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I.B.M. model 3031 and other equipment; and (3) Cheshire County
Council 6�-year lease for an I.B.M. model 3031, and other
equipment. The entities named were the end users of the computer
equipment which had been purchased on or about October 10, 1979.
Under the agreements between Atlantic, European, Carena, and
Funding International, Atlantic transferred to Carena, and Carena
to Funding International, the interests of Atlantic in the
computers used by the end users. With respect to this
transaction, Funding International executed, in favor of Carena,
a nonnegotiable, nonrecourse promissory note in the amount of
$1,403,601 dated October 31, 1979.
On October 31, 1979, an agreement of lease was executed by
and between Funding International and Carena, leasing the
property back to Carena.
The sale and purchase agreement between Atlantic, European,
Carena, and Funding International allowed European to sell,
transfer, and assign to Carena all of Atlantic's interest in the
equipment. Atlantic would own the equipment subject to the lease
only upon repayment of the repurchase price specified in the
residual agreement. Atlantic, therefore, did not have legal
title to the property as of October 31, 1979, but agreed to
obtain legal title after the original end user lease expired.
Under the sale and purchase agreements, Atlantic and
European agreed to deliver to Carena the instruments Carena
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