United States v. Charles M. Moreland, Bobby J. Butler

This appeal raises the question whether the substitution of property equal in value to property which secures a government agency loan exempts the mortgagor from compliance with the applicable regulations. Bobby J. Butler appeals from a judgment in favor of the United States entered pursuant to a directed verdict, under which he was declared liable for his part in the conversion of property securing a Farmers Home Administration (FmHA) loan. We affirm.

Charles M. Moreland obtained a loan from the FmHA in order to buy a farm and a herd of beef cattle. While this loan was outstanding, Moreland…