- 40 -                                         
                    (1)  In the event Exchangor does not identify all                  
               or any of the Like Kind Property within the forty-five                  
               (45) day period referred to in (a) above, then Exchang-                 
               or shall notify Buyer in writing at any time after the                  
               expiration of such forty-five (45) day period and                       
               Buyer, within three (3) business days of receipt of                     
               said written notice, shall cause Escrow Agent to pay to                 
               Exchangor an amount equal to the Agreed Amount.                         
          It was only in the event that OIP did not identify all or any of             
          the replacement property within 45 days after July 26, 1990, that            
          OIP had the right under that paragraph to notify Interstate in               
          writing at any time after the expiration of that 45-day period,              
          in which event Mr. Hefferan as Interstate's trustee became                   
          obligated to pay OIP the "Agreed Amount" as defined in paragraph             
          5(e)(1) of the escrow agreement within three business days after             
          receipt of such written notice.  In this connection, it is                   
          significant that the escrow agreement did not identify what                  
          portion of the escrowed sales proceeds was to be used to purchase            
          replacement property and what portion was to remain as boot under            
          section 1031, and the record does not disclose the date after                
          July 26, 1990, on which the parties to the escrow agreement knew             
          what portion of those proceeds would remain as boot under section            
          1031.                                                                        
               It is also significant that if, as petitioners contend, OIP             
          complied with paragraph 5(a) of the escrow agreement and notified            
          Interstate in writing within 45 days after July 26, 1990, of the             
          identity of all four of the properties that it ultimately ac-                
          quired with a portion of the escrow fund, it would not have been             
Page:  Previous   30   31   32   33   34   35   36   37   38   39   40   41   42   43   44   45   46   47   48   49   NextLast modified: May 25, 2011