From Casetext: Smarter Legal Research

Federal Land Bank of Wichita v. Thompson

Court of Appeals of Kansas
Mar 17, 1988
12 Kan. App. 2 (Kan. Ct. App. 1988)

Opinion


751 P.2d 679 (Kan.App. 1988) 12 Kan.App.2d 561 The FEDERAL LAND BANK OF WICHITA, Appellee, v. Betty L. THOMPSON, Appellant. No. 60179. Court of Appeals of Kansas March 17, 1988

       Review Denied May 5, 1988.

       Syllabus by the Court

       1. Under 12 U.S.C. § 2055 (1982), mortgages held by federal land banks are exempt from the mortgage registration fee provided for in K.S.A.1987 Supp. 79-3102(a).

       2. Validly executed federal land bank mortgages may be filed without payment of the mortgage registration fee, and such mortgages are enforceable in Kansas courts.

       Robert C. Johnson, Herington, for appellant.

       Max M. Hinkle, of Lehman, Guilfoyles&sHinkle, Abilene, for appellee.

       Before ABBOTT, C.J., and ELLIOTT and LARSON, JJ.

       ELLIOTT, Judge:

       The sole issue in this foreclosure action is whether the Federal Land Bank of Wichita is exempt from paying the mortgage registration fee as provided for in K.S.A.1987 Supp. 79-3102(a). We hold it is. As a result, the trial court did not err in admitting the mortgage into evidence, despite the language of K.S.A. 79-3107, which provides that any mortgage on which the registration fee has not been paid is not to be admitted into evidence and no judgment for its enforcement is to be rendered.

       12 U.S.C. § 2055 (1982) clearly states that the mortgages held by federal land banks shall be exempt from all taxation, except for certain federal tax liabilities not relevant to this case.

       The Kansas Supreme Court has consistently held that the mortgage registration fee called for in K.S.A.1987 Supp. 79-3102(a) is a tax and not a user fee or a fee for administrative work. Berger v. Bierschbach, 201 Kan. 740, 745, 443 P.2d 186 (1968).

       Appellant's reliance on Federal Land Bank of Wichita v. Read, 237 Kan. 751, 703 P.2d 777 (1985), is simply misplaced. Holding that a federal land bank is a private corporation for due process consideration does not remove mortgages held by a federal land bank from the express exemption of 12 U.S.C. § 2055.

       Consequently, validly executed federal land bank mortgages may be filed without payment of the mortgage registration fee, and such mortgages are enforceable in Kansas courts. See Att'y Gen. Op.No. 86-78.

       The judgment is affirmed.


Summaries of

Federal Land Bank of Wichita v. Thompson

Court of Appeals of Kansas
Mar 17, 1988
12 Kan. App. 2 (Kan. Ct. App. 1988)
Case details for

Federal Land Bank of Wichita v. Thompson

Case Details

Full title:THE FEDERAL LAND BANK OF WICHITA, Appellee, v. BETTY L. THOMPSON, Appellant

Court:Court of Appeals of Kansas

Date published: Mar 17, 1988

Citations

12 Kan. App. 2 (Kan. Ct. App. 1988)
12 Kan. App. 2
12 Kan. App. 2d 561

Citing Cases

Attorney General Opinion No

K.S.A. 79-3102(d)(8). Home Owners' Loan Corporation v. Anderson, 145 Kan. 209 (1937); Federal Land Bank of…