Granger

The plaintiff sued to recover on certain alleged guaranties. The trial court made findings in favor of defendants and from a judgment entered thereon the plaintiff has appealed.

On April 26, 1927, and for some time prior thereto the Fernwood Lumber Company, a corporation, was transacting a lumbering business near Areata in Humboldt County. The defendants were directors of that company. The First National Bank of Areata, doing a banking business at Areata, financed the lumber company and that company obtained all of its loans from that bank. On December 5, 1927, the lumber company obtained $3,000 and executed a demand note to the bank in that sum. That note was secured by a deed of trust under the same date. On March 3, 1928, the lumber company received from the bank the sum of $4,500 and executed its note payable August 1, 1928. That note was unsecured. On May 11, 1928, the lumber company received another loan in the sum of $3,500 and executed a note payable October 1, 1928.

On April 23, 1927, United Bank and Trust Company of California consolidated with French American Bank to form United Bank and Trust Company; on December 10, 1927, Security Bank and Trust Company purchased…