- 16 -
(the petitioner telecommunications installment note)
concurrently with the execution of the Proz
telecommunications purchase agreement.
The petitioner telecommunications installment note is captioned
"Limited Recourse Promissory Note - Security Agreement". It is
interest bearing, and petitioner's liability thereunder is
limited. Proz is accorded a security interest in the
telecommunications equipment. The note calls for payments
identical with those called for under the Proz telecommunications
note: (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".
The petitioner telecommunications installment note
additionally gives petitioner the right to defer payments on that
note if petitioner fails to receive payments from RTS under
petitioner's lease of the equipment to RTS. Amounts so deferred
become due and payable to Proz when, and to the extent that,
petitioner receives such payments from RTS. In any event,
petitioner must pay all deferred amounts no later than
December 31, 1999. No interest accrues on amounts so deferred.
Petitioner acquired the telecommunications equipment subject
to the loan agreement and the U.S. Telephone lease.
Page: Previous 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 NextLast modified: May 25, 2011