Donna Independent School District v. Balli

POLITZ, Chief Judge:

Three Texas taxing units, the City of Donna, the Donna Independent School District, and Hidalgo County, appeal a judgment prohibiting their foreclosure on property tax liens without preserving liens held by the Federal Deposit Insurance Corporation in its capacity as receiver for certain failed financial institutions. We affirm.

Background

The underlying facts would have involved a routine effort by local taxing units to collect delinquent ad valorum real estate taxes but for one development — the financial institutions holding deed of trust liens on the properties became…