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BANK OF AMERICA DECLINES TO RENEW CALPROP LOAN

 BANK OF AMERICA DECLINES TO RENEW CALPROP LOAN
 LOS ANGELES, July 24 /PRNewswire/ -- Calprop Corp. (AMEX: CPP)


today announced that Bank of America has notified the company that it will not renew its $14 million loan and that it plans to foreclose on the properties securing the loan.
 Victor Zaccaglin, chairman and chief executive officer, said that he was disappointed by the decision and that it would have an effect on Calprop of a non-cash writeoff of $5 million to reserve for loss on the eventual foreclosure of the properties to Bank of America. The loss of these properties will effect future earnings due to the reduction of entitled lots in our inventory.
 "It should be pointed out that we have not missed any payments to Bank of America. Bank of America's decision is based on the fact that the declining California real estate market has caused the properties securing the loan to fall below their loan to value requirements. The company is current on its loan payments with its other lenders."
 Calprop Corp. common stock is traded on the American Stock Exchange under the symbol CPP.
 -0- 7/24/92
 /CONTACT: Stuart Eigler, VP, secretary, treasurer of Calprop, 310-306-4314; Nick Farina of FRB Chicago, 312-266-7800; or Lise Needham of FRB San Francisco, 415-986-1591, for Calprop/
 (CPP) CO: Calprop Corp.; Bank of America ST: California IN: CST FIN SU:


EH-AL -- LA027 -- 3156 07/24/92 16:33 EDT
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Publication:PR Newswire
Date:Jul 24, 1992
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