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IN RE MALLAS ENTERPRISES, INC.

BAP No. CC-82-1493-VAbG, Bankruptcy No. LA-82-01762-JB, Adv. No. LA-82-2033-JB.

37 B.R. 964 (1984)

In re MALLAS ENTERPRISES, INC., Debtor. PAN AMERICAN BANK OF LOS ANGELES, a California Corporation, Plaintiff-Appellant, v. MALLAS ENTERPRISES, INC., Defendant-Appellee.

United States Bankruptcy Appellate Panels of the Ninth Circuit.

Decided April 12, 1984.

Attorney(s) appearing for the Case

Alan M. Ahart, Ross, Ivanjack & Alborg, Los Angeles, Cal., for plaintiff-appellant.

Ray B. Bowen, Jr., Howard, Lowther & Wolk, Tarzana, Cal., for defendant-appellee.

Before VOLINN, ABRAHAMS and GEORGE, Bankruptcy Judges.

OPINION

VOLINN, Bankruptcy Judge.

I. BACKGROUND

On August 13, 1979, the appellant, Pan American Bank of Los Angeles, loaned $91,000 to Nick and Clara Mallas who agreed to pay interest thereon at 13.5% on a monthly basis, and then pay the principal amount in full on August 12, 1980. The loan was secured by a deed of trust and assignment of rents on commercial property in La Puente, California, owned by the borrowers.

In March, 1981, Nick...

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