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ultimately failed. In a letter dated March 4, 1992, Peacock
ended its representation of Great Western, citing among its
reasons the repeated failure of Great Western to provide it with
adequate information.
Pursuant to the financing agreement covering its purchase of
the nonhospital properties, Vista was required to make annual
deposits in a sinking fund that would be used to pay principal
and interest on the 1991 certificates when they became due.
Vista defaulted on its obligations in 1993 and tendered to Great
Western a Deed in Lieu of Foreclosure. At that time, Great
Western discovered that Vista had failed to pay real property
taxes on the nonhospital property in Corona, California, and had
thereby encumbered the property. Negotiations between Great
Western and Vista were commenced in an attempt to force Vista to
cure its default. Those negotiations failed and, during October
1995, the trustees of the 1991 certificates foreclosed.
On March 15, 1996, Great Western executed agreements with
the trustees and the Cities of Arroyo Grande and Corona
terminating the 1991 certificates. On June 24, 1996, and on July
1, 1996, Great Western received a Trustee's Deed Upon Sale for
each of the nonhospital properties. During 1997, Great Western
again sold the nonhospital properties. Most of the purchase
price for the 1997 sale covered back taxes and expenses. Mr.
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