CAROLINE D. CIRAOLO 

Acting Assistant Attorney General 

YAEL BORTNICK 

Trial Attorney, Tax Division 

U.S. Department of Justice 

P.O. Box683 

Washington, D.C. 20044 

202-514-6632 (v) 

202-307-0054 (f) 

Y ael.Bortnick@usdoj .gov 

Of Counsel: 

S. AMANDA MARSHALL 

United States Attorney 

Attorneys for the United States of America 

UNITED STATES DISTRICT COURT 

DISTRICT OF OREGON 

MEDFORD DIVISION 

UNITED STATES OF AMERICA, 

Plaintiff, 

v. 

STEVEN D. KELTON; GLENDA L. 

KELTON; STEVEN D. KELTON AS 

TRUSTEE OF PACIFIC REGION 4 FAMILY 

TRUST; JACKSON COUNTY, OREGON; 

OREGON DEPARTMENT OF REVENUE; and 

AMERICANWEST BANK, 

Defendants. 

Case No. 1 :15-cv-197 

STIPULATION OF PRIORITY AND 

TO DISMISSAL 

IT IS HEREBY STIPULATED AND AGREED by the United States of America "United 

States" and American West Bank that: 

Stipulation of Priority and to Dismissal 

(Case No. 1:15-cv-197) 1 

Case 1:15-cv-00197-AA Document 17 Filed 04/15/15 Page 1 of 4
1. The United States filed this action to foreclose federal tax liens on the real property 

commonly known as 4645 Rising Glen Drive, Central Point, Oregon 97502 (the "Subject 

Property") as identified in the United States' Complaint. See Dkt. # 1 at ~ 11. 

2. The United States filed notices of federal tax lien in Jackson County pursuant to 26 

U.S.C. § 6323(a) to make its tax liens against any and all real property owned by Steven D. 

Kelton and Glenda L. Kelton, including the Subject Propetiy, effective against persons entitled to 

such notice. See Dkt. # 1 at~~ 39-45. 

3. American West Bank was named as a defendant solely to fulfill the requirements of26 

U.S.C. § 7403(c) that "[a]ll persons having liens upon or claiming any interest in the property 

involved in such action [to enforce a tax lien] shall be made parties thereto." See Dkt. # 1 at~ 10. 

4. On or about December 7, 1999, a deed oftrust, document number 99-60104, was 

recorded in Jackson County, Oregon encumbering the Subject Propetiy. The loan secured by the 

deed of trust was obtained by defendants Steven D. Kelton and Glenda L. Kelton from Bank of 

Southern Oregon in the principal amount of $93,000.00. Defendant American West Bank 

currently holds the beneficial interest under the loan secured by the aforementioned deed of trust. 

On or about September 11, 2000, a deed of trust, document number 00-37095, was recorded in 

Jackson County, Oregon encumbering the Subject Property. The loan secured by the deed of 

trust was obtained by defendants Steven D. Kelton and Glenda L. Kelton from PremierWest 

Bank in the principal amount of $25,000.00. Defendant American West Bank currently holds the 

beneficial interest under the loan secured by the aforementioned deed of trust. 

5. Pursuant to 26 U.S.C. § 6323, The United States recognizes the superior interests of 

American West Bank secured by the deeds of trust listed in~ 4. The United States will include in 

any proposed order of sale a provision that the net proceeds of sale for each parcel, defined as the 

Stipulation of Priority and to Dismissal 

(Case No. 1 :15-cv-197) 2 

Case 1:15-cv-00197-AA Document 17 Filed 04/15/15 Page 2 of 4
proceeds resulting from the sale of the property less distribution to the United States for the costs 

of sale and payment of outstanding Jackson County taxes, will be applied to satisfy in full the 

amounts due and owing to American West Bank prior to application of the funds to fully or 

partially satisfy the United States' interest secured by federal tax liens. The United States will 

provide a draft of any proposed order of sale to American West Bank for comment prior to filing 

such proposed order with the Court. The United States shall not propose any sale unless the 

proceeds therefrom are adequate to satisfy American West Bank's interests in full. 

6. American West Bank does not oppose the United States' request for an Order of the Court 

foreclosing the federal tax liens upon the Subject Property identified in the United States' 

Complaint. 

7. If the United States does not prevail in this action, or if this action is resolved prior to the 

foreclosure and sale ofthe Subject Property, this Stipulation shall not affect American West 

Bank's claims, or release any claim or interest in may have in the Subject Property. Nothing 

herein shall in any manner preclude or impair American West Bank's ability to initiate 

appropriate suit, action, or proceeding to enforce their security interests in the real property. 

American West Bank will provide counsel for the United States notice of any such suit, action, or 

proceeding it initiates. Nothing herein shall in any manner preclude or impair the United States' 

right to object to any such separate suit, action, or proceeding brought by American West Bank to 

enforce their security interests in the real property. The United States maintains that this action is 

the appropriate action for seeking relief with respect to the real property described in paragraph 

11 ofthe Complaint. Dkt. # 1. 

8. In light of the foregoing, and the fact that there is no further reason for American West 

Bank to participate in this litigation with respect to the United States' claims in the Complaint, 

Stipulation of Priority and to Dismissal 

(Case No. 1:15-cv-197) 3 

Case 1:15-cv-00197-AA Document 17 Filed 04/15/15 Page 3 of 4
American West Bank should be dismissed from this proceeding inasmuch as it is a named 

defendant in the United States' Complaint without prejudice. 

Dated: April 15, 2015 

Dated: 

IT IS SO ORDERED. 

Dated this[~ay o¥ 2015. 

Stipulation of Priority and to Dismissal 

(Case No. 1: 15-cv-197) 4 

CAROLINE D. CIRAOLO 

Acting Assistant Attomey General 

Is/ Yael Bortnick 

YAEL BORTNICK 

Trial Attomey, Tax Division 

U.S. Department of Justice 

P.O. Box 683 

Washington, D.C. 20044 

202-514-6632 (v) 

Y ael.Bortnick@usdoj .gov 

Of Counsel: 

S. AMANDA MARSHALL 

United States Attomey 

Attorneysfor the United States 

JOSEPH E. KELLERMAN 

Homecker Cowling LLP 

717 Murphy Rd. 

Medford, OR 97504 

541-779-8900 (v) 

jek@roguelaw.com 

HON. OWEN M. PANNER 

United States District Judge. 

Case 1:15-cv-00197-AA Document 17 Filed 04/15/15 Page 4 of 4