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Ridge property with respect to that loan. After debits and
credits reflected in the closing statement with respect to the
purchase of the Quail Ridge property, the balance due from OIP to
American National was $482,521.48. The check signed by Mr.
Hefferan and dated December 20, 1990, which was drawn on the
escrow account in order to pay that amount due, was for $490,000.
The portion of that $490,000 check that was not used to pay the
balance due on the purchase of the Quail Ridge property, i.e.,
$7,478.52, was not redeposited into the escrow account.
Mr. Kaplan, the president of Xway, was aware that Mr. Canty
contemplated structuring the sales by OIP of lots 11 and 12 and
OIP's 25-percent interests in lots 14 and 15 so as to qualify for
like-kind exchange treatment under section 1031. Mr. Kaplan
believes that at approximately the time of those sales, and
probably within 45 days after those sales, Mr. Canty made him
generally aware of properties that Mr. Canty was interested in
purchasing, including the properties in Vero Beach, Florida, and
in Texas that were ultimately purchased with a portion of the
escrow fund. However, the escrow agreement did not identify any
particular property to be purchased thereunder and did not
identify what portion of the escrowed sales proceeds was to be
used to purchase such property and what portion was to remain as
boot under section 1031. Moreover, although the escrow agreement
required OIP to identify within 45 days after July 26, 1990, any
property that it wanted Interstate to acquire pursuant to the
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