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MMS/Huntington Loan, with certain additional conditions. First,
all funds drawn by petitioner on the personal line of credit were
required to be deposited into a restricted account in
petitioner's name at the bank, all withdrawals from the
restricted account were required to go into an account at the
bank maintained by MMS, and petitioner would be required to
warrant that all draws on the personal line of credit would be
used exclusively for MMS's construction costs for diagnostic
units under contract. Second, rather than petitioner’s making
cash contributions to MMS, petitioner would extend a $1 million
line of credit to MMS (to be funded by petitioner's line of
credit with Huntington) for which MMS would execute a promissory
note and security agreement in favor of petitioner. MMS would
provide as security for the line of credit to it from petitioner
the same collateral as had secured MMS's original line of credit
from Huntington. Finally, rather than have MMS serve as
guarantor with respect to the line of credit extended by
Huntington to petitioner, petitioner would instead make a
collateral assignment to Huntington of all of petitioner's rights
under the security agreement given to petitioner by MMS for the
line of credit running between them, as well as a collateral
assignment of the promissory note executed by MMS in favor of
petitioner.
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