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BAYSHORE GARDENS, INC. v. C. I. R.

No. 297, Docket 25502.

267 F.2d 55 (1959)

BAYSHORE GARDENS, INC., Petitioner, v. COMMISSIONER OF INTERNAL REVENUE, Respondent.

United States Court of Appeals Second Circuit.

Decided May 29, 1959.

Attorney(s) appearing for the Case

Samuel Byer, New York City, for petitioner.

Meyer Rothwacks, Washington, D. C. (Charles K. Rice, Asst. Atty. Gen., Lee A. Jackson and Melva Graney, Dept. of Justice, Washington, D. C., on the brief), for respondent.

Arthur L. Harrow, New York City, for amicus curiae.

Before CLARK, Chief Judge, WATERMAN, Circuit Judge, and EDELSTEIN, District Judge.

EDELSTEIN, District Judge.

Petitioner, a New York corporation organized to construct and operate a multiple-dwelling apartment house, sought financing for its project from a Brooklyn savings bank. Utilizing the services of a broker, the corporation was successful in arranging a $1,335,600 F.H.A. insured mortgage loan, secured by a 32-year 7-month mortgage note. The note form of credit instrument was employed in place of the usual form of corporate bond in order to...

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