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inconclusive regarding both whether there were any loans from
Mr. Wright to the corporation and whether the $72,000 in
disbursements to Mr. Wright in 2001 was in repayment of those
purported loans.
We also are not persuaded that the promissory notes that
were presented by petitioners represent true indebtedness of the
corporation. Even though the first note clearly states that the
borrower is Mr. Wright and the lender is HJ Builders, petitioners
argue that the names of the parties in the document are reversed
and that Mr. Wright in fact advanced money on several different
occasions to HJ Builders pursuant to the first note. The first
note is a general line of credit and bears stated annual interest
at 5 percent, but the corporation’s handwritten loan ledger lists
several loans at various interest rates. Neither the corporation
nor Mr. Wright has presented any record of an accounting for any
alleged advancements, repayments, or accruals of interest
regarding funds lent pursuant to the first note. There is no
record that links the first note explicitly to any actual
monetary advance by Mr. Wright to HJ Builders.
Unlike the general line of credit in the first note, the
second note is for a specific amount purportedly advanced from
Mr. Wright to HJ Builders. However, the second note is neither
listed in the corporation’s handwritten ledger of “Wayne Cash
Loans to HJB” nor taken into account for book purposes on the
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Last modified: May 25, 2011