In the Case of Eastmet Corporation, Debtor. Suzanne Mensh, Clerk of the Circuit Court for Baltimore County v. Eastern Stainless Corporation

MURNAGHAN, Circuit Judge:

Here is a case that illustrates the necessity to cut square corners in dealing with a statute providing a tax exemption. East-met Corporation, a bankrupt, proceeding under a confirmed Chapter 11 reorganization plan, sold to Eastern Stainless Corporation (“ESC”) several assets, including real property located in Baltimore County, Maryland. To finance the purchase, ESC borrowed $15,000,000 from Pittsburgh National Bank and BT Commercial Corporation. A purchase money deed of trust on the real property was executed to secure the loan.

Upon submission of the deed of trust…