-182-
asset. Exh. 96, at 4. Fairfield Planting Co. (Fairfield) was an
S corporation involved in farm operations in Arkansas. Exh. 95,
at 4; Ballard, Transcr. at 236.
On January 20, 1987, Ballard executed a promissory note
which provided that (1) Ballard agreed to pay to TMT, on demand,
the principal sum of $100,000, and (2) the note would not bear
interest, but TMT was entitled to receive 90 percent of the
“dividends” paid to Ballard by Fairfield. Exh. 9018. At the
same time, Ballard and Mary Ballard, acting as TMT’s president,
executed an agreement which stated that (1) Ballard was executing
a promissory note to TMT and was pledging 1,000 shares of
Fairfield common stock as security for the note, and (2) TMT, as
part of the transaction, agreed to advance in the future “any
deficits incurred by * * * Ballard in the operations of Fairfield
* * * and is to receive 90% of the dividends paid by Fairfield”.
Id. Ballard and Mary Ballard (acting in her individual capacity)
also executed an assignment which stated that “for the purpose of
securing the payment of all indebtedness now owing, or which may
at any time hereafter be owing” by Ballard to TMT, the Ballards
assigned to TMT 1,000 shares of Fairfield common stock. Id.
In 1987, TMT apparently paid an additional $20,344 to
Fairfield, and this amount was treated as an additional loan to
Ballard. Exh. 96, at 2.
Page: Previous 172 173 174 175 176 177 178 179 180 181 182 183 184 185 186 187 188 189 190 191 NextLast modified: May 25, 2011