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on December 23, 1987, Intergraph purchased from Citibank, N.A.’s,
New York City office �823,943,385 at a cost of $6,484,169 and
transferred the yen into Nihon Intergraph’s checking account at
Citibank Tokyo. As a result, the �823,943,385 debit balance of
Nihon Intergraph's checking account was reduced to zero. Nihon
Intergraph did not draw any checks on the checking account
thereafter, and the checking account was closed on April 20,
1988.
Although Citibank Tokyo apparently had concerns with regard
to the large amount of the overdraft, neither Citibank, N.A.,
Citicorp Atlanta, nor Citibank Tokyo ever made a demand, pursuant
to the Overdraft Agreement, for payment by Nihon Intergraph or by
Intergraph of the balance, or of any portion of the balance, of
the overdraft amount.
Similarly, neither Citibank, N.A., Citicorp Atlanta, nor
Citibank Tokyo ever made a demand, pursuant to the Guaranty
Agreement, for payment by Intergraph of the balance, or of any
portion of the balance, of the overdraft amount.
After the transfer of the �823,943,385 into Nihon
Intergraph’s checking account, Nihon Intergraph continued to
operate in Japan, and Intergraph provided additional funds to
Nihon Intergraph through intercompany loans. As of the date of
trial, Nihon Intergraph continues to operate in Japan.
On Nihon Intergraph’s 1987 yearend financial statements,
there was reflected an �823,943,385 increase in the intercompany
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