Denco Development Co., a Corporation, an Alleged Bankrupt v. Community Savings & Loan Assn.

MARVIN JONES, Senior Judge.

Denco Development Co. (Denco), an alleged bankrupt, appeals the judgment of the United States District Court for the Central District of California. The judgment reversed an order of the Referee in Bankruptcy awarding to Denco the balance of certain funds in the hands of the Receiver, and instead awarded the funds to appellee Community Savings and Loan Association (Community).

The facts found by the district court are, in summary, as follows:

Denco borrowed money from Community to build apartment houses on 29 tracts of real estate and secured the loan with deeds of…