Financing Arrangements. The Purchaser (which is an affiliate of the General Partner) expects to pay for the Units it purchases pursuant to the Offer with funds provided by IPLP as capital contributions. IPLP in turn intends to use its cash on hand and, if necessary, funds available to it under its credit facility (as described in Section 12) to make such contributions. See Section 12. It is possible, however, that in connection with its future financing activities, IPT or IPLP may cause or request the Purchaser (which is an affiliate of the General Partner) to pledge the Units as collateral for loans, or otherwise agree to terms which provide IPT, IPLP and the Purchaser with incentives to generate substantial near-term cash flow from the Purchaser's investment in the Units. This could be the case, for example, if a loan has a "balloon" maturity after a relatively short time or bears a high or increasing interest rate. In such a situation, the General Partner may experience a conflict of interest in seeking to reconcile the best interests of the Partnership with the need of its affiliates for cash flow from the Partnership's activities. Transactions with Affiliates. The Partnership paid IRG property management fees for property management services in the amounts of approximately $558,000, $540,000 and $514,000 for the fiscal years ended October 31, 1997, 1996 and 1995, respectively, and has paid IRG property management fees equal to $284,000 for the six-month fiscal period ended April 30, 1998. The Partnership reimbursed the General Partner and its affiliates (including Insignia) for expenses incurred in connection with asset management and partnership administration services performed by them for the Partnership for the fiscal years ended October 31, 1997, 1996 and 1995 in the amounts of $223,000, $196,000 and $174,000, respectively, and has reimbursed them for such services in the amount of $112,000 for the six-month fiscal period ended April 30, 1998. The reimbursement amount for the six-month fiscal period ended April 30, 1998 includes $6,000 which was paid to an affiliate of the General Partner for costs incurred in connection with construction oversight services. For the period November 1, 1995 through August 31, 1997, the Partnership insured its properties under a master policy through an agency affiliated with the General Partner, but with an insurer unaffiliated with the General Partner. An affiliate of the General Partner acquired, in the acquisition of a business, certain financial obligations from an insurance agency which was later acquired by the agent who placed the then current year's master policy. That agent assumed the financial obligations to the affiliate of the General Partner who received payments on these obligations from the agent. Insignia and the General Partner believe that the aggregate financial benefit derived by Insignia and its affiliates from such arrangement was immaterial.
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Financing Arrangements. The Purchaser (which is an affiliate of the Managing General Partner) expects to pay for the Units it purchases pursuant to the Offer with funds provided by IPLP as capital contributions. IPLP in turn intends to use its cash on hand and, if necessary, funds available to it under its credit facility (as described in Section 12) to make such contributions. See Section 12. It is possible, however, that in connection with its future financing activities, IPT or IPLP may cause or request the Purchaser (which is an affiliate of the Managing General Partner) to pledge the Units as collateral for loans, or otherwise agree to terms which provide IPT, IPLP and the Purchaser with incentives to generate substantial near-term cash flow from the Purchaser's investment in the Units. This could be the case, for example, if a loan has a "balloon" maturity after a relatively short time or bears a high or increasing interest rate. In such a situation, the Managing General Partner may experience a conflict of interest in seeking to reconcile the best interests of the Partnership with the need of its affiliates for cash flow from the Partnership's activities. Transactions with Affiliates. Under the Limited Partnership Agreement, the Managing General Partner and the other general partners each holds an interest in the Partnership and is entitled to participate in certain cash distributions made by the Partnership to its partners. The Managing General Partner and the other general partners in the aggregate received from the Partnership in respect of their interests in the Partnership cash distributions of $10,000 in 1997, $20,000 in 1996 and $8,000 in 1995. The Partnership paid IRG property management fees for property management services in the amounts of approximately $558,000151,000, $540,000 149,000 and $514,000 147,000 for the fiscal years ended October December 31, 1997, 1996 and 1995, respectively, and has paid IRG property management fees equal to $284,000 for 76,000 during the six-month fiscal period ended April 30, first six months of 1998. The Partnership reimbursed the Managing General Partner and its affiliates (including Insignia) for expenses incurred in connection with asset management and partnership administration services performed by them for the Partnership for the fiscal years ended October December 31, 1997, 1996 and 1995 in the amounts of $223,00080,000, $196,000 92,000 and $174,00088,000, respectively, and has reimbursed them for such services in the amount of $112,000 for the six-month fiscal period ended April 47,000 through June 30, 1998. The reimbursement amount amounts for the six-month fiscal period years ended April December 31, 1997 and 1996, and for the six months ended June 30, 1998 includes 1998, include $6,000 5,000, $5,000 and $10,000, respectively, which was amounts were paid to an affiliate of the Managing General Partner for costs incurred in connection with construction oversight services. The Partnership paid $33,000 and $10,000 for the year ended December 31, 1997 and for the six months ended June 30, 1998, respectively, to an affiliate of the Managing General Partner for costs related to the refinancing of ▇▇▇▇▇▇ ▇▇▇▇▇ Apartments in November 1997. For the period November January 1, 1995 1996 through August December 31, 19971996, the Partnership insured its properties under a master policy through an agency affiliated with the General Partner, but with an and insurer unaffiliated with the Managing General Partner, and through an agency affiliated with the Managing General Partner for the period January 1, 1997 through August 31, 1997. An affiliate of the Managing General Partner acquired, in the acquisition of a business, certain financial obligations from an insurance agency which was later acquired by the agent who placed the then current year's master policy. That agent assumed the financial obligations to the affiliate of the Managing General Partner who received payments on these obligations from the agent. Insignia and the Managing General Partner believe that the aggregate financial benefit derived by Insignia and its affiliates from such arrangement was immaterial.
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Financing Arrangements. The Purchaser (which is an affiliate of the General Partner) expects to pay for the Units it purchases pursuant to the Offer with funds provided by IPLP as capital contributions. IPLP in turn intends to use its cash on hand and, if necessary, funds available to it under its credit facility (as described in Section 12) to make such contributions. See Section 12. It is possible, however, that in connection with its future financing activities, IPT or IPLP may cause or request the Purchaser (which is an affiliate of the General Partner) to pledge the Units as collateral for loans, or otherwise agree to terms which provide IPT, IPLP and the Purchaser with incentives to generate substantial near-term cash flow from the Purchaser's investment in the Units. This could be the case, for example, if a loan has a "balloon" maturity after a relatively short time or bears a high or increasing interest rate. In such a situation, the General Partner may experience a conflict of interest in seeking to reconcile the best interests of the Partnership with the need of its affiliates for cash flow from the Partnership's activities. Transactions with AffiliatesAffiliates . The Partnership paid IRG property management fees for property management services in the amounts of approximately $558,000511,000, $540,000 497,000 and $514,000 540,000 for the fiscal years ended October 31, 1997, 1996 and 1995, respectively, and has paid IRG property management fees equal to $284,000 251,000 for the six-month fiscal period ended April 30, 1998. The Partnership reimbursed the General Partner and its affiliates (including Insignia) for expenses incurred in connection with asset management and partnership administration services performed by them for the Partnership for the fiscal years ended October 31, 1997, 1996 and 1995 in the amounts of $223,000220,000, $196,000 184,000 and $174,000158,000, respectively, and has reimbursed them for such services in the amount of $112,000 126,000 for the six-month fiscal period ended April 30, 1998. The reimbursement amount amounts for the fiscal years ended October 31, 1997, 1996 and the six-month fiscal period ended April 30, 1998 includes include $6,000 34,000, $9,000 and $19,000, respectively, which was paid to an affiliate of the General Partner for costs incurred in connection with construction oversight services. For the period November 1, 1995 through August 31, 1997, the Partnership insured its properties under a master policy through an agency affiliated with the General Partner, but with an insurer unaffiliated with the General Partner. An affiliate of the General Partner acquired, in the acquisition of a business, certain financial obligations from an insurance agency which was later acquired by the agent who placed the then current year's master policy. That agent assumed the financial obligations to the affiliate of the General Partner who received payments on these obligations from the agent. Insignia and the General Partner believe that the aggregate financial benefit derived by Insignia and its affiliates from such arrangement was immaterial.
