Sheryl D. Bumpus - Page 3




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               In June 1995, Drywall, as the lessee, and Marchant                     
          Corporation (Marchant), as the lessor, entered into a lease                 
          agreement for certain industrial property (the lease).  The                 
          property was to be used by Drywall for manufacturing and                    
          distribution purposes.  The term of the lease was 3 years                   
          beginning on August 1, 1995.  Base rent, which increased from               
          year-to-year, was initially $4,998.30 per month.  A $5,664.74               
          security deposit was due when the lease was signed but the                  
          deposit was not made at that time.  Petitioner and Mr. Schuster             
          signed the lease as officers of Drywall; neither signed the lease           
          in an individual capacity.  Corwon J. Finley, petitioner's                  
          personal friend and business associate, was a guarantor on the              
          lease, as was a corporation that he apparently controlled.                  
               By checks dated June 20, 1995, drawn on her personal                   
          checking account and made payable to Marchant, petitioner:                  
          (1) Made the security deposit required under the lease; and (2)             
          paid the first month's rent, which was due August 1.  The rent              
          check was for $5,255.71.  The parties did not explain why the               
          amount was higher than required under the lease.                            
               Soon after the lease was signed, Mr. Schuster decided that             
          he no longer wanted to be involved with Drywall.  Petitioner                
          believed that she could not successfully operate Drywall without            
          Mr. Schuster and decided to abandon the project.                            








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