Quinn

This action was brought against defendant Rike as a maker, and the defendant Ceres Land Company as indorser, upon a promissory note.

There is no dispute as to the facts: In January, 1916, the defendant N. C. Rike executed and delivered to her

codefendant Ceres Land Company a promissory note, negotiable in form, in the sum of two thousand dollars. For the purpose of securing payment of the same she made and executed a deed of trust to a certain title insurance and trust company. The note was, therefore, non-negotiable. (Metropolis Trust & Sav. Bank v. Monnier, 169 Cal. 592 , [ 147 Pac. 265 ].) At the time of the execution of the note here sued upon the land and premises described in the deed of trust was subject to a prior encumbrance of eleven thousand dollars. Thereafter, and before the maturity of the note here involved, the Ceres Land Company, for a valuable consideration, transferred the note to plaintiff, J. E. Quinn, which was evidenced by a writing on the back thereof, in the following language:

Subsequent to this transfer the first encumbrance upon the premises described in the deed of trust was foreclosed, and by reason thereof the security of the note here involved…