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Financing Arrangements. The Purchaser (which is an affiliate of the Managing General Partner) expects to pay for the Units it purchases pursuant to the Offer with funds provided by IPLP as capital contributions. IPLP in turn intends to use its cash on hand and, if necessary, funds available to it under its credit facility (as described in Section 12) to make such contributions. See Section 12. It is possible, however, that in connection with its future financing activities, IPT or IPLP may cause or request the Purchaser (which is an affiliate of the Managing General Partner) to pledge the Units as collateral for loans, or otherwise agree to terms which provide IPT, IPLP and the Purchaser with incentives to generate substantial near-term cash flow from the Purchaser's investment in the Units. This could be the case, for example, if a loan has a "balloon" maturity after a relatively short time or bears a high or increasing interest rate. In such a situation, the Managing General Partner may experience a conflict of interest in seeking to reconcile the best interests of the Partnership with the need of its affiliates for cash flow from the Partnership's activities. Transactions with Affiliates. Under the Limited Partnership Agreement, the Managing General Partner and the other general partners each holds an interest in the Partnership and is entitled to participate in certain cash distributions made by the Partnership to its partners. The Managing General Partner and the other general partners in the aggregate received from the Partnership in respect of their interests in the Partnership cash distributions of $2,000 in 1997 and $2,000 in 1996. The Partnership paid IRG and I/ESG property management fees for property management services in the amounts of approximately $558,000436,000, $540,000 381,000 and $514,000 370,000 for the fiscal years ended October December 31, 1997, 1996 and 1995, respectively, and has paid IRG and I/ESG property management fees equal to $284,000 for 215,000 during the six-month fiscal period ended April 30, first six months of 1998. The Partnership reimbursed the Managing General Partner and its affiliates (including Insignia) for expenses incurred in connection with asset management and partnership administration services performed by them for the Partnership for the fiscal years ended October December 31, 1997, 1996 and 1995 in the amounts of $223,000253,000, $196,000 257,000 and $174,000173,000, respectively, and has reimbursed them for such services in the amount of $112,000 for the six-month fiscal period ended April 117,000 through June 30, 1998. The reimbursement amount amounts for the six-month fiscal period years ended April 30December 31, 1998 includes 1997 and 1996 both include $6,000 31,000, which was amounts were paid to an affiliate of the Managing General Partner for costs incurred in connection with construction oversight services. The Partnership paid $78,000 for the six months ended June 30, 1998 to an affiliate of the Managing General Partner for costs incurred in connection with construction oversight services. The Partnership also paid $2,000 for the six months ended June 30, 1998 to an affiliate of the Managing General Partner for commercial lease commissions. For the period November January 1, 1995 1996 through August December 31, 19971996, the Partnership insured its properties under a master policy through an agency affiliated with the General Partner, but with an and insurer unaffiliated with the Managing General Partner, and through an agency affiliated with the Managing General Partner for the period January 1, 1997 through August 31, 1997. An affiliate of the Managing General Partner acquired, in the acquisition of a business, certain financial obligations from an insurance agency which was later acquired by the agent who placed the then current year's master policy. That agent assumed the financial obligations to the affiliate of the Managing General Partner who received payments on these obligations from the agent. Insignia and the Managing General Partner believe that the aggregate financial benefit derived by Insignia and its affiliates from such arrangement was immaterial.
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Financing Arrangements. The Purchaser (which is an affiliate of the General Partner) expects to pay for the Units it purchases pursuant to the Offer with funds provided by IPLP as capital contributions. IPLP in turn intends to use its cash on hand and, if necessary, funds available to it under its credit facility (as described in Section 12) to make such contributions. See Section 12. It is possible, however, that in connection with its future financing activities, IPT or IPLP may cause or request the Purchaser (which is an affiliate of the General Partner) to pledge the Units as collateral for loans, or otherwise agree to terms which provide IPT, IPLP and the Purchaser with incentives to generate substantial near-term cash flow from the Purchaser's investment in the Units. This could be the case, for example, if a loan has a "balloon" maturity after a relatively short time or bears a high or increasing interest rate. In such a situation, the General Partner may experience a conflict of interest in seeking to reconcile the best interests of the Partnership with the need of its affiliates for cash flow from the Partnership's activities. Transactions with Affiliates. The Partnership paid IRG and ICG property management fees for property management services in the amounts of approximately $558,000215,000, $540,000 204,000 and $514,000 246,000 for the fiscal years ended October December 31, 1997, 1996 and 1995, respectively, and has paid IRG and ICG property management fees equal to $284,000 for 59,000 during the six-month fiscal period ended April 30, first three months of 1998. The Partnership reimbursed the General Partner and its affiliates (including Insignia) for expenses incurred in connection with asset management and partnership administration services performed by them for the Partnership for the fiscal years ended October 31, during 1997, 1996 and 1995 in the amounts of $223,000151,000, $196,000 158,000 and $174,000173,000, respectively, and has reimbursed them for such services in the amount of $112,000 for the six-month fiscal period ended April 3030,000 through March 31, 1998. The reimbursement amount amounts for the six-month fiscal period three months ended April 30March 31, 1998 includes and the years ended December 31, 1997 and 1996 include $6,000 2,000, $33,000 and $4,000, respectively, which was amounts were paid to an affiliate of the General Partner for costs incurred in connection with construction oversight services. The Partnership also paid $69,000 and $9,000 for the years ended December 31, 1997 and 1996, respectively, and $1,000 for the three months ended March 31, 1998, to an affiliate of the General Partner for commercial lease commissions. In 1997 and 1996, the Partnership paid an affiliate of the General Partner approximately $5,500 and $36,000, respectively, for loan costs incurred in connection with refinancing the debt encumbering two of the Partnership's properties. For the period November July 1, 1995 through August 31, 1997, the Partnership insured its properties under a master policy through an agency affiliated with the General Partner, but with an insurer unaffiliated with the General Partner. An affiliate of the General Partner acquired, in the acquisition of a business, certain financial obligations from an insurance agency which was later acquired by the agent who placed the then current year's master policy. That agent assumed the financial obligations to the affiliate of the General Partner who received payments on these obligations from the agent. Insignia and the General Partner believe that the aggregate financial benefit derived by Insignia and its affiliates from such arrangement was immaterial.
