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they will execute a mortgage. I will then wait to hear
from Mr. Larson as to the results of the settlement
conference. I will inform you of the same.
In response, on June 4, 2001, the solicitors mailed a letter
to Mr. Seymour instructing him to proceed with the title search
and prepare to immediately file for foreclosure in the event the
June 6, 2001, settlement conference was unsuccessful.
The settlement conference was successful, and Kumiko Talmage
agreed to transfer her 50-percent interest in the Rivercliff
property to petitioner in exchange for a $1,400,000 promissory
note secured by the Rivercliff property. Neither petitioner nor
Kumiko Talmage determined the fair market value of the Rivercliff
property as part of the divorce proceedings.
On June 20, 2001, the solicitors mailed another letter to
Mr. Seymour stating Mr. Seki agreed to accept a trust deed
granting NCPL a security interest in the Rivercliff property and
agreed that Kumiko Talmage be granted a “1st security” interest
of $1,400,000 in the Rivercliff property. The letter also stated
that
In view of the huge outstanding loan and further
requirement of US$1,400,000.00 our mutual client
anticipate that Mr Talmage may not be in a position to
repay the loan. You may therefore consider to include
in the Trust Deed default clause (subject to Mrs
Talmage US$1,400,000.00 security) to require Mr Talmage
to transfer the ownership of the property to our mutual
client.
On July 31, 2001, petitioner executed a promissory note for
the benefit of NCPL for $4,856,172, which provided:
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Last modified: March 27, 2008