- 9 -
Palermo met during 1993 with personnel of NationsBank about
possible refinancing of the Second Street debt. He also met with
Joseph M. Martens (Mr. Martens) who was employed by Amresco
Institutional, Inc. (Amresco), NationsBank's agent, and who
became responsible for the management of the Second Street loan
sometime during the first six months of 1993. (Hereinafter, we
shall refer collectively to NationsBank and Amresco as Nations-
Bank/Amresco or the Bank.) The topic of Mr. McDaniel's liability
with respect to the Second Street loan did not arise in Mr.
Palermo's discussions during 1993 with personnel of Nations-
Bank/Amresco.
Even though the 1989 note had matured on April 12, 1993, Mr.
Martens recommended in July 1993 that the Bank not take any
action with respect to it until completion of Mr. Parker's
bankruptcy proceeding. That was because, under the proposed
bankruptcy plan relating to Mr. Parker, Mr. Parker's interest in
the Second Street real property was to be transferred to Mr.
Palermo, and the Bank considered Mr. Palermo to be a valued
customer who had sufficient liquidity and personal income to
support the debt service on the Second Street loan.
NationsBank/Amresco adopted Mr. Marten's recommendation and
decided to bill Second Street for interest only. Monthly pay-
ments of interest only continued to be made by Mr. Palermo. The
Bank did not notify Mr. McDaniel or Ms. McDaniel of the failure
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Next
Last modified: May 25, 2011