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Financing Arrangements. The Purchaser (which is an affiliate of the General Partner) expects to pay for the Units it purchases pursuant to the Offer with funds provided by IPLP as capital contributions. IPLP in turn intends to use its cash on hand and, if necessary, funds available to it under its credit facility (as described in Section 12) to make such contributions. See Section 12. It is possible, however, that in connection with its future financing activities, IPT or IPLP may cause or request the Purchaser (which is an affiliate of the General Partner) to pledge the Units as collateral for loans, or otherwise agree to terms which provide IPT, IPLP and the Purchaser with incentives to generate substantial near-term cash flow from the Purchaser's investment in the Units. This could be the case, for example, if a loan has a "balloon" maturity after a relatively short time or bears a high or increasing interest rate. In such a situation, the General Partner may experience a conflict of interest in seeking to reconcile the best interests of the Partnership with the need of its affiliates for cash flow from the Partnership's activities. Transactions with Affiliates. The Partnership paid IRG property management fees for property management services in the amounts of approximately $558,000670,000, $540,000 632,000, and $514,000 615,000 for the fiscal years ended October 31November 30, 1997, 1996 and 1995, respectively, and has paid IRG property management fees equal to $284,000 351,000 for the six-month fiscal period ended April 30May 31, 1998. The Partnership reimbursed the General Partner and its affiliates (including Insignia) for expenses incurred in connection with asset management and partnership administration services performed by them for the Partnership for the fiscal years ended October 31November 30, 1997, 1996 and 1995 in the amounts of $223,000286,000, $196,000 238,000 and $174,000200,000, respectively, and has reimbursed them for such services in the amount of $112,000 126,000 for the six-month fiscal period ended April 30May 31, 1998. The reimbursement amount for the fiscal years ended November 30, 1997 and 1996, and the six-month fiscal period ended April 30May 31, 1998 includes include $6,000 54,000, $8,000 and $4,000, respectively, which was paid to an affiliate of the General Partner for costs incurred in connection with construction oversight services. For the period November December 1, 1995 through August 31, 1997, the Partnership insured its properties under a master policy through an agency affiliated with the General Partner, but with an insurer unaffiliated with the General Partner. An affiliate of the General Partner acquired, in the acquisition of a business, certain financial obligations from an insurance agency which was later acquired by the agent who placed the then current year's master policy. That agent assumed the financial obligations to the affiliate of the General Partner who received payments on these obligations from the agent. Insignia and the General Partner believe that the aggregate financial benefit derived by Insignia and its affiliates from such arrangement was immaterial.
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Financing Arrangements. The Purchaser (which is an affiliate of the General Partner) expects to pay for the Units it purchases pursuant to the Offer with funds provided by IPLP as capital contributions. IPLP in turn intends to use its cash on hand and, if necessary, funds available to it under its credit facility (as described in Section 12) to make such contributions. See Section 12. It is possible, however, that in connection with its future financing activities, IPT or IPLP may cause or request the Purchaser (which is an affiliate of the General Partner) to pledge the Units as collateral for loans, or otherwise agree to terms which provide IPT, IPLP and the Purchaser with incentives to generate substantial near-term cash flow from the Purchaser's investment in the Units. This could be the case, for example, if a loan has a "balloon" maturity after a relatively short time or bears a high or increasing interest rate. In such a situation, the General Partner may experience a conflict of interest in seeking to reconcile the best interests of the Partnership with the need of its affiliates for cash flow from the Partnership's activities. Transactions with Affiliates. The Partnership paid IRG and IESG property management fees for property management services in the amounts of approximately $558,000336,000, $540,000 400,000 and $514,000 420,000 for the fiscal years ended October December 31, 1997, 1996 and 1995, respectively, and has paid IRG and IESG property management fees equal to $284,000 for 180,000 during the six-month fiscal period ended April 30, first six months of 1998. The Partnership reimbursed the General Partner and its affiliates (including Insignia) for expenses incurred in connection with asset management and partnership administration services performed by them for the Partnership for the fiscal years ended October December 31, 1997, 1996 and 1995 in the amounts of $223,000258,000, $196,000 287,000 and $174,000306,000, respectively, and has reimbursed them for such services in the amount of $112,000 for the six-month fiscal period ended April 141,000 through June 30, 1998. The reimbursement amount Partnership paid $39,000, $34,000, $63,000 and $16,000 for the six-month fiscal period years ended April December 31, 1997, 1996, 1995 and the six months ended June 30, 1998 includes $6,000 which was paid 1998, respectively, to an affiliate of the General Partner for costs incurred in connection with construction oversight servicescommercial lease commissions. For the period November January 1, 1995 1996 through August 31, 1997, the Partnership insured its properties under a master policy through an agency affiliated with the General Partner, but with an insurer unaffiliated with the General Partner. An affiliate of the General Partner acquired, in the acquisition of a business, certain financial obligations from an insurance agency which was later acquired by the agent who placed the then current year's master policy. That agent assumed the financial obligations to the affiliate of the General Partner who received payments on these obligations from the agent. Insignia and the General Partner believe that the aggregate financial benefit derived by Insignia and its affiliates from such arrangement was immaterial.
