In Re Salem Tool Co.

MEMORANDUM OPINION

WILLIAM T. BODOH, Bankruptcy Judge.

On July 1, 1982, a stock purchase agreement was entered into between the Debtor and BARBARA J. McCORKHILL. Pursuant to the Agreement and a contemporaneous promissory note, the Debtor was obligated to pay Ms. McCorkhill the principal amount of Eight Hundred Twenty-Five Thousand & 00/100 Dollars ($825,000.00), with interest accruing at 12 percent (12%) per annum. In return, Ms. McCorkhill agreed to endorse and deposit stock certificates evidencing her ownership of twenty-six (26) shares of common stock, into an escrow account at National City…