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Commissioner, supra at 639. The record is inadequate for us to
evaluate whether petitioner’s management interest in Gandy’s
increased as a result of his advances.
This factor is neutral, and we give it no weight.
6. Status of the Contributions in Relation to Regular
Corporate Creditors
Subordination of repayment of an advance to other
indebtedness weighs toward equity. See Estate of Mixon v. United
States, 464 F.2d at 406. Petitioner’s advances were subordinated
to the Gandy’s bonds. Moreover, despite advancing Gandy’s more
than $360,000 in 1990 and 1993, petitioner received only a token
payment of $5,000 at the end of 1993. Gandy’s controller
testified that petitioner’s advances were used to pay Gandy’s
suppliers-–suggesting a de facto subordination of petitioner’s
advances to these creditors.
This factor weighs toward equity.
7. The Parties’ Intent
Although the parties’ intent is relevant, the “subjective
intent on the part of an actor will not alter the relationship or
duties created by an otherwise objectively indicated intent.”
Id. at 407. The parties’ stated intent is not necessarily
conclusive of the parties’ true intent as revealed by the
objective facts. See In re Lane, supra at 1316; Tyler v.
Tomlinson, 414 F.2d 844, 850 (5th Cir. 1969).
Petitioner argues that he intended to make the loans in
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