- 9 - floor plan loan is intended to finance the purchase of new car inventory through the time they are sold. Under floor plan loans, the lender purchases automobiles that are received in the auto dealership's inventory. Each time an automobile is sold, the dealership is required to pay the lender the cost of that automobile. On August 4, 1987, Sanwa Bank informed the auto dealership, attention of petitioner, that the floor plan line of credit for $2,500,000 had been increased to $3,500,000, effective July 29, 1987. The auto dealership, represented by petitioner, in an unsigned and undated document entitled "Certified Corporate Resolution To Borrow", sought to borrow up to $3,500,000 from Sanwa Bank. On July 31, 1988, Sanwa Bank increased the floor plan loan to $5 million. Sanwa Bank issued a promissory note entitled "Commercial Optional Advance Promissory Note". Petitioner's name is shown on the document as president of the auto dealership. On the same date, in a related document entitled "Continuing Guaranty", petitioner was listed as "Guarantor". Petitioner's auto dealership opened March 1987 and during the first 2 years, it was the number one Acura dealer in the United States. In the middle of 1989, petitioner's auto dealership began experiencing financial reverses because of an economic downturn in the State of California and because of 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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