Opinion ID: 5058
Heading Depth: 2
Heading Rank: 2

Heading: Carrollton

Text: In Carrollton–Farmers Branch Indep. School Dist. v. FDIC, No. 91–7397, the School District and the City of Farmers Branch sued the owner of the property and the holder of a second lien on the property, the First Savings and Loan Association of Burkburnett, Texas, for unpaid ad valorem taxes, interest, penalties, and collection costs due on property for the years 1983 through 1986. On January 16, 1987, the FSLIC was appointed receiver for First Savings and Loan. The FSLIC foreclosed on the lien, acquired the property, and then sold it. A condition of that sale was the FSLIC's indemnification of the buyer for any and all claims, costs, and expenses arising out of tax claims made by the School District or the Town. The property was also sold subject to all liens which survived Lone Star's foreclosure and subject to any and all tax liens on the property. The FDIC, which replaced the FSLIC in 1989, has tendered payment of the delinquent base taxes. After lengthy proceedings in federal district court, to which the FSLIC had removed the taxing authorities' suit, the sole question in Carrollton was condensed to the same question at issue in Irving: Whether 12 U.S.C. § 1825(b) required the extinction of liens securing penalties for the nonpayment of ad valorem taxes on property later acquired by the FDIC? The district court granted summary judgment in favor the taxing authorities based on its opinion in Irving. The FDIC appeals.