- 9 -
“Limited Agreement” pursuant to which First American would lend
petitioners $600,000 interest free. The loan was secured by the
Phase II property and was to be repaid out of the proceeds of its
eventual sale.
By letter dated December 4, 1991, Mr. Steinman requested,
inter alia, that First American advance up to $700,000 to
petitioners. This amount would then be offered to CDC in order
to terminate the Agreement and discharge CDC’s claims under the
Agreement. The loan was to be interest free and would be repaid
with the proceeds from the eventual sale of Phase II. CDC was
not aware of this request. On December 10, 1991, CDC notified
Escrow Holder by letter that the parties wished to continue with
the escrow and that they considered it still open.
Cancellation of Agreement
On January 31, 1992, after several weeks of negotiations
between petitioners and First American, those parties executed an
“Amendment to Limited Agreement” incorporating the matters
discussed in Mr. Steinman’s December 4, 1991, letter. Pursuant
to the “Amendment to Limited Agreement”, First American issued a
cashier’s check in the amount of $750,000 to petitioners so that
they could pay CDC. This amount was added to petitioners’
accumulated indebtedness to First American.
Since petitioners were unable to deliver title in fee simple
to Phase II free of the cloud of the State’s public easement
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 Next
Last modified: May 25, 2011