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intends to assign all of the promissory notes
issued by Limited Partners to purchase units of
limited partnership interests to a bank and/or
savings and loan association in order to raise
operating capital for the limited partnership.
The intent is to borrow as much as possible by
using the promissory notes as collateral. If
the partnership is successful in assigning the
promissory notes and security agreements to a
bank and/or savings and loan association, as it
intends to do, the bank and/or savings and loan
association will then be the holder of the
promissory note and security agreement and the
limited partners may be obligated to make all
payments of interest and principal due on the
promissory notes to the bank and/or savings and
loan association despite certain claims that the
limited partner may have or may want to assert
against the General Partners and/or the partner-
ship.
As contemplated by the above, shortly after Dakotah
Hills was formed, it borrowed $520,000 from Northern
Telecom International Finance B.V. (Northern Telecom) and
issued its promissory note to Northern Telecom in the
principal amount of $520,000 payable in four installments
as follows:
Due Date Amount
12/1/85 $190,233.33
12/1/86 182,000.00
12/1/87 182,000.00
12/1/88 182,689.00
Total 736,922.33
As collateral for the loan, Dakotah Hills negotiated,
pledged, and assigned all of the investor notes, in the
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Last modified: May 25, 2011