Industrial Loan & Inv. Co. v. Commissioner
United States Board of Tax Appeals
Petitioner sold its capital stock on the installment plan. Upon default in meeting the payments due, the stock and the amounts paid thereon were declared forfeited. Under the laws of Oklahoma such forfeiture is void and the subscriber may redeem his stock at any time before foreclosure. Held that the amounts so forfeited are not income in the hands of petitioner.
1Opinion of the Court
*1329OPINION.
Laksdon:
The Compiled Oklahoma Statutes (1921) provide:
7412. Contracts for forfeiture of property. All contracts for tlie forfeiture of property subject to a lien, in satisfaction of the obligation secured thereby, and all contracts in restraint of the right of redemption from a lien, are void, except in the case specified in Section 1122.
7419. Every person having interest may redeem lien. Every person having an interest in property subject to a lien, has a right to redeem it from the lien, at any time after the claim is due, and before his right of redemption is foreclosed.
7421.…
2Cases cited3 opinions
- Harding v. GillettSupreme Court of Oklahoma · 1909
- Clinton Nat. Bank v. McKennonSupreme Court of Oklahoma · 1910
- St. Louis S. F. R. Co. v. JohnsonSupreme Court of Oklahoma · 1910
3Cited by3 opinions
- Realty Bond & Mortgage Co. v. United StatesUnited States Court of Claims · 1936
- Chrysler Corp. v. CommissionerUnited States Board of Tax Appeals · 1940
- Industrial Loan & Inv. Co. v. CommissionerUnited States Board of Tax Appeals · 1929