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The Alanthus Note and security agreement do not expressly
indicate whether MHLC’s $1,868,657 loan to Alanthus was made on a
recourse or a nonrecourse basis. The parties, however, agree and
we so find that as a secured loan, under New York Uniform
Commercial Code (N.Y.U.C.C.) section 9-504(2) (McKinney 1990),
this loan is to be treated as made on a recourse basis.
On February 11, 1980, in anticipation of its acquisition of
the above computer equipment, ACC entered into a lease agreement
with Manufacturers and Traders Trust Co. (MTT) under which ACC
leased the above computer equipment to MTT. Under this end-user
lease, MTT was obligated to pay monthly rent of $33,875
commencing June 1, 1980, and continuing for a term of 7 years.
During the 7-year term, MTT was required to make the lease
payments directly to MHLC in payment of the monthly payments that
were due to MHLC on the Alanthus Note.
On March 13, 1980, in connection with the sale of the
computer equipment from ACC to Alanthus, ACC assigned to Alanthus
its interest as lessor in the end-user lease with MTT.
Purchase by Partnership and Related Transactions
On June 30, 1980, three additional and essentially
simultaneous transactions occurred involving the computer
equipment with the apparent ultimate objective, among other
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