Quittner

In consequence of an involuntary petition in bankruptcy filed against her on March 5, 1948, Alvera Gordon Jones was adjudged a bankrupt. Appellee, as trustee in bankruptcy, brought this action to recover, as voidable preferences, sums paid by bankrupt to appellant Security First National Bank of Los Angeles within four months before the filing of the petition. 1 The bank appeals from the judgment for the trustee asserting that the evidence was insufficient to sustain .the district court’s finding that at the time of the payments the bank “was in possession of such facts concerning the bankrupt’s business as would give it reasonable cause to believe that .the said bankrupt was insolvent.”

The debtor owned and operated 16 beauty shops under the name of “Leroy Gordon Beauty Salons”. A number of them were in Los Angeles; others were in various southern California cities. On January 6, 1947, the bank loaned her $2,000 on a note *998 payable in 90 days. Wihen the note became due, it was renewed for a further period of 90 days. Payment was again extended further successive periods until September 30, 1947. It appears that on each of these occasions the debtor advised the bank that she…