Florida Industries Investment Corporation and Subsidiaries - Page 16




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          Ridge property with respect to that loan.  After debits and                  
          credits reflected in the closing statement with respect to the               
          purchase of the Quail Ridge property, the balance due from OIP to            
          American National was $482,521.48.  The check signed by Mr.                  
          Hefferan and dated December 20, 1990, which was drawn on the                 
          escrow account in order to pay that amount due, was for $490,000.            
          The portion of that $490,000 check that was not used to pay the              
          balance due on the purchase of the Quail Ridge property, i.e.,               
          $7,478.52, was not redeposited into the escrow account.                      
               Mr. Kaplan, the president of Xway, was aware that Mr. Canty             
          contemplated structuring the sales by OIP of lots 11 and 12 and              
          OIP's 25-percent interests in lots 14 and 15 so as to qualify for            
          like-kind exchange treatment under section 1031.  Mr. Kaplan                 
          believes that at approximately the time of those sales, and                  
          probably within 45 days after those sales, Mr. Canty made him                
          generally aware of properties that Mr. Canty was interested in               
          purchasing, including the properties in Vero Beach, Florida, and             
          in Texas that were ultimately purchased with a portion of the                
          escrow fund.  However, the escrow agreement did not identify any             
          particular property to be purchased thereunder and did not                   
          identify what portion of the escrowed sales proceeds was to be               
          used to purchase such property and what portion was to remain as             
          boot under section 1031.  Moreover, although the escrow agreement            
          required OIP to identify within 45 days after July 26, 1990, any             
          property that it wanted Interstate to acquire pursuant to the                




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