Thomas F. and Therese Grojean - Page 5

                                        - 5 -                                          
                    entered into and delivered the Participation                       
                    Agreement and [petitioner] has purchased, or                       
                    will contemporaneously purchase, a portion of                      
                    [American’s] interest in the [Schanno note]                        
                    in the amount of One Million Two Hundred                           
                    Thousand ($1,200,000) Dollars.                                     
               Pursuant to the loan agreement, American disbursed to                   
          Schanno Acquisition $8.4 million and $2.6 million under the                  
          Schanno note and the credit note, respectively.  Both Schanno                
          Acquisition and Schanno signed the Schanno note and the credit               
          note, and both notes identified Schanno Acquisition and Schanno              
          as the borrowers or “makers”.  American was the only party                   
          identified as the lender on the Schanno note and the credit note,            
          and petitioner was not a party to these notes.  Both loans were              
          secured by all the assets of Schanno.  Transamerica financed the             
          remainder of the purchase price, taking back a note from Schanno             
          Acquisition and Schanno for $2.9 million (Transamerica loan).                
               Also on September 6, 1989, American advanced $1.2 million               
          to petitioner under the Grojean note by crediting this amount to             
          petitioner’s checking account at American.  Petitioner pledged               
          his stock in Schanno and Schanno Acquisition as security for the             
          loan.  Contemporaneous with execution of the Grojean note,                   
          petitioner and American entered into a participation agreement               
          wherein petitioner agreed to purchase a $1.2-million                         

Page:  Previous  1  2  3  4  5  6  7  8  9  10  11  12  13  14  15  16  17  18  19  Next

Last modified: May 25, 2011