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“on-farm energy plant”.3 In 1981, Mr. Tonn sold the on-farm
energy plant to Laurington Corp. (Laurington), his wholly owned
corporation. Under the terms of the sale, payments were to be
made in installments. Between 1981 and 1983, Laurington sold the
on-farm energy plant to three partnerships. Payments were also
to be made in installments. The three partnerships were: (1)
Laurington Energy Properties; (2) Independent Energy Systems I;
and (3) Independent Energy Systems II (collectively, the
Alternative Energy entities). Before 1987, the Alternative
Energy entities entered into a royalty agreement with IEEI,
whereby IEEI agreed to manufacture and sell on-farm energy plants
and pay the Alternative Energy entities royalties on the sales.
IEEI owned or leased property in Kiel, Wisconsin, where it
planned to manufacture on-farm energy equipment.
Sometime before March 27, 1987, respondent filed liens
against the property of IEEI. On March 27, 1987, respondent’s
agents entered the property of the IEEI plant in Kiel, Wisconsin,
and posted a notice of seizure. On the same day, respondent’s
agents went to Citizens State Bank in Kiel, Wisconsin, and agreed
to discharge the liens against the IEEI property in exchange for
the payment of $22,500. Citizens State Bank was a creditor of
IEEI and also had liens against the IEEI property. The payment
3The “on-farm energy plant” was an ethanol-based power
system for farms.
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