The seven previously owned assisted living communities were subject to mortgage
indebtedness which was repaid upon closing.
The community was previously owned subject to mortgage
financing and is now leased by Emeritus Corp.
In addition, the company acquired seven skilled nursing facilities in Alabama and Washington with a total of 637 beds subject to mortgage
loans totaling approximately $13.
With the continuation of a period of more stable mortgage market performance, the Company has made substantial progress on its plans to implement alternative investment activity not subject to mortgage
prepayment risks and is continuing discussions and evaluations of several business combination proposals.
Moreover, the IRS's revenue rulings under section 4941 were inapposite because that section contains no definition of a sale or exchange; the only definition in the pertinent Code provisions is found in section 4975(f)(3) - and it only encompasses transfers subject to mortgages
The four nursing homes are subject to mortgages
held by Omega Healthcare Investors, Inc.
As additional consideration, SRG will transfer to AMIN all of its five real estate properties owned by SRG, subject to mortgages
and related liabilities of approximately $1,300,000.
The properties had a net book value of approximately Cdn$22 million and were subject to mortgages
aggregating approximately Cdn$18 million.
The 27 properties are subject to mortgages
of approximately $56 million as of June 30, 2002.
The three nursing homes are all subject to mortgages
which have been securitized.