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such sale will be distributed to the owners in
accordance with their respective ownership
interests in the Equipment. (See "Risk Factors
--Termination of the Trust.")
In view of the fact that the quarterly payments of
fixed rent equaled the quarterly installments under the
Trust Note, any economic benefit to the unitholders from
this transaction could arise from only two sources:
Contingent Rents and the proceeds from the sale of the
equipment after expiration of the 96-month master leases.
The Investment Memorandum states as follows:
Economic benefits to the Unitholders during the
term of the Leases will arise out of rents
payable under the Leases by Lessees, which rent
will consist of both fixed rent and certain
"Additional Rents" [i.e., contingent rents]
based on a percentage of revenues, if any from
the re-leasing of the Domestic Equipment by
Domestic Lessee and the re-leasing of the Foreign
Equipment by Foreign Lessee following the
expiration of the initial term of the Domestic
User Leases and the Foreign User Lease (the "User
Leases"). Fixed rents payable under the Leases
together with the investor's cash contributions
to the Trust will be sufficient to service the
installment obligations under the Trust Note.
* * * * * * *
Apart from Additional Rent, if any, which
the Trustee may receive (see "Acquisition and
Lease Terms"), the residual value of the
Equipment after the expiration of the [Master]
Leases is the sole source of funds to which a
Unitholder will have to look for a return of
his capital investment in the Trust.
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Last modified: May 25, 2011