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to that portion of the amounts due for which no partner had
personal liability. In other words, in the event that the
Limited Recourse Note was not paid in full by the partnership,
any remaining unpaid portion of such note would be that for which
the partners had assumed personal liability. Under such
circumstances, the partners would be called upon to pay their pro
rata share of the unpaid amounts due on the Limited Recourse
Note.
Pursuant to the provisions of the Purchase Agreement, the
Additional Equipment Wrap Lease was assigned to the partnership
by Hambrose. Consequently, the rental payments under the
Additional Equipment Wrap Lease were paid by Charterhouse
directly to the partnership.
The Partnership
The partnership was organized in March 1985, under the laws
of the State of Connecticut, to engage in the equipment leasing
business. Investments in the partnership were offered through a
private offering memorandum (POM). The partnership offered 70
units of partnership interests at a price of $40,000 per unit.
The purchase price was payable in full in cash on subscription or
payable $9,200 cash and the balance payable by two Investor Notes
in the amount of $15,400 each, bearing 12-percent interest
(payable annually). The principal of each of these Investor
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