Corp.

This appeal is from an order affirming an order of a referee in bankruptcy directing a trustee in bankruptcy to pay a claim of the United States for income taxes assessed against the trustee for the calendar years .1938 and 1939. The facts are as follows:

Under date of March 1, 1930, F. P. Newport Corporation, Limited, executed and delivered to appellant, Security-First -Na-, tional Bank of Los Angeles, its promissory note for $760,000, payable on March 1, 1932, with 7% interest, and, as security therefor, executed and delivered to appellant conveyances of real property, hereafter called-the trust property,- in Los Angeles County, California. Concurrently therewith and as. part of the same transaction, appellant and the corporation executed a declaration of trust (No. SS-70401, subsequently designated No. D7224) which declared- that the conveyances, though in terms absolute, were intended to be, and were, made to and received by appellant in trust, with power of sale, as security for the payment of the note and for the payment of any additional sums which might thereafter be borrowed from appellant by the corporation. The' corporation did, in- 1932, 1933 and 1934,’ borrow…