- 4 - reference. At the time of filing the petition, petitioners resided in Novato, California. Mr. Assaad was a real estate developer and investor.3 On or about December 8, 1988, petitioners purchased approximately 2.2 acres of land in Atherton, California, which consisted of three parcels: 3, 9, and 15 Isabella. Mr. Assaad intended to develop the three parcels by constructing three residential homes for sale. Pacific Bank (Pacific) lent $1.46 million to Mr. Assaad (the land loan) for the purchase of the land. The land loan was secured by a deed of trust covering the three parcels of land. On July 29, 1989, Pacific lent Mr. Assaad $2.64 million under a construction loan agreement (the Pacific construction loan) for two of the units in the Atherton project, 3 and 15 Isabella. A deed of trust in favor of Pacific was recorded with respect to the two parcels.4 Mr. Assaad signed a promissory note and executed a guaranty of completion and performance in favor of Pacific for the construction loan. The note provided for an initial interest rate of 12.5 percent and a variable interest rate on the basis of “an index which is THE PACIFIC BANK GUIDANCE RATE”. A 12-month interest reserve of $228,000 was included in 3Mr. Assaad was also the sole shareholder of Golden Sunset Homes, Inc., which owned a residential care home, Hopkins Manor. 4The loan was also collateralized with a deed of trust of $1.5 million with respect to Hopkins Manor.Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Next
Last modified: May 25, 2011