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disbursements. The trustee has the power to invest and reinvest
the Plan’s assets in such securities and property, real or
personal, wherever situated, as the trustee shall deem advisable.
Under the Plan, Rollins is to designate the Plan’s
administrator; if Rollins does not designate an administrator,
then Rollins is to function as the administrator. Rollins has
not designated an administrator.
Petitioner owns 100 percent of Rollins Financial Counseling,
Inc., a registered investment advisory company, hereinafter
sometimes referred to as Rollins Financial. In November 1993,
Rollins entered into an investment advisory agreement with
Rollins Financial whereby Rollins Financial was to provide
financial counseling services to Rollins. The agreement provides
that petitioner, as Rollins Financial’s CEO, “will make all
investment decisions on behalf of [Rollins] * * *. The
recommendations developed by [petitioner] are based upon the
professional judgment of [petitioner]”.
2. The Loans
a. Overall
As to each of the loans shown in table 1, petitioner made
the decision to lend the Plan’s money in the indicated amount to
the indicated borrower: Jocks & Jills Charlotte, Inc.,
hereinafter sometimes referred to as J & J Charlotte; Eagle Bluff
Golf Club, LLC, hereinafter sometimes referred to as Eagle Bluff;
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Last modified: May 25, 2011