- 6 - 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 ---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