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the time of that assignment, Mr. McDaniel's capital account
balance in Second Street was a negative balance in the amount of
$48,193 (negative capital account balance). By corrective
quitclaim deed dated September 9, 1993, Mr. McDaniel transferred
his interest in the Second Street real property to the part-
nership. Although Mr. McDaniel had transferred his interest in
the Second Street real property and assigned his partnership
interest, Mr. McDaniel continued to see Mr. Palermo on a daily
basis throughout the years at issue.
Mr. McDaniel did not receive an oral release or a written
release in May 1992 with respect to any of Second Street's
obligations, including the Second Street loan, when he quit-
claimed his interest in the Second Street real property, and
assigned his partnership interest, to George Palermo Architect,
Inc. Nor did he receive any such release at any other time.
During 1992, Mr. Parker, one of Second Street's general
partners, commenced a bankruptcy proceeding under chapter 11 in
the Bankruptcy Court for the Middle District of Florida, Tampa
Division. On November 20, 1992, that Court granted Mr. Palermo
relief "from the Automatic Stay provisions of 11 U.S.C. Section
362(a)". In 1993, Mr. Palermo brought an action against Mr.
Parker to dissolve Second Street.
The balloon payment required by the terms of the 1989 note
came due on April 12, 1993. That payment was not made, and Mr.
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Last modified: May 25, 2011