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distributions from Coastal that exceeded their reported
distributive shares of partnership income for the year.
Messrs. Boyas and Spillas received direct cash payments by
Continental from the escrow account in proportion to their
partnership interests, in the amounts of $1,391,566 and $695,783,
respectively. Petitioner received a direct cash payment from the
escrow account in the amount of $95,783, based on petitioner’s
$695,783 net interest in the Mall (equivalent to the interest of
Mr. Spillas) minus the above-mentioned $600,000 credit.6 These
cash payments to the Pecaris partners represented the bulk of the
proceeds from the $4.1 million Canada Life mortgage loan that
remained after the pay-off of the liabilities and closing costs
to which the Pecaris partnership's interest in the Mall had been
subject. According to the escrow statement prepared by
Continental for Coastal, $78,063 of the mortgage loan proceeds
was paid to Coastal as "excess loan proceeds".
Petitioner also received another cash payment from the
escrow account in the amount of $30,000. This payment was a
6The difference between these amounts and the calculation
supra in note 4, is attributable to a small amount of interest
received on the overnight investment of the mortgage loan
proceeds by or on behalf of Coastal:
100 percent 25 percent
Pecaris equity in Mall, valued at $4.8 million . . . $2,782,746 $695,686
Interest on investment of
mortgage loan proceeds . . . . . . . . . . . . . . 388 97
2,783,134 695,783
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Last modified: May 25, 2011