USA v. Gilmore et al

Filing 14

JUDGMENT: The Gilmores, after having been properly served, have not answered, appeared, or otherwise defended against the United States's complaint. They are therefore in default. The remaining Defendant is the State of Arkansas, through the Director of Finance & Administration, and it consents to this foreclosure judgment in rem. Signed by Judge D. P. Marshall Jr. on 4/19/11. (hph)

IN THE UNITED STATES DISTRICT COURT

EASTERN DISTRICT OF ARKANSAS

EASTERN DIVISION

PLAINTIFF

UNITED STATES OF AMERICA

v.

Case No. 2:10-cv-83-DPM

RAYMOND GILMORE;

LEEANER GILMORE (also known as

Leaner Gilmore); and STATE OF ARKANSAS,

acting through the Department of Finance

and Administration, Timothy Leathers,

Commissioner of Revenues

DEFENDANTS

JUDGMENT
The United States of America has applied for a default judgment in rem
foreclosing the right, title, and interest Separate Defendants Raymond
Gilmore and Leeaner Gilmore, and their spouses, if any, may have or claim
in and to real property in Lee County, Arkansas (as described below) together
with affidavits that the Gilmores are neither infants, incompetent persons, nor
serving in the United States military.

The Gilmores, after having been

properly served, have not answered, appeared, or otherwise defended against
the United States's complaint. They are therefore in default. The remaining
Defendant is the State of Arkansas, through the Director of Finance &

Administration, and it consents to this foreclosure judgment in rem.
1.

The Court has jurisdiction over the parties and real property in

this case.
2.

Raymond Gilmore and Leeaner Gilmore are in default on the

payments due on their promissory notes and are indebted to the United States
of America, u.s. Department of Agriculture, Farm Service Agency, in the
principle sum of $339,096.76, plus accrued interest through September 15,
2009 in the amount of $223,585.47.

The total sum of the judgment is

$562,682.23, with interest accruing thereafter at $45.829 per day to the date
of the entry of this Judgment and thereafter at the statutory rate pursuant to
28 U.s.C. § 1961, plus any additional advances and recoverable charges made
while this case was pending for maintenance of the property, and the costs of
this action. The United States of America, u.s. Department of Agriculture
(U.s.D.A.), Farm Service Agency (F.s.A.), is hereby awarded judgment in rem
against the real property in Lee County, Arkansas described below for the
amounts discussed above. Because no personal judgment against Raymond
Gilmore or Leeaner Gilmore has been requested, none is rendered.

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3.

The indebtedness due and owing to the United States of America,

U.s. Department of Agriculture, Farm Service Agency, is secured by
mortgages recorded in the records of the Circuit Clerk and Recorder for Lee
County, Arkansas, as follows:
Date of
Mortgage

Date Filed

Filing Information

April 9, 1976

April 9, 1976

Filed in the real estate records in the
Office of the Circuit Clerk and Ex­
Officio Recorder for Lee County,
Arkansas in Book 266, at Page 178.

March 25, 1980

March 25,
1980

Filed in the real estate records in the
Office of the Circuit Clerk and Ex­
Officio Recorder for Lee County,
Arkansas in Book 283, at Page 61.

May 30,1980

May 30,1980

Filed in the real estate records in the
Office of the Circuit Clerk for Lee
County, Arkansas in Book 283, at Page
617.

September 15,
1980

September
15, 1980

Filed in the real estate records in the
Office of the Circuit Clerk for Lee
County, Arkansas in Book 284, at Page
623.

March 4, 1981*
*Correction of
September 15,
1980 Mortgage.

March 16,
1981

Filed in the real estate records in the
Office of the Circuit Clerk for Lee
County, Arkansas in Book 287, at Page
207.

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Date of
Mortgage

Date Filed

Filing Information

March 19, 1981

March 19,
1981

Filed in the real estate records in the
Office of the Circuit Clerk for Lee
County, Arkansas in Book 287, at Page
233.

February 26,
1982

February 26,
1982

Filed in the real estate records in the
Office of the Circuit Clerk for Lee
County, Arkansas in Book 291, at Page
229.

March 7, 1983

March 7, 1983 Filed in the real estate records in the
Office of the Circuit Clerk for Lee
County, Arkansas in Book 295, at Page
776.

