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loan, as neither the corporation nor petitioner posted any
collateral, and DRPC had no assets. Petitioner apparently did
not make any principal payments, nor did he pay any of the
guaranty fees. The proceeds of the loan were directed into the
account of DRPC, and then petitioner drew from DRPC for any
desired personal use of the proceeds. Such an arrangement is
inconsistent with petitioner's position that he borrowed the
money and then lent it to DRPC. Rather, such an arrangement is
wholly consistent with a finding that the proceeds were primarily
for the use of DRPC, with some of the proceeds used by
petitioner.
Petitioner claims that he borrowed the money from Frost
Bank, some of which he kept, and advanced the rest to DRPC. To
support this position, petitioner produced 14 promissory notes
payable to Don C. Reser individually by DRPC. These notes
corresponded exactly with the dates and amounts of the bank
notes. The notes required interest payments to be paid to
petitioner, and like the bank notes, were due within 3 months.
Other than this second set of 14 notes, there is no evidence
of a debt between petitioner and DRPC. There is no evidence that
petitioner ever received nor that DRPC ever paid any interest or
principal payments on the notes. Rather, petitioner claims to
have reduced the principal balance of the notes in amounts equal
to his distributive losses from DRPC. Petitioner failed to
produce any record of such reductions. Furthermore, despite
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