- 9 -
aggregate principal amount of $728,000, to Northern
Telecom.
Dakotah Hills’ promissory note to Northern Telecom
required it to notify each investor of the assignment of
his or her investor note and to direct each investor to
make payments to a non-interest bearing account maintained
by Northern Telecom. In satisfaction of that requirement,
every investor who purchased a unit of limited partnership
interest in Dakotah Hills executed a letter to Northern
Telecom that made reference to Dakotah Hills’ promissory
note to Northern Telecom in the principal amount of
$520,000, to the investor note issued to Dakotah Hills
(referred to in the letter as “Borrower’s Note”), and to
“the Surety Bond securing the Borrower’s obligations under
the Borrower’s note issued by Admiral Insurance Company”.
In the letter, the investor agreed to make all payments
under the investor note directly to Northern Telecom. The
letter also states as follows: “THE BORROWER’S NOTE IS A
NEGOTIABLE INSTRUMENT AND WILL BE ENDORSED TO NTIF [i.e.,
Northern Telecom] AS PARTIAL SECURITY FOR PAYMENT BY THE
PARTNERSHIP OF THE PARTNERSHIP NOTE.”
Each investor note contains the following statement:
THIS NOTE IS A NEGOTIABLE INSTRUMENT AND,
EITHER ALONE OR IN CONJUNCTION WITH OTHER NOTES
PAYABLE TO THE PAYEE, WILL BE PLEDGED BY THE
PAYEE TO SECURE LOANS. THE CONSENT OF THE
Page: 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