Whoosh Inc. produces and sells water slides for theme parks. Whoosh Inc. has outstanding a $40,000,000, 25-year, 10% debenture bond issue dated July 1, 2001. The bond issue is due June 30, 2026. The bond indenture requires a sinking fund, which has a balance of $5,000,000 as of July 1, 2006. Whoosh Inc. is currently experiencing a shortage of funds due to a recent plant expansion. Terry Holter, treasurer of Whoosh Inc., has suggested using the sinking fund cash to temporarily relieve the shortage of funds. Terry’s brother-in-law, who is trustee of the sinking fund, is willing to loan Whoosh Inc. the necessary funds from the sinking fund.
Discuss whether Terry Holter is behaving in a professional manner.