Federal Farm Mortgage Corp. v. Paulsen

HEALY, Circuit Judge.

Appellant is the holder of a first mortgage on appellee’s farm. As the result of proceedings under § 75 of the Bankruptcy Act, 11 U.S.C.A. § 203, appellee was adjudicated a bankrupt pursuant to subsection s, the so-called Frazier-Lemke Act. The farm was thereafter appraised at $3,000; and on March 25, 1940, the court entered an order approving the appraisal, setting aside exemptions, granting a stay and continuing the debtor in possession, for the three-year period, subject to his payment of an annual rental of $550.

The debtor paid the required annual rent but failed,…