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6, 1980, to Weimar Bank of $297,800. On October 6, 1980, the
partners of NROC executed guaranty agreements with respect to the
indebtedness to Weimar Bank. On October 12, 1982, the
indebtedness was increased by $2,200 to $300,000.
Wise Oil Co.
Petitioner was also a partner in Wise Oil Co. (Wise Co.),
with Klutts, Wood,2 and John Heger (Heger).3 Heger was president
and chairman of the board of Weimar Bank during 1980 and 1983.
During 1980 and 1981, Wise Co. borrowed money to finance its oil
and gas operations from Victoria Bank & Trust (Victoria Bank),
resulting in an aggregated indebtedness in the amount of
$645,902. Petitioner signed promissory notes to Victoria Bank in
different capacities, including individually and as a partner of
Wise Co. The partners of Wise Co. guaranteed repayment of the
borrowed funds to Victoria Bank.
AMROC Energy Corp.
On August 11, 1981, petitioner and his partners and
coventurers organized AMROC Energy Corp. (AMROC), a Texas
corporation. In connection with the formation of AMROC, the
corporation participated in a private placement of its stock
2
Wood sold his interest to Kenneth W. Eubanks in July 1981.
Eubanks paid Wood $5,000 cash, executed a promissory note in the
amount of $95,000, and agreed to assume all of the partnership's
indebtedness allocable to such interest.
3
Petitioner was also involved in seven other entities, each
comprising four partners--petitioner, Klutts, Wood, and one other
individual.
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