- 44 -
loan was due on April 10, 1986. To document that loan, peti-
tioner signed on behalf of Radcliffe a promissory note that was
made payable to Union Bank and that was in the same amount as
that loan.
Pursuant to a decision on June 6, 1985, of the board of
directors of Multi-Credit, of which petitioner was managing
director, an $800,000 fixed deposit in the name of Multi-Credit
in Standard Chartered Bank HK and all renewals of that deposit
(Multi-Credit $800,000 deposit)31 were pledged as security for
the original UB $800,000 Radcliffe loan and the renewal of that
loan. The Multi-Credit $800,000 deposit was in the same amount
as that loan and was maintained in Standard Chartered Bank HK
until March 5, 1986, when that deposit was transferred to Stan-
dard Chartered Bank, Singapore.32 Throughout the period from on
or about June 27, 1985, until July 23, 1986, during which the
Multi-Credit $800,000 deposit served as security for the original
30(...continued)
deposit that was securing the UB $800,000 NMSC loan during Multi-
Credit's two-week financial reporting period.
31 The $800,000 deposit in the name of Multi-Credit had been
made in that bank prior to the time it was pledged to secure the
original UB $800,000 Radcliffe loan.
32 Petitioner, as managing director of Multi-Credit, signed on
behalf of Multi-Credit a security agreement dated Mar. 18, 1986,
pledging the Multi-Credit $800,000 deposit in Standard Chartered
Bank, Singapore, as security for the payment and performance of
Radcliffe's obligations to Union Bank, irrespective of the manner
in which or the time at which those obligations arose or would
arise.
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