Charles R. Bowden and Sue I. Bowden - Page 12

                                               - 12 -                                                  

            by their corporations.  As of the time of the commencement of                              
            this case, the new loan to Mrs. Bowden remained outstanding.                               
                  4.  NBSC                                                                             
                  In 1985 and 1986, petitioners’ corporation Pac-Tech obtained                         
            a loan from NBSC.  NBSC took, as security, assignments on a                                
            number of the vending machine leases.7  Funds were disbursed to                            
            Pac-Tech in return for the assignments.  Pac-Tech defaulted on                             
            the notes.                                                                                 
                  On February 24, 1986, petitioners agreed with NBSC to pay                            
            the outstanding loan balance of $442,595.29 with a new loan                                
            issued to Mrs. Bowden and guaranteed by Mr. Bowden.  Mrs. Bowden                           
            assigned her interest in the 1 Crestwood Drive, Newport Beach                              
            property (Crestwood property) to NBSC via a deed of trust.  In                             
            return, NBSC agreed to release all corporate guaranties.                                   
            Paragraph 6 of the settlement agreement states:                                            
                  Bank will release to Hollis Bowden its security                                      
                  interest in 41 water vending machines and 3rd party                                  
                  leases presently held as collateral for the original                                 
                  obligation.                                                                          
            On February 25, 1986, Hollis Bowden, who is the brother of                                 
            petitioner Charles R. Bowden, executed an agreement subordinating                          




                  7 A typical lease submitted for the record states that AVC                           
            is the “supplier of equipment”.  Pac-Tech is denominated as                                
            “lessor” and “secured party”.  An unrelated third party is                                 
            “lessee”.  NBSC is the “assignee” of the “secured party”.                                  




Page:  Previous  2  3  4  5  6  7  8  9  10  11  12  13  14  15  16  17  18  19  20  21  Next

Last modified: May 25, 2011