In re Stalker

Citations

• 123 F. 961
• 1903 U.S. Dist. LEXIS 259

Syllabus

<p>1. Bankruptcy—Priority op Claims—Taxes—Mortgage Foreclosure.</p> <p>Where separate pieces of land belonging to a bankrupt, exceeding in value the amount of taxes on them, but of less value than a mortgage debt and taxes, were sold under foreclosure decree subject to such taxes, a city to which certain of the taxes were due was not entitled to a priority of payment thereof from the bankrupt’s estate under Bankr. Act, § 64a, Act July 1, 1898, c. 541, 30 Stat. 563 [U. S. Comp. St. 1901, p. 3447], providing that taxes legally levied should be entitled to priority.</p> <p>3. Same—Waiver op Priority—Foreclosure op Lien.</p> <p>Foreclosure of an equity of redemption in certain lands by a city-under its charter provisions, to recover unpaid city taxes, in which the land was struck off to the city for less than the amount due, did not deprive the city of its right to priority of payment of the balance due on such taxes from the owner’s estate in bankruptcy, as authorized by Bankr. Act, § 64a.</p> <p>8. Same—Municipal Assessments.</p> <p>- Under Bankr. Act, .§ 64a, providing that all taxes legally due and owing by the bankrupt shall be entitled to a preferred payment, a city is entitled to preference in the payment of assessments levied for local improvements.</p> <p>4, Same—Limitations—Statutes—Application.</p> <p>Where, after a decision by a referee in bankruptcy adverse to the city’s application for preference in the payment of certain city assessments for local improvements out of the bankrupt’s estate, Act May 9, 1903, was passed, authorizing the city to collect outstanding taxes, etc., and providing that the statute of limitations could not be interposed as a defense, such act was inapplicable to such proceeding, so as to relieve the city from the defense of limitations interposed against certain of the taxes for which a preference was claimed.</p>