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help of his son Mark Tietig. At the time, Mark Tietig had cash
reserves stemming from a settlement he had received from the
Chris Craft Corp. on account of a boating accident.
Petitioner secured a loan from Westfield Financial Corp.
(Westfield Financial) in July 1983. Westfield Financial agreed
to modify an existing $550,000 loan to City National Bank of
Miami as trustee (trust loan) and to lend petitioner $2 million
(Tietig loan). The trust loan was guaranteed by petitioner, Mark
Tietig, Emerald Lake of Delray, Inc., Emerald Lake Development &
Construction Co., Farm & Grove, TropStock, Kiddies 50 Corp., and
Eureka Field Nursery. The loans were both secured, in part, by
real property owned by petitioner in Kissimmee, Florida
(Kissimmee property), and by land in Lakeland, Florida. Both
loans were also secured, in part, by securities worth
approximately $800,000 pledged by Mark Tietig in 1983.7
Petitioner signed a promissory note agreeing to pay his son
$800,000, plus interest at “the highest legal rate under the laws
of Florida.” The unpaid principal balance and the interest were
due and payable on the earlier of July 20, 1985, or the date that
Westfield Financial exercised its rights to realize upon the
bonds pledged by Mark Tietig.
7The securities consisted of 600 units in E.F. Hutton and
Co., Inc., Tax-Exempt Trust National Series #76 and 245 units in
E.F. Hutton and Co., Inc., Tax-Exempt Trust National Series #77.
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