- 402 -
Kanter presented no evidence as to whether the funds for
payment of the notes were in fact the funds of the Bea Ritch
Trusts and, if so, why the payments were made by the Bea Ritch
Trusts since the Bea Ritch Trusts were not the makers of the
notes.
With respect to those checks that were not specifically made
out to Cashmere for payment of the notes, the debtors on the
notes (the Beach Trust, the BWK Revocable Trust, and Holding Co.)
were instructed to transmit checks themselves drafted on their
own accounts to Cashmere. Administration Co., in turn, provided
these entities with the funds for payment of the notes, which
funds are represented by three checks.
There is no documentary evidence (promissory notes, payment
schedules, canceled checks representing interest or principal
payments, or other records) in the record to substantiate that
the amounts provided to the Beach Trust, the BWK Revocable Trust,
and Holding Co. by Administration Co. for the payment of the
notes held by Cashmere were "loans" from the Bea Ritch Trusts, or
that such "loans" were paid back. No interest or principal was
ever paid in connection with any of the so-called "loans" made by
the Bea Ritch Trusts in exchange for payment of the notes held by
Cashmere.
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