- 8 - 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 thePage: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Next
Last modified: May 25, 2011