February 3, 1984

February 3,
1984

Filed in the real estate records in the
Office of the Circuit Clerk for Lee
County, Arkansas in Book 299, at Page
290.

March 21,1985

March 21,
1985

Filed in the real estate records in the
Office of the Circuit Clerk for Lee
County, Arkansas in Book 303, at Page
71.

June 12, 1986

June 12, 1986

Filed in the real estate records in the
Office of the Circuit Clerk for Lee
County, Arkansas in Book 306, at Page
698.

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Date of
Mortgage

Date Filed

Filing Information

May 22,1987

May 22,1987

Filed in the real estate records in the
Office of the Circuit Clerk for Lee
County, Arkansas in Book 309, at Page
758.

May 22, 1987*

September 2,
1987
of

*Correction
May 22, 1987
Mortgage.

March 15, 1994

Filed in the real estate records in the
Office of the Circuit Clerk for Lee
County, Arkansas in Book 310, at Page
719.
March 15,
1994

July 14, 1994*

*Correction of July 14, 1994
March 15, 1994
Mortgage,
correcting
principal amount
of Note on Loan
No. 46-05.
June 1,1995

4.

June 1, 1995

Filed in the real estate records in the
Office of the Circuit Clerk for Lee
County, Arkansas in Book 331, at Page
632.
Filed in the real estate records in the
Office of the Circuit Clerk for Lee
County, Arkansas in Book 333, at Page
31.

Filed in the real estate records in the
Office of the Circuit Clerk for Lee
County, Arkansas in Book 336, at Page
344.

The described mortgages held by the United States constitute

collectively a first lien, which is paramount and superior to all right, title,
claim, interest, estate, equity or statutory right of redemption, dower, curtesy,
and homestead of all the parties, and each of them, and all persons claiming
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by or through them, in and to the following real property in Lee County,
Arkansas, together with all improvements and appurtenances thereon:
Tract II: Part of the Subdivision of the West Half (W 1/2) of Section
Thirty (30), Township Two (2) North, Range Three (3) East of the
Fifth Principal Meridian, Lee County, Arkansas, according to a
plat thereof recorded in Plat Book 1, at Page 155 and being a part
of Block Five (5) of said Plat, more particularly described as
follows: Beginning at an iron pipe stake in the East line of said
Block 5, 272 feet North of the Southeast corner thereof, thence
West parallel with the South line of Block 5, being also the South
line of said Section 30, 480 feet to an iron pipe stake; thence South,
parallel with said East line 272 feet to the said South line of
Section 30; thence West, along said South line, 1047.24 feet to the
Southwest corner of said Block 5; thence North, along the West
line of Block 5, 1345.98 feet to a stake; thence East, parallel with
the said South line of Section 30, 1497.54 feet to the East line of
said Block 5; thence South, along said East line, 1073.98 feet to the
point of beginning, containing forty-three and 62/100 (43.62)
acres, more or less.
SUBJECT to right-of-way to Arkansas-Louisiana Gas Company
filed for record August 6, 1965, in Book 216, page 459 of the
records of Lee County, Arkansas.
SUBJECT to right-of-way to Texas Gas Transmission, LLC filed
for record October 11, 2007 and recorded in Book 2007 at page
3248 of the records of Lee County, Arkansas.
Tract III: Part of the South Half (S 1/2) of the Fractional North Half
(Frl. N l/z) of Section Six (6), Township Two (2) North, Range
Three (3) East of the Fifth Principal Meridian, Lee County,
Arkansas, more particularly described as follows: Beginning at
the Northwest corner of a parcel awarded to Bird Young by
Chancery Court action as recorded in Chancery Book F, Page 602,

