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computer equipment. In the event that F.S. Venture failed to
make such payments or to make provision for such payments,
Petunia’s obligations under the Partnership Note would be
suspended until the last installment of the Partnership Note was
due and payable. At that point in time, if the loan from the
senior lienholder remained in default, Petunia would be entitled
to set off any amounts it owed on the Partnership Note against
any amounts that F.S. Venture owed to the senior lienholder as a
result of this security agreement.
Under the $2,021,792 Partnership Note, interest accrued at
12 percent per annum and payment of prepaid interest in the
amount of $308,409 was due and payable on July 30, 1980, of which
$188,472 was immediately payable in cash and the balance was
represented by delivery of a promissory note with a principal
amount of $119,937. Also under the Partnership Note, on July 1,
1980, an interest payment of $674 was due and payable by Petunia
to F.S. Venture, and from July 1, 1980, to December 1, 1982,
monthly interest payments of $9,938 were due and payable to F.S.
Venture. From January 1, 1983, through December 1, 1989, monthly
principal and interest payments totaling $35,690 on the
Partnership Note were due and payable to F.S. Venture.
Petunia's monthly payment obligations to F.S. Venture (of
$9,938 that were due from July 1, 1980, to December 1, 1982, and
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