Taylor

This is a proceeding under Chapter IX of the Bankruptcy Act providing for the composition of indebtedness of local taxing agencies, 11 U.S.C.A. §§ 401-404 .

Appellee Provident Irrigation District was organized in 1918 under the provisions of the California Irrigation District Act. It comprised 22,805 acres of land and is overlapped by Reclamation District No. 2047. In 1918 it issued bonds in the principal amount of $1,000,000, maturing serially in each of the years 1932 to 1949. In 1921 there was a second issue in the amount of $190,000, maturing serially in the years 1922 to 1933. Bonds of both issues bore interest at the rate of 6% per annum payable semi-annually.

Financial difficulties early developed, and prior to the refinancing program the bonds were selling at prices ranging from 5 to 10 cents on the dollar. In 1933 Provident was in default in the payment of bond principal in the amount of $68,000 and in the payment of interest coupons in the amount of $169,433. At the time of filing the petition in this proceeding the total principal amount of bonds outstanding was $957,-000, of which $341,000 was matured. Unpaid and matured interest coupons totaled a sum in excess of…