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note", Cedilla Invest. was only personally liable during the
times and to the extent of the amounts referenced in schedule B
annexed thereto. Schedule B specifically provided that the
payor's (Cedilla Invest.'s) "maximum aggregate amount" of
personal liability was zero. Further, and also under the terms
of the note, Cedilla Invest.'s only obligation with respect to
payment of the amounts due thereunder was expressly in the nature
of a "nonrecourse obligation", and the payee "shall look solely
and only to the Collateral for the payment and performance" of
Cedilla Invest.'s obligations under the note.
Other than the purchase agreements, bills of sale, and
promissory notes, IRA did not produce any other documents in
connection with these equipment leasing transactions, such as
equipment appraisals, economic forecasts, related correspondence,
legal opinions, rent payment schedules, checks (negotiated or
otherwise) evidencing payments of purchase price or rentals, or
records establishing the existence or actual location of the
equipment at any time during the subject leases.
The intermediary entities involved in these transactions
(Beta Gamma Leasing Corp. and Proz Leasing Corp.) served no
economic or business purpose, and were only part of the
transactions for Federal tax purposes.
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