Frederick H. Jackson III and Pamela S. Jackson - Page 13

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          apply such factors (“traditional debt-equity principles”) to the            
          situation before us in order to conclude that petitioner                    
          contributed almost $2 million to the capital of the corporation.            
               Specifically, petitioners ask us to find that (1) the                  
          corporation had no capacity to borrow the sums here received from           
          the bank, (2) the bank relied on the guarantors’ credit-                    
          worthiness and, in fact, lent such sums to the guarantors,                  

               (1)  the names given to the certificates evidencing the                
               (2)  the presence or absence of a fixed maturity date;                 
               (3)  the source of payments;                                           
               (4)  the right to enforce payment of principal and                     
               (5)  participation in management flowing as a result;                  
               (6)  the status of the contribution in relation to                     
               regular corporate creditors;                                           
               (7)  the intent of the parties;                                        
               (8)  ‘thin’ or adequate capitalization;                                
               (9)  identity of interest between creditor and                         
               (10) source of interest payment;                                       
               (11) the ability of the corporation to obtain loans                    
               from outside lending institutions;                                     
               (12) the extent to which the advance was used to                       
               acquire capital assets; and                                            
               (13) the failure of the debtor to repay on the due date                
               or to seek a postponement.                                             

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