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deferral was in excess of 13 years. The payment of the debt was
not enforceable or unconditional.
The limited recourse promissory notes included a provision
wherein the payee (the lessee) agreed to look solely and only to
the collateral for the payment of any of the obligations of the
payor under the note. There was no right of the payee to pursue
the payor independently of the collateral.
In view of the lack of economic substance, all deductions
and credits associated with this transaction and claimed by IRA
on its Federal income tax returns are disallowed.
C. Cedilla Invest.-1979 Foreign Transaction (British Aerospace
Transaction)
This transaction involved the purported sale and leaseback
of computer equipment located in England. There are several
intermediary transactions that were involved here. In October
1979, a company named Atlantic Computer Leasing, Ltd., which had
been involved in arranging the leasing transactions for the end
users, consummated a deal with companies called European Leasing,
Ltd., Carena Computers, and Funding Systems International Corp.,
a division of Funding Systems Asset Management. This is the
company with which Uhl was affiliated. The original agreement
provided for the purchase of equipment in the amount of
$2,820,501. The additional equipment was purchased for a price
of $3,042,338. The equipment included three mainframe IBM
computers and associated equipment.
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