Federal Home Loan Mortgage Corp. v. Spark Tarrytown, Inc.

MEMORANDUM ORDER

VINCENT L. BRODERICK, District Judge.

I

On May 27, 1993, I directed entry of a default judgment against third party defendant Larry Rush (“Rush”) on the third party complaint of the Village of North Tarrytown (the “Village”) in this case involving foreclosure by the Federal Home Loan Mortgage Corporation (“FHLMC”) against Spark Tarrytown, Inc. (“Spark Tarrytown”) and potentially competing lienholders. FHLMC v. Spark Tarrytown, 822 F.Supp. 137 (S.D.N.Y.1993).1

The third party complaint alleged that Rush, as a principal in Spark Tarrytown, (1) abused the Bankruptcy Code by the…