- 14 -
outstanding balance on the Miller/Huntington Loan as of that
date.8
On January 19, 1994, the line of credit under the
Miller/Huntington Loan was increased an additional $250,000 to
$1,500,000. Petitioner executed a new promissory note in favor
of Huntington for $1,500,000, which covered this increase and
served as a substitute for the previously executed $1 million and
$250,000 promissory notes. The line of credit under the
MMS/Miller Loan was similarly increased, and MMS also executed a
new promissory note in favor of petitioner for $1,500,000 which
replaced the two prior outstanding promissory notes between the
two. Parallel modifications were made to the limited guaranties
of the Rapp Group, so that the guaranties in the aggregate
covered the entire $1,500,000 amount authorized under the
Miller/Huntington Loan. Huntington's internal report on the
increase of the Miller/Huntington Loan to $1,500,000 listed the
primary source of repayment as "Personal cash flow [of
petitioner] and/or funds from Miller Medical Systems, Inc."
Additional security was provided in connection with the
increase in the Miller/Huntington Loan to $1,500,000. First,
petitioner's parents granted Huntington a $50,000 second mortgage
8 Huntington's records list the 1993 yearend balance as
$1,185,000, whereas the parties have stipulated that the figure
was $1,184,930. The $70 discrepancy is not material, in our
view.
Page: Previous 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 NextLast modified: May 25, 2011