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the note and renegotiate a note for the remaining
$300,000 balance, which Huber’s, Inc., subsequently
agreed to do.
(j) On December 10, 1986, Petitioner and his then
wife, Margaret Ford, executed an assignment conveying
all of Petitioner’s interest in the $1,100,000.00 note
to Schultz. The assignment recited that it was made in
consideration for Schultz’s payment of $800,000.00 to
Petitioner.
(k) On that same date, Schultz applied for and
received a loan in the amount of $800,000.00 from the
Bank of Louisville. Schultz’s loan application showed
no information about his ability to repay the loan.
(l) On that same date, Schultz used the proceeds
of the $800,000.00 loan to purchase a one year
certificate of deposit in the amount of $800,000.00
payable to Petitioner.
(m) On that same date, Petitioner executed a
collateral assignment and hypothecation agreement to
the Bank of Louisville, pledging the certificate of
deposit as collateral for the Bank of Louisville’s
$800,000.00 loan to Schultz.
(n) On that same date, Petitioner paid $2,000.00
to Schultz for accounting fees.
(o) On December 23, 1986, Huber’s, Inc.,
transferred $800,000.00 from its account at Citizen’s
Fidelity Bank & Trust Company to the Bank of
Louisville, where the funds were applied to the payment
of Schultz’s $800,000.00 loan.
(p) On that same date, Huber’s, Inc., executed a
promissory note to Schultz in the amount of
$300,000.00.
(q) On that same date, Schultz executed an
assignment conveying all of his interest in the
$300,000.00 note to Petitioner and his wife.
(r) On that same date, Schultz executed a limited
power of attorney to name Petitioner as his attorney in
fact on all matters pertaining to the $300,000.00 note.
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