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said point being also the Southwest corner of a tract awarded to
Millie and Walter R. Smith in the same action; thence East 20.21
chains to a point on the West line of Private Survey No. 490;
thence South 30 degrees East, along said West line of Private
Survey, 3.7 chains to an iron pipe stake; thence West 21.17 chains
the West line of the Bird Young tract; thence North 3.2 chains to
the point of beginning, containing six and sixty-three one
hundredths (6.63) acres, more or less.
Tract IV: Part of the South Half (5 112) of the Fractional North Half
(Frl. N 1/2) of Section Six (6), Township Two (2) North, Range
Three (3) East of the Fifth Principal Meridian, Lee County,
Arkansas, more particularly described as follows: Beginning at an
iron pipe stake in the West line of a parcel of land awarded to
Bird Young by Chancery Court action as recorded in Chancery
Book F, Page 602, 3.2 chains South of the Northwest corner
thereof, thence East 21.17 chains to an iron pipe stake in the West
line of Private Survey No. 490; thence South 30 degrees East,
along said West line of Private Survey, 3.5 chains to an iron pipe
stake; thence west 22.08 chains to an iron pipe stake in the West
line of the said Bird Young tract; thence North 3.07 chains to the
point of beginning, containing six and sixty-three one hundredths
(6.63) acres, more or less.
Tract V: Part of the South Half (5 1/2) of the Fractional North Half
(Frl. N 1/2) of Section Six (6), Township Two (2) North, Range
Three (3) East of the Fifth Principal Meridian, more particularly
described as follows: Commencing at an iron pipe stake at the
Southeast corner of a tract of land conveyed by R. D. Griffis and
S. H. Hewitt to Abe Marsh by deed of record in Book 15, page 467,
being a point of the half section line between the North Half (N 1/2)
and the South Half (5 1/2) of said Section 6, Township Two (2)
North, Range Three (3) East, 29.80 chains East of the West line of
said Section 6; thence North, along the East line of said Marsh
tract, 9.79 chains to the true POINT OF BEGINNING of the tract
herein conveyed; thence North 7.21 chains to a point on the South
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line of a tract conveyed to Green Hill by deed in Book 6, page 761;
thence East, parallel to the South line of said Section 6, 14.24
chains to the West line of the John Carnes Private Survey No. 490,
thence South 30 degrees East, along the said West line of Private
Survey No. 490, 8.32 chains to the Northeast corner of a tract of
land conveyed to Bird Young by Chancery Court Decree recorded
in Book F, Page 601, and by deed of record in Book 117, Page 265;
thence West along the North line of the Young Tract, 18.40 chains
to the point of beginning, containing 11.76 acres, more or less,
being the property which was, and has been, actually occupied by
Walker Smith and Millie Smith, their heirs and assigns, under a
Decree by the Chancery Court of Lee County, Arkansas, in
Chancery Record F at page 601, and all instruments of
conveyances containing the description of the tract allotted to
Walker Smith and Millie Smith by said Chancery Court Decree
filed of record since November 16, 1920.
Tract VI: The Fractional North Half (FI. N 1/2) of the North Half (N
1/2) of the Northwest Quarter (NW %) of Section Thirty-one (31),
Township Two (2) North, Range Three (3) East, excepting ten (10)
acres on the West side of said tract heretofore conveyed to Ben
King by deed dated February 25, 1918, and recorded in Book 85,
page 419 of the Official Records of Lee County, Arkansas, the land
hereby described comprises 28.76 acres, more or less.
SUBJECT to a right-of-way to Arkansas-Louisiana Gas Company
for easement purposes dated July 28, 1965, filed for record August
6, 1965, recorded in Book 216, Page 461 of the records of Lee
County, Arkansas.
SUBJECT to right-of-way to Texas Gas Transmission, LLC filed
for record October II, 2007 and recorded in Book 2007 at page
3248 of the records of Lee County, Arkansas.
Tract VII: The Northwest Quarter (NW 1/2) of the Northwest
Quarter (NW %) of Section Thirty-two (32), Township Two (2)
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North, Range Three (3) East, containing 40 acres, more or less.
SUBJECT to an oil and gas lease executed to the Gulf Oil
Corporation filed for record April 9, 1960, recorded in Book 192,
Page 21 of the records of Lee County, Arkansas.
Tract VIII: The South Half (S 1/2) of the South Half (S 1/2) of the
Northeast Quarter (NE %) of the Southwest Quarter (SW %) AND
the South Half (S 1/2) of the South Half (S 1/2) of the West Half (W
1/2) of the Northwest Quarter (NW%) of the Southeast Quarter (SE
%) of Section Twenty-five (25), Township Two (2) North, Range
Two (2) East, containing 15 acres.
Tract IX: The North Half (N 1/2) of the South Half (S 1/2) of the
Northeast Quarter (NE %) of the Southwest Quarter (SW %) of
Section Twenty-five (25), Township Two (2) North, Range Two (2)
East, containing 10 acres.
Tract XI: The Northeast Quarter (NE %) of the Northwest Quarter
(NW %) of Section Thirty-two (32), Township Two (2) North,
Range Three (3) East.
Tract XIII: The South Half (S 1/2) of the North Half (N 1/2) of the
North Half (N 1/2) of the Northeast Quarter (NE %) of Section
Thirty (30), Township Two (2) North, Range Three (3) East.
Tract XIV: The undivided interest of Raymond Gilmore in the
following described property: The Southwest Quarter (SW %) of
the Northeast Quarter (NE %) of Section Eight (8), Township
Three (3) North, Range Four (4) East, containing forty (40) acres,
more or less.
5.

