35. Prior to January of 1978, when AEC acquired a participation interest in the Susquehanna Steam Electric Station, AEC did not own any generation or transmission facilities. (Undisputed)
36. Prior to January, 1978, AEC met all of its members' power and energy needs through purchase arrangements with 5 power suppliers. (Undisputed)
37. Defendant Telegraph Building Corporation, Inc. (TBC) is a Pennsylvania business corporation which owns the Telegraph Building, the property in controversy. (Undisputed)
38. TBC is owned by Locust Court Associates, Inc. (LCA). (Undisputed)
39. LCA is a Pennsylvania business corporation and owns all of the stock of the Telegraph Building Corporation.
40. LCA is owned by ABC.
41. PREA is a Pennsylvania non-profit corporation and is a coordinator and member service organization for Pennsylvania's rural electric cooperatives. (Undisputed)
42. The Defendant Rural Electrification Administration (REA) is an agency within the United States Department of Agriculture. (Undisputed)
43. REA provides direct loans at interest rates of 2% To 5% To rural electric cooperatives.
44. REA guarantees loans for the construction of large-scale electric power plants.
45. REA has lent and is currently lending substantial sums to all of AEC's members with the exception of one.
46. On August 12, 1977, REA made a commitment to guarantee a loan by the Federal Financing Bank (FFB), an instrumentality and wholly owned corporation of the United States, in the amount of $ 241,408,000.00 to AEC to finance a 10% Participation interest in Susquehanna Station.
47. On December 15, 1977, Reuben Yoselson, President of AEC, executed a mortgage to the United States, a loan contract dated as of July 29, 1977 between AEC and the United States of America, and a mortgage note to FFB dated as of August 16, 1977. (Undisputed)
48. The National Rural Utilities Cooperative Finance Corporation (CFC) is a non-profit corporation.
49. CFC provides supplemental financing for the rural electrification program.
50. CFC provided a two-year $ 1,000,000 loan to AEC to build Locust Court Building.
51. Commonwealth National (CNB) was the lead bank in providing funds for a mortgage to ABC to construct the Locust Court Building.
52. Dauphin County Industrial Development Authority (DCIDA) provided tax exempt financing to build the Locust Court Building.
53. DCIDA provided a $ 2,500,000 lease-purchase financing to ABC to construct the Locust Court Building.
54. The financing of the Locust Court Building was accomplished by a consortium of banks headed by Commonwealth National Bank in which AEC's members maintained deposits.
55. CNB provided a $ 2,500,000 loan to ABC and DCIDA for the Locust Court Building.
56. AEC provided a $ 3,800,000 mortgage to ABC and DCIDA to finance the construction and the operating losses of Locust Court Building.
57. The mortgage mentioned in the preceding paragraph is subordinate to the mortgage of DCIDA to the Commonwealth National Bank.
58. Consumer Life Insurance Company provided a $ 182,000 mortgage to the Telegraph Building Corporation to finance the acquisition of the Telegraph Building. (Undisputed)
59. The loan mentioned in the preceding paragraph was guaranteed by AEC, PREA, and LCA.
60. ABC guaranteed the mortgage loan granted to TBC with the hope of expediting the construction of a parking area to alleviate tenant parking difficulties at the Locust Court Building. (Undisputed)
61. As of December 31, 1972, when PREA and AEC were attempting to secure a loan for the building of their new headquarters, AEC had $ 274,345 in net capital (patronage capital) and donated capital of $ 6,400.
62. As of December 31, 1972, PREA was in a deficit position with a $ 16,541 deficit.
63. The Locust Court Building mentioned above was initially to cost $ 2,500,000 but by November 16, 1973 the project cost had increased to $ 3,000,000.
64. On May 13, 1974, a $ 500,000 increase for the construction of the Locust Court Building was approved by DCIDA and the project cost was now approved at $ 3,500,000, the last $ 500,000 increase not being funded by DCIDA financing.
65. On November 21, 1974, DCIDA authorized an increase of $ 100,000 to the project cost thus increasing the total cost to $ 3,600,000.
66. The Locust Court Building was financed from the following sources:
a. CFC lent $ 1 million to AEC to be used in the initial stages of acquisition of the State Theater Building site and demolition of the State Theater and construction of the Locust Court Building. This loan was repaid prior to the DCIDA loan described below. (Undisputed)
b. DCIDA lent.$ 2.5 million to ABC with a guarantee of AEC through the 25 participating banks located throughout Pennsylvania. (Undisputed)