- 5 - Between 1984 and 1992, MDA offered investments in bus stop shelters (hereinafter referred to as the bus stop shelter program).3 Each bus stop shelter was referred to as a bus stop shelter unit. Through the bus stop shelter program, investors entered into a purchase agreement with MDA pursuant to which the investor acquired a bus stop shelter unit for $10,000. Upon the purchase of the bus stop shelter unit, the investor had the option to either lease the bus stop shelter to MDA or independently operate and maintain the shelter. If the investor chose to lease the bus stop shelter to MDA, the investor was required to enter into two agreements: An equipment lease agreement and a maintenance agreement. Pursuant to the terms of these agreements, MDA agreed to: (1) Pay the investor $200 per month (less $30 per month for maintenance costs); (2) maintain, operate, and assemble the shelter; and (3) maintain insurance for the shelter. Upon the expiration of the agreements, MDA agreed (pursuant to a buyback agreement) that it would repurchase the bus stop shelter from the investor for $10,000 or its fair market value, whichever was higher. 3 By using the term "shelter" we do not mean to suggest or decide that the investments herein were "tax shelters" as that term is understood.Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 Next
Last modified: May 25, 2011