Buell

This appeal is from a judgment obtained by the City of Montague, a municipal corporation of California, in a proceeding instituted by Montague Water Conservation District, hereafter called the debtor, under chapter 9 of the Bankruptcy Act, 11 U.S. C.A. §§ 401-404, the debtor being one of the “taxing agencies or instrumentalities” named in § 401.

The debtor instituted this proceeding on December 10, 1943, by filing its petition with the United States District Court for the Northern District of California, Northern Division. The debtor’s petition stated, in substance, that the debtor was an irrigation district organized under the laws of 'California in 1925 and was located wholly within Siskiyou County, California; that the debtor had issued and sold in 1926, and had outstanding on December 10, 1943, its coupon bonds in the total amount of $1,-395,000, maturing serially from 1947 to 1965 and bearing interest at the rate of 6% per annum, payable semiannually; that accrued interest on the bonds was past due and in default; that the bonds and interest thereon were payable out of assessments levied against lands within the debtor’s boundaries; that the lands were not of sufficient…