eBook details
- Title: Nu-Pro
- Author : Supreme Court of the State of Oklahoma
- Release Date : January 22, 1977
- Genre: Law,Books,Professional & Technical,
- Pages : * pages
- Size : 60 KB
Description
1 Appellants, 855 Corporation of Oklahoma, Inc., B.J. Ellis and Theodore F. DuBowik, have initiated three separate appeals in this Court, Case Nos. 49,126 49,126 and 49,127 which were consolidated by order of this Court for all purposes under Case No. 49,125. All three appeals arise out of one action brought in the District Court of Cleveland County, to cancel an issue of bond indentures, issued by a municipal trust, and to cancel related instruments including lease agreements and loan guarantee agreements. The bond indentures involved in the suit were issued by a municipal trust created by the City of Noble, at the suggestion of Gary L. Bartlett, who marketed the bonds at a 30% discount to obtain sufficient capital to purchase land and construct thereon an industrial plant to be leased to the plaintiff corporation, Nu-Pro. Shareholders of the plaintiff corporation were each required to personally guarantee and agree to provide the funds for the construction of the plant and for the payments of all rentals by Nu-Pro under the lease sufficient to retire the bonds with interest. Bartlett allegedly represented that if Nu-Pro and its shareholders would agree, a Mr. DuBowik would provide the funds to purchase the bond issue in its entirety. The complicated details of the transactions involved in the litigation are immaterial to the question now before the Court. Cancellation of the bonds, and related guarantor agreements and leases, was sought based on fraud and misrepresentation allegedly made by the bond marketer and purchaser, and alleged irregularities in the financing of the construction of the industrial plant being built with the capital raised by the issuance of the bonds.