- 8 - July 10 - $1 million in the form of a revolving loan line of credit arrangement with Merchants Bank (the $1 million Merchants Bank loan). Both the $3.6 million and the $1 million Merchants Bank loans were secured by assets of both Paulan and Sidal and guaranteed by Sidal, Robert, Lovella, and petitioners. December 8 - $2 million from Merchants Bank (the $2 million Merchants Bank loan), secured by life insurance policies, securities, and Paulan real and personal property, and also guaranteed by Sidal, Robert, Lovella, and petitioners. Paulan Payments The July 11 Payment On July 11, Paulan wrote a check to Sidal for $1.2 million. The source of that payment was the $3.6 million Merchants Bank loan. Sidal’s adjusted trial balances for its taxable years ending December 31, 1997, 1998, 1999, and 2000, reflect the $1.2 million payment to it as giving rise to a note payable to Paulan. Correspondingly, Paulan’s adjusted trial balances for its taxable years ending December 31, 1997 and 1998, reflect the $1.2 million payment to Sidal as giving rise to a note receivable from Sidal.7 Sidal made principal and interest payments to Paulan on that note of $74,328 in 1997, $178,388 in 1998, $148,657 in 1999, and 7 Paulan’s adjusted trial balances for its taxable years ending Dec. 31, 1999 and 2000, are not in evidence.Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Next
Last modified: May 25, 2011