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a. Commercial Loan Agreement, FirsTier Notes,
Security Agreement, and Related Guaranties
FirsTier Bank (FirsTier), Chevrolet, BHM Corp. (BHM),6 and
Henry and Esther individually executed a commercial loan
agreement dated June 30, 1986. In accordance with the commercial
loan agreement, Henry and Esther executed a $600,000 term note in
their individual capacities payable to FirsTier dated June 30,
1986 (the FirsTier note), and a security agreement to secure the
FirsTier note. Chevrolet and BHM each executed separate
guaranties of the FirsTier note. During the years at issue, the
FirsTier note was not included as a liability of HJA in HJA’s
books and records.
Chevrolet and BHM executed a separate $756,708 term note
payable to FirsTier dated June 30, 1986 (the companies’ term
note), and a $100,000 revolving credit note payable to FirsTier
dated June 30, 1986. Chevrolet and BHM each executed a separate
security agreement to secure the companies’ term note and the
revolving credit note. Henry and Esther each executed an
6BHM Corp. was a wholly owned subsidiary of Chevrolet that
owned real estate on which Chevrolet operated.
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Last modified: May 25, 2011