- 18 -
credit).9 That letter of credit guaranteed the original BB Loan
No. 1, was in the same amount as that loan, and expired on May
17, 1985, the same date on which the original BB Loan No. 1 was
due.
Radcliffe promised in the May 16, 1984 letter to indemnify
Bangkok Bank HK branch for any losses whatsoever that it might
incur with respect to the $1,000,000 standby letter of credit.
In addition to signing the May 16, 1984 letter on behalf of
Radcliffe, petitioner signed it in his individual capacity,
stating that he "join[ed] in the above guarantee" to Bangkok Bank
HK branch reflected in that letter.
A deposit of $450,000 in the name of Intercontinental
(Intercontinental $450,000 deposit) in Bangkok Bank HK branch was
pledged as security for the $1,000,000 standby letter of credit.
The interest rate on the original BB Loan No. 1 was initial-
ly set at 1.5 percent above Bangkok Bank LA branch's prime rate,
but was subsequently reduced, effective November 1, 1984, to .75
9 The parties stipulated that the $1,000,000 standby letter of
credit was issued with respect to petitioner. However, the
records of the Los Angeles and Hong Kong branches of Bangkok Bank
Ltd. unequivocally indicate that the $1,000,000 standby letter of
credit was issued with respect to Radcliffe. Although we do not
lightly disregard facts stipulated by the parties, we will do so
"where justice requires it if the evidence contrary to the
stipulation is substantial or the stipulation is clearly contrary
to facts disclosed by the record." Cal-Maine Foods, Inc. v.
Commissioner, 93 T.C. 181, 195 (1989). We find the parties'
stipulation that the $1,000,000 standby letter of credit was
issued with respect to petitioner to be clearly contrary to the
facts disclosed in the record. Therefore, we will not accept
that stipulation.
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