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stated that Pro Am was “renting” the 1986 Peterbilt to
Mr. Tillman, and that he was paying Pro Am 60 months of “rent” at
$1,604 per month.3 It also stated: (1) Mr. Tillman was liable
for all taxes, fees, and other charges on the truck;
(2) Mr. Tillman was responsible for maintaining the truck;
(3) Mr. Tillman had title to the truck; (4) Mr. Tillman was
responsible for insuring the truck, at his own expense;
(5) Mr. Tillman assumed and bore the entire risk of loss on the
truck, including loss from damage, theft, or destruction; and
(6) Mr. Tillman “shall have and shall be deemed to have properly
exercised an option to purchase” the truck upon his timely
payment of all monthly “rents” due under the agreement. Under
the second agreement, Mr. Tillman was “treated as the purchaser
of the [1986 Peterbilt] for purposes of the investment credit".
Under the third agreement, Mr. Tillman acknowledged that the
“lease” was assigned to Michigan National Bank for collection of
the “rent”.
Immediately after the acquisition, Mr. Tillman applied to
the State of Michigan for title to the 1986 Peterbilt, stating
that "I am the purchaser of the [1986 Peterbilt]". Mr. Tillman
also registered the truck in Indiana, stating that he was the
owner, and the State of Indiana issued him a certificate of
title. In 1987, in his stated capacity as owner of the 1986
3 Pro Am had purportedly purchased the truck from the seller
in January 1987, at a total cost of $85,227.
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Last modified: May 25, 2011