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Financing Arrangements. The Purchaser (which is an affiliate of the General Partner) expects to pay for the Units it purchases pursuant to the Offer with funds provided by IPLP as capital contributions. IPLP in turn intends to use its cash on hand and, if necessary, funds available to it under its credit facility (as described in Section 12) to make such contributions. See Section 12. It is possible, however, that in connection with its future financing activities, IPT or IPLP may cause or request the Purchaser (which is an affiliate of the General Partner) to pledge the Units as collateral for loans, or otherwise agree to terms which provide IPT, IPLP and the Purchaser with incentives to generate substantial near-term cash flow from the Purchaser's investment in the Units. This could be the case, for example, if a loan has a "balloon" maturity after a relatively short time or bears a high or increasing interest rate. In such a situation, the General Partner may experience a conflict of interest in seeking to reconcile the best interests of the Partnership with the need of its affiliates for cash flow from the Partnership's activities. Transactions with Affiliates. Under the Limited Partnership Agreement, the General Partner holds an interest in the Partnership and is entitled to participate in certain cash distributions made by the Partnership to its partners. The General Partner received from the Partnership in respect of its interest in the Partnership cash distributions of $10,000 in 1997 and $30,000 in 1995. There were no distributions made to the General Partner in 1996. The Partnership and CCEP/2 paid IRG and ICG property management fees for property management services in the amounts of approximately $558,000881,000, $540,000 946,000 and $514,000 948,000 for the fiscal years ended October December 31, 1997, 1996 and 1995, respectively, and has have paid IRG and ICG property management fees equal to $284,000 for 217,000 during the six-month fiscal period ended April 30, first three months of 1998. The Partnership and CCEP/2 reimbursed the General Partner Partner, ConCap Holdings and its their affiliates (including Insignia) for expenses incurred in connection with asset management and partnership administration services performed by them for the Partnership for the fiscal years ended October December 31, 1997, 1996 and 1995 in the amounts of $223,000574,000, $196,000 654,000 and $174,000708,000, respectively, and has have reimbursed them for such services in the amount of $112,000 for the six-month fiscal period ended April 30153,000 through March 31, 1998. The reimbursement amount for the six-month fiscal period three months ended April 30March 31, 1998 includes $6,000 11,000 which was paid to an affiliate of the General Partner for costs incurred in connection with construction oversight servicescosts. The Partnership and CCEP/2 paid $380,000, $295,000 and $615,000 for the years ended December 31, 1997, 1996 and 1995, respectively, and $60,000 for the three months ended March 31, 1998, to an affiliate of the General Partner for commercial lease commissions. In addition, CCEP/2 is subject to an Investment Advisory Agreement between CCEP/2 and an affiliate of ConCap Holdings (which is an affiliate of the General Partner). This agreement provides for an annual fee, payable in monthly installments, to an affiliate of ConCap Holdings for advisory and consulting services for the CCEP/2 Properties. Advisory fees paid pursuant to this agreement were $154,000, $154,000 and $178,000, respectively, for the years ended December 31, 1997, 1996 and 1995, and $42,000 for the three months ended March 31, 1998. For the period November January 1, 1995 1996 through August 31, 1997, the Partnership insured its properties under a master policy through an agency affiliated with the General Partner, but with an insurer unaffiliated with the General Partner. An affiliate of the General Partner acquired, in the acquisition of a business, certain financial obligations from an insurance agency which was later acquired by the agent who placed the then current year's master policy. That agent assumed the financial obligations to the affiliate of the General Partner who received payments on these obligations from the agent. Insignia and the General Partner believe that the aggregate financial benefit derived by Insignia and its affiliates from such arrangement was immaterial.
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Financing Arrangements. The Purchaser (which is an affiliate of the General Partner) expects to pay for the Units it purchases pursuant to the Offer with funds provided by IPLP as capital contributions. IPLP in turn intends to use its cash on hand and, if necessary, funds available to it under its credit facility (as described in Section 12) to make such contributions. See Section 12. It is possible, however, that in connection with its future financing activities, IPT or IPLP may cause or request the Purchaser (which is an affiliate of the General Partner) to pledge the Units as collateral for loans, or otherwise agree to terms which provide IPT, IPLP and the Purchaser with incentives to generate substantial near-term cash flow from the Purchaser's investment in the Units. This could be the case, for example, if a loan has a "balloon" maturity after a relatively short time or bears a high or increasing interest rate. In such a situation, the General Partner may experience a conflict of interest in seeking to reconcile the best interests of the Partnership with the need of its affiliates for cash flow from the Partnership's activities. Transactions with Affiliates. The Partnership was not an affiliate of Insignia prior to January 1996. Accordingly, this section only discusses transactions between the Partnership, on the one hand, and Insignia and its affiliates, on the other hand, which have occurred since January 1996. Under the Limited Partnership Agreement, the General Partner holds an interest in the Partnership and is entitled to participate in certain cash distributions made by the Partnership to its partners. The General Partner received from the Partnership in respect of its interest in the Partnership cash distributions of $6,000 to date in 1998 and $11,000 in each of 1997, 1996 and 1995. Pursuant to the Limited Partnership Agreement, the General Partner is entitled to receive a Partnership management fee for services equal to 10% of the Partnership's cash available for distribution. The Partnership paid IRG property management Insignia and its affiliates fees for property partnership management services in the amounts of approximately $558,000, $540,000 and $514,000 123,000 for each of the fiscal years ended October December 31, 1997, 1996 1997 and 19951996, respectively, and has paid IRG property Insignia and its affiliates partnership management fees equal to $284,000 for 62,000 during the six-month fiscal period ended April 30, first six months of 1998. The Partnership reimbursed the General Partner and its affiliates (including Insignia) for expenses incurred in connection with asset management and partnership administration services performed by them for the Partnership for the fiscal years ended October December 31, 1997, 1997 and 1996 and 1995 in the amounts of $223,000, $196,000 97,000 and $174,000126,000, respectively, and has reimbursed them for such services in the amount of $112,000 for the six-month fiscal period ended April 30, 1998. The reimbursement amount for the six-month fiscal period ended April 61,000 through June 30, 1998 includes $6,000 which was (including reimbursements paid to an affiliate of the General Partner in the amount of $1,000 for the year ended December 31, 1997 for costs incurred in connection with construction oversight services). For the period November January 1, 1995 1996 through August December 31, 19971996, the Partnership insured its properties under a master policy through an agency affiliated with the General Partner, but with an and insurer unaffiliated with FCMC, and through an agency affiliated with FCMC for the General Partnerperiod January 1, 1997 through August 31, 1997. An affiliate of the General Partner FCMC acquired, in the acquisition of a business, certain financial obligations from an insurance agency which was later acquired by the agent who placed the then current year's master policy. That agent assumed the financial obligations to the affiliate of the General Partner FCMC who received payments on these obligations from the agent. Insignia and the General Partner believe that the aggregate financial benefit derived by Insignia and its affiliates from such arrangement was immaterial.
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Financing Arrangements. The Purchaser (which is an affiliate of the General Partner) expects to pay for the Units it purchases pursuant to the Offer with funds provided by IPLP as capital contributions. IPLP in turn intends to use its cash on hand and, if necessary, funds available to it under its credit facility (as described in Section 12) to make such contributions. See Section 12. It is possible, however, that in connection with its future financing activities, IPT or IPLP may cause or request the Purchaser (which is an affiliate of the General Partner) to pledge the Units as collateral for loans, or otherwise agree to terms which provide IPT, IPLP and the Purchaser with incentives to generate substantial near-term cash flow from the Purchaser's investment in the Units. This could be the case, for example, if a loan has a "balloon" maturity after a relatively short time or bears a high or increasing interest rate. In such a situation, the General Partner may experience a conflict of interest in seeking to reconcile the best interests of the Partnership with the need of its affiliates for cash flow from the Partnership's activities. Transactions with Affiliates. The Partnership paid IRG property management fees for property management services in the amounts of approximately $558,000278,000, $540,000 269,000 and $514,000 263,000 for the fiscal years ended October December 31, 1997, 1996 and 1995, respectively, and has paid IRG property management fees equal to $284,000 for 72,000 during the six-month fiscal period ended April 30, first three months of 1998. The Partnership reimbursed the General Partner and its affiliates (including Insignia) for expenses incurred in connection with asset management and partnership administration services performed by them for the Partnership for the fiscal years ended October December 31, 1997, 1996 and 1995 in the amounts of $223,000137,000, $196,000 123,000 and $174,00098,000, respectively, and has reimbursed them for such services in the amount of $112,000 for the six-month fiscal period ended April 3032,000 through March 31, 1998. The reimbursement amount amounts for the sixyears ended December 31, 1997 and 1996 and the three-month fiscal period ended April 30March 31, 1998 includes include $6,000 9,000, $12,000 and $5,000, respectively, which was paid to an affiliate of the General Partner for costs incurred in connection with construction oversight services. For the period November January 1, 1995 1996 through August 31, 1997, the Partnership insured its properties under a master policy through an agency affiliated with the General Partner, but with an insurer unaffiliated with the General Partner. An affiliate of the General Partner acquired, in the acquisition of a business, certain financial obligations from an insurance agency which was later acquired by the agent who placed the then current year's master policy. That agent assumed the financial obligations to the affiliate of the General Partner who received payments on these obligations from the agent. Insignia and the General Partner believe that the aggregate financial benefit derived by Insignia and its affiliates from such arrangement was immaterial.
