- 9 - tain whether his proposal for obtaining funds from his brothers was feasible as far as that bank was concerned. A mortgage consultant employed by F&M Bank (F&M Bank mortgage consultant) informed Mr. O’Malley that, under F&M Bank’s so-called seasoning requirement, F&M Bank would decline to make any loans to his brothers that were to be secured by lots 5 and 12, since those lots did not exist before October 1999, when petitioners’ subdi- vision plat created them. However, the F&M Bank mortgage consul- tant advised Mr. O’Malley that if petitioners were to structure as sales the respective transfers to his brothers of lots 5 and 12 pursuant to petitioners’ family subdivision agreement, F&M Bank would be willing to make loans to those brothers and secure any such loans by those respective lots. In order to enable petitioners to obtain funds that they needed, on December 2, 1999, petitioners executed a deed (Decem- ber 2, 1999 deed) under which they transferred lot 5 to Kevin O’Malley and his spouse Kelly O’Malley.6 That deed provided in pertinent part: WITNESSETH, That in consideration of the sum of THREE HUNDRED EIGHTEEN THOUSAND DOLLARS and 00/100 ($318,000.00),[7] which includes the amount of any out- 6Although Kelly O’Malley was a party to the December 2, 1999 transaction, her role as such is not material to a resolution of the issues presented. When discussing the December 2, 1999 transaction, we shall for convenience refer only to Kevin O’Mal- ley, and not to Kelly O’Malley. 7On Nov. 4, 1999, an appraiser signed an appraisal in which (continued...)Page: Previous 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 NextLast modified: November 10, 2007