United States v. Peoples Bank

STRUM, Circuit Judge.

This is an appeal from a judgment of the district court subordinating tax liens of the United States to a lien held by a bank securing an indebtedness of the delinquent taxpayer to the bank.

The liens arose as follows: On January 16, 1947, one Gatzke procured a loan of $2120.00 from the appellee bank. The loan was evidenced by a promissory note, and secured by a bill of sale to the bank covering a Dodge automobile and the borrower’s household furniture. The bill of sale was recorded January 23, 1947. The unrecorded note evidencing the loan contained a provision that it…