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IN RE EHRLE

BAP No. CC-94-2546-BHO. Bankruptcy No. SA93-14904 JB. Adv. No. SA93-1621 JB.

189 B.R. 771 (1995)

In re William David EHRLE and Julie Ehrle, aka Julie Louise Johnson, Debtors. Yi-Ping LIN, Appellant, v. William David EHRLE and Julie Ehrle, aka Julie Louise Johnson, and U.S. Trustee, Appellees.

United States Bankruptcy Appellate Panel of the Ninth Circuit.

Decided November 21, 1995.

Attorney(s) appearing for the Case

Bob E. Thacker, Lake Forest, CA, for appellant Yi-Ping Lin.

Ross L. Edgell, Jr., Orange, CA, for appellees William & Julie Ehrle.

Before BRANDT, HAGAN and OLLASON, Bankruptcy Judges.

Opinion

BRANDT, Bankruptcy Judge.

I. ISSUES

The questions raised by this appeal are whether:

1) an unrecorded deed of trust on real property creates a security interest under California law in the proceeds from the sale of the subject real property;

2) debtors' actions in selling property subject to an unrecorded deed of trust and using the proceeds to purchase other property gave rise to a nondischargeable debt for embezzlement...

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