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schedule for allocating payments by Mr. Aloi on their respective
judgments.
The Tooke Loans
Mr. Tooke, doing business as Alliance Leasing Co.
(Alliance), solicited investors through a Houston newspaper
advertisement to finance his purchase of used cars for resale
(floor planning). He also sought financing for buyers who wanted
to purchase his used cars. Petitioner and Mr. Tooke eventually
agreed that petitioner would guarantee up to $30,000 of floor-
planning debt with Independence Bank, N.A. (bank).
On or about May 10, 1989, the bank granted a line of credit
to Mr. Tooke to finance his floor planning. Petitioner
guaranteed Mr. Tooke's promissory note by pledging as security
with the bank a $30,000 certificate of deposit (CD).
Beginning in November of 1989, Mr. Tooke defaulted on his
loan agreement with the bank. In December of 1989, petitioner
sued Mr. and Mrs. Tooke and the bank seeking repayment of the
loans made to Mr. Tooke and the return of the $30,000 CD that he
had pledged as security for the Tooke loan. The bank notified
petitioner that it intended to foreclose on the CD and on June 5,
1990, filed a counterclaim against Mr. Tooke and petitioner.
Petitioner thereafter agreed to the liquidation of his CD and
paid attorney's fees to the bank. Because of the illness of Mr.
Tooke and his lack of assets, petitioner's lawyer, in a letter
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