- 67 - evidence establishing those notes and other subsequent notes various cattle-breeding partnerships issued were valid recourse indebtedness. In a number of instances, the Hoyt organization set highly inflated values on the cattle the partnerships “transferred back” to it in “note payments”. For instance, a Hoyt organization note payment summary and a payment receipt reflect that, in late 1987, SGE 82-1 transferred to the Hoyt organization 82 registered Shorthorns having a stated total value of $697,750 (which works out to an average stated value per cow of approximately $8,508) and that the Hoyt organization credited this $697,750 “payment” against SGE 82-1's promissory note, allocating $232,122 to interest and $465,528 to principal. The Hoyt organization further, over the years, contrived other transactions pursuant to which small numbers of breeding cattle (possibly “belonging” to some of the cattle-breeding partnerships) were purportedly sold for allegedly high prices at public cattle sales. See supra note 34. This highly unusual conduct by the Hoyt organization with respect to these alleged recourse partnership debts casts considerable doubt upon the bona fides of the “recourse promissory notes” the partnerships issued to the Hoyt organization. In the subsequent note payment “transactions”, Jay Hoyt and the Hoyt organization placed grossly inflated “values” on certain alleged cattle a partnership “transferred back” to thePage: Previous 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 73 74 75 76 Next
Last modified: May 25, 2011