- 55 - business decision in that he hoped it would assure the customer’s purchase of a second note from AIG.28 Lastly, respondent suggests that a factual issue as to the marketability of the AIG notes is indicated by AIG’s willingness to allow the BP-AIG notes (and, therefore, by implication, the AIG notes) to secure a collateralized bank line of credit. Here again, the line of credit and the collateral therefor, including the pledge of the BP-AIG notes, were all transactions negotiated between parties operating at arm’s length. There is no evidence of any prior arrangement between BP and AIG that the BP-AIG notes would be used to secure the line of credit, and, even if there had been, we do not agree that such an arrangement would have justified treating the BP-AIG notes (and, by implication, the AIG notes) as marketable securities. It is common to use property, including a personal residence, to secure a bank loan or line of credit, but that fact does not lead to the conclusion that such property “is readily convertible into, or exchangeable for, money or marketable securities” within the meaning of section 731(c)(2)(B)(ii). 4. Conclusion Respondent has failed to satisfy the conditions of Rule 121(d) by submitting affidavits or otherwise setting forth facts to show there is a genuine issue of material fact that would cast doubt upon the status of AIG notes as nonmarketable. 28 The e-mail states: “I realize that they could go elsewhere for the 2nd note, but I think AIG should get some points for accommodating the revisions to the previous note.”Page: Previous 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 NextLast modified: March 27, 2008