Kenneth Hammes, Trustee in Bankruptcy, in the Matter of Arizona Stores, Inc., Bankrupt v. Tucson Newspapers, Inc., an Arizona Corporation

The trustee in bankruptcy of Arizona •Stores, Inc. appeals from a decision of the district court following review by it of a decision of the referee in bankruptcy. The question presented is whether a federal tax lien takes precedence over an assignment by the bankrupt to appellee Tucson Newspapers, Inc. of the right to receive certain moneys.

The facts are not disputed. Arizona Stores, Inc. was adjudicated a bankrupt on May 4, 1961. On August 9, 1960 it had executed and delivered to Tucson Newspapers a written assignment of “the principal payments, each in the sum of $6,775.19 which become due and payable on October 1, 1960 and October 1, 1961 respectively under” an agreement of sale of real property, dated August 20, 1959, and recorded October 13, 1959, in which Arizona Stores was vendor. The assignment recites that it is “made as security for any indebtedness of Arizona Stores Corporation * * * to Tucson Newspapers, Inc. for advertising, and if the said Arizona Stores Corporation * * * does not owe Tucson Newspapers, Inc. any money for advertising on October 1, 1960 and/or on October 1, 1961 then this assignment shall be of no force or effect.” The assignment was recorded on…