- 488 -
With respect to the purported purchase agreement, IRA
executed a promissory note in the amount of $24,000 to Horizon,
another promissory note to Horizon dated December 31, 1980, in
the amount of $25,000; and a limited recourse promissory note-
security agreement dated December 31, 1980, in the amount of
$864,325.
Under the security provision of the note, IRA granted
Horizon a security interest in the equipment subject to the
interests of prior lienholders and the underlying lessee.
Under the limited recourse promissory note, the payor, IRA,
had the right to defer payment of principal and interest to
Horizon as it became due, if and to the extent any amounts of
rent or other sum due to IRA under the lease with FS was not paid
when due. Under this provision, the payments could be deferred
until December 31, 1995. The deferred amount did not accrue
interest.
The recourse obligation under the limited recourse
promissory note between IRA and Horizon provided that Horizon had
recourse against IRA with respect to failure to make proper
payments on the note as of January 1, 1989, in the amount of zero
dollars. The recourse obligations of IRA under the note were
determined only in accordance with the schedule attached thereto
during the times and in the amounts set forth in that schedule.
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