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14,500 B units. Decedent, in her capacity as grantor and
beneficiary of decedent’s trust, agreed to hold the partnership
harmless for the Great Western Bank loan and the Union Bank line
of credit. The partnership agreement required the capital
account of decedent’s trust to be reduced to the extent that
partnership funds were used to pay any of the principal on the
Great Western Bank loan or the Union Bank line of credit.
The partnership agreement allocated 1 percent of the net
operating profits and losses of the partnership to the general
partner and 99 percent to the limited partners. Each of the
14,504 limited partnership units was allocated an equal share (1
� 14,504) of the allocation made to the limited partners.
On December 30, 1994, a certificate of limited partnership
for Spindrift was filed with the California secretary of state.
Around February 2, 1995, decedent’s trust, as the general partner
of the partnership, opened a bank account for the partnership at
the Union Bank of California.
G. The Partnership’s Leasing and Sale of the Padaro Lane
Property
The partnership made repairs to the Padaro Lane property
after the Seamans moved out. On February 7, 1995, the
partnership entered into a 24-month lease with Michael H. Healy
and Tim F. Walsh (the Healy-Walsh lease) for the occupancy of the
Padaro Lane property. In June 1996, the partnership engaged real
estate brokers to sell the Padaro Lane property for $1,585,000.
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Last modified: May 25, 2011