Estate of Lea K. Hillgren, Deceased, Mark Hillgren, Executor - Page 9

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          In 1986, decedent suffered a “negative cashflow exclusive of                
          depreciation” exceeding $115,000 on the University property.                
          After 1986, decedent continued to incur a negative cashflow on              
          the property.  In 1987, due to the financial problems associated            
          with the University property, Hillgren “facilitated” a loan of              
          $400,000 from Louis Puccio to decedent (Puccio loan).  On                   
          April 27, 1988, in his capacity as trustee of the original trust,           
          Hillgren signed a promissory note between Louis Puccio and Sea              
          Shell.  The promissory note was secured by a deed of trust on the           
          North Main property.  According to the BLA, by 1988, decedent               
          owed $285,000 to Hillgren and $400,000 on the Puccio loan.  From            
          1988 through 1993, decedent continued to incur a negative                   
          cashflow on the property, she did not pay the Puccio loan, and              
          she continued to be indebted to Hillgren.                                   
               The BLA recited that, as of 1994, decedent owed $1.3 million           
          on a first trust deed (Safeco loan) and $1.5 million on a second            
          trust deed (Huettner loan), both secured by the property, in                
          addition to the Puccio loan and her remaining debt of $150,000 to           
          Hillgren.  In August 1994, the Huettner loan and the Puccio loan            
          were to become due and payable, but decedent was unable to pay              
          the loans because of her negative cashflow on the property.  The            
          BLA provided that Hillgren assist decedent in obtaining an                  
          extension of the Puccio loan and that Hillgren became a guarantor           
          of the loan.  On May 11, 1994, Hillgren executed a Forbearance              

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