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which are signed by Aaland, generally in his individual capacity,
and sometimes in his capacity as president of Fidelity
Construction Corp. of America or Magna Financial Development
Corp.2 The notes range in amounts from $1,000 to $100,000, and
were payable as of a date certain at a specified rate of
interest.
The advances were not fully repaid on time. In 1987 and
again in 1992, petitioner and Aaland entered into debt
consolidation agreements making Aaland personally responsible for
repayment of the outstanding debts. As of December 31, 1992, the
balance of the debt to petitioner was $335,200, excluding
interest.
In 1979 and again in 1984, petitioner borrowed money from
Aaland, as evidenced by two promissory notes signed by petitioner
and totaling $37,344.
The record is sketchy as to petitioner's involvement in the
corporations. Petitioner testified that he was a vice president
“most of the time”, but he had no office. He testified that he
had authority to sign corporate checks “for a while. I don't
know how long, but not very long.” He testified that he was
involved in some management decisions and that he “helped now and
then” in the corporations. His testimony strongly suggests,
however, that his involvement with the corporations, apart from
2 One note, dated May 21, 1984, in the amount of $39,301.25,
is signed by Dean J. Ralston, who is identified on the note as
vice president and secretary of Magna Financial Development Corp.
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