William B. Grover, Trustee in Bankruptcy of the Estate of North State Grocers, Inc., a Corporations, Bankrupt v. James Hull and Aileen Hull

HAMLIN, Circuit Judge.

On October 31, 1960, the bankrupt, under the name of Redding Specialty Products, Inc., as borrower, and Leo Audia and Ronald L. Farley, as lenders, executed an inventory lien agreement by the terms of which the bankrupt granted the lenders a lien on its inventory to secure future and present advances and obligations not to exceed $65,000.00. Previously, on October 14, 1960, a notice of inventory lien was recorded in the Shasta County, California, official records, which notice was signed by all parties. Also on October 31, 1960, the same parties executed an agreement to…