because of the way the request was made to him.
310. Cazalla did not speak with Godfrey about P63. He did not ask anyone at Signet Maryland for an explanation of what "favorable" meant to Signet personnel.
311. After Cazalla received the May 9, 1991 telecopy (P63), the Risks Committee of Progreso instructed Leva to get more information. Leva told Cazalla to do so.
312. On May 6, 1991, before receiving P63, Progreso advanced over $ 480,000 to Intershoe, as indicated on Exhibit D17. (U)
313. The Plaintiffs' Line to Intershoe expired on April 30, 1991. The renewal was signed on September 6, 1991. At any time between those dates the Plaintiffs could have refused to make further advances. (U)
314. Progreso forwarded P63 to NatWest. (U)
315. Fairman understood "favorable" to mean that the bank was satisfied that Intershoe was trading normally and could meet its obligations.
316. Both Godfrey and Bronfein confirmed that Signet Maryland's opinion of Intershoe in May 1991 was "favorable." As Bronfein indicated, "We liked Intershoe."
317. On May 21, 1991, Caravantes wrote a memorandum to Edwin Fairman, Head of NatWest's Risk Division, regarding NatWest's participation in a proposed renewal of the Plaintiffs' Line. The memorandum is Exhibit P66. (U)
318. At that time, NatWest possessed Intershoe's audited financial statements for the year ending August 31, 1990. (U)
319. Fairman recognized that the 1990 audited financial statements were "old." He did not ask for interim statements.
320. Caravantes recommended approval of renewing NatWest's participation in the Plaintiffs' Line, based on four factors. They were: (a) Return obtained; (b) Scrupulous compliance with each one of the due dates; (c) Improved financial condition; and (d) Opinion of Signet Banking Corporation, which introduced this company [Intershoe] to the bank.
321. At the time NatWest renewed the loan Caravantes had an unfavorable opinion of Intershoe. He did not call anyone at Signet for clarification of the May 9 telecopy (P63). Fairman did not recall his opinion of Intershoe but would not have renewed the loan based on the financial statements.
322. In response to a request from Progreso, Derderian sent another telecopy to Cazalla on June 5, 1991. This telecopy is Exhibit P71. (U)
323. In both the May and June telephone calls, Cazalla did not tell Signet Maryland that Progreso would rely on the response and did not tell Signet Maryland that the inquiry was important to Progreso. Cazalla did not explain what degree of reliance, if any, Progreso would place on the response.
324. The cover sheet to the 6/5/91 telecopy to Cazalla says: "Juan, If you have additional questions, Peter would be pleased to discuss them with you. Jeanne."
325. The underlying document, with Peter Godfrey's name in the letterhead and dated June 5, 1991, states:
Signet/Maryland's relationship with Intershoe, Inc. began in 1987. The Bank presently acts as Agent in a Bank Syndicate which provides a medium 8 figure Secured Line of Credit. The Syndicate also extends a high 8 figure Secured Foreign Exchange Line of Credit. All accounts are handled as agreed, and the relationship is satisfactory. Present outstandings on the Secured Line of Credit are a medium 8 figures. Outstandings on the Foreign Exchange Lines total a high 8 figures.