Martin

Plaintiff recovered judgment against defendant bank for the value of certain bonds, and from such judgment the latter appeals.

It appears that plaintiff owned thirty-six bonds of a par value of $1,000 each, secured by a trust indenture on real property near Los Angeles. She joined certain others in executing, as trustors, a declaration of trust naming defendant bank as trustee and some third persons as beneficiaries. The trustors deposited with the bank as trustee bonds of par value of $150,000, including plaintiff’s thirty-six together with certain other property, all of which said property was to be held in trust in subordination to bonds of the beneficiaries, thereby in effect making the bonds of the latter persons preferred bonds. This trust was started in July of 1927. Within less than a year, the bonds being in default, a bondholders’ protective committee was formed in June of 1928 under an agreement entered into by certain bondholders not including plaintiff. After various postponements the property securing the bonds was sold under foreclosure on December 17, 1928, and was bought in by this committee.- At the time of the sale the entire issue of bonds outstanding was…