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CITY OF GALT v. U.S.

No. Civ. S-92-0464-DFL-GGH.

804 F.Supp. 1275 (1992)

CITY of GALT and the City of Galt Finance Authority, Plaintiff, v. UNITED STATES of America; United States Department of the Treasury; Internal Revenue Service; Nicholas F. Brady, Secretary of the Treasury of the United States; and Fred T. Goldberg, Jr., Commissioner of the Internal Revenue Service, Defendants.

United States District Court, E.D. California.

August 26, 1992.

Attorney(s) appearing for the Case

Thomas G. Wood, Brown and Wood, San Francisco, Cal., for plaintiff.

Yoshinori H.T. Himel, Asst. U.S. Atty., Sacramento, Cal., Eric M. Casper, U.S. Dept. of Justice, Tax Div., Washington, D.C., for defendants.

MEMORANDUM OF DECISION AND ORDER

LEVI, District Judge.

This dispute arises out of certain bonds that were issued in 1986. The City of Galt and City of Galt Public Finance Authority ("Galt") seek a preliminary injunction against defendants ("IRS") prohibiting the IRS from declaring the interest on the bonds as taxable or from seeking to collect a rebate from Galt of certain monies known as arbitrage. For the reasons stated below, the court finds that the...

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