461 F.2d 941 (3rd Cir. 1972), 19322, United States v. Samel Refining Corp.
|Citation:||461 F.2d 941|
|Party Name:||UNITED STATES of America, Appellant, v. SAMEL REFINING CORPORATION et al.|
|Case Date:||June 02, 1972|
|Court:||United States Courts of Appeals, Court of Appeals for the Third Circuit|
Argued Oct. 7, 1971.
Janet R. Spragens, Dept. of Justice, Tax Div., Washington, D. C., for appellant.
Allen J. Levin, Goodis, Greenfield, Narin & Mann, Philadelphia, Pa., for appellee.
Before KALODNER, STALEY and ADAMS, Circuit Judges.
STALEY, Circuit Judge.
The United States of America brought this action to foreclose Federal tax liens upon a sum of money deposited with the defendant, First Federal Savings and Loan Association.
The facts are not in dispute and were stipulated in the district court. In 1961, Samel Refining Corporation ("Samel"), the taxpayer, entered into a five-year lease with Bernstein & Bernstein Realty Corporation for certain premises in Philadelphia, Pennsylvania. Pursuant to a provision in the lease, the sum of $9,000 was deposited in a special escrow account with the First Federal Savings and Loan Association.
On March 12, 1965, Samel entered into a security agreement with E. F. Drew & Co., Inc. ("Drew"). Drew undertook to purchase raw materials for Samel's operations, upon Samel's undertaking to repurchase such raw material
and granting to Drew a continuing security interest in all of Samel's existing accounts receivable and contract rights, together with the proceeds thereof as security for Samel's obligation to pay Drew the purchase price of the raw materials.
In April of 1965, following the execution of the security agreement, Drew perfected its security interest by filing financing statements with the various appropriate state and county officers. These statements covered, inter alia, all existing and hereafter acquired accounts receivable and contract rights, together with the proceeds thereof.
In July and August of 1965, the Government filed tax liens against Samel.
In December of 1965, Samel defaulted in the performance of its obligations under the lease; however, Bernstein was able to make a new lease for the premises without any loss and has disclaimed any right to the $9,000 security deposit. This fund is claimed by both Drew and the United States. Each claim exceeds $9,000, and the successful party will consume the entire fund.
Since the facts were not in dispute...
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