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Lawrence Drive property securing the mortgage; petitioner
guaranteed the $380,000 construction loan.
Bank One, Green Bay considered petitioner the source of
repayment of the September 24, 1993, $380,000 construction loan.
In connection with that loan, Bank One, Green Bay never obtained
any financial statements from WLC. The check of the
creditworthiness of WLC by the Bank One, Green Bay loan officer
consisted of calling a branch bank to discuss WLC’s business
reputation.
The $380,000 note for the September 24, 1993 Bank One, Green
Bay construction loan required no interest or principal payments
during the time that WLC was expected to be the named borrower on
the note; the note did not require payment of interest until
March 23, 1994.
On September 24, 1993, the following other events occurred:
Petitioner gave Bank One, Green Bay a new mortgage on the
McDonald Street property securing a total obligation of $480,000,
consisting of both his September 30, 1992, $100,000 note and the
WLC nonrecourse note of $380,000 that he had guaranteed; WLC
accepted the commitment of Bank One, Green Bay to provide a
$380,000 loan for financing construction of the building on the
Lawrence Drive property; WLC executed a corporate borrowing
resolution authorizing it to borrow from Bank One, Green Bay; WLC
executed an application to Bank One, Green Bay for a standby
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Last modified: May 25, 2011