USA v. Lyons et al

Filing 24

JUDGMENT in rem in favor of USA against Arkansas Child Support Enforcement Office, Judy Ann Lyons, Terry Lynne Lyons pursuant to 23 Order. Total judgment sum is $189,955.50, accrued to May 13, 2010, and interest thereafter at the daily rate of $17.53, in favor of the USA. The mortgage securing this indebtedness is foreclosed. If the indebtedness is not paid within 10 days from this date, the U.S. Marshal is directed to sell the property described herein at public auction. Signed by Judge D. P. Marshall Jr. on 9/27/12. (kpr)

IN THE UNITED STATES DISTRICT COURT
EASTERN DISTRICT OF ARKANSAS
WESTERN DIVISION
UNITED STATES OF AMERICA

v.

PLAINTIFF

No. 4:11-cv-370-DPM

TERRY LYNNE LYONS;
JUDY ANN LYONS, his spouse;
STATE OF ARKANSAS;
Acting by and through the Department
of Finance and Administration;
COMMISSIONER OF REVENUES;
FIRST SECURITY BANK; and
STATE OF ARKANSAS,
OFFICE OF CHILD SUPPORT ENFORCEMENT

DEFENDANTS

JUDGMENT
The Court enters judgment for the United States of America in rem.
The Court finds:
1. The Court has jurisdiction over the parties and over the property that
is the subject of this cause of action.
2. There is due and owing on the promissory notes of Terry Lynne
Lyons to the United States of America, U.S. Department of Agriculture, Farm
Service Agency, the total principal sum of $127,984.63, plus interest in the
sum of $61,970.87, accrued to 13 May 2010, for a total of principal and interest
in the sum of $189,955.50, and interest thereafter at the daily rate of $17.53
plus any additional advances and recoverable charges made during the
pendency of this action for protection and maintenance of the subject
property, and the costs of this action.

3. The above-described indebtedness due and owing to the plaintiff is
secured by a mortgage dated and recorded as follows:
Date of
Mortgage

Date Filed

4 February
1994

4 February
1994

Filing Information
Filed in the real estate records in the Office of
the Circuit Clerk and Ex-Officio Recorder of
White County, Arkansas in Book 387, at Page
650.

Plaintiff's mortgage constitutes a good and valid mortgage lien, which is
paramount and superior to all right, title, claim, interest, estate, equity or
statutory right of redemption, dower, curtesy and homestead of the
defendants herein, and each of them, in and to the following described
property in White County, Arkansas:
The West Half of the Southwest Quarter of Section Thirty-four,
Township Ten North, Range (7) West. Subject to All Existing
Easements and Right of Ways for Roads and Other Purposes.
together with all improvements and appurtenances thereon.
4. After having been properly served, Terry L. Lyons, Judy Ann Lyons,
his spouse, and State of Arkansas, Office of Child Support Enforcement are
in default.

Defendants State of Arkansas, Department of Finance &

Administration, and First Security Bank filed answers and consent to this
judgment in rem. Document Nos. 14 & 23. All right, title, and interest in and
to the above-described property held or claimed by the defendants, and each
of them, is subordinate and inferior to the plaintiff's mortgage, and is hereby
foreclosed.

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5.

The indebtedness owed to the U.S. Department of Agriculture,

Farm Service Agency, consists of promissory notes of Terry L. Lyons dated
16 September 1999. Payment of these notes is secured by the mortgage
described in Paragraph three above.
Therefore:
6.

Plaintiff United States of America, U.S. Department of

Agriculture, Farm Service Agency, is hereby awarded judgment in rem
against the property described herein for the above-mentioned sums.
Personal judgment against the defendants was not in the plaintiff's prayer for
relief, and the Court does not enter any such judgment here.
7.

The above-described mortgage of the United States of America is

hereby foreclosed. If the above-described indebtedness due to the United
States of America is not paid within 10 days from this date, the United States
Marshal is directed to sell the above-described property at public auction to
the highest bidder for cash, or on a credit of 60 days, at the East door of the
White County Courthouse, Searcy, Arkansas. The date and time of the sale
shall be fixed by the Marshal. If purchased on credit, payment of the
purchase price shall be secured by one of the following methods, at the
purchaser's option: furnish a corporate surety bond, or furnish a letter of
credit from a financial institution, or post a 10% cash down payment. The
corporate surety bond and letter of credit shall be in the amount of the
purchase price, plus interest at the rate of 10% per annum from date of sale,
and shall be subject to the approval of the U.S. Marshal. The 10% cash down
payment shall be forfeited in the event of failure to pay for the property

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within 60 days, in which event the Marshal shall resell the property. In the
event of a cash down payment, the purchaser shall pay interest on the
balance of the purchase price at the rate of 10% per annum from date of sale.
A lien against the property shall be retained to further secure payment of the
purchase money. The property shall be sold subject to any unpaid property
taxes. If the plaintiff shall become the purchaser at such sale for a sum equal
to or less than the indebtedness owed to plaintiff as of the date of sale, it may
credit its bid against the amount of the debt and this credit shall be an
extinguishment of the debt to the extent of the credit. The Marshal shall give
notice of the sale as required by 28 U.S.C. § 2002, and shall forthwith report
the result of the sale to the Court.
8.

Upon the sale of the above-described real property, all right, title,

claim, interest, estate and equity or statutory right of redemption, and all
rights of homestead, curtesy and dower of all defendants herein in and to the
property and every part thereof shall from that date be foreclosed and forever
barred.
9.

The purchaser at said sale shall be given possession upon demand

and the Clerk of this Court is hereby authorized and directed to issue writs
of assistance to the United States Marshal for the Eastern District of Arkansas,
who will proceed to place the purchaser in possession of the property.
10.

The sales proceeds, after expenses of sale, shall be paid and

distributed to the United States of America, USDA, Farm Service Agency, to
the extent of the indebtedness owed to it secured by its mortgages described
above. Any surplus remaining shall be retained by the U.S. Marshal subject

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to further orders of the Court, and subject to the liens of defendants State of
Arkansas, Department of Finance and Administration, Commissioner of
Revenue, and First Security Bank.
11.

The Court retains jurisdiction of this cause for the making of such

further orders as may be necessary to effectuate this judgment.
So Ordered.
D.P. Marshall Jr.
United States District Judge
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Approved by:

Is I G. Michael Millar
G. Michael Millar
401 W. Center
P.O. Box 1406
Searcy, AR 72145-1406
[phone]
Attorney for First Security Bank

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Approved by:

/sf MichaelJ. Wehrle
Michael J. Wehrle, AR BAR 92036
P.O. Box 1272
Little Rock, AR 72203
[phone]
Attorney for DFA, State of Arkansas

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Approved by:

/sf

Richard M. Pence, Jr.

Richard M. Pence, Jr., AR BAR 69059
P.O. Box 1229
Little Rock, AR 72203
[phone]

Attorney for Plaintiff

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