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interest it would eventually obtain at a price insignificant in
comparison to the purported original purchase price. Thus, no
substantive residual value was extant.
IRA presented no evidence of fair market value, residual
value, or useful life regarding this equipment, other than the
original purchase prices. The recourse obligations with respect
to the liability of IRA were determined as of the date of
occurrence of a default pursuant to attached schedules which
stated that the maximum amount of personal liability was zero.
Moreover, to the extent that any payments of IRA were deferred
because a default in the lease rentals to IRA, such deferred
amounts were not subject to recourse liability. Thus, there was
no real recourse against IRA. The obligations of Funding to
Carena were nonrecourse. Cedilla Invest./IRA did not assume the
obligations. IRA's purported purchase was subject to the rights
of prior lienholders, lessees, and the rights of Atlantic.
The lease between Cedilla Invest. and Funding International
ended on December 31, 1988. As of January 1986, the equipment
used in this transaction, i.e., the IBM mainframe computers,
model Nos. 3031 and 3032, was no longer listed in the computer
price guide, which is the bluebook of used IBM computer prices.
This would indicate that the residual value of the equipment as
of that date was zero.
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