Conference 7.286::dcu

Thanks for keeping us informed.

Yes, thanks for keeping us informed.

Would it be possible to post a copy of the documents, that are available for
review, in this conference?

Thanks,

Bob

It's not practical - they are hard copy, not on line. They originate in
courthouses. Be glad they are typed! :-) There are lots of pages.

BTW, the logistics are still being worked out as for as how to be able to
look at the documents.

Thanks for the update.

I have a question about the associated expenses mentioned as
being part of the loss.  Are these expenses connected to the sale 
of the property only or are the legal fees associated with the 
litigation against Mr. Mangone included?  If the legal fees are 
not included, what is the accounting treatment for them?  Are 
they being taken as expense items in the period in which they 
occur and what's the effect on the DCU's profitablilty because of
them?

Thanks,

Maryellen

This is a *fantastically* informative memo!  I am very impressed at how
clearly it lays out the major issues on the Magone litigation and explains 
the considerations that went into each decision.  Having some experience at 
writing :-), I know how hard it is to achieve prose as clear as this.
Of course, it is only possible if those involved are ready and willing to
open things up, instead of trying to keep things secret.

This memo makes me think back over the past 21 months.  Do you remember:

    o	how hard it was to get the Board to let anyone see the auditor's
	signed statement -- a document available for the asking at
	most businesses?

    o	the many explanations the old board provided, and how little
	they seemed to explain?  At least, I didn't understand them.

    o	how we couldn't even find out how many chairs would be in the
	room the Special Meeting would be held in?  (To cite the most
	trivial of the problems with how the meeting was arranged.)

    o	the midnight board meeting that changed the rules for calling
	Special Meetings, and how hard it was to even find out what
	the new rules were?

    o	the difficulty of getting information out during the election?
	(If anyone thinks it didn't seem difficult, I wish you had been
	in my shoes!)


Things sure have changed!  I hope that the DCU remains open to the members,
as the problems of the past fade in our memories.  The proposed bylaw
changes will not ensure that the DCU remains open -- but they should make
it dramatically easier for vigilant members to act if the old problems 
recur.  It is far too soon for us to take for granted the "new DCU".

Thanks, Paul, for acting as Secretary and for posting the Board memos.
And thanks to all those who helped in getting this information out.

	Larry Seiler

    re: .5 
    
    Amen.  I really appreciate having this type of response from the BoD.
    
    Steve

Re: .4

My understanding is the following: The figures include not only
legal fees, but also any other fees associated with selling the properties.
Furthermore, when the properties are sold, the figures also include any
amount realized from the sale above or below the amount to which the
property was written down. Note that the gain is the gain over the amount
to which the properties were written down - not a gain beyond the price
for which the original participation loan was written. 

The accounting in the board memo focuses just on the summary of losses due
to the participation loans, and does not relate directly to the gains and
losses that occured in any particular year. In other words, the bottom
line in the board memo is a "moving target". The bottom line changes as
further gains and losses are realized. These "deltas" are expensed and
gained as they occur. Perhaps Tanya could shed more light if you want an
answer more complete than mine.

But, again, as noted in the memo, most of the loss was completely
written off last year. Only the "deltas" will affect DCU's books in
this and future years.

Re: others
Thanks! It helps to know there are members out there who care enough
to stay interested.

You know...

I was just thinking about how different this all seems.  If a
certain former Board had bothered to put out a memo like
this several months ago, things might have turned out very
differently.

Thanks to the Board for the memo.  It's sure easier to read
it than to spend a week in a dusty courthouse plowing through
court records :-).

./chris