Guardian Savings & Trust Co. v. Road Imp. Dist. - 267 U.S. 1 (1925)
U.S. Supreme Court
Guardian Savings & Trust Co. v. Road Imp. Dist., 267 U.S. 1 (1925)
Guardian Savings & Trust Co. v. Road Improvement District No. 7
Argued January 8, 1925
Decided January 19, 1925
267 U.S. 1
When state legislation has authorized and confirmed assessments of benefits on lands of a special improvement district and the mortgaging of these taxes as security for bonds to be sold to the public, and has provided in terms for collection of the taxes through a receiver to be appointed by a state court to pay the bonds in case of default, and the bonds are bought by the public upon this assurance, the power thus conferred upon the state court may be exercised by the federal district court, in a suit to foreclose the mortgage in which jurisdiction otherwise exists through diversity of citizenship. P. 267 U. S. 6.
298 F. 272 reversed.
Certiorari to a decree of the circuit court of appeals which reversed a decree of the district court and directed that the bill be dismissed. The decree of the district court was made in a suit brought by a trustee for bondholders, alleging diversity of citizenship, against a road improvement district, to foreclose a mortgage covering the assets of the district, including assessments for benefits already made and confirmed against the lands of the district. The decree directed a receiver to collect these taxes to the extent necessary to pay outstanding bonds and coupons.