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Financing Arrangements. The Purchaser (which is an affiliate of the Managing General Partner) expects to pay for the Units it purchases pursuant to the Offer with funds provided by IPLP as capital contributions. IPLP in turn intends to use its cash on hand and, if necessary, funds available to it under its credit facility (as described in Section 12) to make such contributions. See Section 12. It is possible, however, that in connection with its future financing activities, IPT or IPLP may cause or request the Purchaser (which is an affiliate of the Managing General Partner) to pledge the Units as collateral for loans, or otherwise agree to terms which provide IPT, IPLP and the Purchaser with incentives to generate substantial near-term cash flow from the Purchaser's investment in the Units. This could be the case, for example, if a loan has a "balloon" maturity after a relatively short time or bears a high or increasing interest rate. In such a situation, the Managing General Partner may experience a conflict of interest in seeking to reconcile the best interests of the Partnership with the need of its affiliates for cash flow from the Partnership's activities. Transactions with Affiliates. The Partnership paid IRG property management fees for property management services in the amounts of approximately $558,000284,000, $540,000 277,000 and $514,000 261,000 for the fiscal years ended October December 31, 1997, 1996 and 1995, respectively, and has paid IRG property management fees equal to $284,000 for 147,000 during the six-month fiscal period ended April 30, first six months of 1998. The Partnership reimbursed the Managing General Partner and its affiliates (including Insignia) for expenses incurred in connection with asset management and partnership administration services performed by them for the Partnership for the fiscal years ended October December 31, 1997, 1996 and 1995 in the amounts of $223,000130,000, $196,000 174,000 and $174,000114,000, respectively, and has reimbursed them for such services in the amount of $112,000 for the six-month fiscal period ended April 85,000 through June 30, 1998. The reimbursement amount amounts for the six-month fiscal period years ended April December 31, 1997 and 1996, and for the six months ended June 30, 1998 includes 1998, include $6,000 2,000, $46,000 and $18,000, respectively, which was amounts were paid to an affiliate of the Managing General Partner for costs incurred in connection with construction oversight services. For the period November January 1, 1995 1996 through August December 31, 19971996, the Partnership insured its properties under a master policy through an agency affiliated with the General Partner, but with an and insurer unaffiliated with the Managing General Partner, and through an agency affiliated with the Managing General Partner for the period January 1, 1997 through August 31, 1997. An affiliate of the Managing General Partner acquired, in the acquisition of a business, certain financial obligations from an insurance agency which was later acquired by the agent who placed the then current year's master policy. That agent assumed the financial obligations to the affiliate of the Managing General Partner who received payments on these obligations from the agent. Insignia and the Managing General Partner believe that the aggregate financial benefit derived by Insignia and its affiliates from such arrangement was immaterial.
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Financing Arrangements. The Purchaser (which is an affiliate of the General Partner) expects to pay for the Units it purchases pursuant to the Offer with funds provided by IPLP as capital contributions. IPLP in turn intends to use its cash on hand and, if necessary, funds available to it under its credit facility (as described in Section 12) to make such contributions. See Section 12. It is possible, however, that in connection with its future financing activities, IPT or IPLP may cause or request the Purchaser (which is an affiliate of the General Partner) to pledge the Units as collateral for loans, or otherwise agree to terms which provide IPT, IPLP and the Purchaser with incentives to generate substantial near-term cash flow from the Purchaser's investment in the Units. This could be the case, for example, if a loan has a "balloon" maturity after a relatively short time or bears a high or increasing interest rate. In such a situation, the General Partner may experience a conflict of interest in seeking to reconcile the best interests of the Partnership with the need of its affiliates for cash flow from the Partnership's activities. Transactions with Affiliates. The Partnership paid IRG property management fees for property management services in the amounts of approximately $558,000117,000, $540,000 107,000 and $514,000 108,000 for the fiscal years ended October December 31, 1997, 1996 and 1995, respectively, and has paid IRG property management fees equal to $284,000 for 60,000 during the six-month fiscal period ended April 30, first six months of 1998. The Partnership reimbursed the General Partner and its affiliates (including Insignia) for expenses incurred in connection with asset management and partnership administration services performed by them for the Partnership for the fiscal years ended October December 31, 1997, 1996 and 1995 in the amounts of $223,00094,000, $196,000 144,000 and $174,000145,000, respectively, and has reimbursed them for such services in the amount of $112,000 for the six-month fiscal period ended April 34,000 through June 30, 1998. The reimbursement amount amounts for the six-month fiscal period years ended April 30December 31, 1998 includes 1997 and December 31, 1996 include $6,000 11,000 and $31,000, respectively, which was amounts were paid to an affiliate of the General Partner for costs incurred in connection with construction oversight services. The Partnership paid $5,500 and $21,000 for the years ended December 31, 1997 and 1996, respectively, to an affiliate of the General Partner for costs related to the refinancing of one of the Partnership's properties. For the period November January 1, 1995 1996 through August 31, 1997, the Partnership insured its properties under a master policy through an agency affiliated with the General Partner, but with an insurer unaffiliated with the General Partner. An affiliate of the General Partner acquired, in the acquisition of a business, certain financial obligations from an insurance agency which was later acquired by the agent who placed the then current year's master policy. That agent assumed the financial obligations to the affiliate of the General Partner who received payments on these obligations from the agent. Insignia and the General Partner believe that the aggregate financial benefit derived by Insignia and its affiliates from such arrangement was immaterial.
