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recommended that ETCO set up a replacement pension plan with
TransAmerica Insurance Co. (TransAmerica). The officers of ETCO
completed the application for the new pension plan and made a
check in the amount of $64,000 payable to TransAmerica. ETCO
submitted the application and the $64,000 check to TransAmerica
through Mr. Sloan. Mr. Sloan submitted the documents and the
check for $64,000 to Mr. Tom Boone, an employee of TransAmerica.
The $64,000 was properly credited to ETCO's account with
TransAmerica.
On March 8, 1991, ETCO made a check in the amount of $22,000
payable to TransAmerica. The $22,000 check was also submitted to
Mr. Sloan, who then forwarded the check to TransAmerica. The
$22,000 check never cleared ETCO's bank account, and the funds
were never credited to ETCO's account with TransAmerica. On May
20, 1991, Mrs. Thorpe contacted Mr. Sloan to inquire as to why
the check had not cleared ETCO's bank account. Mr. Sloan
thereafter contacted TransAmerica and was informed that
additional information was needed in order to process ETCO's
application to TransAmerica for insurance. In September of 1991,
Mrs. Thorpe inquired further as to why the $22,000 had not been
credited to ETCO's account with TransAmerica. Mr. Sloan informed
Mrs. Thorpe that TransAmerica was waiting on further information.
On January 29, 1992, upon notice that the check dated March
8, 1991, in the amount of $22,000 had not been credited to ETCO's
account, ETCO made another check payable to TransAmerica in the
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