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introduction of another luxury automobile (Lexus). Finally, two
other Acura dealers in Thousand Oaks and Van Nuys, California,
respectively, opened sometime in 1989.
When petitioner's auto dealership suffered financial
reverses, it fell "out of trust" on its floor plan. A floor plan
is out of trust when the remaining inventory of automobiles is
insufficient to cover the floor plan loan. Consequently, there
was a possibility that Sanwa Bank would not renew the floor plan
loan. Sanwa Bank required petitioner to reduce the amount
outstanding on the floor plan. In order to reduce the amount
outstanding, petitioner decided to sell his home and disburse a
significant portion of the proceeds to Sanwa Bank. Petitioner
was compelled to reduce the amount "out of trust" with respect to
the floor plan loan because he had personally guaranteed the
entire amount, and, if Sanwa Bank chose not to renew the loan,
the auto dealership would have gone out of business.
On October 15, 1989, the auto dealership entered into an
agreement to extend and/or modify a promissory note for the floor
plan. In this agreement, the maturity of the July 31, 1988,
promissory note was extended to December 1, 1989. Petitioner, as
president of the auto dealership, signed the agreement as
"Borrower".
On February 5, 1990, petitioner irrevocably transferred a
Deed of Trust for petitioner's home to Sanwa Bank. The Deed of
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