Investment Research Associates - Page 431




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               On October 31, 1979, Atlantic, European, Carena, and Funding            
          International executed a sale and purchase agreement regarding               
          other equipment which was part of the British Aerospace                      
          transaction.  The stated value of the equipment was $3,042,338.              
          Under this agreement, Atlantic and European transferred                      
          Atlantic's interest in the equipment to Carena, subject to                   
          Atlantic’s acquiring title to the equipment under the residual               
          agreement.                                                                   
               Under the residual agreement, Atlantic agreed that upon the             
          expiration of the initial term of the lease, it would make                   
          payment of the balance of the purchase price and agreed to                   
          deliver to Carena the instruments necessary to ensure ownership              
          of, and legal title to, the equipment.  The parties agreed that              
          Atlantic would, upon the expiration of the initial term of the               
          lease, undertake the necessary steps to have the equipment                   
          purchased at a price equal to 2 percent of its original cost.                
               On October 31, 1979, Carena and Funding International                   
          executed a purchase agreement relating to this equipment.                    
          Funding International, as purchaser/owner, issued a nonrecourse              
          installment promissory note to Carena, dated October 31, 1979, in            
          the principal sum of $1,462,793 and interest payments for the                
          balance of $22,132.28 and $37,392.28.  The parties entered into              
          an agreement of lease dated October 31, 1979, leasing the                    
          equipment back to Carena.                                                    






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