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The $400,000 increase in the loan amount bore interest at a
rate that was set at .5 percent above the interest rate on the
Double Wealth $400,000 CD. The interest rate on the increase in
the loan amount was 8.25 percent, and the interest rate on the
Double Wealth $400,000 CD was 7.75 percent. Interest on BB
$2,025,000 Loan No. 2 was paid on May 12, 1986, and June 16,
1986.
On May 13, 1986, Bangkok Bank LA branch credited to Double
Wealth's account with Bangkok Bank HK branch the interest payable
on the Double Wealth $400,000 CD. On May 26, 1986, and on June
9, 1986, Ms. Gaw and petitioner, respectively, sent instructions
to Bangkok Bank LA branch on behalf of Double Wealth (May 26,
1986 and June 9, 1986 instructions) to remit on a monthly basis
the interest payable on the Double Wealth $1,625,000 and $400,000
certificates of deposit through Standard Chartered Bank, New
York, to the account of Vidda Investment Ltd. (Vidda) that was
maintained in Standard Chartered Bank HK. On June 11, 1986,
Bangkok Bank LA branch followed those instructions and remitted
to that account of Vidda the June 1986 interest payable on those
certificates of deposit.
When BB $2,025,000 Loan No. 2 became due on June 11, 1986,
it was renewed, and the renewed loan was due on September 12,
1986. When the Double Wealth $1,625,000 and $400,000 certifi-
cates of deposit matured on June 11, 1986, they were combined
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