City of Utica v. Gold Medal Packing Co.

Petitioners claim to have a lien on condemnation proceeds resulting from the taking of bankrupt’s property which is superior to the rights of the trustee in bankruptcy and all other creditors except the first mortgagee by reason of an instrument called an ‘ ‘ Assignment of Realty Interest. ”1,2

The instrument, executed April 20, 1962 by the bankrupt, Cold Medal Packing Corporation, transfers to the petitioners all the “ assignor’s interest in and to proceeds to be received by the assignor from the City of Utica, Department of Urban Renewal, to the extent of $104,115.46 ’ ’ subject to the first…