HomeMy WebLinkAbout97-00166
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entitled to all expenses incurred in the repossession, recovery, storage, repair, sale, re.lease, and Court costs, In addition
to any arrearages in rent and the balance of the lease payments, together with attorney's fees,
WHEREFORE, Plaintiff demands judgment of possession, together with reasonable attorney's fees, Interest and
costs,
Respectfully submitted,
~ KODAK, P.C.
RfI:~
407 North Front Street
Post Office Box #11848
Harrisburg, PA 17108-1848
(717) 238-7151
Attorney 10 No. 18041
Attorney for Plaintiff
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F:\USERIB00lIEJO:COMPIWORK\22451.REP:06Df8;96
1. LEASE TERMS. lessor hereby leases 10 Lessee and Lessee hereby
lea585 Irom Lessor the equIpment listed above and on any allaChed schedule,
(Merimartet lhe "EquIpment"), on the terms andccndlllons S8110nh hetlM. This Lease
shall commence wllh ,.specllo a panlcular Item 01 eqUipment on the dale Accepted
by the Aulf1O(Jzed Signa lure of Lessor below. Any Advance Payment by Lessee and
Lessor's retentIOn 01 any Advance Payment shall be held as sscumy for Lessees per-
lormance 01 the Lease and shall nOl be deemed 10 slgnlly acceptance by Lessor. Lease
payments shall begin as 01 such Commencement Dalo.
2. STATUTORY FINANCE LEASE. Lessee acknowledges lhallhlS Lease IS
Inlended 10 quallly as a statulory "Finance Lease' under ArtiCle 2A ollhe Unllorm
CommercIal Code and lhallessee has selected both Ihe EqUipment and Ihe supplier
110m whom lessor IS to purchase Ihe EqUipment lessor has nOI participated in any
way in Lessee's selection of the EQuipmenl or the supplier and Ihatlessor has nol
selected, manufactured, or supplied Ihe Equipment. lESSEE IS ADVISED THAT IT
MAY HAVE RIGHTS UNDER LESSOR'S CONTRACTTO PURCHASE THE EOUlp.
MENT FROM THE SUPPLIER CHOSEN BY LESSEE ANO THAT LESSEE SHOULD
CONTACT THE SUPPLIER FOR A DESCRIPTION OF ANY SUCH RIGHTS.
3. LESSEE'S WAIVER OF WARRANTIES.
A. LESSOR MAKES NO WARRANTY EXPRESS OR IMPLIED AS TO
ANY MATTER WHATSOEVER, INCLUDING THE CONDITION OF THE EOUIP.
MENT, ITS MERCHANTABILITY OR ITS FITNESS FOR ANY PARTICULAR PUR.
POSE. AND LESSEE LEASES THE EOUIPMENT 'AS IS' AND WITH ALL FAULTS,
B, IF THE EOUIPMENT IS NOT PRO PERL Y INSTALLED, DOES NOT
OPERATE AS REPRESENTED OR WARRANTED BY SUPPLIER OR IS UNSATIS.
FACTORY FOR ANY REASON. LESSEE SHALL MAKE ANY CLAIM ON ACCOUNT
THEREOF SOLELY AGAINST SUPPLIER AND SHALL, CONTINUE TO PAY LES.
SOR ALL RENT PAYABLE UNDER THIS LEASE, LESSEE WAIVES ANY AND ALL
RIGHTS AND REMEDIES CONFERRED UPON IT AGAINST LESSOR BY SEC-
TIONS 508 TO 522 OF ARTICLE 2A OF THE UNIFORM COMMERCIAL CODE OR
COMPARABLE PROVISIONS OF APPLICABLE LAW. So long as lessee is nOI in
default of this Agreemenl, lessor shaH aSsign 10 lessee aU warranties Irom Ihe supplier
lor the purpose 01 making and prosecutmg any such claim. lessor shall have no reo
sponslbllily for delay or failure 10 Wllhe order and in no event Shall Lessor be liable to
lessee lor speCial. indirecl or consequenhal damages.
4. lESSEE'S AND GUARANTOR'S WARRANTIES TO LESSOR. lessee
and any guaranlor nereby represenl and warranlto lessor:
A. They have read and undersland this lease.
B. They authorize Lessor 10 inser1l1llhlslease Ihe serial numbers and other
id4ntlficatton dala ollha EqUipment when delermllled by Lessor.
C. The Equipment WIll be used for lJusiness purposes only and not lor any
personal, lamlly, or househOld purposes.
D. The finanCIal inlormallon and other slalements provided to Lessor are
accurale and corred and Will be updaled upon Lessor's 'equesl dunng Ihe term ollho
Lease.
E. They have the unreslflcled authoflly to elller inlo this Lease, have
authorized Iho person e_eculmg il and cerllly Ihat all slgnalure5 ate genuine, Ihallhl5
Lease and any Guaranty represents Ihe valid, binding and entorceable obllgallons 01
Lessee and Guarantor ,espectlvety and do not contravene Ihe prOVISions 01 any law
or regulation Ot any agreemenl to which Le5sea or GuaranTor IS a pany.
F. Upon acceptance Ollhls Lease. Lessee's cbligalions herounder are un.
conditional and they Will pay all costs connoclcd With ttle E"quipmen' :......... ..,I"'ltl~ C'.._ ...h....n__P.
