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The Investment Memorandum further states as follows:
If [fixed] rent is timely paid by each
Lessee over the eight years of the [Master]
Leases, the Trustee will receive, in the
aggregate, minimum payments, in arrears, of
$168,942.50 ($1,689.42 per unit) per quarter
for the first four quarters and $260,781.95
($2,607.82 per unit) per quarter for the
remaining twenty-eight quarters. The Trustee
will be required to apply all of such minimum
receipts to interest payments and debt
amortization under the Trust Note.
The Declaration of Trust provided that the Trust would
terminate shortly after the expiration of the master
leases. While it was possible for the unitholders to agree
to establish a new trust and re-lease the computer equip-
ment, it was anticipated that the equipment would be sold
after expiration of the master leases. The Investment
Memorandum states as follows:
At the expiration of the Leases, all of the
Unitholders may direct the Trustee to remarket
the Equipment on their behalf. If the Equipment
is re-leased and not sold, the Unitholders, as
co-owners of the Equipment, must provide for the
payment to each owner of his share of the rent
and may elect to establish a new trust. The
Declaration of Trust provides that the Trust will
terminate for all purposes 8 years and 3 months
after its creation, unless it has been terminated
at an earlier date, for example, following a sale
of the Equipment. (See "Acquisition and Lease
Terms--Marketing arrangements".) In the absence
of unanimity among the Unitholders as to any
proposed remarketing of the Equipment, the
Declaration of Trust provides that the Equipment
will be sold at auction and the net proceeds of
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Last modified: May 25, 2011