-198- at 2 (AJE 9); Exh. 1104. By the end of 1983, a transaction took place between IRA and HELO which had the effect of (1) decreasing IRA’s outstanding receivables due from HELO by $201,200, (Exh. 9006, at 2 (AJE 9); Exh. 26, at 23), and (2) increasing IRA loans to Basking Ridge Trust and Summit Trusts by $201,200. Exh. 9006, at 2 (AJE 9); Exh. 26, at 26. In short, IRA obtained HELO’s receivables due from Basking Ridge Trust and Summit Trust. IRA’s adjusting journal entry stated that the purpose of this transaction was “to adjust for loans made to Basking Ridge and Summit via HELO (remove HELO from middle).” Exh. 9006, at 2, l. 16. Simultaneously with this book entry transaction, Basking Ridge Trust was credited with a payment of $10,300, leaving $84,700 due on its loan, and Summit Trust was credited with a payment of $10,100, leaving $96,100 due on its loan. Exh. 26, at 26. IRA then transferred to IFI the receivables due from Basking Ridge Trust and Summit Trust for a receivable of $180,800 due from IFI. Exh. 9006, at 5 (AJE 27). Loans to Ballard, Lisle, and their grantor trusts were either sold for $1 or written off as bad debts as described in the following steps.Page: Previous 188 189 190 191 192 193 194 195 196 197 198 199 200 201 202 203 204 205 206 207 Next
Last modified: May 25, 2011