Goedecke v. Gralnick

Suit in equity by respondent to enjoin the áppellant bank from foreclosing under power of sale a deed of trust securing $14,000 in notes, hereinafter called “The Brody first loan.” Respondent contended the notes had already been paid by the bank out of the -proceeds of a $45,000 note she had given it. The bank ad mitted it used those funds in acquiring the Brody loan, but maintained it was only a purchase for the benefit of a “building fund” and collateral pledge account, which respondent had set up with the bank to secure the payment of her own $45,000 note. The bank also filed a…