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guaranteed right to a fixed permanent and primary portion of the
death benefit, for instance. The proposed rate of return on the
investment also had to be “acceptable”. The Roarks’ proposal
apparently met NCF’s criteria, and so NCF and Mrs. Roark signed a
Charitable Legacy Plan Agreement shortly thereafter.
The Plan Agreement called for Mr. Roark to donate large sums
of money to the Roark Foundation at NCF. NCF could then choose
from among three options:
1. If NCF paid no premiums. The Plan Agreement carefully
gave NCF this option, but made clear that NCF’s death benefit
would then “be null and void.”
2. If NCF chose to pay the premiums. The Plan Agreement
contemplated that NCF would pay the premiums on an accelerated
timetable, with all of them paid within five years.3 If NCF
chose to make all the payments, it would be entitled to $489,000
of the $2.2 million death benefit, and the “unearned premium
3 The Plan Agreement called for Roark to donate the
following sums to NCF:
1998: $240,000
1999: 165,000
2000: 25,000
2001: 25,000
2002: 25,000
Each year, NCF had the option of paying sums equal to Roark’s
donations as premiums on the insurance policy.
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Last modified: May 25, 2011