| George John 2005-08-18, 8:32 pm |
| Sam Sloan wrote:
[SNIP]
quote:
> As Mike Carr, the representative of the LMA,
> explained, the board has not actually borrowed the money. It will be
> months before the loan agreements are reached and the board actually
> does borrow the money, if indeed it does so.
Sam Sloan has got the facts wrong again.
What Mike Carr talked about was the LMA Committee authorizing the use
of $100,000 of LMA assets for use as a down payment on the loan. This
$100,000 has not been spent, and there is no requirement for it to be
spent. The intent was to use the $100,000 to get better terms for the
loan, but it proved to be unnecessary.
[SNIP]
quote:
> It appears
> that there will be no further work until a one-year loan agreement
> from the bank is completed, which may be months from now.
This is false!
I would be crazy to start construction with loan approval. The loan
was approved prior to the construction contract being signed and work
began on the project.
quote:
> The plan calls for a one year construction loan of $651,.000. After
> the one year is up and the building has been completed, there will be
> a new 15-year loan with a baloon payment at the end.
This is a confusing paragraph at best. One year construction loans are
typical, and this one is at a lower rate than the fifteen year loan.
The fifteen year loan has the "balloon" because it has a thirty year
amortization schedule. The terms were so good that Joel Channing, who
is in the construction business, asked if the bank makes loans in
Florida. There is no penalty for pre-payment of this loan BTW. It is
an excellent deal for the USCF.
I think it may well prove to be a full-time job to recall all the
defective products which are currently being output from the Sam Sloan
Fact Factory. -smile-
I think it best to assume that everything he says is inaccurate. I
will mostly leave it to others to correct whatever further fictions he
wishes to assert as facts.
Best regards,
George John
|