Silverstein

Preliminarily it is to be noted that since the appeal herein respondent Whitehead has died and Clin D. Jacoby and Rowena C. Martin, the duly appointed executors of the last will and testament of said decedent, have been by order of court substituted for said respondent. The nature of the action and the scope of the review - will more fully appear from a recital of the facts.

On and prior to June 18, 1928, defendant Porter was indebted to Central National Bank in the sum of $1650 and was also indebted to appellants in the sum of $2,500, Porter owned at that time certain real property in Alameda County. She owned one house and lot on Grand Avenue, ' subject to an $8,000 encumbrance, and another property referred to as the apartment house property, which' was subject to a first encumbrance of $24,000 and a second of $2,500. Defendant Whitehead was the holder and owner of a note in the sum of $22,500, secured by a deed of trust on certain property in Sonoma County. On June 19, 1928, a transaction of exchange was effected between Porter and Whitehead whereby Porter purchased the said note and deed of trust on the following terms: Porter agreed to give Whitehead a note for $10,000…