Anthony Teong-Chan Gaw as Transferee of Radcliffe Investment LTD. - Page 24

                                                 - 112 -                                                   
            IV. Resolution of Certain Questions That Relate                                                
                  to All or Some of the Transactions at Issue                                              
                  Having set forth the positions of the parties with respect                               
            to the various matters they believe are important to resolving                                 
            the issues presented in these cases, we first decide (A) certain                               
            questions they raise that relate to all the transactions at issue                              
            (namely, (1) whether the relationships among the persons involved                              
            in each of those transactions are such that they are factors we                                
            will take into account in deciding whether any of those transac-                               
            tions should be recharacterized and (2)(a) whether the form of                                 
            each of those transactions had a nontax, business purpose and                                  
            (b) whether the interest deductions claimed by Radcliffe and BOT                               
            indicate an intention to minimize tax with respect to any of                                   
            those transactions) and (B) certain questions they raise that                                  
            relate only to the Bank transactions (namely, (1) whether the                                  
            binding commitment test of the step transaction doctrine applies                               
            to any of the Bank transactions and (2) whether the role of the                                
            banks in question in any of the transactions in which each of                                  
            those banks was involved may be ignored or recharacterized even                                
            though the parties agree on brief that those banks were engaged                                
            in commercial banking and that they were not controlled by                                     
            Radcliffe, BOT, or the foreign corporations pledging collateral).                              
            After deciding those questions, we analyze the transactions at                                 
            issue to determine whether the form of each of those transactions                              







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