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IN RE TEPPER INDUSTRIES

BAP No. CC-86-1764 JMoV, Bankruptcy No. LA83-23533 CA, Adv. No. LA85-0142 CA.

74 B.R. 713 (1987)

In re TEPPER INDUSTRIES, Debtor. CHARGER BOATS, Appellant, v. TEPPER INDUSTRIES, INC.; the Official Creditors Committee of Tepper Industries, and Joseph Karol, Chapter 7 Trustee, Appellees.

United States Bankruptcy Appellate Panels of the Ninth Circuit.

Decided June 15, 1987.

Attorney(s) appearing for the Case

Bernard J. Hittner, Law Offices of Bernard J. Hittner, Costa Mesa, Cal., for appellant.

Douglas D. Kappler, Robinson, Wolas & Diamant, Los Angeles, Cal., for appellees.

Before JONES, MOOREMAN and VOLINN, Bankruptcy Judges.

OPINION

JONES, Chief Judge:

Appellant Charger Boats appeals the bankruptcy court's order holding that Charger's claim is unsecured. We affirm.

FACTS

In December, 1978, the debtor, Tepper Industries, Inc. ("Tepper"), purchased a spa manufacturing business from Charger Boats ("Charger") for $180,000.00. In conjunction with the sale, Tepper executed a promissory note in favor of Charger for $128,000.00. The note was secured by a security agreement...

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