T. F. Korherr v. A. J. Bumb, Trustee in Bankruptcy of Mallard Pond Builders, Inc., Bankrupt

HAMLIN, Circuit Judge.

This is an appeal from an order of the District Court, Southern District of California, Central Division, approving and adopting a report of the Referee in Bank- ruptey. The case is before this Court upon an agreed statement of facts.

There is no question of the jurisdiction of the court below, nor of this Court.

It appears that Mallard Pond Builders, Inc., the bankrupt herein, engaged in a construction project which included the erection of many houses. The bankrupt obtained construction loans from a predecessor of Perpetual Savings & Loan Association, hereinafter…