Goldberg

This is an appeal from a judgment in favor of the defendants in a suit to set aside a trustee’s conveyance of real property which was executed upon foreclosure sale for default in the payments of principal and interest secured by a trust deed. The appellants contend that the trust deed was executed in violation of the California “Usury Law” (Leering’s Gen. Laws 1923', Act 3757, p. 1384), and therefore void.

The appellants were the owners of lot 3, block “C” of Kurtz and Bradshaw’s subdivision of the Schumacher tract of Los Angeles, California, which was subject to a mortgage of $11,000, upon which lot they had constructed a four-family dwelling flat. The builder of this house was George J. Diebolt. After the completion of the dwelling considerable indebtedness remained unpaid for the security of which a number of mechanics’ liens had been filed. To complete the financing of this structure, R. F. Boyles, the son-in-law of appellants, who held their power of attorney for that purpose, negotiated the execution by appellants of a subsequent note dated September 18, 1925, to George J. Diebolt for $7,000 at eight per cent interest, payable quarterly, secured by a deed of trust on said…