McDuffie

On July 12, 1930, the appellee Rich-field Oil Company of California borrowed the sum of $625,000 from appellant for which it executed and delivered to appellant its promissory note of even date. This note was unsecured at the time of its execution.

Later, appellant’s foreign department entered into a series of transactions with Richfield involving the latter’s foreign drafts. Appellant, as a result of these transactions, received the possession of a large number of these drafts, during the period commencing with the early part of October, 1930, and ending with the appointment of appellee, William C. McDuffie as receiver of Richfield on January 15, 1931.

In the early part of April, 1931, appellant filed its claim with the receiver based upon the promissory note executed by Richfield as aforesaid. Since through inadvertence this claim failed to set up the lien which appellant claimed upon the aforementioned foreign drafts, an amendment to the claim was filed in May, 1931, pursuant to an order of court. This amendment contained allegations describing the nature of the lien claimed. The proceeds of the drafts held by appellant which are here material were received by appellant after…