FCC Record, Volume 1, No. 4, Pages 549 to 785, November 10 - November 21, 1986 Page: 641

                                
Federal Communications Commission Record

personal financial statement on file, and Ms. Decker
never came to Mr. Gresham's office to ask him for the
letter. Nueva Vista Exh. 21 at 52. Mr. Gresham testified
that the bank probably delivered the letter to Mr. Heard
at his office, pursuant to an arrangement with Mr. Heard.
Id. at 52-53.
30. The 1985 loan commitment letter from Frost Bank
contains no terms regarding a rate of interest. repayment
or security. Nueva Vista Exh. 18. Mr. Gresham does not
consider the letter to be legally binding as "It]here are too
many contingencies." Nueva Vista Exh. 21 at 40. Moreover,
the letter does not guarantee the availability of funds
to SAVC. Id. at 60-62. Before a formal commitment could
be issued by the bank. the loan would have to be presented
"in all its attendant detail" to the senior loan
committee at the bank for approval and the executive
committee of the bank for confirmation. The formal
commitment letter then issued would have to be approved
by the senior loan committee and possibly the bank's
attorneys. A formal written commitment would have to
include interest rate, repayment schedule and terms of
default. The bank would have to set aside the funds for
the lender upon execution of appropriate documents. Id.
at 61-62. Mr. Gresham agreed that SAVC's December
1985 letter, which does not incorporate an interest rate or
various other terms and was not approved by the executive
committee of the bank, really does not commit the
bank to make funds available. Id. at 62.
31. Mr. Heard and Mr. Macon did not intend to loan
money to the law firm Heard, Goggan  Tr.
2025, 2030, 2071. Nor did the law firm plan to rely on its
assets in order to meet its pro rata obligations. Tr. 2085.
Mr. Heard testified that Heard. Goggan