-5- an attorney, executed the purchase agreement on behalf of petitioner; petitioner signed the purchase agreement on behalf of Balmac. The purchase agreement provided that Balmac would make a $2 million cash down payment; the balance of the purchase price was to be deferred and evidenced by a 5-year, interest-bearing note. Closing was to take place by December 31, 1984. Sometime in early November 1984, Balmac entered into an agreement with Palomar Systems and Machines, Inc. (Palomar), to develop and sell to the latter a 10-acre lot in Wine Ridge Industrial Park. Closing under the purchase agreement did not occur by December 31, 1984. Rather, on February 6, 1985, Halling and petitioner executed escrow instructions (escrow No. 10425-04) with WTC with respect to the contemplated purchase of the Escondido property by Balmac. In June 1985, Balmac applied for a loan from First Commercial Bank of San Diego (the bank) with respect to the development of the Escondido property. The borrowing was to occur in two stages. The first of the two stages was to be with respect to the acquisition of the property; this loan was to be in the amount of $1.1 million. The second was to be a $3 million development loan. With respect to the land acquisition loan, the loan application request stated: The land purchase calls for $2,000,000 cash down. We will be putting up $950,00, and would like First Commercial Bank to loan thePage: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Next
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