PART 4068—LIEN FOR LIABILITY Authority: 29 U.S.C. 1302(b)(3), 1362-1364, 1367-1368. Source: 61 FR 34083, July 1, 1996, unless otherwise noted. § 4068.1 Purpose; cross-references. This part contains rules regarding the PBGC's lien under section 4068 of ERISA with respect to liability arising under section 4062, 4063, or 4064 of ERISA. § 4068.2 Definitions. The following terms are defined in § 4001.2 of this chapter: ERISA, PBGC, person, plan, and termination date. Collective net worth of persons subject to liability in connection with a plan termination § 4068.3 Notification of and demand for liability. (a) Notification of liability. (b) Demand for liability. (1) If no appeal is filed, upon the expiration of time to file an appeal under part 4003; or (2) If an appeal is filed, upon issuance of a decision on the appeal finding that there is liability under this part. The demand letter will indicate that, as provided in § 4062.8, the PBGC will prescribe commercially reasonable terms for payment of so much of the liability as it determines exceeds 30 percent of the collective net worth of such persons. (c) Special rule. § 4068.4 Lien. If any person liable to the PBGC under section 4062, 4063, or 4064 of ERISA fails or refuses to pay the full amount of such liability within the time specified in the demand letter issued under § 4068.3, the PBGC shall have a lien in the amount of the liability, including interest, arising as of the plan's termination date, upon all property and rights to property, whether real or personal, belonging to that person, except that such lien may not be in an amount in excess of 30 percent of the collective net worth of all persons described in section 4062(a) of ERISA and part 4062 of this chapter.