Levy

Plaintiff and appellant is the trustee in bankruptcy of the estate of Kamikawa Bros., a corporation, which prior to its adjudication as a bankrupt, ran a retail store at Fresno, California. At all times herein mentioned it was insolvent and owed, among others, a group of creditors represented by defendant, Board of Trade of San Francisco. Upon June 9, 1925, and subsequent dates, this defendant, acting upon behalf of these creditors, persuaded it to take out fire insurance policies covering its entire stock in trade and fixtures, with loss-payable clause in favor of the Board of Trade. The premiums were paid by the Kamikawa Bros., and the Board of Trade had knowledge of its insolvency. All of the policies were executed and some were delivered to the Board of Trade prior to • the four months’ period next preceding bankruptcy, and others were assigned and delivered within that period and after the loss by fire occurred. In inserting the loss-payable clause and delivering the policies to the Board of *592 Trade the intention was that they should constitute security for the claims of this group of creditors. The insured property was destroyed by fire on March 4, 1926, and petition for…