Nelse Mortensen & Co., Inc. v. Kenneth S. Treadwell, Trustee of Puget Sound Products Co., a Corporation, Debtor, and Seattle Association of Credit Men

In 1947, the United States sold certain land, building and equipment to Puget Sound Products Co., which at the time of the determination here in question was undergoing reorganization according to the provisions of Chapter X under the jurisdiction of the Bankruptcy Court. A quit-claim deed was given Puget Sound, conveying the real property and improvements thereon and, in addition, several, described articles of equipment. Puget Sound gave back to the United States a note and purchase money mortgage on the real property and improvements, and, separately, a note and chattel mortgage on the described articles of equipment. In .1949, an additional chattel mortgage was placed on the equipment in favor of a third party. The chattel mortgage held by the United States was then satisfied by payment. Also in 1949, Puget Sound gave to the Seattle Association of Credit Men a mortgage on the real property and a third chattel mortgage on the equipment. The United States foreclosed its mort•gage on ,-the real property, joining the Seattle ' Association of Credit Men . in virtue of its subsequent mortgage on -the realty. Decree of foreclosure was entered. The real property was sold .to the…