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the Sylva Residence. YOC reflected on its books and records this
$65,000 as an account receivable due from Yarbrough Leasing.
On May 18, 1984, either Elvin or Yarbrough Leasing made a
partial repayment to YOC of $50,000. This $50,000 apparently
represented a repayment to YOC of the $65,000 transferred by YOC
the day before to Yarbrough Leasing.
On or about June 14, 1984, the purchase of the Sylva
Residence was consummated.
On June 3, 1985, Elvin, nominally on behalf of Yarbrough
Leasing, applied for a $55,000 loan from Northwestern Bank in
Sylva, North Carolina. On June 26, 1985, proceeds from this loan
of $54,586 were deposited into Yarbrough Leasing's checking
account at Barnett Bank, and on the same day a check for $54,586
was issued by Yarbrough Leasing to Elvin. The Sylva Residence
was used as collateral for the $55,000 loan.
During 1984 and 1985, Buddy resided in the Sylva Residence
while he attended college. Buddy did not pay rent to Yarbrough
Leasing for use of the Sylva Residence. A college friend of
Buddy's also resided at the Sylva Residence and paid
approximately $200 a month in rent directly to Elvin, not to
Yarbrough Leasing.
With regard to the Sylva Residence, Elvin personally, not
Yarbrough Leasing, was the named insured on the related
homeowner's insurance policy.
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