Investment Research Associates - Page 440




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          E.   IRA-1980 Foreign/Domestic Transaction ("Alfred Teves                    
          Transaction")                                                                
               A purported purchase agreement dated December 31, 1980, by              
          and between Funding International and Funding Systems                        
          International GmBH (Funding GmBH) was consummated, pursuant to               
          which Funding GmBH sold certain equipment to Funding                         
          International for $931,321, paid by a check in the amount of                 
          $18,721, and a nonrecourse note in the amount of $912,600.                   
               The schedule attached to the bill of sale with respect to               
          the property contained duplicate schedules of certain equipment              
          located in Belgium at two locations:  One at Alfred-Teves                    
          Strasse, 3170 Gifhorn, and one at Muller Strasse, 4-14, 5275                 
          Bergneustadt 1.  All of this equipment is referred to as the                 
          Alfred Teves transaction.                                                    
               The $912,600 note executed by Funding International included            
          a provision for deferral of payment by the payor, in the event               
          amounts due for rent with respect to the lease between payor and             
          payee were not made.  The amount deferred would become payable on            
          December 31, 1995, and would not accrue interest.  The note was              
          nonrecourse in that the payee looked solely to the collateral for            
          payment of the obligation.                                                   
               Consistent with the agreement of purchase, Funding                      
          International and Funding GmBH entered into an agreement wherein             
          the equipment was leased back to Funding GmBH.                               







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