- 8 - In order to pay off its debt to its related entities, TNE obtained a loan from SouthTrust Bank in the amount of $450,000 on October 2, 1992. TNE's promissory note was secured under a mortgage and security agreement by the Roosevelt property and its improvements, TNE's interest in the Blockbuster lease, and TNE's right to participate in Florida's EDI program. Although he was not a direct borrower, Peter personally guaranteed the loan. TNE made all of the payments on its October 2, 1992, SouthTrust Bank loan. Peter was not called upon to pay any amount with respect to his personal guarantee during 1992. ME During 1991 and 1992, Anthony was the sole shareholder of ME, which was incorporated on September 6, 1991, in the State of Florida. ME was organized to purchase, renovate, and lease the Miramar shopping center in Jacksonville, Florida. ME purchased the Miramar shopping center from Country, Inc., on July 15, 1992, for $745,000. In the purchase and sale agreement, the parties allocated $60,000 of the purchase price to land and $685,000 to buildings. ME financed the purchase of the Miramar shopping center and the renovations to be made thereon with a 1-year construction loan from SouthTrust Bank in the amount of $1,500,000. The promissory note required ME to make monthly payments of interest, but not principal, computed at a rate of 3\4 percent above SouthTrust Bank's "base rate". The principal balance was to bePage: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Next
Last modified: May 25, 2011