All or a portion of the funds for the loans made on or about March 27, July 29, and September 23, 1991, were funded by distributions from Mr. Kluener's agency account. During mid-1991, Mr. Kluener's and APECO's notes to Fifth Third were renegotiated. As part of that renegotiation, the pledges of assets made during 1990 were canceled, and a new arrangement was substituted. The Klueners signed a new promissory note to Fifth Third that was dated June 25, 1991, in the principal amount of $15,985,000 and that bore interest at the prime rate. The note provided that its principal amount would be due in full 60 days after the death of the last of them to die. By letter dated June 25, 1991, and addressed to Fifth Third, the Klueners agreed, inter alia, to maintain substantially all of their investment assets in the agency accounts in each of their names, to not substantially increase their expenditures to maintain their standard of living, and to invest no more than an additional $3 million in APECO. Prior to this time, Ms. Kluener's assets were not subject to the claims of Fifth Third arising from its loans to Mr. Kluener and APECO. Between Mr. Kluener's death on October 14, 1991, and May 1992, his estate made additional advances to APECO totaling $1,292,000. APECO eventually was sold for $2,500,000. OPINION The issue to be decided in the instant case is whether APECO was the actual seller of the horses, as petitioners contend, or Mr. Kluener was the seller, as respondent contends. If we decidePage: Previous 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 Next
Last modified: May 25, 2011