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On December 4, 1992, REE received a commitment from
SouthTrust Bank for permanent financing of the Dunn property. On
December 21, 1992, REE and SouthTrust Bank executed a renewal
mortgage note that provided for REE to make monthly interest and
principal payments through the maturity date of October 23, 2002,
with interest computed at a rate of 8.02 percent for the first 5
years and thereafter adjusted in accordance with the average
yield of the 5-year Treasury note. The renewal mortgage note was
made effective as of October 23, 1992. REE's closing costs of
the renewal mortgage note included a loan commitment fee in the
amount of $2,250.
The parties also executed a mortgage modification agreement
on December 21, 1992, which reflected REE's release from the
original mortgage note by its execution of the renewal mortgage
note. Eli also consented to have his personal guaranty extended
to cover the renewal mortgage note.
REE made all of the payments on its construction loan and
its permanent loan from SouthTrust Bank. Eli was not called upon
to pay any amount on his personal guaranties during 1991 and
1992.
TNE
During 1991 and 1992, Peter was the sole shareholder of TNE,
which was incorporated on August 5, 1991, in the State of
Florida. Like REE, TNE was organized to purchase and develop
property and lease it to Blockbuster, which had entered into a
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