Chap. 393.—An ACT to amend and re-enact section 429 of the Tax Code of
Virginia, relating to claims of the Commonwealth of Virginia and its politi-
cal subdivisions for taxes, levies and fees, together with penalties and in-
terests thereon, given preference. [H B 253]

Approved March 30, 1934

I. Be it enacted by the General Assembly of Virginia, That sec-
tion four hundred and twenty-nine of the Tax Code of Virginia, re-
lating to claims of the Commonwealth of Virginia, and its political
subdivisions for taxes, levies, and fees, together with penalties and
interest thereon, given preference, be amended and re-enacted so as
to read as follows:

Section 429. In any distribution of the assets of any person or
corporation assessed with taxes, levies and fees, together with penalties
and interest thereon, due to the Commonwealth of Virginia, or any of
its political subdivisions, whether heretofore or hereafter imposed, the
claims of the Commonwealth and the political subdivisions for such
taxes, levies and fees, penalties and interest thereon, shall be para-
mount and prior to all claims of general creditors, except claims given
higher dignity by Federal law. Nothing in this section shall be con-
strued in derogation of any lien of the Commonwealth or any of its
political subdivisions now existing or hereafter created by law; nor
shall anything herein be construed to affect the laws now in force with
regard to the marshalling of a decedent’s estate and in regard to the
exemption of a poor debtor. |

If any corporation assessed with any such taxes or levies, including
penalties and interest thereon, shall distribute its assets without first
paying such assessment to the Commonwealth or to the proper political
subdivision, as the case may be, any person with actual notice of such
assessment receiving any moneys or other property from such dis-
tribution shall be held personally liable for such assessment to an

amount not in excess of his participation in such distributions, and any
purchaser with actual notice of any such assessment shall be liable
therefor to the extent of the assets of the corporation coming into his
hands; but nothing in this paragraph contained, shall be construed as to
affect the rights of any purchaser for value and without notice.