River City Ranches #4 - Page 126




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               30(...continued)                                                       
               rescission or rescinded?                                               
                    A.  That it never took effect.                                    
                    Q.  Were there provisions under the partnership                   
               agreement to allow partners to rescind?                                
                    A.  I cannot think of any specific item in the                    
               partnership agreement that gives them that right.  It was--            
               the rescission I was speaking of is the rescission of the              
               power of attorney they gave me that I signed--that I used to           
               sign the assumption agreements.                                        
                    Now, when that was revoked or rescinded, then that                
               assumption of that liability was treated as if it never                
               occurred.                                                              
                    On cross-examination, Mr. Hoyt further elaborated as              
               follows:                                                               
                    Q.  Would you give credit to the individual partners              
               when a sale on a foreclosed note was made for those animals            
               covered by the foreclosed portion?                                     
                    A.  I'm not sure what the word credit means, the way              
               you're using it.                                                       
                    Q.  Would you do anything to their capital accounts?              
                    A.  Yes.                                                          
                    Q.  What would you do?                                            
                    A.  Deduct all the capital that had been contributed to           
               their capital account by assuming partnership liabilities.             
                    Q.  If--so for each of those it would be--the sales on            
               * * * [foreclosure] would be a situation where a partner               
               completely walked away from the partnership.  Is that right,           
               or not?                                                                
                    A.  Walked away, or instructed me in some fashion that            
                                                             (continued...)           








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