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things, of transferring ownership1 of the computer equipment
(subject to the secured interests therein of MHLC) to Petunia
Leasing Associates (Petunia), the equipment leasing partnership
in which petitioner invested and through which petitioner now
claims the losses and expenses at issue in this case.
In the first transaction, Alanthus sold the computer
equipment and assigned its interest as lessor in the end-user
lease to F/S Computer Corp. (F/S Computer). Immediately
following that transaction, F/S Computer resold the computer
equipment to F.S. Venture Corp. (F.S. Venture). F.S. Venture
then resold the computer equipment to the Petunia partnership.
MHLC’s security interests in the computer equipment and in the
payments due from the end user under the end-user lease were not
affected by any of these transactions.
Alanthus sold the computer equipment to F/S Computer for the
stated price of $2,122,329, of which $267,288 was paid in cash.
As payment for the balance of the purchase price, F/S Computer
assumed the $1,868,657 principal amount of Alanthus’ debt
obligation to MHLC and the monthly payment obligations to MHLC on
the Alanthus Note.
1 Use in this opinion of “ownership”, “purchase”, “sale”, and
other words that normally suggest economic and legal ownership of
property, or the transfer of same, is for convenience only and
does not constitute any finding or conclusion as to which entity
should be regarded, for income tax purposes, as the owner of the
computer equipment.
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Last modified: May 25, 2011