McDuffie

This action was brought in equity by the appellee receiver, hereinafter called “the receiver,” of the Richfield Oil Company of California, hereinafter to be called “Rich-field Oil Company,” to prevent the appellant bank, hereinafter called the “bank,” from applying the proceeds of four foreign bills of exchange (three 186-day bills of exchange drawn on Birla Bros, of Calcutta, India, and one drawn on Ricardo Velazquez of Cali, Colombia) upon an indebtedness due from the Richfield Oil Company to the bank. To distinguish between the drafts drawn by the Richfield Oil Company on the Wells Fargo Bank, payable to themselves, which were to be accepted by the bank, and the foreign *721 drafts drawn on the customers of the Rich-field Oil Company, we will refer to the latter as foreign hills of exchange.

Before this case was tried in the lower court, the hills of exchange had been paid to the bank, and the court, in lieu of the relief originally prayed for, gave judgment for the amount of $163,305.85. At the time the receiver was appointed for the Richfield Oil Company on January 15, 1931, the latter owed $625,000 to the appellant.

The ultimate question involved in this ease is whether or…