In5urance. t~P.1Ifs. ShlpPllll]. earty letmlllatlon 1005, cOI!e~tlon co EXHIBIT A
penses normall" paid wllh 01 notleJ~~ . "
5. SUCCESSORS Arm ASSIGr~MENTS, l[S~)EE SHA!;L NI)l ~t-:1I,> II::" _
Americoro
FtnRnclRL,inc.
20300 WEST 12 MILE ROAD
SUITE 202
SOUTHFIELD, MI4B076
Telephone (313) 350.1440
QT\'.
DESCRIPTION OF LEASED EQUIPMENT
SEE SCHEDULE A
EQUIPMENT LOCATION: (iI other Ihan BIlling Address of Lessee)
INITIAL
RENTAL
TERM
MONTHL Y RENT
Base
Payment
$1 , 15B. 00 +
Total
Payment
= $I,227,4B
Tax
$69,4B
60
Months
Lbase Agreement
1i;1
t
"
SERIAL NO,
Neither Supplier nor any
salesperson Is an agent
of Lessor nor are they
authorized 10 waive or
alter the terms 01 this
Lease, Their represenla.
tions shall tn no way 01.
lect Lessee or Lessor's
/Ights or obllgallons as
herein eet lorth,
City
County
Slale
z,p
ADVANCE PAYMENT
Check lor this amounl must accompany Lease Agreemenl
o Security Deposil
$ 1,227,48
[] Olher fi rst payment
THIS LEASE IS NON-CANCELLABLE
LESSEE ( Complele Legal Name)
Back Analysis Corporation
Billing Address
3 S, 40th
City
Street
County
Cumberland
State
Zip
17011
Camp Hill
Area Phone
PA
Dale
Lane, President
EPTAM:lf8F LEASED EQUIPMENT
We hereby r1lly Ihat all 01 I Equipmentfl'lfrtd 10 In Ih, lU'1 hal blln d.Wv,,,d
to and has b n rlcelVld by t e lessee,lhallny inllUallon Of oth,r 'NOr" neenury pilOt
10 Ihe use Ihlleol hll bOltn compl.,ed, thai the EQUlpmenl hal bll" '_Imin.d by 11'1.
l.ssee and IS In good workJllQ cond>tion and r'pllt Ind IS in all fllPlCllUllslaClory 10 the
lessee. and Ihal Ih, EQUipment is aCCl!p18d by l,uII 10' III putpolll under Ihe Leu.
Lessee
Date
December
28, 1994
Dalo
December 28, 199L
Lease#
3459-1
I AODtTlOt/Al T[nMSMmCOtlOlnm~SWHICH ARE PART
SICitl. SUOlEASE. PLEDGE. LIEN MonTGAGE. OR OTHERWISE ENCUt.18ER
THIS LEASE. THE EQUIPMENT. ANY ACCESSORIES ATTACHED THERETO OR
ANY I~TER[ST HEREIN. VOLUNTARILV OR INVOLUNTARllV, WIlHOUT THE
PRIOf\ WRlnEN CCNSENT OF THE LESSOR. Lessol may Jsslgr'l 1f18 loasewllhoul
nol.ClIla lessee and Lenor S JUiQnll8 shall have all cllOS50r SI'lJh!S and 111Ie 10 Itus
lUJ.se.1t18 fontal herein P/O~I"od fOl aM the EQUipment It 15 UI"dOlSlood Jnd a(]lOod.
1I1Jl l,:uco shall nol .15ser1 against Such ass'Q"ee Jny dalense, caunlerc!alm or sel
oil ""hlch Le5stl' mav h.we <Ig,uns! lusscl or any alhor pOIson.
6. OPERA liON AND "'AI~~TENANCE OF eCUIPMEUT. losseo Jllrees:o
keop thO EqUlpmenlln 900d wOfklnl) conalllon and ropalr alii 5 o.pcnsa .1"d to use.
operale and mamli1m lho EQUipment In cort'pllanca With aU laws lelJllng to .ts
posse!tslon. use 01 mamlenance 81"'lJ m 11'10 rTlannel conlemplated tly 11'10 supplier aM
In compliance WI!M all applicable manulactuler s manuals Lessee !:ollall not rTlak.e Jny
modltlCJllon. alterahon or addlllon 10 Ihe Equlpmenl. Olher lh.ln nOlmal opelalln!]
repJi/!o, wllhoul Lessor.s prlOl wlJl!en consonlan.:l any such Jltolallon sh.111 beCome tno
propony ollhe le!:osor.
7. LEASE PAYMENTS
A le!t!:oeo aQlees tMI lime 15 01 Ihe es:;ence and shaH make all IOJSO
payments m advance on IMe dale desll;lnaled by Lessor Pay men IS shalt bll payable.:11
Ine oltlce ollessor, 01 to such otnerperson andor at SUCh O1her placo as Lessor may
Irom lime to lime deslgnale In Willing
B. Any advances and COSIS Incuflld by lessor as sol tanh herein. shall ClJ
- added to tho ne_1 lease payments due hereunder and st1a!1 be paid by lessee WIlh
mleresllM/eon althe lato 01 ani and Ihree quaners pelCent pel monlh. or any pan
lheleol, until paid.
C, II lessee cancels thiS lease pnor to the Commencemenl Date and lhe
lessor accepls said cancellation, IMelessor shallrelaln Ihe Adyance Paymenlto ollsel
".penses mcuffed wllhoul atfectmg any otner ru~htS and lemed;es lessor may haye
101 bleach Ollhls Agreement.
