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connection with that purchase, OIP was required to give the
School Board a purchase money mortgage in the amount of $588,300
(OIP's purchase money mortgage).
OIP and Alpha each acquired a 25-percent interest in Inter-
state, and Xway acquired the remaining 50-percent interest in
that joint venture. OIP acquired its 25-percent interest in
Interstate by contributing to it the commercial real property.
In return, Interstate agreed to assume and pay OIP's purchase
money mortgage. Alpha and Xway acquired their respective 25-
percent and 50-percent interests in Interstate by agreeing to
guarantee the indebtedness assumed by Interstate.
Interstate undertook to develop and improve the commercial
real property. It subdivided that property into several commer-
cial lots (commercial lots) and installed streets and utilities
on those lots. Thereafter, on June 25, 1990, OIP and Alpha
agreed to redeem and surrender their respective interests in
Interstate. In order to effect those agreements, (1) Interstate
deeded to OIP commercial lots 11 and 12 (lots 11 and 12), and OIP
assumed its share of Interstate's liabilities by executing a note
in the amount of $146,374 (OIP's $146,374 note); and (2) Inter-
state deeded to Alpha certain other commercial lots, and Alpha
agreed to assume its share of Interstate's liabilities.
At the time of the redemptions of the respective interests
of OIP and Alpha in Interstate and the dissolution of Interstate
as a joint venture, a contract of sale between Interstate and
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