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estate. Although there were no repayment schedules, no fixed
maturity dates, and no notes with respect to the debts, the debts
were mentioned in a memorandum and in the trusts' journal
entries. The January 17, 1984, Memorandum of Combined Meeting of
the Personal Representatives and Board of Directors of the
corporations owned by the estate stated that:
The actions necessary to pay or transfer estate assets
needed for the settlement was also ratified, however
there was lengthy discussion on the issue as to the
ratification of the borrowing from the stockbroker by
using trust assets as collateral as opposed to the sale
of estate assets to pay the sums due for settlement.
The action which had been taken to borrow was ratified
* * *
Further, the trusts' journal indicates that mortgages were
transferred to satisfy the estate's "partial debt settlement".
The interest due on the margin accounts was solely the legal
obligation of the trusts. The trusts would pay the margin
interest to E.F. Hutton, and the estate would pay the trusts
equal amounts as interest on their loans to the estate. The E.F.
Hutton statements for April through August 1984 reflect
handwritten notations indicating the estate's portion of the
margin interest incurred by the trusts. They also reflect
deposits the subsequent months which correspond directly to the
handwritten notations, as shown in the following table:
Handwritten Notations
Indicating Deposits to the
Date Estate Interest E.F. Hutton Account
4/84 $16,086 ---
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