Donald G. Ford - Page 4

                                         -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