Edward C. Tietig - Page 6




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               The promissory note would be deemed null and void if the               
          bonds were released to Mark Tietig, and he was released from all            
          liability without incurring any loss.  Pledging the bonds as                
          collateral for the loan to petitioner was consideration for                 
          executing the promissory note.  Petitioner gave Mark Tietig a               
          “surety loan or a surety note and mortgage” secured by real                 
          property owned by petitioner in five Florida counties.  All                 
          dividends and interest paid on account of the pledged securities            
          were to be paid to Mark Tietig.                                             
               On September 19, 1983, Mark Tietig paid $200,000 to Eureka             
          Field Nursery for an interest in 8,000 trees ($25 per tree).                
          Additionally, Mark Tietig was required to pay $56,000 per year              
          ($7 per tree) for maintenance of the trees, pursuant to a joint             
          venture agreement between Mark Tietig and Eureka Field Nursery.             
          Out of the sales of any trees, Mark Tietig was to receive his               
          cost8 plus 6 percent, plus 50 percent of any profit after a $10             
          commission was paid to the nursery.                                         
               In August 1985, petitioner secured a loan from Caribank of             
          $3,430,000.  From the Caribank loan proceeds, $1,900,000 was                
          given to Westfield Financial, reducing the amount of that loan              
          balance to approximately $500,000 and removing the Kissimmee and            
          Lakeland properties from the Westfield Financial mortgage.  The             



               8The initial fee plus a prorated amount to reimburse him for           
          maintenance of the trees.                                                   





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