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were personally guaranteed by petitioner3 and by Mr. Kabeiseman
and had maturity dates of six months, nine months, or one year.
During those years, as the construction work on each of K & H's
construction projects progressed and costs were incurred in
connection therewith, petitioner submitted a written draw request
to Washington Federal for a portion of K & H's construction loan
proceeds for each such project (draw request) in order to pay the
costs so incurred. He made such a request either by personally
presenting it to that bank's Portland branch or by presenting it
to that branch by facsimile transmission. Each draw request that
petitioner so presented asked Washington Federal either to
transfer a portion of K & H's construction loan proceeds for each
such project to petitioners' account at that institution or to
issue a check for those proceeds to K & H. Washington Federal
complied with the draw requests that petitioner submitted either
by transferring the loan proceeds sought to petitioners' account
at the branch of that institution located in Hillsboro (Hillsboro
branch) or by issuing a check to K & H for those proceeds.
In July 1989, K & H contracted to build a house for Milagros
Velilla (Ms. Velilla). Ms. Velilla, and not K & H, obtained a
construction loan with respect to that contract (Velilla con-
struction loan) from the Portland branch of Washington Federal
where she maintained a checking account. As he did with other K
3 The record is not clear as to whether petitioner April Harp
(Ms. Harp) also guaranteed those loans.
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