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Royal Bank that the $20 million withdrawn from ITC’s Royal Bank
account and deposited into petitioner’s Royal Bank account on
June 30, 1993, would be redeposited into ITC’s Royal Bank account
on July 2, 1993, the first Canadian federal and bank business day
after June 30, 1993, in order to satisfy ITC’s overdraft; and
(3) pursuant to the guarantee and assignment agreement, peti-
tioner guaranteed ITC’s overdraft to the extent of $16,382,100.11
As part of the commitment of petitioner and of ITC to redeposit
into ITC’s Royal Bank account on July 2, 1993, the $20 million
check dated June 29, 1993, and drawn on ITC’s Royal Bank account
and deposited into petitioner’s Royal Bank account on June 30,
1993, petitioner agreed to return that $20 million to ITC in
order to enable ITC to satisfy ITC’s overdraft.
2. A check dated June 30, 1993, drawn upon petitioner’s
Royal Bank account at Royal Bank and payable to ITC in the amount
of $20 million, was presented to Royal Bank. Pursuant to the
June 30, 1993 letter, Royal Bank deposited that check into ITC’s
Royal Bank account.
3. A check dated June 29, 1993, drawn upon ITC’s Royal Bank
account at Royal Bank and payable to petitioner in the amount of
$20 million, was presented to Royal Bank. Pursuant to the June
11Pursuant to the guarantee and assignment agreement, the
assignment and postponement were independent of petitioner’s
guarantee under such agreement and were to remain in full force
and effect even though the liability of petitioner as guarantor
under that agreement may have been extinct.
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