In re Viking Company, Inc.
Decision Date | 22 April 1974 |
Docket Number | 10959.,No. 10911,10911 |
Citation | 389 F. Supp. 1230 |
Parties | In the Matter of VIKING COMPANY, INC., et al., Bankrupts. In re MOUNTAIN VENTURE DEVELOPMENT CORPORATION et al., Bankrupts. |
Court | U.S. District Court — Eastern District of Tennessee |
W. Carr Hagan, Jr., Kingsport, Tenn., for Viking Co., Inc.
Scott N. Brown, Jr., Chattanooga, Tenn., for Mountain Venture Development Corp.
This is a review of the order of October 18, 1973 of a bankruptcy judge concerning the respective priority rights of Associates Capital, Inc. (Associates), an admitted mortgage holder, and five asserted furnishers' and materialmen's claimants, to a portion of a fund realized from the sale of real property belonging to the bankruptcy estates. 11 U.S.C. § 67. Such rights are determinable on the basis of whether such asserted lien-claimants perfected and preserved their materialmen's or furnisher's respective liens as provided by the respectively applicable Tennessee statutes.
None of the appealing asserted lienors registered its or his contract but undertook to preserve the virtue of their respective liens against subsequent purchasers and encumbrancers in the manner provided for by T.C.A. § 64-1112. That statute provides:
* * * In order to preserve the virtue of the lien, as concerns subsequent purchasers or encumbrancers for a valuable consideration without notice thereof, though not as concerns the owner, such lienor, who has not so registered his contract as provided for in T.C.A. § 64-1111, is required to file for record in the office of the register of deeds of the county where the premises, or any part affected lie, a sworn statement similar to that set forth in § 64-1117, and pay the fees; the register to file, note and record the same, all as in said section stipulated. Such filing for record is required to be done within ninety (90) days after the building or structure or improvement is demolished, altered and/or completed, as the case may be, or the contract of the lienor expires or is terminated, or he is discharged, prior to which time the lien shall be effective as against such purchasers or encumbrancers without such registration. * * *
T.C.A. § 64-1117 provides:
* * * Such lien shall have precedence over all other subsequent liens or conveyances during such time; provided, a sworn statement of the amount due and/or approximating that to accrue for such * * * materials, and a reasonably certain description of the premises, shall be filed, within said first mentioned period of ninety (90) days, with the county register, who shall note the same for registration and put it on record in the lien book in his office, for which he shall be entitled to the sums specified in § 8-2138, which sums shall be paid by the party filing the same; but said fees shall be receipted for on the statement of account, and shall be a part of the indebtedness or charge secured by the lien, and this registration shall be notice to all persons of the existence of such lien. * * *
"* * * It cannot be doubted that the claim of a lien must be acknowledged in compliance with the statute, otherwise it is ineffective for any purpose. * * *" Chattanooga Lbr. v. Phillips (1957), 202 Tenn. 266, 274(3), 304 S.W.2d 82, 85. Against the holder of a deed of trust on the property involved, the complainant must have complied with the statute as to recordation and acknowledgment of its claim. Ibid., 202 Tenn. at 276(7), 304 S.W.2d 82. * * *"Ibid., 202 Tenn. at 276-277(8), 304 S.W.2d at 87.
The method and forms of authentication for purposes of registration of instruments is codified in T.C.A., title 64, ch. 22. The methods of authentication are set forth, as follows:
* * * To authenticate an instrument for registration, its execution shall be acknowledged by the maker, or proved by two (2) subscribing witnesses, at least. * * *
T.C.A. § 64-2201. The form of a certificate of acknowledgment, which is essential to a valid registration of an instrument, is prescribed, and is not left to the discretion of the officer taking the acknowledgment. Newton Finance Corp. v. Conner (1930), 161 Tenn. 441, 447(4), 33 S.W.2d 95, 72 A.L.R. 1286. It is provided:
T.C.A. § 64-2207. Where a corporation is authenticating an instrument, it is provided:
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In re Anderson
...to vary the form of the certificate. See, e.g., Kelly v. Calhoun, 95 U.S. 710, 711-713, 24 L.Ed. 544 (1878); In the Matter of Viking Co., 389 F.Supp. 1230, 1231-1234 (E.D.Tenn.1974), aff'd 510 F.2d 974 (6th Cir.1975); In re Englewood Mfg. Co., 28 F.Supp. 653, 654-656 (E.D.Tenn. 1939); Lanca......
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...As Judge Neese of the District Court for the Eastern District of Tennessee observed in the case of In the Matter of Viking Co., 389 F.Supp. 1230, 1233 (E.D.Tenn.1974), aff'd 510 F.2d 974 (6th "There is a long line of cases holding that the certificate of the officer taking an acknowledgemen......
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