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A loan was obtained by Kanter in the amount of $108,141 and the
funds therefrom were loaned to Tanglewood to cure Tanglewood's
mortgage loan default and to pay other expenses. As a result,
Cal Fed's foreclosure proceedings against Tanglewood were
withdrawn.
In 1989, L&C Springs ceased paying to Tanglewood the rent
owed for the lease of the land associated with the L&C
Properties. By December of 1990, L&C Springs had unpaid but
accrued rent of $51,000 owed to Tanglewood relating to the land.
On July 1, 1989, Tanglewood again defaulted on its mortgage
debt obligation to Cal Fed. Tanglewood unsuccessfully made some
efforts to again refinance its debt obligation with Cal Fed. L&C
Springs obtained no additional funds from L&C Springs' limited
partners and from outside lenders, and Tanglewood's default was
not cured.
In 1989, SAWIA sold for $1 to Century Capital its general
partnership interest in L&C Springs.
In November of 1989, Cal Fed again commenced foreclosure
proceedings against Tanglewood with regard to the L&C Properties.
In the foreclosure proceedings, Tanglewood represented that it
alone owned the L&C Properties, and no disclosure was made either
of the Florida land trust’s or of L&C Springs' leasehold interest
therein.
On April 26, 1990, and May 1, 1990, in the above foreclosure
proceedings, Cal Fed obtained final judgments of foreclosure on
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