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Financing Arrangements. The Purchaser (which is an affiliate of the General Partner) expects to pay for the Units it purchases pursuant to the Offer with funds provided by IPLP as capital contributions. IPLP in turn intends to use its cash on hand and, if necessary, funds available to it under its credit facility (as described in Section 12) to make such contributions. See Section 12. It is possible, however, that in connection with its future financing activities, IPT or IPLP may cause or request the Purchaser (which is an affiliate of the General Partner) to pledge the Units as collateral for loans, or otherwise agree to terms which provide IPT, IPLP and the Purchaser with incentives to generate substantial near-term cash flow from the Purchaser's investment in the Units. This could be the case, for example, if a loan has a "balloon" maturity after a relatively short time or bears a high or increasing interest rate. In such a situation, the General Partner may experience a conflict of interest in seeking to reconcile the best interests of the Partnership with the need of its affiliates for cash flow from the Partnership's activities. Transactions with Affiliates. The Partnership paid IRG IESG property management fees for property management services in the amounts of approximately $558,000131,000, $540,000 129,000 and $514,000 171,000 for the fiscal years ended October December 31, 1997, 1996 and 1995, respectively, and has paid IRG IESG property management fees equal to $284,000 for 68,000 during the six-month fiscal period ended April 30, first six months of 1998. The Partnership reimbursed the General Partner and its affiliates (including Insignia) for expenses incurred in connection with asset management and partnership administration services performed by them for the Partnership for the fiscal years ended October December 31, 1997, 1996 and 1995 in the amounts of $223,000197,000, $196,000 242,000 and $174,000334,000, respectively, and has reimbursed them for such services in the amount of $112,000 for the six-month fiscal period ended April 88,000 through June 30, 1998. The reimbursement amount amounts for the six-month fiscal period year ended April December 31, 1997 and the six months ended June 30, 1998 includes include $6,000 1,000 and $1,000, respectively, which was amounts were paid to an affiliate of the General Partner for costs incurred in connection with construction oversight services. The Partnership paid $175,000 and $21,000 for the year ended December 31, 1997 and the six months ended June 30, 1998, respectively, to an affiliate of the General Partner for commercial lease commissions. The reimbursement amount for the six months ended June 30, 1998 includes $27,500 which was paid to an affiliate of the General Partner for consulting services. For the period November January 1, 1995 1996 through August 31, 1997, the Partnership insured its properties under a master policy through an agency affiliated with the General Partner, but with an insurer unaffiliated with the General Partner. An affiliate of the General Partner acquired, in the acquisition of a business, certain financial obligations from an insurance agency which was later acquired by the agent who placed the then current year's master policy. That agent assumed the financial obligations to the affiliate of the General Partner who received payments on these obligations from the agent. Insignia and the General Partner believe that the aggregate financial benefit derived by Insignia and its affiliates from such arrangement was immaterial.
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Financing Arrangements. The Purchaser (which is an affiliate of the General Partner) expects to pay for the Units it purchases pursuant to the Offer with funds provided by IPLP as capital contributions. IPLP in turn intends to use its cash on hand and, if necessary, funds available to it under its credit facility (as described in Section 12) to make such contributions. See Section 12. It is possible, however, that in connection with its future financing activities, IPT or IPLP may cause or request the Purchaser (which is an affiliate of the General Partner) to pledge the Units as collateral for loans, or otherwise agree to terms which provide IPT, IPLP and the Purchaser with incentives to generate substantial near-term cash flow from the Purchaser's investment in the Units. This could be the case, for example, if a loan has a "balloon" maturity after a relatively short time or bears a high or increasing interest rate. In such a situation, the General Partner may experience a conflict of interest in seeking to reconcile the best interests of the Partnership with the need of its affiliates for cash flow from the Partnership's activities. Transactions with Affiliates. The Partnership paid IRG property management fees for property management services in the amounts of approximately $558,000249,000, $540,000 238,000, and $514,000 228,000 for the fiscal years ended October December 31, 1997, 1996 and 1995, respectively, and has paid IRG property management fees equal to $284,000 for 65,000 during the six-month fiscal period ended April 30, first three months of 1998. The Partnership reimbursed the General Partner and its affiliates (including Insignia) for expenses incurred in connection with asset management and partnership administration services performed by them for the Partnership for the fiscal years ended October 31, 1997, 1996 and 1995 in the amounts of $223,000129,000, $196,000 103,000 and $174,00063,000, respectively, and has reimbursed them for such services in the amount of $112,000 for the six-month fiscal period ended April 3037,000 through March 31, 1998. The reimbursement amount amounts for the sixyears ended December 31, 1997 and 1996 and the three-month fiscal period ended April 30March 31, 1998 includes include $6,000 13,000, $4,000 and $5,000, respectively, which was paid to an affiliate of the General Partner for costs incurred in connection with construction oversight services. For the period November January 1, 1995 1996 through August 31, 1997, the Partnership insured its properties under a master policy through an agency affiliated with the General Partner, but with an insurer unaffiliated with the General Partner. An affiliate of the General Partner acquired, in the acquisition of a business, certain financial obligations from an insurance agency which was later acquired by the agent who placed the then current year's master policy. That agent assumed the financial obligations to the affiliate of the General Partner who received payments on these obligations from the agent. Insignia and the General Partner believe that the aggregate financial benefit derived by Insignia and its affiliates from such arrangement arrangements was immaterial.
Appears in 1 contract
Financing Arrangements. The Purchaser (which is an affiliate of the General Partner) expects to pay for the Units it purchases pursuant to the Offer with funds provided by IPLP as capital contributions. IPLP in turn intends to use its cash on hand and, if necessary, funds available to it under its credit facility (as described in Section 12) to make such contributions. See Section 12. It is possible, however, that in connection with its future financing activities, IPT or IPLP may cause or request the Purchaser (which is an affiliate of the General Partner) to pledge the Units as collateral for loans, or otherwise agree to terms which provide IPT, IPLP and the Purchaser with incentives to generate substantial near-term cash flow from the Purchaser's investment in the Units. This could be the case, for example, if a loan has a "balloon" maturity after a relatively short time or bears a high or increasing interest rate. In such a situation, the General Partner may experience a conflict of interest in seeking to reconcile the best interests of the Partnership with the need of its affiliates for cash flow from the Partnership's activities. Transactions with Affiliates. Under the Limited Partnership Agreement, the General Partner holds an interest in the Partnership and is entitled to participate in certain cash distributions made by the Partnership to its partners. The General Partner received from the Partnership in respect of its interest in the Partnership cash distributions of $18,000 to date in 1998, $20,000 in 1997, $30,000 in 1996 and $30,000 in 1995. The Partnership and CCEP paid IRG and ICG property management fees for property management services in the amounts of approximately $558,0001,456,000, $540,000 1,409,000 and $514,000 1,373,000 for the fiscal years ended October December 31, 1997, 1996 and 1995, respectively, and has have paid IRG and ICG property management fees equal to $284,000 for 383,000 during the six-month fiscal period ended April 30, first three months of 1998. The Partnership and CCEP reimbursed the General Partner Partner, ConCap Holdings and its their affiliates (including Insignia) for expenses incurred in connection with asset management and partnership administration services performed by them for the Partnership for the fiscal three years ended October December 31, 1997, 1996 and 1995 in the amounts of $223,0001,013,000, $196,000 1,022,000 and $174,000733,000, respectively, and has have reimbursed them for such services in the amount of $112,000 for the six-month fiscal period ended April 30201,000 through March 31, 1998. The reimbursement amount amounts include approximately $269,000 and $369,000, respectively, for the six-month fiscal period years ended April 30December 31, 1998 includes 1997 and 1996, and $6,000 46,000 for the three months ended March 31, 1998, which was amounts were paid to an affiliate of the General Partner for costs incurred in connection with construction oversight services. The reimbursement amounts for the year ended December 31, 1997 and for the three months ended March 31, 1998 also include $167,000 and $4,000, respectively, which amounts were paid to an affiliate of the General Partner for commercial leasing commissions. CCEP paid $139,000, $69,000 and $221,000 for the years ended December 31, 1997, 1996 and 1995, respectively, and $2,000 for the three months ended March 31, 1998, to an affiliate of the General Partner for commercial lease commissions. In addition, CCEP is subject to an Investment Advisory Agreement between CCEP and an affiliate of ConCap Holdings (which is an affiliate of the General Partner). This agreement provides for an annual fee, payable in monthly installments, to an affiliate of ConCap Holdings for advisory and consulting services for the CCEP Properties. Advisory fees paid pursuant to this agreement were $182,000, $182,000 and $233,000, respectively, for the years ended December 31, 1997, 1996 and 1995, and $44,000 for the three months ended March 31, 1998. During 1995, an affiliate of the General Partner was paid $28,000 in connection with obtaining financing on one of the Partnership's properties. For the period November January 1, 1995 1996 through August 31, 1997, each of the Partnership and CCEP insured its properties under a master policy through an agency affiliated with the General Partner, but with an insurer unaffiliated with the General Partner. An affiliate of the General Partner acquired, in the acquisition of a business, certain financial obligations from an insurance agency which was later acquired by the agent who placed the then current year's master policy. That agent assumed the financial obligations to the affiliate of the General Partner who received payments on these obligations from the agent. Insignia and the General Partner believe that the aggregate financial benefit derived by Insignia and its affiliates from such arrangement was immaterial.
