Successor employer; notice of purchase; liability for contributions;
liens
Sec. 21. (a) Any individual, group of individuals, or other legal
entity, whether or not an employing unit which acquires all or part of
the organization, trade, or business within this state of an employer
or which acquires all or part of the assets of such organization, trade
or business, shall notify the commissioner in writing by registered
mail not later than five (5) days prior to the acquisition.
(b) Unless such notice is given, the commissioner shall have the
right to proceed against either the predecessor or successor, in
personam or in rem, for the collection of contributions and interest
due or accrued and unpaid by the predecessor, as of the date of such
acquisition, and the amount of such liability shall, in addition, be a
lien against the property or assets so acquired which shall be prior to
all other liens. However, the lien shall not be valid as against one
who acquires from the successor any interest in the property or assets
in good faith, for value and without notice of the lien.
(c) On written request after the acquisition is completed, the
commissioner shall furnish the successor with a written statement of
the amount of contributions and interest due or accrued and unpaid
by the predecessor as of the date of such acquisition, and the liability
of the successor and the amount of the lien shall in no event exceed
the reasonable value of the property or assets acquired by the
successor from the predecessor or the amount disclosed by such
statement, whichever is the lesser.
(d) The remedies prescribed by this section are in addition to all
other existing remedies against the predecessor or successor.
(Formerly: Acts 1947, c.208, s.3323; Acts 1951, c.295, s.24 1/2.) As
amended by P.L.18-1987, SEC.94; P.L.5-1988, SEC.114;
P.L.21-1995, SEC.126.
Last modified: May 27, 2006