Section 6815 Of Article 7. Payment On Termination Of Business And Successor’s Liability From California Revenue And Taxation Code >> Division 2. >> Part 1. >> Chapter 6. >> Article 7.

. If at the time a business is discontinued the board holds security pursuant to Section 6701 in the form of cash, government bonds, or insured deposits in banks or savings and loan institutions, such security when applied to the account of the taxpayer shall be deemed to be a payment on account of any liability of the taxpayer to the board on the date the business is discontinued.