- 9 -
3. Fixed Schedule for Repayment
The note did not have a fixed schedule for repayment and had
no fixed maturity date.
4. Security or Collateral
No security or collateral was requested.
5. Demand for Repayment
A formal demand for payment was made by Jeffrey, on behalf
of petitioner, in a letter to Stephen dated August 7, 1993.
Jeffrey also wrote letters to counsel for Super City Meats
seeking payment on the note.
6. Records of the Loans
The parties' personal records reflect the transaction as a
loan.
7. Actual Repayments
The record indicates that some interest payments were made.
8. Solvency of the borrower
Both Super City Meats and Stephen were solvent at the time
of the loan.
We believe that when Jeffrey made the advance to Stephen, he
had a real expectation that he would be repaid. He knew that
Super City Meats was the beneficiary of life insurance on
Stephen's co-owner, and he fully expected to be repaid from the
insurance proceeds. By lending $100,000 to his brother, Jeffrey
placed himself in a precarious personal and financial situation.
First, Jeffrey testified that he did not have that type of money
in his checking account and had to borrow against his securities
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 Next
Last modified: May 25, 2011