determines at the administrative review to record a notice of lien against the property of the obligor or if the obligor fails to respond to the second notice, a notice of lien shall be recorded and a copy sent to the obligor by certified mail.

F. The department may, at any time, release the property subject to the lien from the lien. Notice by the department to the effect that the property had been released from the lien is conclusive evidence that the property had been released. If any lien imposed pursuant to this section is satisfied and a notice of lien has been recorded, the department shall issue a release of the lien to the obligor against whom the lien was claimed. The department shall record the lien release in any county, agency or political subdivision where the original lien was recorded.

G. This state shall give a lien recorded in another state full faith and credit if the state agency, party or other entity seeking to enforce the lien complies with the notice requirements of this section and records the lien pursuant to the applicable laws of this state.