Paulsen

Appellant is the holder of a first mortgage on appellee’s farm. As the result of proceedings under § 75 of the Bankruptcy Act, 11 U.S.C.A. § 203 , appellee was adjudicated a bankrupt pursuant to subsection s, the so-called Frazier-Lemke Act. The farm was thereafter appraised at $3,000; and on March 25, 1940, the court entered an order approving the appraisal, setting aside exemptions, granting a stay and continuing the debtor in possession, for the three-year period, subject to his payment of an annual rental of $550.

The debtor paid the required annual rent but failed, within the three-year period to redeem the property by paying^ the appraised value. On April 2, 1943, appellant filed with the referee a petition and motion asking for the appointment of a trustee and the liquidation of its' security. On April 27, 1943, after notice to interested parties, a hearing thereon was had. The referee, by formal written decision dated December 22, 1943, found that the stay had expired on March 25, 1943, that the debtor had failed to pay into court the appraised value of the property and had not sought reappraisal within the three-year period. A trustee was at that time appointed and the…