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a bond or note suggests that it is debt. See Estate of Mixon v.
United States, supra at 403. Cabana Boy issued stock
certificates to petitioners as consideration for the motion
picture rights. However, there are no signed notes or loan
agreements relating to the remaining $2,011,701.20 in advances
petitioners claim to have made. Tyler testified that there were
loan documents, but none were offered into evidence. Petitioners
contend that they intended their advances to be governed by the
terms of the sample note. We disagree. We do not consider the
sample note because it was unsigned. This factor is neutral.
2. Interest Payments
Making an advance without charging interest suggests that
the advance is not a loan. See National Carbide Corp. v.
Commissioner, 336 U.S. 422, 435 n.16 (1949); Estate of Mixon v.
United States, supra at 409. There is no evidence that
petitioners charged or received interest from Cabana Boy. This
factor favors respondent.
3. Fixed Maturity Date or Repayment Schedule
The absence of a fixed maturity date or repayment schedule
suggests that advances are equity. See Estate of Mixon v. United
States, supra at 404; American Offshore, Inc. v. Commissioner, 97
T.C. 579, 602 (1991). Petitioners contend that the repayments
were to be made on demand because the unsigned sample note so
stated. We disagree. We are not convinced that the sample note
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