Donald DeCleene and Doris DeCleene - Page 8




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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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