Appears in 1 contract
Financing Arrangements. The Purchaser (which is an affiliate of the General Partner) expects to pay for the Units it purchases pursuant to the Offer with funds provided by IPLP as capital contributions. IPLP in turn intends to use its cash on hand and, if necessary, funds available to it under its credit facility (as described in Section 12) to make such contributions. See Section 12. It is possible, however, that in connection with its future financing activities, IPT or IPLP may cause or request the Purchaser (which is an affiliate of the General Partner) to pledge the Units as collateral for loans, or otherwise agree to terms which provide IPT, IPLP and the Purchaser with incentives to generate substantial near-term cash flow from the Purchaser's investment in the Units. This could be the case, for example, if a loan has a "balloon" maturity after a relatively short time or bears a high or increasing interest rate. In such a situation, the General Partner may experience a conflict of interest in seeking to reconcile the best interests of the Partnership with the need of its affiliates for cash flow from the Partnership's activities. Transactions with Affiliates. The Partnership paid IRG property management fees for property management services in the amounts of approximately $558,000216,000, $540,000 227,000 and $514,000 222,000 for the fiscal years ended October December 31, 1997, 1996 and 1995, respectively, and has paid IRG property management fees equal to $284,000 for 83,000 during the six-month fiscal period ended April 30, first six months of 1998. The Partnership reimbursed the General Partner and its affiliates (including Insignia) for expenses incurred in connection with asset management and partnership administration services performed by them for the Partnership for the fiscal years ended October December 31, 1997, 1996 and 1995 in the amounts of $223,000142,000, $196,000 152,000 and $174,000124,000, respectively, and has reimbursed them for such services in the amount of $112,000 for the six-month fiscal period ended April 51,000 through June 30, 1998. The reimbursement amount amounts for the six-month fiscal period years ended April 30December 31, 1998 includes 1997 and December 31, 1996 include $6,000 16,000 and $14,000, respectively, which was amounts were paid to an affiliate of the General Partner for costs incurred in connection with construction oversight services. The Partnership paid $1,000 for the six months ended June 30, 1998 to an affiliate of the General Partner for costs incurred in connection with construction oversight services. The Partnership paid $26,000 and $4,000 for the year ended December 31, 1997 and the six months ended June 30, 1998, respectively, to an affiliate of the General Partner for costs related to the refinancing of Carriage Hills Apartments in November 1997. The Partnership also paid approximately $87,000 to an affiliate of the General Partner for reimbursement of costs related to the sale of Cardinal ▇▇▇▇▇ Apartments in August 1997. For the period November January 1, 1995 1996 through August 31, 1997, the Partnership insured its properties under a master policy through an agency affiliated with the General Partner, but with an and insurer unaffiliated with the General Partner. An affiliate of the General Partner acquired, in the acquisition of a business, certain financial obligations from an insurance agency which was later acquired by the agent who placed the then current year's master policy. That agent assumed the financial obligations to the affiliate of the General Partner who received payments on these obligations from the agent. Insignia and the General Partner believe that the aggregate financial benefit derived by Insignia and its affiliates from such arrangement was immaterial.
Appears in 1 contract
Financing Arrangements. The Purchaser (which is an affiliate of the General Partner) expects to pay for the Units it purchases pursuant to the Offer with funds provided by IPLP as capital contributions. IPLP in turn intends to use its cash on hand and, if necessary, funds available to it under its credit facility (as described in Section 12) to make such contributions. See Section 12. It is possible, however, that in connection with its future financing activities, IPT or IPLP may cause or request the Purchaser (which is an affiliate of the General Partner) to pledge the Units as collateral for loans, or otherwise agree to terms which provide IPT, IPLP and the Purchaser with incentives to generate substantial near-term cash flow from the Purchaser's investment in the Units. This could be the case, for example, if a loan has a "balloon" maturity after a relatively short time or bears a high or increasing interest rate. In such a situation, the General Partner may experience a conflict of interest in seeking to reconcile the best interests of the Partnership with the need of its affiliates for cash flow from the Partnership's activities. Transactions with Affiliates. Under the Limited Partnership Agreement, the General Partner holds an interest in the Partnership and is entitled to participate in certain cash distributions made by the Partnership to its partners. The General Partner received from the Partnership in respect of its interest in the Partnership cash distributions of $91,000 in 1997, $15,000 in 1996, and $26,000 in 1995. The Partnership paid IRG and ICG property management fees for property management services in the amounts of approximately $558,000181,000, $540,000 207,000 and $514,000 220,000 for the fiscal years ended October December 31, 1997, 1996 and 1995, respectively, and has paid IRG and ICG property management fees equal to $284,000 for 47,000 during the six-month fiscal period ended April 30, first three months of 1998. The Partnership reimbursed the General Partner and its affiliates (including Insignia) for expenses incurred in connection with asset management and partnership administration services performed by them for the Partnership for the fiscal years ended October 31, during 1997, 1996 and 1995 in the amounts of $223,000153,000, $196,000 205,000 and $174,000285,000, respectively, and has reimbursed them for such services in the amount of $112,000 for the six-month fiscal period ended April 3038,000 through March 31, 1998. The reimbursement amount amounts for the six-month fiscal period three months ended April 30March 31, 1998 includes and the years ended December 31, 1997 and 1996 include $6,000 2,000, $4,000 and $10,000, respectively, which was amounts were paid to an affiliate of the General Partner for costs incurred in connection with construction oversight services. The Partnership paid $42,000, $33,000 and $24,000 for the years ended December 31, 1997, 1996 and 1995, respectively, and $3,000 for the three months ended March 31, 1998, to an affiliate of the General Partner for commercial leasing commissions. In 1997 and 1996, the Partnership paid an affiliate of the General Partner approximately $5,000 and $34,000, respectively, for loan costs incurred in connection with refinancing the debt encumbering two of the Partnership's properties. The Limited Partnership Agreement provides for a partnership management fee payable to the General Partner in an amount equal to 9% of the distributions made to the Limited Partners from cash flow from operations. The General Partner was paid $38,000, $32,000 and $55,000 for the years ended December 31, 1997, 1996 and 1995, respectively, pursuant to this provision. For the period November January 1, 1995 1996 through August 31, 1997, the Partnership insured its properties under a master policy through an agency affiliated with the General Partner, but with an insurer unaffiliated with the General Partner. An affiliate of the General Partner acquired, in the acquisition of a business, certain financial obligations from an insurance agency which was later acquired by the agent who placed the then current year's master policy. That agent assumed the financial obligations to the affiliate of the General Partner who received payments on these obligations from the agent. Insignia and the General Partner believe that the aggregate financial benefit derived by Insignia and its affiliates from such arrangement was immaterial.
