Bloomfield State Bank v. United States

POSNER, Circuit Judge.

The question presented is whether a mortgage that assigns future rental income to the mortgagee creates a security interest that takes priority over a federal tax lien. The answer depends on whether such an assignment constitutes an “interest in property acquired by contract for the purpose of securing payment or performance of an obligation” and whether when the interest is acquired “the property is in existence and the interest has become protected under local law against a subsequent judgment lien arising out of an unsecured obligation.” 26 U.S.C. § 6323(h)(1). Only…