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LA branch in the name of Double Wealth (Double Wealth $1,000,000
CD) was pledged as security for BB Loan No. 3.19 That certifi-
cate of deposit was issued on November 12, 1985, the same date on
which BB Loan No. 3 was funded, and matured on November 12, 1986,
the same date on which BB Loan No. 3 was due.20 From the time
the Double Wealth $1,000,000 CD was issued on November 12, 1985,
until its proceeds were used on September 12, 1986, to repay BB
Loan No. 3, Bangkok Bank LA branch blocked the deposit represent-
ed thereby so that it could not be withdrawn by Double Wealth.
The interest rate on BB Loan No. 3 was set at .5 percent
above the interest rate on the Double Wealth $1,000,000 CD. The
interest rate on BB Loan No. 3 was 8.25 percent, and the interest
rate on that certificate of deposit was 7.75 percent. The inter-
est on BB Loan No. 3 was made payable on a monthly basis on the
12th of each month, and the interest on the Double Wealth
$1,000,000 CD was made payable on a monthly basis on the 11th of
19 The decision of Double Wealth's board of directors was docu-
mented by minutes of a meeting of that board signed by Mme. Koo
as chairman of that meeting. Mme. Koo and Ms. Gaw signed on
behalf of Double Wealth an application, dated Nov. 12, 1985, for
a time deposit in the amount of $1,000,000. In addition, Mme.
Koo signed on behalf of Double Wealth a Form W-8, Certificate of
Foreign Status, dated Nov. 12, 1985, that was furnished to
Bangkok Bank LA branch in connection with the Double Wealth
$1,000,000 CD.
20 The deposit in the name of Double Wealth that was used to
purchase the Double Wealth $1,000,000 CD was made in Bangkok Bank
LA branch on or about Nov. 12, 1985, the date on which BB Loan
No. 3 was funded.
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