- 32 - Pursuant to the Escrow Agreement, WIB opened a bank account (hereinafter sometimes referred to as the Escrow Account) in which to maintain the escrow fund. Only authorized employees of WIB could withdraw funds from the Escrow Account. The money deposited into the Escrow Account came primarily from the following sources: (1) The money W&H advanced to pay for petitioner’s fundraising expenses and operational expenses, and (2) the contributions made by the general public in response to the fundraising letters mailed under the Contract. All of the revenues from petitioner’s direct mail campaign, not merely the profits from the mailings, went into the Escrow Account. C. Petitioner’s “Draw” Arrangement As indicated above, during its discussions with petitioner about entering a possible fundraising contract, W&H offered to provide funds with which petitioner could continue to operate. W&H furnished such funds to petitioner after the Contract was executed. A December 17, 1984, letter agreement between petitioner and W&H provides, in pertinent part, as follows: In order to meet your cash flow needs for administration and program, you [petitioner] plan to transfer funds from the escrow account that were generated from * * * [prospect letter mailings]. To date $5,000 was transferred on November 1, $5,000 was transferred on December 1, and you plan to transfer another $5,000 on January 1, 1985. This letter acknowledges the fact that these transfers * * * are made in such a manner from * * * [prospect letter mailing] revenues will be replenished from UCC’s income from * * * [housefile letter] mailings within six months ofPage: Previous 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 Next
Last modified: May 25, 2011