Magnolia Federal Bank for Savings v. United States

EDITH H. JONES, Circuit Judge:

Relying on Mississippi law, Magnolia Federal Bank for Savings (“Magnolia”) sued the United States Small Business Administration (“SBA”) for a declaratory judgment subordinating or extinguishing two SBA hens against certain real property upon which Magnolia also held a hen. The district court granted summary judgment for the SBA, equating Magnolia's effort with a desire to assert a state statute of limitations against the federal agency. The district court was only half right. Insofar as Magnolia’s claim would subordinate rather than bar enforcement of SBA’s hens…