§ 1336. Lien, fee, foreclosure

(a) All contributions, interest, penalties, and costs thereon due and payable by an employer under the provisions of this chapter shall be a lien upon the real estate of such employer from the date a lien for such contributions, interest, penalties, and costs is entered in the land records of the town in which is located real estate of the employer. A lien for such contributions, penalties, interest, and costs shall be created upon the personal property or franchises of the employer if such lien is recorded in the town clerk's office of the town in which the employer resides; and, if the employer is a corporation or a co-partnership, then such lien on the franchises or personal property of such employer shall be recorded in the town clerk's office in the town in which such employer has its principal place of business in the State. Liens created under this section shall show name of employer, amount of contributions, and other indebtedness due to the Commissioner of Labor. A lien created under this section shall be a lien prior to all other liens except liens created for taxes due the State of Vermont, the federal government, or town or municipality in this State and wage claims. Such lien shall not be a prior lien to liens on record prior to the recording of the lien provided for herein.

(b) There shall be paid to the town clerk by the Commissioner for recording each such lien, and the discharge of a recorded lien, the fees prescribed in 32 V.S.A. § 1671. The fees shall be added to the amount due from the employer under the lien.

(c) An employer upon whose property a lien is created as provided herein shall be given due notice thereof by ordinary or certified mail within five days after the creation of such lien.

(d) When the contributions, interest, penalties, and costs, secured by a lien in accordance with this section, remains unpaid for 90 days after the creation of such lien, such lien on personal property may be foreclosed in the same manner as provided by law for the foreclosure of mortgages on personal property; and such a lien on real property may be foreclosed in the same manner as provided by law for the foreclosure of mortgages on real property. The foregoing remedy shall be in addition, or as an alternative, to the remedy provided by section 1329 of this title, for the collection of unpaid contributions.

(e) In the event the employer files a written protest to the creation of the lien within 30 days after date thereof, assessment proceedings as provided in sections 1329-1334 of this title shall be had.

(f) If final judgment is in favor of the employer the property of the employer shall be discharged from the lien. If final judgment is against the employer, the property under the lien shall be held to respond to the judgment rendered and may be taken in execution thereon unless the employer otherwise satisfies the execution and charges.

(g) The Commissioner shall issue and record a certificate of release of the lien if:

(1) The Commissioner finds that the liability for contributions due, together with interest, penalty, and costs, has been satisfied or has become unenforceable.

(2) There is furnished to the Commissioner a bond with surety approved by the Commissioner in a penal sum sufficient to equal the amount of contributions due, together with interest, penalty, and costs, said bond to be conditioned upon the payment of any judgment rendered in proceedings regularly instituted by the Commissioner to enforce collection thereof.

(3) The Commissioner determines at any time that the interest of the State of Vermont in the property has no value. (Amended 1959, No. 329 (Adj. Sess.), § 22, eff. March 1, 1961; 1961, No. 210, § 15, eff. July 11, 1961; 1963, No. 58; 1969, No. 40, § 1, eff. April 4, 1969; 1981, No. 66, § 5(b), eff. May 1, 1981; 1989, No. 8, §§ 4, 5; 1991, No. 82, § 5; 2005, No. 103 (Adj. Sess.), § 3, eff. April 5, 2006.)