InterTAN, Inc. - Page 13

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          a balance of $687,499.91.  On July 2, 1993,9 after the actions              
          described below which took place on June 30 and July 2, 1993,               
          ITC’s Royal Bank account balance was the same amount as it was on           
          June 30, 1993, except for reductions attributable to an overdraft           
          interest charge10 and the clearing of checks unrelated to the               
          actions described below.  The balance in petitioner’s Royal Bank            
          account, number 302-0402-4 (petitioner’s Royal Bank account), was           
          the same before and after the actions described below.                      
               On June 30, 1993, Royal Bank received a letter (June 30,               
          1993 letter) from Louis G. Neumann (Mr. Neumann), petitioner’s              
          vice president, secretary, and general counsel and ITC’s vice               
          president and secretary.  The June 30, 1993 letter stated in                
          pertinent part:                                                             
               In confirmation of our recent conversation it is hereby                
               requested that you affect [sic] the following transac-                 
               tions on behalf of InterTAN Inc. [petitioner] and its                  
               subsidiary InterTAN Canada Ltd [ITC]:                                  
               1.   The sum of US$20,000,000.00 is to be advanced to                  
                    InterTAN Canada Ltd. by Royal Bank and deposited                  
                    to account number 302-8529-6.                                     
               2.   The enclosed cheque [dated June 29, 1993] in the                  
                    sum of US$20,000,000.00 drawn on account number                   
                    302-8529-6 [ITC’s Royal Bank account] and made                    
                    payable to InterTAN Inc. is to be deposited in                    
                    InterTAN’s account number 302-0402-4 [petitioner’s                

               9July 1, 1993, was Canada Day, a federal and bank holiday in           
               10The $3,552.67 overdraft interest charged to ITC on July 2,           
          1993, was reversed on July 16, 1993, and new overdraft interest             
          charges in the amounts of $101.48 and $12,211.91 were imposed.              

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