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same date on which the original UB $1,300,000 loan was funded,
and matured on July 16, 1984, the same date on which that loan
was due. Throughout the period March 20, 1984, until July 16,
1984, during which the Pioneer $1,300,000 CD served as security
for the original UB $1,300,000 loan, Union Bank maintained a lien
on the deposit represented by that certificate of deposit.
By letter dated July 2, 1984 (July 2, 1984 Pioneer letter),
petitioner and Ms. Gaw instructed Union Bank on behalf of Pioneer
to transfer the deposit represented by the Pioneer $1,300,000 CD
on the date on which that certificate of deposit matured (viz.,
July 16, 1984) into the name of Mandalay, a wholly owned sub-
sidiary of Pioneer. That letter also instructed Union Bank that
the $1,300,000 certificate of deposit in the name of Mandalay
(original Mandalay $1,300,000 CD) was to be pledged to secure the
original UB $1,300,000 loan. In accordance with that letter,
and, pursuant to a decision on July 2, 1984, of the board of
directors of Mandalay, of which petitioner was president and Ms.
Gaw was executive director and secretary, the original Mandalay
$1,300,000 CD and the renewals thereof were pledged as security
for the renewals of the original UB $1,300,000 loan. Throughout
the period July 16, 1984, until July 10, 1986, during which the
original Mandalay $1,300,000 CD and the renewals of that certifi-
cate of deposit served as security for the renewals of that loan,
Union Bank maintained a lien on the deposit represented thereby.
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