Smith v. Federal Land Bank of Berkeley

This appeal is from an order of the District Court for the Southern District of California, as ,a court of bankruptcy, made and entered on September 17, 1943, whereby on review an order of the conciliation commissioner as referee was set aside and vacated by the court. In order to describe the order so vacated a summary narration of previous proceedings is essential. On February 9, 1942, on petition of the appellees, the referee allowed them to proceed to the exercise of a power of sale in certain deeds of trust to secure loans made to the appellants, farmer-debtors, who had on September 10, 1937, obtained an extension agreement for three years “and thereafter.” In granting that leave to sell and foreclose, the referee found the debtors to be in default of the terms of their extension agreement, and also that the extension agreement had terminated and the debtors had exhausted their rights under section 75, subs, a-r, of the Bankruptcy Act, 11 Ü. S.C.A. § 203, subs. a-r. Thereafter on May 19, 1942, appellants petitioned to be adjudged bankrupts under section 75, sub. s, and that all of their property, including all encumbered property, be set aside into appellants’ possession…