| Company Deal | 3,400,000 shares of beneficial interest with series A warrants expiring 1974 to purchase 3,400,000 shares of beneficial interest $11,500,000 8% subordinated notes due 1972 and series B warrants expiring 1972 to purchase 862,500 shares of beneficial interest |
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| Transaction Type | Shares of Beneficial Interest / Series B Warrants |
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| Deal Description | The net proceeds from this City Investing Mortgage Group transaction were used to acquire construction and development first mortgage loans or held on deposit as compensating balances. A limited portion of the proceeds may have been invested in gap loans, permanent mortgage loans, or real estate equities, but there were no plans at the time of the deal to acquire any such interests in the near future. During the initial year of the trust's operations, a substantial portion of its assets may have been used to invest in participations, from commercial banks and others, in previously made construction and development first mortgage loans. Initially, a portion of the net proceeds was invested by the trust in participations in existing mortgage loans. Ultimately, the funds obtained from public offering and private placement of the securities were used to acquire first mortgage construction and development loans directly, rather than through participations. |
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