- 14 - The attached unexecuted Mortgage Deed listed Farm & Grove as the mortgagor (debtor) and petitioner as mortgagee (lender). The Mortgage Deed, which was not executed, also provided as follows: Random releases for each parcel encumbered herein shall be given at any time upon payment of $3,300.00 principal [p]lus accrued interest upon such amount. All regular paymenbts [sic] and prepayments of principal shall be credited towards such releases. The note provided the following terms: FOR VALUE RECEIVED the undersigned promises to pay to the order of Edward C. Tietig the principal sum of One hundred seventy-four thousand nine hundred Dollars ($174,900) together with interest thereon from March 1, 1991 at the rate of 8.9% per cent, per ANNUM until maturity, said interest being payable monthly on the 1st day of March, 1991 and payment both principal and interest being payable in lawful money of the United States or its equivalent to Farm & Grove Realty. * * * Payments of principal and interest of $1,393.95 on the first (1st) day of April, 1991, and on the first (1st) day of each month thereafter until the first (1st) day of March 2021, when the entire remaining balance will become due and payable. This Note may be prepaid in whole or in part, at any time, without penalty. As a result of the transaction, Farm & Grove held only the legal title to the lots, as trustee for the Kiddies 38/91 partnership. Farm & Grove did not report any gain from the sale of the equitable interest in the 53 lots to the partnership on its 1990 Form 1120S. The Kiddies 38/91 partnership appears to have been solvent in 1990 and 1991. On Schedule L, Balance Sheets, of its 1991 Form 1065, U.S. Partnership Return of Income, the partnershipPage: Previous 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 Next
Last modified: May 25, 2011