D. Upon the "rmcnallon 01 the lease. lessee Will. at lIS e_pense, lmme.
dlalely craIe. Insure, and shIp Ihe EQUlpmenl and operallng manuals 10 a deSllnatlon
deslOnaled by lessor, In as good condition as received less nOlmal wear and lear, and
In compliance wllh Sachon e heleol, s81d dnllnallon 10 be confirmed by lessee pnor
to sMlpment Lessee shall pay lessor an amounl equal 10 Ihe rtlOnlhly lease paymenl
as sellonh helem lor any month. or panlMereol. Itom Ihe dale 01 lermlnallon ollhe
lease until the EQUipment IS recelyed by lessor.
8. OWNERSHIP AND TITLE. lessor is Ihe sole owner ollhe EqUlpmenl and
no Il1le or flghl shall pass 10 lessee e_cepl as herein e_p,ossly o'anled. Lessor may
Inspecl lhe Eq',Jlpmant and alii x markings on lt1a Equlpmonl, 01 requesllossee to do
so, indlcatln!] Ihe lessor rs lhe owne, IMreol and lessee will nolremove lhe same.
lessee shall Itstlhe EQUIpment as "leased Equlpmenl. on lessee's personal ploper1y
la_ rell!rn. Tho Equlpmenlls and shall be deemed personal PIopOr1y even II allached
10 Ie ally. lessee shall malnlaln the Equlpmont so thal., may be removed Irom any
really or buildmg In which It IS placed Wllhoul damage. lessee shall I<eep Ihe
EqUipment and 115 mtoresl Iherem. Itee 01 all liens, lelJle~ and claims whalsOolJer.
ftxcept lhose crealed by lessor.
9. TAXES, ASSESSMENTS AND FEES. lessee agrees 10 pay all licenSing
and reglslrallon le'ls lorlhe EQUipment. all personal ploper1y la_es assessed against
lhe EqUipment and all olher laxes, assessmenlS. lees and penalties !local. Slate and
ledelall which may be leVied or assessed on the ownership, leaSing, renlal~' ,
purChase, possession or use ollhe EqUipment, excluding any tales on or mea d
solely by lessor's nal income. l.ssor may. bullS nOI obligaled 10, pay such taxe d
olher amounts and may Ille such retUfns on behal! of Lessee II lessee lalls 10 0 ,
and lessee shall reimburse les~of upon demand lor any amount eJpended lor such
chalge, lales. assessmenls, fees or penallles paid by lessor heroundet plus any
amounl due under Section '4 hereunder. lessee and lessor hereby agreo lhallessor
shall enJOy Ihe tax benehts rllsulMQ Irom Ihe ownersMlp ollhe Equlpmenl. Should
Ihese benellts lot any leason be disallowed, lessee aglees 10 Indemnify lesso' lor
such toss by paying lessor an amount equal to lhe value ollhe 105t benellts as deler.
mlne.d by lessor's tax counsel. lessee aulMorlZU lessor 10 Ille hnanclng slat~nts
wllhoul lhe signature 01 lessee wllh respect 10 IMO EqUipment and II a Signa s
requlfed by law, lessel heraby appOlnlS lesso' as lesseo's altomeY'ln.l. 10
execute such hnanclng slatements and agrees 10 pay the lessor Ihe costs and e~ e
at prepanng and making such hhnOlsl. For purposes 01 any llling, lessee hereby grants
lessor a secuflly inleresl in all paymenls racotv.1ble and 11'10 Equipmenl, and aUmlarest
ollesseo Iherem, and all proceeds and plOduCIS thoreol.
10. RISK OF LOSS INSURANCE. lessee assumes lhe enllle flsk 01 loss.
11'1011 and damaoes 10 the Equlpmonl unlllredelwery 10 lessor allhe elplrallOn 01 IMe
lease, whelher 0' nol covered by .nsuranco. and no such loss shall relieve lessee 01
115 obligatiOns hereunder. lessee, 31 lIS own eJpense. shall keep tMo EqUlpmenl
Insured and prOVide proal 01 Insurance 10 lessor, 10 prolecl alllnlerests ollessO!
against loSS or damage 110m any cavse whatsoever 101 1'101 less than Ihe unpaid
balanco ollhe lease paymenls due hereunder Ot eighty pelCent (eO~/_1 ollne 1M en
cUffenl value 01 the EqUipment. whlchelJer is higher; and to pUlChase Insurance in an
amounl reasonable under Iho Clfcumstances as delermined by lessor 10 COV~h.
Ilablllly 01 Lessor lor publiC hablhly, personal Inlury and p/openy damaQe
insurance pOlicies and the proceeds Iherehom shall be Ihe sole property olle..so d
lessor ::ohall be named as an addlMnallnsu,ed and as sole loss payeo. Each I
shall elpressly prolJide Ihal said Insu,ance Shall 1'101 be modlhed or invalldaled as
agalnsl Lessor by any act, omiSSion or nbolecl 01 lessee and cannOl be cancelled
without ten (10) days pnor wntten nohce to Lessor. Lessee shJlllurnlsh lessor a
!tatislaclory eVIdence 01 the insurance covelago ,eqVlfed hereunder. The procoeds
Irorn SUC~l In<;uranC8 wllttthcr ICSlIlhfllJ Irom loss. dam.lglJ. lelurn 01 plomlurtl 01
olhrH'Ni':oe. sh;lll De appt.ud lowJrd tho Icptacemenl or rcp.1If c.llhe EqUipment or 1M
paymenl 01 oOhQalion~ 0lla5s1l0 tlerlllundtff, .11 Ihe opllon 0lle5sot lcssul;! appomlo;.
