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IN RE BIALAC

BAP No. AZ 81-1281 EKG, BAP No. AZ 82-1036 EKG (Consolidated), BK. No. B-80-2700-PHX-RGM, Adv. No. 81-0467 RGM, BK. No. B-81-1221-PHX-RGM, Adv. No. 81-0466-RGM.

24 B.R. 580 (1982)

In re Samuel G. BIALAC, Debtor. HARSH INVESTMENT CORP. and Harsh Building Co., Appellants, v. Samuel G. BIALAC, Appellee. In re James T. BIALAC, Debtor. HARSH INVESTMENT CORP. and Harsh Building Co., Appellants, v. James T. BIALAC, Appellee.

United States Bankruptcy Appellate Panels of the Ninth Circuit.

Decided October 1, 1982.

Attorney(s) appearing for the Case

Newman R. Porter, Amy R. Coy, Evans, Kitchel & Jenckes, P.C., Phoenix, Ariz., for appellants.

Gerald K. Smith, Lewis & Roca, Phoenix, Ariz., for appellees.

Before ELLIOTT, KATZ and GEORGE, Bankruptcy Judges.

OPINION

ELLIOTT, Bankruptcy Judge:

The dispute before us revolves around a $1,989,900 promissory note owned by the Bialac family. The debtor, James Bialac, owns one-sixth of the note. Harsh Investment Corporation and Harsh Building Corporation (collectively "Harsh" herein) have a security interest in the note to secure payment of an Arizona state court judgment against the Bialacs. Harsh conducted a foreclosure sale of the other five-sixths of the note,...

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