- 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agreement (Second Loan Agreement) that replaced and superseded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 25
Page: Previous 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 NextLast modified: May 25, 2011