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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 the
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