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IN RE SLUGGO'S CHICAGO STYLE, INC.

BAP No. SC 87-1668 VAJ, Bankruptcy No. 84-05101-M7, Adv. No. C86-0705-M7.

94 B.R. 625 (1988)

In re SLUGGO'S CHICAGO STYLE, INC., Debtor. Harold S. TAXEL, Trustee, Plaintiff/Appellee, v. CALIFORNIA STATE BOARD OF EQUALIZATION, Defendant/Appellant.

United States Bankruptcy Appellate Panel of the Ninth Circuit.

Decided December 9, 1988.

Attorney(s) appearing for the Case

Herbert A. Levin, Deputy Atty. Gen., Los Angeles, Cal., for defendant/appellant.

Stephen K. Haynes, Hill & Baskin, San Diego, Cal., for plaintiff/appellee.

Before VOLINN, ASHLAND and JONES, Bankruptcy Judges.

OPINION

VOLINN, Bankruptcy Judge:

FACTS

The debtor, prior to bankruptcy (initiated by a Chapter 11 petition, subsequently converted to Chapter 7), was obligated to appellant, State Board of Equalization (Board), for unpaid sales and use taxes. Pursuant to statute, the Board required that the debtor, as a condition of doing business, provide security in the sum of $9,100 which would be available for application to taxes which might be unpaid in...

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