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Sixteen Promissory Notes Each in the Principal Amount
of $5,000
As mentioned above, EA 84-III issued 16 promissory
notes payable to CSL each in the principal amount of $5,000
and dated February 1, 1985. Each promissory note was
secured by a deed of trust also dated February 1, 1985, in
favor of CSL. Eleven of the deeds of trust purport to have
been filed on September 6, 1985, with the County Clerk of
Harris County, Texas. Five of the deeds of trust do not
appear to have been filed.
In the bankruptcy filing that was made on behalf of EA
84-III, CSL is listed as a secured creditor with respect to
16 promissory notes in the aggregate amount of $80,000.
The filing also states that accrued interest in the amount
of $4,000 is payable to CSL as a secured creditor.
At trial, respondent introduced appraisals of the
subject 16 properties as of February 1, 1985, and
respondent argues on brief that the appraisals demonstrate
that the value of the underlying properties declined or did
not appreciate enough to support the new debt. Set out
below is a list of the 16 properties that shows the sum of
the original purchase money indebtedness, plus $5,000, the
value of each such property on February 1, 1985, as
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