-4- 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.Page: Previous 1 2 3 4 5 6 7 8 9 10 11 Next
Last modified: May 25, 2011