-43-
the transfers were used by ALSL in a similar sense in that they
were retransferred to ALD to use on the Seasons of Sarasota
project. But for the transfers of the funds from HEI to ALSL,
ALSL would not have been able to make most of the transfers to
ALD.
This factor is either inapplicable or does not support a
finding that the transfers created bona fide debt.
11. Presence or Absence of a Sinking Fund
The failure to establish a sinking fund for repayment weighs
against a finding of bona fide debt. See Bayer Corp. v.
Mascotech, Inc. (In re Autostyle Plastics, Inc.), 269 F.3d at
753; Roth Steel Tube Co. v. Commissioner, supra at 632; Lane v.
United States, 742 F.2d at 1317; Raymond v. United States, supra
at 191; Austin Village, Inc. v. United States, supra at 745.
ALSL did not establish a sinking fund for repayment of the
ALSL note. While petitioners invite this Court to disregard this
factor, asserting that the Court of Appeals for the Sixth Circuit
“is out of touch with economic reality” in relying upon this
factor, we decline to do so. As is true with respect to all of
these factors, this factor is not controlling in and of itself
but is merely one factor that we consider in determining the
objectively indicated intent of ALSL and HEI as to the
characterization of the transferred funds.
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