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Mr. Kaplan who was acting on behalf of Interstate acquired
certain properties from Mr. Canty acting on behalf of OIP, that
Mr. Kaplan acting on behalf of Interstate agreed to place the
cash to fund those purchases in escrow, and that any reasonable
request by Mr. Canty on behalf of OIP to buy property with that
escrowed cash would be granted, but only up to the amount of such
cash.
Pursuant to the escrow agreement, Interstate deposited into
a money market trust account at the Bank (escrow account) the
aggregate amount (i.e., $1,023,626) owed OIP with respect to the
purchases from OIP of lots 11 and 12 and OIP's 25-percent inter-
ests in lots 14 and 15 (escrowed sales proceeds). (We shall
refer to the escrowed sales proceeds and any interest earned
thereon and belonging to Interstate pursuant to paragraph 2 of
the escrow agreement as the escrow fund.)
On July 27, 1990, OIP purchased for $750,000 an apartment
complex (Brentwood property) in Irving, Texas. Of the total
purchase price that OIP paid for the Brentwood property, $637,500
was financed through a loan from the Resolution Trust Corpora-
tion. After debits and credits reflected in the closing state-
ment, the balance due with respect to the purchase of that
property was $170,688.17. That balance was paid by a wire
transfer on July 27, 1990, in the amount of $200,000 that Mr.
Hefferan authorized be made with a portion of the escrow fund.
The portion of that $200,000 wire transfer which was not used to
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