The described property is subject to Notices of Federal Tax Liens

held by the United States of America, Department of the Treasury, Internal

9

Revenue Service, filed in the records of the Circuit Clerk and Recorder of Lee
County, Arkansas as follows:
Notice of Federal Tax Lien against Raymond Gilmore in the
amount of $6/063.05 recorded on September 4/2003 in Volume E
at Page 657 and Notice Of Federal Tax Lien against Raymond and
Leeaner Gilmore in the amount of $112/186.26 recorded on July
22/2005 as Doc. 2005-0171. Said federal tax liens are subsequent
and subordinate to the mortgages held by the United States of
America, U.s.D.A., F.S.A., and are hereby foreclosed.
6.

The State of Arkansas, acting through the Department of Finance

& Administration, Timothy Leathers, Commissioner of Revenues, has a lien

on the described property by virtue of a Certificate of Indebtedness against
Raymond Gilmore in the amount of $28/763.23 that was filed in the records
of the Circuit Clerk and Recorder of Lee County, Arkansas pursuant to Ark.
Code Ann. § 26-18-701 on October 5/2007/ inJudgment Book 2007 at Page 242.
The Certificate of Indebtedness is subsequent and subordinate to the
mortgages held by the United States of America, U.S.D.A., F.S.A., and is
hereby foreclosed.
7.

If the described indebtedness due and owing to the United States

of America, U.S.D.A., F.S.A., is not paid within ten days from the date of this
Judgment, the United States Marshal is directed to sell the described property

10

at public auction to the highest bidder for cash, or on a credit of 30 days, at the
South front door of the Lee County Courthouse, Marianna, AR. The date and
time of the sale shall be fixed by the Marshal. If purchased on credit, payment
of the purchase price will be secured by one of the following methods at the
purchaser's option: furnish a corporate surety bond; furnish a letter of credit
from a financial institution; or post a ten percent cash-down payment. The
corporate surety bond and letter of credit shall be for the purchase price, plus
interest at the rate of six percent per annum from date of sale, and shall be
subject to the U.s. Marshal's approval. The ten percent cash-down payment
shall be forfeited if the property is not paid for within 30 days, in which event
the Marshal shall resell the property. In the event of cash-down payment, the
purchaser shall pay interest on the balance of the purchase price at the rate of
six percent per annum from date of sale. A lien against the property shall be
retained to further secure payment of the purchase price. The property shall
be sold subject to any unpaid property taxes. If the United States shall
become the purchaser at such sale for a sum equal to or less than the
indebtedness owed to the United States of America, U.S.D.A., F.s.A.,as of the
date of sale, the United States may credit its bid against the amount of the

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retained by the u.s. Marshal subject to further orders of the Court, and subject
to the above-described Notices of Federal Tax Lien and Certificate of
Indebtedness.
11.

The Court retains jurisdiction over this case so it may issue any

orders required to enforce this Judgment.

D.P. Marshall Jr. {/
United States District Judge

/9

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+,vd

;lOll

I sl Richard M. Pence, Jr.
Richard M. Pence, Jr., AR BAR 69059

Assistant U.s. Attorney

425 W. Capitol, Suite 500

Little Rock, AR 72203-1229

Attorney for United States of America

Michael J. Wehrle
Revenue Legal Counsel
P.O. Box 1272

Little Rock, AR 72203

Attorney for State of Arkansas

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Richard M. Pence, Jr., AR BAR 69059
Assistant U.S. Attorney
425 W. Capitol, Suite 500
Little Rock, AR 72203-1229
Attomey for United States of America

Michael J. Wehrle At( 'l;;Lo3"
Revenue Legal Counsel
P.O. Box 1272
Little Rock, AR 72203
Attorney for State of Arkansas

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