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Li or Proz amounts due petitioner under petitioner's lease with
Sha-Li. Amounts so deferred become due and payable on
February 28, 1996, whether or not petitioner has then received
from Sha-Li or Proz amounts due under petitioner's lease with
Sha-Li. No interest accrues on amounts so deferred.
In connection with petitioner's purchase of the computer
equipment from Proz, petitioner and Proz also entered into an
agreement entitled "Assumption Agreement" dated as of June 30,
1979 (the petitioner computer assumption agreement). The
petitioner computer assumption agreement provides that petitioner
agrees to be bound by the obligations of Sha-Li contained in the
assignment agreements and that petitioner's ownership interest in
the computer equipment shall be subordinate to the security
interest granted to MHLC by the assignment agreements. Under the
petitioner computer assumption agreement, no recourse shall be
had against petitioner with respect to any such obligations
assumed by petitioner, and, as to petitioner, all such
obligations are nonrecourse obligations.
Sha-Li, not Proz, negotiated with petitioner the terms of
the petitioner computer installment note. Any accounting records
concerning Proz' purchase and sale of the computer equipment have
at all times been maintained by Sha-Li. Proz never monitored
payments on the petitioner computer installment note. Proz
relied on Sha-Li to manage the flow of all payments between Proz,
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