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IN RE BRUCE FARLEY CORP.

No. CV 77-2634.

612 F.2d 1197 (1980)

In re BRUCE FARLEY CORPORATION, a California Corporation, et al., Bankrupts. Leroy D. STARR and Velma F. Starr, Plaintiffs-Appellants, v. BRUCE FARLEY CORPORATION, a California Corporation, et al., Defendants-Appellees.

United States Court of Appeals, Ninth Circuit.

February 1, 1980.

Attorney(s) appearing for the Case

Fred U. Hammett, Jr., Hammett & Madruga, San Diego, Cal., for plaintiffs-appellants.

J. Terence O'Malley, Gray, Cary, Ames & Frye, San Diego, Cal., Edward L. Kane, La Jolla, Cal., for defendants-appellees.

Before KILKENNY and ANDERSON, Circuit Judges, and BYRNE, District Judge.

WM. MATTHEW BYRNE, District Judge.

Leroy and Velma Starr appeal from an order of the district court affirming the bankruptcy court's grant of partial summary judgment in favor of the trustee in bankruptcy for the Bruce Farley Corporation ("bankrupt").

In April, 1970 and July, 1972 third parties executed in favor of bankrupt promissory notes, secured by deeds of trust, as consideration for the purchase of certain properties,

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