The aircraft was substantially damaged, and the flight instructor and Student pilot aboard seriously injured when it collided with terrain while maneuvering for landing at 1237 Pacific time. Visual conditions prevailed. Witnesses reported that the aircraft had been doing touch-and-go landings to Runway 17. The aircraft was observed to pass over a building near the runway, pitch up and appeared to make a hard banking turn to the left before stalling. The nearest weather observing facility reported wind from 150 degrees at 19 knots at the time of the accident.