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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.
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