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Background
Some of the facts have been stipulated and are so found. At
the time the petition was filed, petitioner resided in Horseshoe
Bay, Texas.
In 1985, petitioner incorporated Tom Roberts Ford/Mercury,
Inc. (the corporation), which owned and operated a new car
dealership located in Madisonville, Texas. At all times
relevant, petitioner served as president of the corporation.
Shortly after its incorporation, the corporation was in need
of operating capital. As president of the corporation,
petitioner obtained a loan from First Madisonville National Bank
(First Madisonville) on behalf of the corporation. The note
evidencing the loan with First Madisonville was made in the name
of the corporation and was signed by corporate officers,
including petitioner as president of the corporation. The note
was for a fixed principal amount and various assets of the
corporation were pledged as security.
As president of the corporation, petitioner executed
additional loan notes with First Madisonville, including a
revolving credit loan. All of the proceeds from the loans
executed on behalf of the corporation went to the corporation.
Per bank policy, petitioner, as a “principal” of the corporation,
was a guarantor of the corporation’s loans.
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Last modified: May 25, 2011