COMMUNITY STATE BK. OF INDEPENDENCE, LA. v. UNITED STATES

No. 73-3174.

493 F.2d 908 (1974)

United States Treasury Department (Internal Revenue Service) et al., Plaintiffs, COMMUNITY STATE BANK OF INDEPENDENCE, LOUISIANA, Plaintiff-Appellee, v. UNITED STATES of America, Intervenor-Appellant, v. John S. GARRETT, Defendant.

United States Court of Appeals, Fifth Circuit.

Rehearing Denied June 12, 1974.


Attorney(s) appearing for the Case

Robert S. Leake, Asst. U. S. Atty., Douglas M. Gonzales, U. S. Atty., Baton Rouge, La., Fred B. Ugast, Act. Asst. Atty. Gen., Tax Div., Dept. of Justice, Washington, D. C., John R. Schupp, Asst. U. S. Atty., New Orleans, La., Crombie J. D. Garrett, Scott P. Crampton, Meyer Rothwacks, Alfred S. Lombardi, Tax Div., Dept. of Justice, Washington, D. C., for United States of America.

Reginald J. McIntyre, Arthur W. Macy, Hammond, La., for plaintiff-appellee.

William T. Reeves, Asst. Atty. Gen., William L. Wilson, Baton Rouge, La., for other interested parties.

Before DYER, MORGAN and RONEY, Circuit Judges.


PER CURIAM:

The deciding issue on this appeal by the Government is whether the public policy of Louisiana precludes the assignment by a State Legislator of his governmental compensation as security for a loan.

Representative Richard E. Cheek, a Louisiana State legislator, assigned his legislative salary and allowances to the Community State Bank for thirty-one months as security for a $15,000 loan. Previous to the assignment, but on the same day, the Internal...

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