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Tetrick, the president of Unified, provided him with excuses,
saying that Mr. Tetrick would have to check with Mr. Keefe, who
headed the MCFC entities.
In the absence of funds, the Whitewater project was not
constructed. In an assignment dated August 4, 1987, Unified
assigned its rights under the Ironwood reimbursement note to Far
West Savings and Loan Association, which replaced Unified as the
construction lender. SBE issued a new note to Far West Savings,
secured by a deed and an assignment of rents. The deed
identified the Ironwood bonds at issue and stated, in pertinent
part:
the proceeds of the Bonds * * * are to be loaned to
Trustor for the purpose of providing construction and
permanent financing for the acquisition of that certain
real property situate[d] in the County of Riverside
* * *
The Ironwood project, currently operating under the name
Cross Creek Village, was completed in March 1989 with funds
borrowed from Far West Savings and Loan Association. The
resulting capital construction costs allocated to the Ironwood
project were more than 90 percent of the face amount of the
Ironwood bonds. When they were occupied, 20 percent of the
apartments were occupied by persons of low or moderate income.
SBE suffered severe financial reverses as a result of defaulting
on these projects, and Mr. Etchegoyen eventually lost his company
to his creditors.
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