- 35 -
Throughout the period in 1984 during which the UB $570,000
pre-March loan was outstanding, it bore interest at Union Bank's
London interbank offered rate (LIBOR) plus 1.5 percent or its
prime rate plus 1 percent. During 1984, the interest on the UB
$570,000 pre-March 1984 loan was payable (1) at the maturity of
any period during which a LIBOR-based interest rate was in effect
for no more than 180 days or (2) monthly for any period during
which a prime rate-based interest rate was in effect. Interest
on the UB $570,000 pre-March 1984 loan was paid in January,
February, and March 1984.22
In March 1984, the UB $570,000 pre-March 1984 loan was
renewed by Union Bank (original UB $570,000 renewed loan), and a
$570,000 Asian dollar deposit in the name of Forward (Forward
$570,000 deposit) was made in Standard Chartered Bank, Singapore,
was substituted for the Merit $570,000 deposit, and was pledged
as security for that loan.23 Interest on that loan was paid
21(...continued)
Merit.
22 The March 1984 interest payment with respect to the Union
Bank $570,000 loan to BOT does not appear to be broken down
between (1) the interest that was paid on that loan for the
portion of that month during which it was secured by the Merit
$570,000 deposit and (2) the interest that was paid on it for the
portion of that month during which it was secured by the $570,000
deposit in the name of Forward.
23 The parties stipulated that the UB $570,000 pre-March 1984
loan was renewed in March 1984. However, the record contains no
Union Bank documents that indicate that a renewal of that loan
(continued...)
Page: Previous 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 NextLast modified: May 25, 2011