Seymour

The Citizens Trust and Savings Bank of Los Angeles held in trust certain real property in which respondents were beneficiaries to the extent of a one-fourth thereof. While such beneficiaries respondents purchased from the trustee one of the pieces of real property affected by said trust, and as part payment therefor gave to the Citizens Trust and Savings Bank their promissory note, and as part of the same transaction assigned to the bank as security for the payment thereof, all of their interest in and to said trust. Thereafter, respondents entered into negotiations with W. R. Wheat for the sale and purchase of respondents’ interest in said trust, which negotiations were, with consent of the trustee, consummated by the formal assignment of respondents’ beneficial interest in said trust, to Wheat, and was by him accepted in writing. When the note above referred to, and which was secured by the -property acquired by Wheat, became due, he paid it, but the bank, instead of satisfying such note, indorsed the same without recourse and delivered it to Wheat, who thereupon, retaining the interest in the trust, transferred the note to appellant, and an action was commenced thereon to…