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Notes was due February 3, 1986, and February 2, 1987,
respectively.
As a condition of becoming a limited partner, an investor
was also required to assume recourse debt of $114,578 per
partnership unit purchased, which represented his or her
proportionate share of the Limited Recourse Note executed by the
partnership in connection with the purchase of the Additional
Equipment from Hambrose. The subscription agreement included the
following provision:
(c) The Subscriber [petitioner] understands that
pursuant to the Partnership Agreement, * * * he is agreeing
to be personally liable for his proportionate share of the
Partnership Equipment Note [Limited Recourse Note] to
Hambrose Reserve Ltd. ("Hambrose Reserve") and interest
thereon equal to $114,578 per Unit. Such personal liability
gives Hambrose Reserve the right, at maturity, to pursue a
Limited Partner directly for the amount of the unpaid
balance of his pro rata share of the portion of the
Partnership Equipment Note for which the Limited Partners
are personally liable. The liability of each Limited
Partner is several and not joint. The Subscriber further
understands that the portion of principal and interest on
the Partnership Equipment Notes for which the Limited
Partners are personally liable will not be paid until after
the nonrecourse portion of principal and interest thereon
has been paid in full.
In other words, Hambrose had the right to pursue a limited
partner directly for the amount of the unpaid balance of his or
her pro rata share of the assumed portion of the Limited Recourse
Note at maturity, which could extend to as late as January 1,
1992 (if the deferral provisions in the Limited Recourse Note
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