Foto

This action was brought by Philip Foto, the indorsee of a promissory note, against' J. C. McLemore, the maker, and Elizabeth V. Bussell, accommodation guarantor thereof, to recover the principal sum of five thousand dollars and interest. Defendant McLemore suffered a judgment by default to be entered against him. Subsequently certain stock of a California corporation, given as collateral security for the payment of the note, was, pursuant to the terms of the agreement pledging the stock, sold, and the sum of five hundred dollars, the price realized at said sale, was credited upon the note. After trial, judgment was entered against defendant Bussell for approximately four thousand five hundred dollars, and she now appeals from the judgment.

[1] In support of her appeal the appellant contends that there was a conversion of the stock, and that, therefore, under the provisions of section 2819 of the Civil Code, she as guarantor was exonerated. The section .referred to reads: “A guarantor is exonerated, except so far as he may be indemnified by the principal, if by any act of the creditor, without the consent of the guarantor, the original obligation of the principal is altered in any…