John Costello, as Trustee of the Estate of William Jason Evans, Bankrupt v. Bank of America National Trust & Savings Association, a Corporation

Plaintiff, Trustee in Bankruptcy of the estate of William Jason Evans, ap peals from a judgment of the United States District Court for the Northern District of California, Southern Division, disallowing his claim under Section 70, sub. e, of the Bankruptcy Act to recover the sum of $20,300.00, which represents the aggregate amount collected by the defendant, Bank of America, from the State of California as assignee of the bankrupt’s contract for the construction of a bridge. The bankrupt, doing business as Evans Construction Co., entered into said contract with the State on September 15, 1948. That same day the bankrupt executed an assignment to appellee of the right to money due or to become due under the contract, as security for financing the performance of the job. The bankrupt had previously assigned the same rights to Glens Falls Indemnity Company from which appellee obtained a subordination agreement. No notice of the assignment was filed with the county recorder. However, actual notice was given to the obligor, the State. Thereafter, appellee made a series of loans to the bankrupt. From time to time, as the work progressed, the State Controller drew and issued warrants…