LC55r:;r as le5see's allolnlfY'ln.lacllo makfl claim lor. recolvu pay men I 01 and eJocute
and trflde/so .lll doc~ml;lnt5, CtWc:kS or dlalts 10110$5. damage 01 letuln premium unCIH
any such If1surance pOht;y
11, IUDEMrlITV, LeS';Cle agrees to Indemnify and hold lassol Iroe and
harm loss .19amsl all cla_ms, d;lInJ(jos 10!.S!.!S. llJbl1011es and elponsesloncludll1!] .1IlOf.
nuys' le05\ arising 01 fUsull.ng !rom the ownership. manufacture. use, POSSU5!t,on.
opcrallon (log;:lIdIUSS 01 whOllt. 110W and by ,...1'1001 operatedl control 01 condlllon
(Including lalonl 01 011'101 d~locts whamllr 01 1'101 dl!tcoverable by lesseo}. delllrllry or
/elurn at Ihe Equlpmonl. TillS lndemnlflcalion o;.t\a1t lem3iM In lull lorce and effllcl
nOlwl!hstanCl,ng lhe h!rmlnatlon of tl'll!o luase. 101 any reason
12. DEFAULT les$eo shall be In delault 01 II'lIS lease on any 01 tho 10llowl"')
ovenlS (a) lussee falls 10 pay Jny lease paymenl. or any ol\1Or sums hereundtlf when
due and ':ouch failure conllt'1ue5 tor live (5) days, Ibl J bleach ollhe lemlS COnd.tlons,
waff:lnhe5 or representallons 01 IhlS Lease. 01 any olher aQreemenl b",,,vocn 1110
parlles hereto. (cl any e_ocutlon or Will 01 plocass IS Issued 1M any achon or plOcee(Mg
10 seize at detam the Equlpmert: (dl a proceeding In bankruPlcy, recewOfshlp 0/
InsolvlJncy shall bll Insliluled by or agalnsllessee 01 any Quarantor; (el lessee shall
entOI Into dny agreement or compOSition WIIn ItS crea,I.,)Is. bleach or dlllaull uncOI any
term 01 any loan 01 credll agreema"!; (I) lessee or any guaranI or glye lessor
reasonable cause 10 be mseCUfe about Lessee's Willingness or ablllly to perf aim Its
oOllg.lllOns ~nder 11'115 lease: (gjlesseo or any guaranlor dies. becomes Insolvenl or
unable 10 pay ItS debl whun due, merges. conSOlldales or Iranslels all or substanllally
all ollIS assets
13, REMEDIES. Upon a delaull by les~ee, lessor shall have Ihe IighlIO: (II
retake lmmedlale possession 01 Ihe Equlpmenl wllhoul any coun orCler 01 other
plocess 01 law and 'Of SuCh pu/pose may enle' upon any plemlSes wnele Iho
Equlpmenl maybe andlemove Ihe SJme Iherellomwllllot Without notice olllSlntGnllon
10 CIa same, wllhOul being hable In any SUIt or action at other proceedings by the lessee.
lessor may, JlllS opllon, sell or re.lease IhO Equlpmenl al any publiC or pflvate sale
lor cash or on Cledlt and Lessee shall b9 liable lor Ihe elpense inculted In the
lepossesslon. lecoyery, Slor30e, lepalr, sale, te.lease and coun cosls, 1M addition to
any auears In rent and the balance ollhe lease paymenls plovlded lor f1ereln.togelher
With reasonable a!lorney's lees, less lhe net proceeds 01 dlSpOSlhon, .1 any. ollhe
EQulpmenl, andi'or (21 accelerale all sums payable under Ihe Lease and any otller
agreemenls Wllh lessor and require lessee 10 imme(halely pay Lessor all sums thaI
aro already due and lho dlscounled value. al a dlscounl rale 01 nme percenl (9-/.) as
at IhO dale 01 detault, 01 all payments Ihat Will bo due under IhlS lease, plus Lessor s
eSllmale at the lime IhlS Lease was enlered inlo 01 lessor's tesiduallnterest In the
Equlpmenl. reduced 10 present value al a dlscounl rate 01 nine percelll (9-/_) as oltne
dalO 01 delaul!. less lhe nel ploceeds 01 dlsposlhon, II any, 01 the EQUIpment. SUCh
sums shall be due and payable upon notice 01 acceleration and demand lor paymer:.
