The Limited, Inc. - Page 11




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          million.  Those 17 CDs comprised 263 “transferable individual               
          time deposit accounts” of $100,000 each.  Each of those accounts            
          was insured by the Federal Deposit Insurance Corp.                          
               MFE (Netherlands Antilles) N.V. (MFE N.V.), is a                       
          Netherlands Antilles corporation.  On January 28, 1993, MFE N.V.            
          purchased eight CDs from WFNNB in the total amount of $174.9                
          million (the MFE N.V. CDs).  Each MFE N.V. CD was for a term of             
          1 year, showed an annual interest rate of 3.1 percent (annual               
          yield of 3.14 percent), and provided that it was a “non-                    
          negotiable and                                                              
          non-transferable time deposit”.  Each also provided:  “This Time            
          Deposit shall renew automatically for a like term unless and                
          until notice of withdrawal is presented at the Bank within * * *            
          seven calendar days after the maturity date”.                               
          Reduction of Indebtedness to Limited Service                                
               On January 28, 1993, WFNNB transferred the $174.9 million              
          received from MFE N.V. on the sale of the CDs to Limited Service            
          to reduce the balance outstanding under the line of credit                  
          extended to WFNNB by Limited Service.                                       
          Petitioner’s Indirect Ownership of MFE N.V.                                 
               MFE N.V. is a fourth tier subsidiary of petitioner.  The               
          relationship of MFE N.V. to petitioner, as well as the                      








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