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Ms. Eagatatt explained that she lent petitioners proceeds from
the equity in her house because she was a friend of petitioners and
wanted to help petitioners with their business. At the time of the
loan (for the purchase of the minimarket), Ms. Eagatatt was not
aware that her house might be foreclosed upon if petitioners failed
to repay. It was only later that Ms. Eagatatt discovered that she
had no security if petitioners failed to make payments to Ms.
Eagatatt's bank lender, so she asked petitioners to place the
restaurant in her name. Thus, the purpose of placing the
restaurant in Ms. Eagatatt's name was to give her a security
interest in the restaurant's assets, and nothing more:
Q. And when you signed the document, Exhibit 25-Y
[the bulk sale notice], what was your intent?
A. Just want to be the name in the restaurant.
Q. Did you intend to buy the restaurant?
A. I wanted the restaurant to be under my name, and
I don't know how to do the restaurant. That's the only
thing I want, the name under the restaurant.
* * * * * * *
Q. If the business was sold [to a third party] for
more than $94,000 [the outstanding balance of Ms.
Eagatatt's home equity loan on September 15, 1993], did
you expect to receive that full amount or just $94,000?
A. Just for the equity--the equity loan, and that's
it.
* * * * * * *
Q. And who would get the proceeds that exceeded the
$94,000?
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