Should lessee 1.11110 make such payment al1e' nOllce and demand, lessor shall be
ontltled to Inslltute appropflalelegal proceedings agalnsllessee With lhe lessee being
Ie span sible lor said sums, court CO!tlS, and reasonable auorney's lees Incurred and!
or (3) lessor shall have thO nghllo e_erclse any olher remedy allaw 0' eqully, nOlice
IMereol bOInO explessly walyed by lessee and any guarantor. The tlOhts granled
lessor Shall bo cumulallve. and action U(lon one shall nOl be deemed 10 conShtule an
.leCllon 0' waiver 01 any olher rights or lemedles allaw or equily 10 which lessor may
be enhlled. AU sums due undor Ihe calCulatiOn! above shall become immedialely due
and payable and are to be construed as IIquldaled damage ralhel than a penalty
prOVISion lessee SMail lemam liable lor any loss. destruction. or injUry to Ihe
Equlpmenl until Ihe EqUlpmont is telumed m lhe manner herein plovlded. The
prOVISions ollhls lease are severable and SMall nol be alfected or Impalted II anyone
proviSion is held unenlorceable, invalid or illegal.
14. LATE CHARGE. In Ihe event any lease paymenl or otMet sum due undor
this loase is nol paid when due. lessee promIses 10 pay a tale Charge to the Lessor
nollaler than one monlh therearler, allhe rale 01 ten percent (,0-1.) 01 each detayed
paymenl or Fllleen Dollars ($15) whicMeve' is grealer, plus lnlerosl upon each delayed
payment calCulated at the rale 01 one and three quartels percenl (1314-/_) pel month.
or any par1 Ihereol, commencmo one monlh aller th8 due dale ollhe !irsl delayed
payment ThiS late charge and/or the inleresl payments shall apply only when
permll1ed by law and shall be reduced 10 lhe maximum rate allowed by Michigan or
otMer applicable 1.1W whon less, lessee and any guarantot agreo 10 pay lessor 10' lIS
lime and any e.penses incurred in colloctlOg any amounts due and nOltlmely paid
undOf !l11S lease. mCludmg reasonable allornoy lees and collectors loes.
15. MICHIGAN LAW. THIS AGREEMEN7 SHALL BE CONSTRUED, GOV.
ERNED.INTERPRETED AND ENFORCED IN ACCORDANCE WITH THE LAWS OF
THE STATE OF MICHIGAN AND SHALL BE DEEMED TO BE FULLY AND SOLELY
EXECUTED, PERFORMED AND/OR OBSERVED IN THE STATE OF MICHIGAN
THE PARTIES HERETO EXPRESSLY CONSENT TO PERSONAL JURISDICTION
OF THE STATE OF MICHIGAN IN ANY ACTION OR PROCEEOING BROUGHT IN
ANY COURT THERE IN, STATE OR FEDERAL. ARISING FROM OR ALLEGING
FACTS ARISING FROM THE TRANSACTIONS CONTEMPLATED HEREIN, AND
LESSEE AND ANY GUARANTOR HEREBY EXPRESSLY WAIVE ANY RIGHT TO A
TRIAL DY JURY IN ANY ACTION OR PROCEEDING ARISING HEREUNDER.
16. SERVICE OF PROCESS. lessee and any guarantor agroe lhat service
of p,oce$,lor any ilctlon or plOcooellng shall bo valid II mailed by certlhed mail, reluln
recelpl requeslod, With delivery dlrccled 10 lesse, 0' guaranlOt, lesseo's registeled
agent, or any agent appointed in wnting to accrpl such plocess.
PARTIES
D.btor nlml (last name first it indi~iduall and mallirv 'IUS:
Back Analysis Corporation
3 S, 40th Street
Camp Hill. PA 17011
Oobtt, noma (liS' namo fil" if individual) and m3llinQ addllss:
Oob1or nam. (liSt nama first if individual) and mailinQ addles"
Ib
SICured P,,'y(ios) names(s) (lil1 namo fir" if individual) and address
for security interest information:
Americorp Financial, Inc.
20300 W. 12 Mile Road
Southfield. MI 48076
2
As.iQnoo(.) 01 Socured Pany namo(.) (!iSt namo first il individual) and
address for security interest information:
Sp.cial Types of p.nies (check if applicabl.):
o Th. term. .O.btor" and "Secured Pany" mean .uss,,' and 'Lassor:
lI.p,c1iv.Iy.
o Tha taem. .O.blllr" and 'S.cured Party" mean 'Consign,," and
"Consignor," respectr.ely.
o O.btor i. a Transmining Utility.
SECURED PARTY SIGNATURE(S)
Thi. Sl>t.m.nt i. fiI.d with only tho S.cU/od Patty'. signaturo to perf.ct
a .eeurity intare.t In collateral (check aPl'licablo box(es}).
.. 0 acquired after a change of O1me, identity or corporate structure of
th.O.btor.
b. 0 es to which tha fililllj has lapsod,
c. already tubjet: to a security interest in another county in Pennsylvania-
Owhon the collato,,1 was mov.d to this county,
Dwhlln the Debtor's residence or place of business was moved to
this county.
d. already subject to a security intertst in another jurisdiction-
Owh.n tho collata,,1 WiS movtd to Pannsylvania.
Owh.n tho Otbtor'. location was moved to Pannsylvania,
L 0 which i. pIOC.ed. of tho colllllral dmribed in block 9, in which a
seeulity intmst was previou.1y perfected (also dmribo pmceed. in
block 9, if purchased with cash proceed. and nol adequately
described on the original financing statement).
Socurod PIny Signlture(.)
