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IN RE FRANKLIN

No. 88-6224.

922 F.2d 536 (1991)

In re Gus Kit FRANKLIN, a/k/a Gus Franklin, a/k/a Gus K. Franklin, Gus K. Franklin d/b/a Allied Tree Service, Allied Enterprises, Inc., Allied Tree and Lawn Service, and Susan Karen Franklin, Debtors. Gus K. FRANKLIN, et al., Appellant, v. COMMONWEALTH FINANCIAL CORPORATION, Appellee.

United States Court of Appeals, Ninth Circuit.

Decided January 3, 1991.

Attorney(s) appearing for the Case

Andrew K. Mauthe, Speers, Dana, Teal & Balfour, Costa Mesa, Cal., for defendants and appellants.

John A. Belcher, Richards, Watson & Gershon, Richard W. Labowe, Labowe, Labowe & Hoffman, Los Angeles, Cal., for plaintiff and appellee.

Before REINHARDT and LEAVY, Circuit Judges, and KING, District Judge.

REINHARDT, Circuit Judge:

Over 1981 and 1982, Gus Franklin d/b/a Allied Tree Enterprises ("Allied") borrowed approximately $580,000 from Commonwealth Financial Corporation ("Commonwealth"), a commercial lender. For security, in June 1981 Commonwealth obtained an interest in all of Allied's property, including accounts receivable, inventory, and equipment, with Franklin's personal guarantee of Allied's indebtedness. The amount...

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