- 17 - provides for 25 percent interest per year and calls for quarterly payments of interest only (i.e., no principal) in the amount of $3,125 beginning January 15, 1990, and ending at the end of the loan term, October 15, 1994. The First Loan Agreement also provides for fees in the event of late payments. At some point after January 15, 1990, Attieh Bros. made the first payment called for by the First Loan Agreement. Sometime around March 1990, members of the Attieh family asked petitioner to lend Attieh Bros. an additional $20,000. Petitioner agreed, and he sent Nidal Attieh a letter dated March 28 outlining the terms of a new agreement under which the $20,000 would be added to the previous principal of $50,000. Petitioner subtracted from the $20,000 certain amounts, totaling $8,000, that he felt were owed him: $3,925 for video games he had purchased on behalf of Attieh Bros.; $3,125 for the next quarterly payment under the First Loan Agreement, which was due April 15, 1990; and $950 in late fees and interest arising from the untimeliness of the January 15, 1990, quarterly payment. At some point in late March or early April, petitioner sent Attieh Bros. the additional $12,000. On April 2, petitioner and Attieh Bros. entered into a loan agreement (Second Loan Agreement) that replaced and superseded the first, providing for a principal amount of $70,000 (original $50,000 plus additional $20,000), with an interest rate of 25Page: Previous 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 Next
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