(requilld only ~ box(es) i. checked above):
AmeriC~~~c,
STANQAnofORM. FORMUCC.1t7.891
Approyed by s.o-.tary of ComtT1()(1'oN$4lth of Penn"
FINANCING STATEMENT
Uniform r.mmercial Codo form UCC-I
IMPORT Pi.... r..d in.truction. on
rnerse s, . 01 pig, 4 before completing
FilinQ No, (stamped bV IilinQ offiCIII: Dati, Timl, FilinQ OffiCI (stamped by filinQ offiCII I:
5
11 This Financing SlllemlRI is prlSented for filing pursuant to the Umform Commercial Cooe,
and i. III ba fil.d with thl (chatk .pplicabl. box):
o S.ccal>ry 01 tho Commonwealth.
o Prothonotlry of
Oreal asl>to reconl. of
County,
Coonty,
8
1
8
Numbl' 01 Additional Shut. lif any):
o 'onal S Icialldontificllion (Max. 10 ch."ctersl:
COLLATERAL
Idontify collatorel by it.m and/or typo:
21
SEE SCHEDULE A, which equipment Is owned and Leased by
Secured Party to Debtor under a written Lease Agreement
dated 12/28/94 ,which agreement Is considered by
the parties to be a true Lease. This filing Is for
informational purposes only.
Lease n3459~1
9
o (ch.ck only if desicedl Products of tho collat"al.re al.o covered.
Idontily rolltod '001 estlto, if applicabl~ Tho collateral i., or indudas (check appmpriall bex(esll'
.. 0 cmp. growinQ 0' III bo Qrown on .
b. 0 QOod. which are or are to bacomo fIXtures on '
c. 0 min"al. or tho liko (including oil and QiS) as extracted on '
3 d. 0 accounts resulting from tho sal. of mineral. or tho liko (includinQ oil and giS) at tho wellhead or
minehead on .
tho followinQ roel ISl>t.:
Stt..t Addr...:
Described a~ Book
Inr
o Oase,ibed on Additional Shoel.
Nlm. 01 record ownOl(cequlred only if no O.btor has an int"a" 01 reconl}:
of (check on.) 0 O..d. 0 MonQages, at PaQe{.)
Coonty, Unifoem Partolld.ntifier
10
DEBTOR SIGNATURE(S)
Analysls/.Jorpor tlon
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RETURN RECEIPT TO:
4
12
EXHIBIT C
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Oap.nmlnt ., Statl,
TFC~
ASSIGNMENT OF LEASE
(Non,Recourse)
,
"
TO: Textron Financial Corporation ("TFC")
10 Dorrance Street
Providence, RI 02903
RE: Lease Agreement dated
December 28, 1994
by and between the undersiined as
Lessor, and
Back Analvsis Corporation
as Lessee.
FOR VALUABLE CONSIDERATION. the receipt and sufficiency of which is hereby acknowl,
edged, the undersillJled hereby sells, assigns, transfers and sets over to TFC, its successors and assiins,
the Lease Ail'eement identified above and all documents connected therewith (includini without
limitation any options to purchase or renew, consents, waivers. guaranties, financing statements and
notes) and which are annexed hereto andlor have been previously delivered to TFC and any lease
schedules or other documents which may be executed in the future pursuant to the lease (collective,
ly referred to hereinafter a~ the "Lease Documents") and all the undersigned's right, title and
interest in and to the equipment therein described or to be described in schedules to be executed
in the future ("Equipment"), and to the extent assignable, all of the undersigned rights and interest
in any manufacturer's or vendor's warranties, either express or implied. covering the Equipment and
all rights and remedies therein. including the right to collect monies due thereon. to repossess the
Equipment in the evenr of default by the Lessee, and the right, either in TFC's own name or in the
name of the undersigned, to take such legal proceedings or otherwise as undersigned might have
taken but for this Assignmenr, The undersigned agrees that TFC may, during normal working hours.
audit its books and records relating to all Leases and other chattel paper sold to it and agrees thar
withour notice to and without releasing the undersigned from any liability to TFC in respect of the
Lease Documents, TFC may grant extensions of time of payment to and compromise andlor release
claims against the Lessee or any other obligor under said Lease Documents and repossess and resell
any Equipment,
The undersigned acknowledges and warrants that it has entered into the Lease on the basis that
It will be simultaneously assigned to TFC and that this assignment is being executed simultaneously
with the execution of the Lease by the Undersigned.
The undersigned warrants that: all Lease Documents have been annexed hereto or previously
delivered to TFC and each of them are genuine and in all respects what they purport to be and
enforceable by TFC according to their terms. and that they are, and will continue to be (except
insofar as TFC may otherwise consent in writing) the only, and all of, the inscruments executed
in connection with the lease of the Equipment: that all statements contained in the Lease Documents
are true and that all unpaid balances shown therein are correcr: that the Lease Documents and the
obligations which they evidence are. and will continue to be. free and clear of all defenses. set.offs.
counterclaims. liens and encumbrances of every kind and nature: that at the time of execution of the
Lease Documents and at all times through the date hereof, the undersigned had good and marketable
title to the Equipment and the Lease Documents and full right to enter into the Lease Documents
and this Assignment: that the Equipment has been delivered to the Lessee in satisfactory condition
and has been accepted by the Lessee under the terms of the Lease Documents; that all sales or other
taxes that may be payable on the transaction have been paid: that the undersigned has no knowledge
,of any faces which, with notice or the lapse of time or both. would constitute a default under the
EXHIBIT 0
Leue Documents, or which impair the validity of any Lease Document or make the same less
valuable; that all filinis and recordings required by law have been completed and compiled with;
and that the Leue Documents evidence a valid reservation of title and first lien to the Equipment as
against all persons.
