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James C. Motley General partner
David D. Livingston, as trustee Limited partner
James C. Motley (Mr. Motley) was a general partner and the tax
matters partner of Briarpark.
During 1983 and 1984, Briarpark acquired a 3-acre parcel of
land at 2925 Briarpark Road (property) and constructed a 12-story
office building on the property. Around September 27, 1983,
Briarpark borrowed $21,600,000 from InterFirst Bank Houston
(InterFirst) to finance the acquisition of the property and the
construction of the building (original loan). Mr. Motley
executed a guaranty for principal, interest, penalties, expenses,
and fees due on the original loan.
On May 28, 1987, Briarpark and InterFirst modified and
extended the original loan (modified loan) pursuant to a modified
loan agreement. Under the agreement, Mr. Motley's obligation
under the guaranty was limited to $5 million, the original loan
was converted from recourse to nonrecourse, and the accrued but
unpaid interest in the amount of $3,100,000 was capitalized. At
that time, InterFirst estimated that the fair market value of the
property was approximately $17 million. Also on May 28, 1987,
Briarpark obtained a loan in the amount of $1,500,000 for tenant
improvements (build-out loan) on a nonrecourse basis.
On April 15, 1988, Briarpark filed its U.S. Partnership
Return, Form 1065, for taxable year 1987. Briarpark did not
report any income on its 1987 return with respect to the original
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Last modified: May 25, 2011