(Download) "Kaufman County Levee Improvement Dist. No. 4 v. Mitchell" by United States Court of Appeals for the Fifth Circuit " eBook PDF Kindle ePub Free
eBook details
- Title: Kaufman County Levee Improvement Dist. No. 4 v. Mitchell
- Author : United States Court of Appeals for the Fifth Circuit
- Release Date : January 07, 1941
- Genre: Law,Books,Professional & Technical,
- Pages : * pages
- Size : 70 KB
Description
Kaufman County Levee Improvement District No. 4 in the state of Texas (hereafter called the District) like many other subdivisions of states, found itself hopelessly involved in debt and filed a petition for relief under Chapter IX, Sections 81, 82 and 83 of the Bankruptcy Act as amended, the Chandler Act, 11 U.S.C.A. §§ 401-403. It proposed to settle all of its indebtedness, consisting of outstanding bonds of the principal sum of $617,000, which with accumulated interest, amounted to approximately $900,000, by paying the sum of $49,360 in cash or about eight cents (8›) on the dollar. More than two-thirds in number and amount of the holders of the outstanding bonds approved the settlement. The appellees with bonds amounting to $109,000 opposed on the ground of discrimination as to those holders who also owned lands in the District. It appeared that the District consisted of some 11,600 acres of land, about 8,500 of which, or some 73% were owned by participating bond holders, whose claims were counted to make up the requisite percentages. As originally filed, an exhibit attached to the petition for relief stated that the plan contemplated "a loan by the Reconstruction Finance Corporation (hereafter called R.F.C.) of $49,360.00 for the purpose of readjusting and financing the outstanding indebtedness of the District" by paying each and all holders eigth cents on the dollar of the principal of the bonds in full settlement. The appellee Mitchell, who held some $75,000 of the bonds and also owned 1,302 acres of land in the District, opposed the plan and alleged that in reality, the R.F.C. was to lend the sum of $250,000 out of which the said sum of $49,360 was to be used in paying in full the outstanding bonds, but that the banlance of $200,640 was to be spent on improvements in the District in the way of repairs to levies, dams, etc. However, this loan was conditioned upon the sum of $2 per acre, or a total of $23,200 being raised by the borrower, the District, and the creating of a "permanent maintenance fund" of $10,000 to be expended only with the approval of the R.F.C.No definite arrangement was made for raising this $2 per acre, but presumably it was to be through contributions, by the land owners or taxpayers without any fixed provision for enforcing payment. Appellee, F. H. Hass, the only other opponent, held $34,000 in principal amount of bonds, but owned no land in the District. Others situated similarly to Hass did not vote. Holders of bonds in the principal amount of $415,000 out of said total of $617,000 voted in favor of the plan.
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