The undersigned further exptessly warrants and represents that the Lease Documents arise out
of a bona fide lease of the Equipment to the Lessee; that prior to the ex~cution of the Lease
Documents, the Lessee did not have any interest, directly or indirectly, in the Equipment; that
there exists no lien, mortgage. encumbrance or security interest upon the Lease Documents or any
of the Equipment (other than the encumbrances created by the Lease Documents themselves);
that the undersigned will not accept the return of or retake, recapture or repossess any of such
Equipment or attempt or purport to modify, terminate or renew the Lease without TFC's consent;
that in the event any of the Equipment comes into the undersigned's possession, undersigned will
(a) promptly notify TFC, (b) keep the Equipment secure, in good repair and fully insured against all
~sual risks under policies of insurance naming TFC as party in interest and loss payee; (c) hold
the same as TFC's property and subject to its instruction, and (d) will not permit the Equipment
;0 pass into the possession, custody or control of any person other than TFC; and that the under-
ligned shall have no authority to accept any collections of any sums under the Lease Documents,
.md that any iunds received by the undersigned from the Lessee in respect of the Lease Documents
,hall be held in trust for the exclusive benefit oi TFC.
If the undersigned breaches any agreement. covenant, warranty or representation hereunder.
undersigned will, upon.TFC's request, immediately repurchase the Lease Documents for an amount
equal to the unpaid balance thereunder. including accrued interest plus any expenses of collection,
r~possession. transportation and storage incurred by TFC. less any customary refund by TFC of
unearned finance charge.
:-Iotice oi the acceptance hereof is hereby waived and this Assignment shall be construed under
the laws oi the State of Rhode Island, None of the terms shall be modified except by a writing
,;igned by an omcer of TFC and notice of the acceptance thereof is hereby waived.
..
Date:
December 28. 1994
Americorp Financial, Inc.
,COJIIU'QI'UIoTI 011II .""''''''''"'''''010'''1 011I ,..OIVIOUAI. .IQ.....rujlllll
A'ITEsr /WITNESS
~rp.?ration) ,
~l ~ '~,lmffi)J)lQ ,y
Jennifer Sweeney
.,,,...., ....... AND. '"~ C;0"'0""1'1 Q,,,ICI". Tln.11
By: ~..h.Q
Stephen p, Sembor
Title: Vice President
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itself ,
5. Denied. Exhibit "CO speaks for itself,
6, The averments of paragraph 6 are conclusions of law to
which no response is required, By way of further answer, Exhibit
"D" speaks for itself,
7, Denied, Paragraph 7 does not specifically state which
monthly lease payments Defendant has allegedly failed to make.
Whether or not Defendant has defaulted is a conclusion of law to
which no response is required, By way of further answer, the
averments of new matter are incorporated herein by reference,
8, Denied. It is denied that the equipment has an unknown
value, Whether or not the value of the equipment is unknown to
Plaintiff is denied on the basis that after reasonable
investigation, Defendant is without knowledge or information
sufficient to form a belief as to the truth of the averment, and
proof is demanded,
9, Admitted in part and denied in part, It is admitted that
Defendant has possession of the equipment, etc, The averment as to
the location of the equipment is denied on the basis that the
equipment has been used in a business venture and its location has
changed frequently,
10, Denied, It is denied that Defendant has failed and
refused, despite repeated demands, to pay the balance due or to
deliver possession of the equipment to Plaintiff, On the contrary,
Defendant has offered to pay the balance due under the transaction,
as understood by Defendant, and Plaintiff has refused such offer,
Plaintiff has not previously demanded possession of the equipment,
11. Denied, Paragraph 13 of the lease agreement speaks for
itself. The averments of new matter are incorporated herein by
reference.
New Matter
12, Prior to and at the time Defendant entered into the lease
agreement, the transaction was described by Isotechnologies (the
manufacturer of the equipment), and Americorp Financial, Inc., as
a capital lease with a buy-out of $100,00 at the end of term
thereof.
13. Prior to executing the lease, Defendant was specifically
told by a representative of Americorp Financial, Inc., that there
would be no penalty for a "buyout" prior to the end of the term,
and that the fair market value of the equipment at the end of the
term was established at $100.00.
14. Defendant was pressured by Isotechnologies to enter into
an agreement with Plaintiff prior to December 31, 1994.
15. The lease agreement attached to the Complaint as Exhibit
"A" does not accurately reflect the transaction as understood by
Defendant and as agreed to by the parties.
16, The terms of Exhibit "A" are unconscionable and
unenforceable.
17, When Defendant requested a "buyout" figure, Plaintiff
advised Defendant that Defendant would have to pay all remaining
lease payments, as a condition to receiving evidence of ownership
of the equipment,
18. The original purchase price of the equipment, at the time
the lease agreement was entered into, was approximately $48,000,00,
and the equipment has depreciated in value since that time,
19. Despite demand, Plaintiff failed and refused to provide
Defendant with a precise "buyout" amount, calculated on a capital
lease basis, by which Defendant could acquire title to the
equipment and terminate the lease.
20. At the time the transaction was consummated, Defendant
understood the transar.tion to be a capital lease agreement, which
it entered into as all alternate method of financing the purchase.
