In Re: County of Orange, Debtor. Federal Deposit Insurance Corporation, Appellant-Cross-Appellee v. County of Orange, Appellee-Cross-Appellant

BOOCHEVER, Circuit Judge:

We decide whether the Federal Deposit Insurance Corporation (“FDIC”), when it acts as receiver, can avoid liens on real property securing delinquent tax penalties, when the liens were imposed before the FDIC was appointed receiver. We also determine whether the FDIC must pay California redemption charges and “Mello-Roos” taxes.

FACTS

In December 1994, Orange County, California filed for Chapter 9 bankruptcy. One year later, on December 31, 1995, the FDIC succeeded the Resolution Trust Corporation as the receiver for numerous failed banks and financial institutions in…