Robert S. McDaniel, Jr. and W. Jane McDaniel - Page 14




                                       - 14 -                                         

          of that loan, and Mr. Palermo's pledge of certificates of deposit           
          in the amount of $230,000.  Northern Trust decided to structure             
          the loan from it to Second Street as a purchase by it from                  
          NationsBank/Amresco of the 1989 note.                                       
               On October 18, 1994, Northern Trust acquired the 1989 note             
          from NationsBank/Amresco for $595,252.65, which amount was the              
          sum of (1) the outstanding principal balance of $590,850 and                
          (2) the accrued, unpaid interest of $4,402.65, which were due               
          under that note.  On the same date, a replacement promissory note           
          (replacement note) in the amount of $590,850 payable to Northern            
          Trust was executed on behalf of Second Street by Mr. Palermo as a           
          general partner and by Mr. Palermo as president of George Palermo           
          Architects, Inc., the other general partner of Second Street.               
          The replacement note replaced the 1989 note of Second Street to             
          the Bank.  The first page of the replacement note stated that it            
          had an effective date of April 12, 1993, and an execution date of           
          October 18, 1994.  All of the other documents relating to the               
          replacement note issued by Second Street to Northern Trust                  
          contained the date of October 18, 1994, or a later date, and none           
          of them contained the date of April 12, 1993.                               
               At a time not disclosed by the record, an account of a type            
          not disclosed by the record (account) was established for pe-               
          titioners' daughter Holly McDaniel to be used for her college               
          education.  The sources of the funds in that account were Mr.               





Page:  Previous  4  5  6  7  8  9  10  11  12  13  14  15  16  17  18  19  20  21  22  23  Next

Last modified: May 25, 2011