- 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-millionPage: 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