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* * * * * * *
Pledgee shall thereafter account to Pledgor
for any surplus proceeds, which shall be paid
over to Pledgor. Pledgor shall remain liable
to Pledgee for any deficiency. * * *
(b) Pledgee may declare the unpaid
balance of indebtedness immediately due and
payable and retain the pledged shares in
satisfaction of Pledgor's obligations under
* * * [installment promissory note] and under
this Agreement. * * *
(c) Pledgee may declare the unpaid
balance of indebtedness immediately due and
payable and thereafter exercise all rights
and remedies afforded a secured party under
the provisions of the Uniform Commercial Code
in force in Florida as of the date of this
Agreement.
Since February 5, 1986, Mr. Read has owned 100 percent of
the outstanding voting common stock of MMP. At the time of Ms.
Read’s February 5, 1986 transfer of MMP stock and during the
years at issue, MMP's ESOP owned 4,961 shares of class B nonvot-
ing common stock of MMP.
MMP classified the installment promissory note as a liabil-
ity on its balance sheet for each of the years 1988, 1989, and
1990. Pursuant to that note, MMP made the following payments of
principal and interest to Ms. Read during the years indicated:
1988 1989 1990
Principal $50,000 $50,000 $50,000
Interest 49,235 44,735 40,235
MMP deducted the interest payments that it made to Ms. Read
during each of the years 1988, 1989, and 1990 in its Federal
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