- 36 -
monthly to Union Bank.
Pursuant to a decision on March 15, 1984, of the board of
directors of Forward (viz., petitioner, Ms. Gaw, and Mme. Koo),
the Forward $570,000 deposit was pledged as security for the
$570,000 loan to BOT that Union Bank had funded.24 Throughout
the period March 1984 until July 10, 1986, during which the
Forward $570,000 deposit served as security for that loan and the
renewals thereof, Union Bank maintained a lien on that deposit.
Union Bank renewed the original UB $570,000 renewed loan on
four additional occasions for periods that ended on the following
dates: July 15, 1985 (UB $570,000 renewed loan first renewal),
October 10, 1985 (UB $570,000 renewed loan second renewal), April
10, 1986 (UB $570,000 renewed loan third renewal), and July 10,
1986 (UB $570,000 renewed loan final renewal). To document each
of the first three additional renewals, petitioner signed on
23(...continued)
occurred in that month. The documents in the record indicate
that the UB $570,000 pre-March 1984 loan was renewed in July or
August 1983 and that it was due on July 15, 1984. The next
renewal of the Union Bank $570,000 loan to BOT concerning which
documents are in the record occurred in July or August 1984. It
is possible that a renewal of the UB $570,000 pre-March 1984 loan
could have occurred in connection with the replacement of the
Merit $570,000 deposit as its security that occurred in March
1984. Accordingly, we do not find the parties' stipulation that
the UB $570,000 pre-March 1984 loan was renewed in March 1984 to
be clearly contrary to the facts disclosed in the record. Conse-
quently, we will accept that stipulation under the test of Cal-
Maine Foods, Inc. v. Commissioner, 93 T.C. at 195-196.
24 The pledge of the Forward $570,000 deposit was documented by
a security agreement signed by Mme. Koo on behalf of Forward.
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