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and its assets for the satisfaction thereof without
proceeding initially or exclusively against the
Collateral.
Section 9 of the loan agreement provides to MHLC certain
"collateral security", including the following: An assignment to
MHLC of RTS' rights to the proceeds (principally rent) under the
U.S. Telephone lease and a grant to MHLC of a security interest
in the telecommunications equipment.
Sale by RTS to Proz
Pursuant to an agreement between Proz and RTS dated
December 30, 1982 (the Proz telecommunications purchase
agreement), Proz purchased the telecommunications equipment from
RTS. The Proz telecommunications purchase agreement recites a
purchase price of $3,605,205, payable as follows:
1. $175,510 by check or wire transfer to RTS concurrently
with the execution of the Proz telecommunications
purchase agreement.
2. $3,429,695 by delivery to RTS of an installment note
(the Proz telecommunications installment note)
concurrently with the execution of the Proz
telecommunications purchase agreement.
The Proz' telecommunications installment note is interest
bearing. It provides for (1) an initial payment of $2,212.70 on
December 31, 1982, (2) monthly payments of $34,296.96 for the
next 24 months, and (3) monthly payments of $49,206.16 for the
next 120 months. The initial payment and the next 24 payments
are stated to be "interest only". The final 120 payments are
stated to be "principal and interest".
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