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8. UB $1,830,000 Loan Transaction
Respondent concedes that a loan, in fact, was made to BOT in
the UB $1,830,000 loan transaction125 and acknowledges on brief
that the identity of the lender is the only issue presented here.
It is petitioner's position that the lender in that transaction
was Union Bank. It is respondent's position that the lender was
Pempire, the foreign corporation pledging collateral for the UB
$1,830,000 loan, because that corporation was "the ultimate
source of the loans to BOT".
Proceeding from and constrained by respondent's concession
that a loan, in fact, was made to BOT in the UB $1,830,000 loan
transaction, we limit our inquiry to a determination of the
identity of the lender. The record establishes that, in form,
Union Bank funded the UB $1,830,000 loan to BOT and that, at the
direction of petitioner on behalf of BOT, the proceeds of that
loan were used to purchase the Pempire $1,830,000 CD that secured
that loan. Thus, Pempire did not fund the certificate of deposit
that was pledged to secure the UB $1,830,000 loan. Consequently,
Pempire could not have been, in the words of respondent, "the
ultimate source" of the UB $1,830,000 loan to BOT.
Based upon our examination of the entire record in these
cases, and bearing in mind respondent's concession that a loan
125 Petitioner testified, respondent disputes, and the evidence
in the record does not reliably establish that the UB $1,830,000
loan was used to repay a loan to BOT that Pempire had previously
made.
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