Bean

The plaintiff commenced an action to recover the deficiency after having foreclosed a deed of trust. The defendant H. A. Turner answered. The trial court made findings in favor of the plaintiff and from the judgment entered thereon the defendant has appealed and has brought up a bill of exceptions.

On September 25, 1922, William H. Reicker and his wife owned lots 2 and 3, Hosier Tract, in Butte County. On that date they executed a promissory note which is as follows :

And at the same time they executed a deed of trust to secure the payment of the note. The note and trust deed were assigned by the Butte County National Bank to the Bank of Italy and the latter assigned it to the plaintiff. In the latter part of June or the first part of July, 1924, H. A. Turner commenced negotiations to purchase the above-mentioned lands. At that time the interest ivas due and payable in the sum of $406.67 and the $1,000 payable September 25, 1923, had not been paid. He called at the bank and held a conversation with its manager, Mr. Troxell. Mr. William son, another officer of the bank, was present and heard the conversation. Mr. Turner asked to see the Reicker note. It was shown to him and the…