- 6 -- 6 -
for petitioner's personal loan to Jackson. These notes were to
be completed by petitioner or Activewear if Jackson or his
corporations did not repay the loans.
Petitioner recorded all of the loans in Activewear's books.
Petitioner wrote a check for every loan and completed the check
stub in the Activewear checkbook. Activewear made short-term
loans to Jackson until May 1991.
3. Jackson's Repayment History
Jackson timely repaid all of the Activewear loans for 2�
years until about August 1990. At that time, his repayments
began to be late and some of his checks bounced.
In 1990, Activewear lent $2,070,900 to Jackson's
corporations and Jackson's corporations repaid $1,752,900.
Activewear continued to lend money to Jackson because petitioner
believed that Jackson would be able to repay the loans if he
could continue to operate. In 1991, petitioner lent $958,880 to
Jackson's corporations and Jackson's corporations repaid
$832,786.06. Jackson's outstanding loan balances were $318,000
for 1990 and $126,094 for 1991.
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 Next
Last modified: May 25, 2011