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IN RE SLUGGO'S CHICAGO STYLE, INC.

No. 89-55040.

912 F.2d 1073 (1990)

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

United States Court of Appeals, Ninth Circuit.

Decided August 27, 1990.

Attorney(s) appearing for the Case

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

James P. Hill, Stephen K. Haynes, Hill & Baskin, San Diego, Cal., for appellee.

Before ALARCON and NELSON, Circuit Judges, and PAUL G. ROSENBLATT, District Judge.

ROSENBLATT, District Judge:

Facts

The facts are undisputed. Pursuant to Cal.Rev. & Tax.Code § 6701, the California State Board of Equalization ("Board") required security, as a condition of doing business, from Sluggo's Chicago Style, Inc. ("debtor") for payment of California sales and use taxes.

In April of 1984, the debtor complied by providing this security in the form of a $9,100.00 certificate of deposit ("certificate") payable...

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