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the line of credit extended to Motion, Inc. Both Colonial
Bank and Colonial Savings & Loan stopped making advances to
Motion, Inc., and the outstanding balance of the line of
credit was eventually paid off prior to 1989.
After 1988, petitioner continued to maintain a
checking account at Colonial Bank, and the bank provided
"draft services" to him. Under this arrangement,
petitioner would purchase an automobile and he would pay
for it with an "envelope draft", an instrument that
resembles a check. The seller of an automobile would place
the title to the automobile in the envelope and would send
the draft and the envelope through regular banking
channels. When the envelope draft arrived at Colonial
Bank, the bank would pay the draft to the presenting
institution out of funds provided by petitioner, and
petitioner would receive the title. The bank charged a
fee for this service.
Eventually, Colonial Bank was called upon to pay
drafts in the $200,000 range. Often, petitioner did not
have sufficient funds in his account at Colonial Bank to
pay an envelope draft, and a representative of the bank
would contact him to determine how petitioner intended to
pay the draft. From time to time, petitioner would deposit
a check drawn by Motion, Inc., on its account at Tarrant
Bank located in Fort Worth, Texas. Mr. Clark Kemble,
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