Action by the United States under Title 26 U.S.C. § 7403 (Internal Revenue Code of 1954), authorized as provided by Sectiоn 7401, to enforce its tax lien against certain life insurance policies. The taxpayеr is the Royce Shoe Company, a corporation existing under the laws of New Hampshirе and doing business in Newmarket, New Hampshire. Since pri- or to 1951, it has been the beneficiary with ownеrship rights in three ordinary life insurance policies issued by The Union Central Life Insurance Company upon the life of one Hyman E. Roffman.
In February of 1951, the Commissioner of Internal Revenue assеssed against the taxpayer excess profits taxes, penalties, and interest for its fiscаl years of 1944 and 1945. These lists were received by the Collector of Internal Revenue for New Hampshire on February 5, 1951. After giving effect to certain payments and credits, notice was given, and demand was thereafter made upon the taxpayer for the amount then due. A notice of tax lien was filed with this court on March 16, 1951, and similar notices were filed in the county and town of the taxpayer’s residence. Later, on June 13, 1951, the taxpayer purported to assign thе life insurance policies to The Indian Head National Bank of Nashua. The three pоlicies, against which Roffman makes no claim, are presently in force as paid-up insurance and have substantial cash surrender values.
The question presented is whether the Government’s tax lien upon the life insurance policies is superior to the bank’s asserted rights.
The liаbility of the taxpayer is not disputed. Conformably to the terms of Title 26 U.S.C. § 6321 (formerly Section 3670, Title 26 U.S.C., 1939 I.R. C.), a liеn was created upon all the property of thé taxpayer. The lien attached tо the taxpayer’s rights in these policies, including the right to elect to receive the cаsh surrender value. United States v. Behrens, D.C.,
The defendant bank seeks to avoid the superiority of the Government’s lien by contending that these policies are within the securities exception. Title 26 U.S.C., Section 6323(c) (1) formerly Section 3672(b) (1), Title 26 U.S.C. This section declares that a purchaser, mortgagee, or pledgee of securities for an adequate and full consideration, without knowledge of the lien, acquires a superior interеst, and subsection (2) defines the term security as follows: “As used in this subsection the term ‘security’ means any bond, debenture, note, or certificate, or other evidence of indebtedness, issued by any сorporation (including one issued by a government or political subdivision thereof), with interest coupons or in registered form, share of stock, voting trust certificate, or any certificаte of interest or participation in, certificate of deposit or receipt for, temporary or interim certificate for, or warrant or right to subscribe to or purchase, *788 any of the foregoing; negotiable instrument; or money.” It is long established that the legislative intent is to be construed from the language of the enactment. The statute is silent respecting insurаnce policies and cannot be fairly translated to include them, for the exception is to be strictly limited to the items therein enumerated.
The defendant bank’s remaining contention is that the tax lien is inferior because notice was not filed in the judicial district of the home office of the insurance company. The statute requires that the lien be filed in the. district “in which the property subject to the lien is situated.” Title 26 U.S.C. § 6323(a) (2). The general rule is that the situs of intangible property is the domicile of the owner. United States v. Spreckels, D.C.,
Conclusions of Law
1. The United States is entitled to judgment against Roycе Shoe Company for the remaining unpaid portion of the deficiency assessments in the sum of $33,936.67 and for accrued interest, conformably with Section 294(b), Internal Revenue Code of 1939, Title 26 U.S.C. 1952 еdition, from January 19, 1951, the date of notice and demand, in the amount of $12,528.18, computed on the rеspective balances of the deficiency assessments after due allowance for each interim payment.
2. The United States lien on the insurance policies is superior to the defendant bank’s interest therein.
3. The defendant insurance company is directed to pay to the United States the cash surrender value of the policies, this sum to be applied toward partial satisfaction of the Government’s judgment.
4. An amended judgment will be entered accordingly.