J. H. Pingree and J. N. Landeen, Trustees for Continental Casualty Company, Continental Casualty Company, Irving Sulmeyer, Trustee

This is an appeal from a district court approval on a review of a referee’s order in bankruptcy proceedings, holding that the assignments made by the bankrupt to the appellants herein, as security for the payment of certain sums, were invalid as to creditors, and that said transfers should be set aside for the benefit of the estate.

Both the referee and the district court held that the assignments came within the provisions of California Civil Code, § 3017 et seq., and were invalid as to creditors because of non-compliance with said sections, i. e., lack of recordation. Appellants urge that the assignments did not come within Cal.Civ.Code, § 3017, but rather Cal.Civ.Code, § 955, which requires no recordation.

Appellants originally urged a second point, i. e., that the bankruptcy court had no summary jurisdiction to litigate the rights of appellants. This point was formally withdrawn and waived by appellants on oral argument.

We adopt the summary of facts alleged by appellee, assuming they reveal the evidence most favorable to the successful litgant below.

“Accounts,” as defined by California Civil Code, § 3017(1), may not be validly assigned as against a creditor, unless that…