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Adult Living Centers negotiated to purchase Muskogee
Convalescent, an existing licensed nursing home facility located
in Muskogee, Oklahoma. To finance the purchase, Adult Living
Centers obtained an $855,000 loan from Phoenix Federal on
September 11, 1985. Petitioner signed a limited guaranty of
payment for a portion of the new $855,000 Phoenix Federal loan
(Phoenix Federal loan guaranty) based on his proportionate stock
ownership in Adult Living Centers.
Despite the acquisition of Muskogee Convalescent, however,
Adult Living Centers continued to have financial difficulties and
defaulted on its various obligations to State Federal and Phoenix
Federal. The lending institutions, or their respective
successors in interest,5 commenced collection actions and
foreclosure proceedings against Adult Living Centers to collect
the outstanding debts and against petitioner to enforce his
obligations under the various guaranty agreements.6 Between 1988
and 1992, petitioner was a party to five separate lawsuits
pertaining to the Phoenix Federal and State Federal loans and
commitments to Adult Living Centers.
5Cimarron Federal Savings & Loan Association (Cimarron
Federal) was a successor in interest to Phoenix Federal. The
Resolution Trust Corporation (RTC) was a successor in interest to
Cimarron Federal and to State Federal.
6In certain instances, the Federal Deposit Insurance
Corporation (FDIC) supervised the collection of loans owned by
RTC.
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