Moody v. James Irr. Dist.

This is an appeal from an interlocutory ■decree confirming a plan of the James Irrigation District [hereinafter referred to as the District] for a composition of its indebtedness under Chapter IX of the Bankruptcy Act of 1898 as amended, 11 U.S.C. A. §§ 401-404.

The District consists of a gross area of about 24,390 acres in Fresno County, California, and was organized as of February 6, 1920 pursuant to the California Irrigation District Act, Cal.Stats.1897, p. 254 as amended, Deering’s Gen.Laws, Act 3854.

On May 16, 1920, the District issued its 6% bonds aggregating in principal amount $1,000,000. The bonds are each in the principal amount of $1,000, and mature in amounts of $50,000 yearly from 1928 to 1947. The obligation of the District for the payment of interest, payable semi-annually, is evidenced by negotiable coupons detachable from the bonds.

There is what is known as Reclamation District No. 1606 organized under the provisions of the Political Code of California relating to Reclamation Districts, with a bonded indebtedness of $447,000, which very largely overlaps the area of the District.

The petitioner District levied yearly assessments and bought in the…