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and Guaranty Agreement on the Puccio loan, extending the
collection of the principal of the loan until January 1, 2001.
Hillgren also placed his assets as collateral on the Puccio loan.
Hillgren assisted decedent in obtaining a forbearance and
extension on other loans as well, including the Huettner loan.
On May 1, 1994, the terms of the Huettner loan were modified,
reducing the amount of the loan to $1,481,567.95. To secure the
payment of the modified loan, Sea Shell and Seaward executed a
second in priority deed on the “Arizona Property” and a deed of
trust on the North Main property, in favor of Huettner. (It is
unclear from the exhibit whether the “Arizona Property” referred
to is the same as the University property or is another property
owned by Nordica Properties (Nordica), a California general
partnership, also owned by decedent and Hillgren, which owned
properties in Phoenix, Arizona.) On April 15, 1994, Hillgren and
Carl C. Hillgren modified the Safeco loan by becoming guarantors
of the loan, reducing the interest rate and extending the
maturity date.
3. Refinancing of the University Property
On May 20, 1999, the University property was refinanced by
LKHP when a new first mortgage in the amount of $2.5 million was
obtained from Baltimore Life Insurance Co. As a result of the
refinancing, the net cash proceeds totaled $369,329. Hillgren
did not receive a distribution of loan proceeds during the
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