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to “have the use of such equipment, by appropriate lease or other
reasonable method, until the financed amounts shall have been
paid by B&L and releases of lien secured, at which time the
equipment shall be transferred to ENYART”. There is nothing in
the record that shows that any lending institution holding a lien
on the B&L equipment objected to the transfer by B&L of such
equipment to Mr. Enyart. Nor does the record establish that
B&L’s transfer of the B&L equipment to Mr. Enyart could not have
been, and was not, effected during the year at issue. To the
contrary, the bill of sale and conveyance effected during that
year the transfer by B&L to Mr. Enyart of the B&L equipment and
did not merely grant Mr. Enyart the right to use that equipment.
The bill of sale and conveyance provided in pertinent part:
FOR VALUE RECEIVED, B&L * * * hereby BARGAINS,
SELLS, CONVEYS, ASSIGNS and TRANSFERS unto William R.
Enyart * * * all items of [the B&L] equipment * * *
subject to the following terms and conditions:
* * * * * * *
4. Enyart acknowledges that the items herein
conveyed are jointly and/or severally subject to
financing or other liens evidencing indebtedness
owed thereon, and accepts such items subject to
such liens. B&L will remain responsible for the
payment of such indebtedness and will provide
releases of such liens at such time as the indebt-
edness is paid and such releases are executed by
the entities holding such liens. Enyart shall be
responsible, at his own cost, for the fulfillment
of all conditions of the financing documents re-
lating to such liens and indebtedness, including
but not limited to the providing of insurance
thereon, excepting only the payment of such in-
debtedness. Enyart further agrees that he will
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Last modified: May 25, 2011