B-158387, FEB. 9, 1966

B-158387: Feb 9, 1966

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THE REQUEST IS MADE AND THE MATTER REPORTED HERE PURSUANT TO 28 U.S.C. 2410 (D). WAS IN THE AMOUNT OF $10. THE MORTGAGE HELD BY THE UNITED STATES IS JUNIOR TO TWO FIRST REAL ESTATE MORTGAGES HELD BY THE EASTERN TRUST AND BANKING COMPANY OF BANGOR. WILCOX ARE BANKRUPT AND THAT THE EASTERN TRUST AND BANKING COMPANY FILED A CLAIM WITH THE BANKRUPTCY COURT. THE BANKRUPTCY TRUSTEE DISCLAIMED UPON THE REAL ESTATE THAT IS SUBJECT TO THE AFOREMENTIONED MORTGAGES SINCE THE MORTGAGE CLAIMS OF THE EASTERN TRUST AND BANKING COMPANY EXCEEDED THE COURT APPRAISAL OF SUCH PROPERTY. IF THE PROPERTY WERE SOLD. THE REQUESTED CERTIFICATE OF RELEASE IS ENCLOSED.

B-158387, FEB. 9, 1966

TO THE SECRETARY OF AGRICULTURE:

BY LETTER DATED JANUARY 19, 1966, MR. JOHN A. BAKER, ASSISTANT SECRETARY OF AGRICULTURE, FORWARDED THE WRITTEN REQUEST OF THE EASTERN TRUST AND BANKING COMPANY, BANGOR, MAINE, FOR THE RELEASE OF A JUNIOR REAL ESTATE LIEN HELD BY THE FARMERS HOME ADMINISTRATION, UNITED STATES DEPARTMENT OF AGRICULTURE, ON CERTAIN REAL PROPERTY LOCATED IN PENOBSCOT COUNTY, MAINE. THE REQUEST IS MADE AND THE MATTER REPORTED HERE PURSUANT TO 28 U.S.C. 2410 (D).

THE JUNIOR LIEN HELD BY THE UNITED STATES AROSE FROM A REAL ESTATE MORTGAGE EXECUTED BY DAVID L. WILCOX AND HIS SPOUSE, EDNA R. WILCOX, IN FAVOR OF THE UNITED STATES, ACTING THROUGH THE FARMERS HOME ADMINISTRATION, UNITED STATES DEPARTMENT OF AGRICULTURE. THE MORTGAGE, EXECUTED OCTOBER 13, 1964, WAS IN THE AMOUNT OF $10,820, TO SECURE TWO DIRECT LOANS MADE TO MR. AND MRS. WILCOX BY THE FARMERS HOME ADMINISTRATION.

THE MORTGAGE HELD BY THE UNITED STATES IS JUNIOR TO TWO FIRST REAL ESTATE MORTGAGES HELD BY THE EASTERN TRUST AND BANKING COMPANY OF BANGOR, MAINE. AS OF OCTOBER 14, 1965, THERE REMAINED DUE ON THE FIRST MORTGAGES THE SUM OF $10,858.52. THE SENIOR LIEN HOLDER, THE EASTERN TRUST AND BANKING COMPANY, DESIRES TO AVOID A FORECLOSURE PROCEEDING BY OBTAINING A CERTIFICATE RELEASING THE GOVERNMENT'S LIEN.

THE RECORD SHOWS THAT BOTH MR. AND MRS. WILCOX ARE BANKRUPT AND THAT THE EASTERN TRUST AND BANKING COMPANY FILED A CLAIM WITH THE BANKRUPTCY COURT. HOWEVER, THE BANKRUPTCY TRUSTEE DISCLAIMED UPON THE REAL ESTATE THAT IS SUBJECT TO THE AFOREMENTIONED MORTGAGES SINCE THE MORTGAGE CLAIMS OF THE EASTERN TRUST AND BANKING COMPANY EXCEEDED THE COURT APPRAISAL OF SUCH PROPERTY.

INASMUCH AS IT HAS BEEN DETERMINED ON THE BASIS OF APPRAISALS THAT THE FAIR MARKET VALUE OF THE PROPERTY DOES NOT EXCEED $9,000 AND, IF THE PROPERTY WERE SOLD, THE PROCEEDS WOULD BE INSUFFICIENT TO WHOLLY OR PARTIALLY SATISFY THE GOVERNMENT'S JUNIOR LIEN AFTER SATISFACTION OF THE SENIOR LIENS, AND SINCE IT APPEARS THAT THERE HAS BEEN SUFFICIENT COMPLIANCE WITH THE REQUIREMENTS OF THE STATUTE, THE REQUESTED CERTIFICATE OF RELEASE IS ENCLOSED.