United States v. Hastings Motor Truck Co.

VAN OOSTERHOUT, Circuit Judge.

This is an appeal by the United States from final judgment dismissing its complaint against defendants wherein a deficiency judgment is sought against all defendants for the unpaid balance of four loans secured by mortgage obtained from the Small Business Administration (SBA), an agency of the United States.

The loans were described as disaster loans made for the purpose of providing funds to repair damage to realty caused by floods. The final loan was made on May 25, 1961. The mortgaged property was subject to a first mortgage to a third person which has been…