- 10 -
Petunia from July 1980 to December 1982, matched Petunia’s
monthly debt obligations owed to F.S. Venture under the
Partnership Note. From January 1983 through December 1989, F/S
Computer’s monthly rent payments of $35,935 that were payable to
Petunia slightly exceeded Petunia’s monthly debt obligations of
$35,690 owed to F.S. Venture under the Partnership Note.
Pursuant to the lease agreement with F/S Computer, and in
addition to the lease payments mentioned above, Petunia also was
entitled to receive from F/S Computer, 40 percent of all net
rental income until June 30, 1989, with respect to the end-user
lease after end-user lease payments had been applied to payments
due MHLC under the Alanthus Note. Thereafter, Petunia was
entitled to receive 90 percent of all net rental income with
respect to the end-user lease until termination of the lease
period.
At the time of the above transactions, F/S Computer and F.S.
Venture were wholly owned by Funding Systems Asset Management
Corp. (Funding). Funding in turn was wholly owned by FSC Corp.
(FSC).
In order to induce Petunia to enter into the above purchase
and lease transactions with F.S. Venture and F/S Computer, FSC
unconditionally and on a full recourse basis expressly guaranteed
Petunia and its limited partners the full performance of all
obligations of F/S Computer under F/S Computer’s leaseback of the
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Next
Last modified: May 25, 2011