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"legitimate". Jump contacted Northcutt about the equipment
acquisitions, and they discussed the possibility of leasing the
equipment. Jump specifically asked whether a 1-year lease was a
"legitimate" lease. Northcutt researched the issue of lease
duration and told Jump that 1-year leases would not be a problem
as long as they had monthly payments and they were set up as
leases or intended as leases.
During 1989 and 1990, UCI acquired the equipment and made
payments as follows:
Asset 1989 Payments 1990 Payments
Voss level machine $ 38,750 $11,250
Drill 66,840 12,368
Etcher 26,220 26,221
Filter press 9,295
Air compressor 7,086
Total $141,105 $56,925
The document that conveyed the Voss level machine equipment
to UCI consisted of a typed payment schedule on a form that had
the preprinted words "Purchase Order" on the top of the form.
The words "Lease Payments as Follows" were typed below "Purchase
Order". The agreement required four payments of $5,000 and eight
payments of $3,750, for a total of $50,000, with a $1.00 buy out
option. The agreement did not contain a provision for the return
of the equipment to the lessor. The invoice was signed by Jump
and dated April 28, 1989.
The drill was conveyed on a Lomas form titled "Master
Equipment Lease Agreement". The agreement consisted of a deposit
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