- 77 -
the funds into a master account maintained by EPIC. EPIC
then advanced funds to pay the debts of any of its
partnerships that needed funds. The amounts borrowed
from each partnership and the amounts advanced to each
partnership were accounted for in the books and records
of the appropriate partnerships. Interest was credited to
partnerships to which EPIC owed money and was charged to
partnerships which owed money to EPIC (net borrowers and
net lenders). Among the funds swept from the accounts
of individual partnerships were the funds received by
partnerships upon the acquisition of real properties.
EPIC management believed that a default by any of its
partnerships would have an adverse impact on the entire
EPIC enterprise, and EPIC never permitted any limited
partnership to default on a payment until August 1985 when
all of the limited partnerships sought protection under the
bankruptcy laws.
Page: Previous 67 68 69 70 71 72 73 74 75 76 77 78 79 80 81 82 83 84 85 86 NextLast modified: May 25, 2011