Section 8956 Of Article 1. Security For Tax From California Revenue And Taxation Code >> Division 2. >> Part 3. >> Chapter 5. >> Article 1.
8956
. If, at the time a person ceases to be a user or vendor under
this part, the board holds security pursuant to Section 8951 in the
form of cash, government bonds, or insured deposits in banks or
savings and loan institutions, the 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 person
ceases to be a user or vendor under this part.