- 5 - October 11, 1989, Mr. Motley's liabilities exceeded his assets by $13,497,675. On October 16, 1989, NCNB agreed to allow the cash sale of the property for $11,600,000 and to settle with Mr. Motley on his guaranty for $175,000. On November 3, 1989, Briarpark, Mr. Motley, Dan Associates, and NCNB entered into a conditional release agreement (November 3, 1989 agreement).3 In the November 3, 1989 agreement, NCNB agreed to release the property from all liens and security interests upon satisfaction of the following conditions: (1) The sale of the property to Dan Associates for a minimum sale price of $11,600,000, (2) the assignment of the sale proceeds to the bank, (3) the transfer of Briarpark's cash reserves, and (4) the payment of $175,000 by Mr. Motley to the Bank. On December 27, 1989, the outstanding balances of the modified loan and the build-out loan were $24,562,763 and $1,019,418, respectively. Briarpark sold the property to Dan Associates for $11,600,000. Briarpark incurred selling expenses of $554,901. Dan Associates paid $10,936,532 of the proceeds to NCNB. The adjusted basis of the property was $11,661,245. Also on December 27, 1989, NCNB released the liens against the property and released Mr. Motley from his guaranty of the modified loan. Mr. Motley paid $175,000 in cash to the bank. 3The complete terms of the conditional release agreement were not available, for a page of the agreement was missing from the joint exhibit provided to the Court.Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 Next
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