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was not redeposited into the escrow account. On January 8, 1991,
OIP received a distribution of $12,740.10 from the escrow fund,
which was all the moneys remaining in that fund as of that date.
In addition, on July 27, 1990, even prior to the expiration of
the 45-day period after July 26, 1990, Mr. Hefferan authorized a
$200,000 wire transfer drawn on the escrow account which was to
be used to pay the $170,688.17 balance due with respect to OIP's
acquisition of the Brentwood property after debits and credits
reflected in the closing statement. The portion of that $200,000
wire transfer that was not used to pay that amount due, i.e.,
$29,311.83, was not redeposited into the escrow account. In
summary, in violation of the terms of the escrow agreement, prior
to the expiration of 180 days after July 26, 1990, Mr. Hefferan
authorized withdrawals from the escrow fund totaling $149,530.45,
which were paid to OIP, to OIP's affiliate CCC, or otherwise not
used to acquire a replacement property pursuant to the escrow
agreement.10
10Other examples of noncompliance with the terms of the
escrow agreement to which Mr. Hefferan acquiesced include the
following: Although the escrow agreement required OIP to iden-
tify within 45 days after July 26, 1990, any replacement property
that it wanted Interstate to acquire pursuant to the escrow
agreement by notifying Interstate in writing of the identity of
any such property, OIP did not comply with that requirement. In
addition, although the escrow agreement required Interstate, upon
identification by OIP of replacement property, to execute with
the owner of such property an assignable contract to purchase
such property (provided that Interstate's total potential liabil-
ity on default under such a contract did not exceed an amount
payable with respect to such property that was equal to the
(continued...)
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