Appears in 1 contract
Sources: Offer to Purchase (Consolidated Capital Properties Iii)
Financing Arrangements. The Purchaser (which is an affiliate of the General Partner) expects to pay for the Units it purchases pursuant to the Offer with funds provided by IPLP as capital contributions. IPLP in turn intends to use its cash on hand and, if necessary, funds available to it under its credit facility (as described in Section 12) to make such contributions. See Section 12. It is possible, however, that in connection with its future financing activities, IPT or IPLP may cause or request the Purchaser (which is an affiliate of the General Partner) to pledge the Units as collateral for loans, or otherwise agree to terms which provide IPT, IPLP and the Purchaser with incentives to generate substantial near-term cash flow from the Purchaser's investment in the Units. This could be the case, for example, if a loan has a "balloon" maturity after a relatively short time or bears a high or increasing interest rate. In such a situation, the General Partner may experience a conflict of interest in seeking to reconcile the best interests of the Partnership with the need of its affiliates for cash flow from the Partnership's activities. Transactions with Affiliates. The Partnership and the General Partner were not affiliates of Insignia prior to June 1997. Accordingly, this section only discusses transactions between the Partnership, on the one hand, and Insignia and its affiliates (including the General Partner, IRG and I/ESG), on the other hand, which have occurred since June 1997. The Partnership paid IRG property management and I/ESG fees for property management services in the amounts amount of approximately $558,000, $540,000 and $514,000 368,000 for the fiscal years year ended October December 31, 1997, 1996 and 1995, respectively, 1997 and has paid IRG and I/ESG property management fees equal to approximately $284,000 for 234,000 during the six-month fiscal period ended April 30, first six months of 1998. The Partnership reimbursed the General Partner and its affiliates (including Insignia) for expenses incurred in connection with asset management and partnership administration services performed by them for the Partnership for the fiscal years year ended October December 31, 1997, 1996 and 1995 1997 in the amounts amount of approximately $223,000, $196,000 and $174,000, respectively, 29,000 and has reimbursed them for such services in the amount of approximately $112,000 for the six-month fiscal period ended April 45,000 through June 30, 1998. The reimbursement amount for the six-month fiscal period ended April 30, 1998 includes $6,000 which was paid to an affiliate of the General Partner for costs incurred in connection with construction oversight services. For the period November 1, 1995 through August 31, 1997, the Partnership insured its properties under a master policy through an agency affiliated with the General Partner, but with an insurer unaffiliated with the General Partner. An affiliate of the General Partner acquired, in the acquisition of a business, certain financial obligations from an insurance agency which was later acquired by the agent who placed the then current year's master policy. That agent assumed the financial obligations to the affiliate of the General Partner who received payments on these obligations from the agent. Insignia and the General Partner believe that the aggregate financial benefit derived by Insignia and its affiliates from such arrangement was immaterial.
Appears in 1 contract
Financing Arrangements. The Purchaser (which is an affiliate of the General Partner) expects to pay for the Units it purchases pursuant to the Offer with funds provided by IPLP as capital contributions. IPLP in turn intends to use its cash on hand andhand, if necessary, funds available to it under its credit facility (as described in Section 12) to make such contributions. See Section 12. It is possible, however, that in connection with its future financing activities, IPT or IPLP may cause or request the Purchaser (which is an affiliate of the General Partner) to pledge the Units as collateral for loans, or otherwise agree to terms which provide IPT, IPLP and the Purchaser with incentives to generate substantial near-term cash flow from the Purchaser's investment in the Units. This could be the case, for example, if a loan has a "balloon" maturity after a relatively short time or bears a high or increasing interest rate. In such a situation, the General Partner may experience a conflict of interest in seeking to reconcile the best interests of the Partnership with the need of its affiliates for cash flow from the Partnership's activities. Transactions with Affiliates. The Partnership paid IRG property management fees for property management services in the amounts of approximately $558,000373,000, $540,000 372,000 and $514,000 356,000 for the fiscal years ended October December 31, 1997, 1996 and 1995, respectively, and has paid IRG property management fees equal to $284,000 for 189,000 during the six-month fiscal period ended April 30, first six months of 1998. The Partnership reimbursed the General Partner and its affiliates (including Insignia) for expenses incurred in connection with asset management and partnership administration services performed by them for the Partnership for the fiscal years ended October December 31, 1997, 1996 and 1995 in the amounts of $223,000208,000, $196,000 232,000 and $174,000143,000, respectively, and has reimbursed them for such services in the amount of $112,000 for the six-month fiscal period ended April 107,000 through June 30, 1998. The reimbursement amount amounts for the six-month fiscal period years ended April December 31, 1997 and December 31, 1996 include $24,000 and $25,000, respectively, which amounts were paid to an affiliate of the General Partner for costs incurred in connection with construction oversight services. The Partnership paid approximately $35,000 for the six months ended June 30, 1998 includes $6,000 which was paid to an affiliate of the General Partner for costs incurred in connection with construction oversight services. For the period November January 1, 1995 1996 through August 31, 1997, the Partnership insured its properties under a master policy through an agency affiliated with the General Partner, but with an insurer unaffiliated with the General Partner. An affiliate of the General Partner acquired, in the acquisition of a business, certain financial obligations from an insurance agency which was later acquired by the agent who placed the then current year's master policy. That agent assumed the financial obligations to the affiliate of the General Partner who received payments on these obligations from the agent. Insignia and the General Partner believe that the aggregate financial benefit derived by Insignia and its affiliates from such arrangement was immaterial.
Appears in 1 contract