In addition to these documents, Bank Mizrahi was provided with two written decisions that were made in 2010.Board Meeting of Hefzibah Engineering dated March 13, 2003 - According to them, it was decided to guarantee the bank for any debt owed by both Heftziba Shikun and Heftziba Investments. These decisions were signed by Mordechai Yona as Chairman of the Board of Directors of Heftziba Engineering, as well as by Heftziba Engineering's attorney, Adv. Zach Pollak, who confirmed on each resolution that it was made in accordance with the company's incorporation documents; that the composition of the signatures indicated in the resolution is binding on the company; and that all the approvals required by law for the purpose of this decision have been obtained, including according to The Chapter The fifth to divide 6th 30Companies Law (which deals with the approval of stakeholder transactions). A protocol was also provided to Bank Mizrahi Board Meeting of Heftziba Engineering dated July 16, 2003, in which it was decided to pledge the securities in its account in favor of the bank and to secure any debt of Heftziba Housing and Heftziba Investments. This decision was also signed by Adv. Pollak, who confirmed that it was made in accordance with Hefziba Engineering's incorporation documents and that Mordechai Yona's signature is binding on the company (the above three decisions will be referred to below): Heftziba Engineering Board of Directors Decisions or Board of Directors Decisions).
- As already noted, at the beginning of August 2007, Mizrahi Bank was concerned that the Hefziba Group would not be able to meet its obligations to it, and therefore on August 2, 2007, the bank also made the mandatory balances in the accounts of Hefziba Shikun and Hefziba Investments available for immediate repayment. To this end, the bank "broke" the financial deposit and sold the securities portfolio in the account of Heftziba Engineering, transferring a total of ILS 4,519,103 from its account to accounts managed in the name of Hefziba Shikun and Hefziba Investments. About six years later, in August 2014, the Special Director petitioned the District Court to cancel these actions and return the full amount to the liquidation fund of Hefzibah Engineering.
There is no dispute that at the time of the execution of the engineering transaction, Mordechai Yona had a personal debt registered to Hefziba Engineering in the sum of ILS 5,472,581. According to the Special Manager's version, the transfer of the financial deposit and the securities portfolio from Mordechai Yona's personal account to Hefziba Engineering's account was intended, first and foremost, in order to evade the repayment of this debt (hereinafter: Debt Mordechai); It was further argued that given the aforesaid, there was no engineering transaction For her benefit of Heftzibah Engineering. In this context, it was clarified that in exchange for Mordechai's debt, Hefziba Engineering received from Mordechai Yona a financial deposit and a portfolio of securities that it could not make any use of due to their mortgage in favor of Mizrahi Bank, and therefore did not give it any economic or business advantage.