- 3 -
Longview was permitted to charge for each such note a $10 acqui-
sition fee (acquisition fee) and a handling charge (handling
charge), the amount of which varied according to the amount and
duration of the trade note receivable. If a debtor of B&W
Longview prepaid that debtor's trade note receivable, B&W
Longview was required under Texas law and/or regulations to
refund a portion of the acquisition fee and/or the handling
charge. The amount of any such refund, which was regulated by
the Office of Consumer Credit in Texas, depended upon the amount
and duration of the trade note receivable.
In addition to the trade notes receivable, on the valuation
date, B&W Longview had in its portfolio of loans 11 demand loans
(demand loans), each of which bore monthly interest of one
percent of the unpaid balance of the loan. Five of those loans
were in amounts exceeding $100,000, one loan to decedent was in
the amount of $6,200, and one loan was for less than $1,000. As
of the date of the trial of this case, two of the demand loans
remained outstanding.
On the valuation date, the assets of B&W Longview consisted
of cash totaling $760,953, the gross amount of the trade notes
receivable totaling $1,012,177,2 nondepreciable assets totaling
$75,323, the demand loans totaling $652,139, and other assets
2 B&W Longview showed on its balance sheet as of the valuation
date a "Discount for Bad Debts" of $101,217 with respect to the
gross amount of trade notes receivable.
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