Earnest and Laura Tillman - Page 7

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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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