- 7 - 1. Lemons' Purchase of Tomanet Stock In mid-1983, Lemons approached petitioner about buying another savings and loan. Lemons suggested that he, petitioner, and several other Dondi Financial and Vernon executives buy the stock of a holding company named Tomanet. Tomanet owned about 98 percent of the stock of Texana Savings & Loan (Texana). Lemons negotiated an option to buy Tomanet stock. Lemons bought Tomanet stock with purchase money mortgages from Tomanet stockholders and financial institutions such as First City Savings. Petitioner and the other investors were to give Lemons a downpayment and execute a note payable to him for the balance of the purchase price if they wanted to buy the Tomanet stock. 2. Petitioner's Purchase of Tomanet Stock From Lemons Petitioner bought 34,900 shares of Tomanet stock for $199,600 on December 12, 1983. Petitioner paid $77,200 as a downpayment. Petitioner borrowed the downpayment from State Savings & Loan (not further identified in the record) through an unsecured loan. Petitioner executed notes, payable to Lemons, for $106,795 and $15,605 on December 12, 1983. Lemons gave petitioner quarterly reminders of the amounts due under the notes. Petitioner paid Lemons about $31,795 on the $106,795 note. Petitioner had no agreement with Lemons to not make payments on the $106,795 note. Petitioner paid about $4,100 on the $15,605 note.Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Next
Last modified: May 25, 2011