- 63 -
payments allegedly due from them on their partnership's purported
recourse debt.30
30In this connection, Mr. Hoyt testified, on direct
examination, as follows:
Q. If a partner had assumed liability and withdrew
from the partnership and refused to pay his assumed
liabilities, how did you treat that?
A. In some cases it was the year that they withdrew.
The amount of that liability was removed from their
partnership capital account as a withdrawal. And in some
situations when I was instructed by the partner and their
power of attorney was rescinded, for example, back to the
year that it was given to me, then I removed--I made an
adjustment and removed that capital from that partner's
capital account back to the year that I was instructed to.
Q. Do I understand your testimony to mean that there
were partners that withdrew and instructed you to treat them
on the books and records of the partnership as if they were
never partners?
A. That's correct.
Q. Did you agree to that?
A. Yes, I did.
Q. Was there a provision provided in the partnership
agreement for you to give those partners that rescinded
their agreement that kind of commitment or arrangement on
the books of the partnership?
A. I'm sorry. I'm not--
Q. If I use the term rescinded, do you understand that
term?
A. Yes, I do.
Q. Could you tell me what you understand by the term
(continued...)
Page: Previous 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 NextLast modified: May 25, 2011