B-111161 April 16, 1953

B-111161: Apr 16, 1953

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Secretary: Reference is made to your letter of March 27. Which action is stated to have been entered of record on October 5. The court action was instituted by the Farmers Home Administration arising out of default on a Production and Subsistance loan in the amount of $2. It appears that the property is covered by a first mortgage new hold by the Federal National Mortgage Association securing the principal balance of $9. That there are three judgments. Which proceedings have not been concluded because of the judgment hold by the Government. Since you have found that the fair market value of the property is between $9. 500 and that the proceeds from the sale of property would be insufficient to wholly or partially satisfy the Government's junior lien and since the requirements of the statute as related to the particular circumstances of this case appear to have been otherwise sufficiently complied with.

B-111161 April 16, 1953

The Honorable The Secretary of Agriculture

My dear Mr. Secretary:

Reference is made to your letter of March 27, 1953, forwarding a request dated December 19, 1952 together with supporting papers, by the Federal National Mortgage Association for a certificate of release of the Government's junior lien on certain property in Banks County, Pennsylvania, and more particularly described in your letter, owned by Richard Cunningham Jr. and May Cummingham, his wife.

It appears that the Government's junior lien arose by reason of a certain judgment in the amount of $2,687.50 rendered on September 14, 1951 by the United States District Court for the Eastern District Pennsylvania in the case entitled United States v. Richard Cunningham, Jr. and May Cunningham, his wife, Civil Action 12710, which action is stated to have been entered of record on October 5, 1951. The court action was instituted by the Farmers Home Administration arising out of default on a Production and Subsistance loan in the amount of $2,500 made to Mr. and Mrs. Cunningham by the Secretary of Agriculture seting through the Administrator of the said Farmers Home Administration pursuant to Title II of the Bankhead - Jones Farm Tenant Act (7 U.S.C. 1007-1009).

It appears that the property is covered by a first mortgage new hold by the Federal National Mortgage Association securing the principal balance of $9,093.53 plus interest, costs, advances for taxes etc., totaling approximately $9,700; that there are three judgments, one for $722.16, another for $300 and other for $500, all subsequent to the mortgage but senior to the judgment held by the Government thus making the letter subsequent to the four liens totaling approximately $11,222,16, plus interest; and that the holder of the first mortgage has instituted foreclosure proceedings in the Court of Common Pleas of Banks County, Pennsylvania, which proceedings have not been concluded because of the judgment hold by the Government. In the circumstance, the senior lien- holder as indicated above has requested the Department charged with the administration of the laws under which the lien arose for a certificate of release of the Government lien.

Since you have found that the fair market value of the property is between $9,000 and $10,500 and that the proceeds from the sale of property would be insufficient to wholly or partially satisfy the Government's junior lien and since the requirements of the statute as related to the particular circumstances of this case appear to have been otherwise sufficiently complied with, the certificate of release requested is forwarded herewith.

While there has been noted your request for the return of the enclosures you are advised that since such documents furnish the basis upon which the certificate of release is being issued they must remain here as part of the records of this Office. See Administrative Order No. 60, October 13, 1947.

Sincerely yours,

Lindsay C. Warren Comptroller General of the United States

Enclosure