21. Under Defendant's understanding of the transaction, the
lease could be "bought-out" at any time by payment of the
"principal balance" due. which could be calculated, under typical
capital lease procedures, by deducting from the original amount of
the lease all "principal" payments made to the date of the "buy-
Dutil .
22, Pursuant to Defendant's understanding of the transaction,
the amount required to "buy-out" the lease could never be greater
than the original amount of the lease, which, in this case, was
equivalent to the purchase price of the equipment.
23. Defendant had reasonable financing alternatives, and did
not knowingly and intelligently enter into the transaction, as
actually memorialized in the lease agreement, as interpreted by
Plaintiff,
24. Defendant has accepted late payments, including a payment
VERIFICATION
I verify that the statements made in the foregoing Answers are
true and correct to the best of my knowledge, information and
belief. I understand that false statements herein are made subject
to the penalties of 18 Pa, C.S, ~4904 relating to unsworn
falsification to authorities,
, President
Corporation
Date:
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TEXTRON FINANCIAL CORPORATION,
a/k/a TFC TEXTRON, a Subsidiary of
TEXTRON, INC., Assignee of
AMERICORP FINANCIAL, INC.
Plaintiff
IN THE COURT OF COMMON PLEAS
v,
CUMBERLAND COUNTY, PENNA
NO, 97-166
BACK ANALYSIS CORPORATION
Defendant
CIVil ACTION - LAW
PLAINTIFF'S REPLY TO DEFENDANT'S NEW MATTER
AND NOW, this 2nd day of May, 1997, comes Plaintiff, by and through its
Counsel, ROBERT D, KODAK, ESQUIRE, KNUPP & KODAK, P,C" and respectfully
answers Defendant's New Matter as follows:
12, Denied, Plaintiff is without sufficient specific information, knowledge or
belief as to the truth of veracity of the allegation contained herein and proof thereof is
demanded at trial.
13, Denied. Plaintiff is without sufficient specific information, knowledge or
belief as to the truth of veracity of the allegation contained herein and proof thereof is
demanded at trial.
14, Denied. Plaintiff is without sufficient specific information, knowledge or
belief as to the truth of veracity of the allegation contained herein and proof thereof is
demanded at trial.
15, Denied, The Lease Agreement attached to the Complaint speaks for itself
and is the only operative document as to the contractual relation between the Parties,
Furthermore, as to what Defendant understood by the Agreement, that is irrelevant in
that the contract speaks for itself,
16. Denied, The terms of Exhibit "A" are both conscionable and enforceable
as Exhibit "A" represents the contract entered into between the Parties knowingly,
willingly, and intelligently,
17, Denied, There was not "buy-out" figure as Plaintiff only advised Defendant
as to the total amount of the Lease payments, with interest, which were due, It is further
denied that any evidence of ownership of equipment would be given at the end of the
Lease since the Lease was not a "capital lease". The Lease Agreement attached to
Plaintiffs Complaint speaks for itself as far as the contractual relations between the
Parties.
18. Admitted with explanation, Although the original purchase price of the
equipment was $48,000,00, as far as depreciation goes, the equipment's value has now
depreciated down to approximately $2,000,00 to $5,000.00,
19, Admitted in part and denied in part, It is admitted that Plaintiff refused to
provide Defendant with a precise "buy-out" amount, as the Lease was not a capital lease
and there was no "buy-out" to put a dollar figure on, There was also no provision for
F;IUSERIBONNIEJOWEWMA TTE\22451 ;02M.yP7
2
~
Defendant to acquire title to the equipment and terminate the Lease, It is denied that
r
,
Plaintiff failed to provide the information requested but, rather, Plaintiff refused as there
was no legal contractual obligation to do so,
20, Denied, Plaintiffs answer to Paragraph 15 is incorporated fully and at
length herein,
21, Denied, Plaintiffs answer to Paragraph 15 is incorporated fully and at
length herein,
22, Denied, Plaintiffs answer to Paragraph 15 is incorporated fully and at
length herein,
23, Denied, As to Defendant having reasonable financing alternatives, that
information is solely within the possession of the Defendant and the Plaintiff is unable
to respond thereto, Additionally, as to Defendant not knowingly and intelligently entering
into the transaction, the Plaintiff does not have any ability to question the Defendant's
intelligence, however, it should be pointed out that the Defendant's principal, and the
Guarantor of the Contract, is a medical doctor and it is presumed that he is under no
legal infirmity and has the ability to knowingly and intelligently enter into contractual
relations in this case,
F:\USERIBONNIEJOWEWMA TTE\1245 f :02M,y07
3
CERTIFICATE OF SERVICE
i
t
I, ROBERT D, KODAK, ESQUIRE, hereby certify that I have this date served a
true and correct copy of the Plaintiff's Reply to Defendant's New Matter in the above-
captioned matter upon the below listed individual(s) by causing same to be deposited
in the United States mail, first class postage prepaid at Harrisburg, Dauphin County,
Pennsylvania, addressed as follows:
DENNIS J SHATTO ESQUIRE
CLECKNER AND FEAREN
POST OFFICE BOX 11847
HARRISBURG PA 17108-1847
KNUPP OAK, P.C.
..~
Robert D, Kodak
407 North Front Street
Post Office Box 11848
Harrisburg, PA 17108-1848
(717) 238-7151
Attorney I.D, No. 18041
Attorney for Plaintiff
Dated:
)'///71
I ,
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TEXTRON FINANCIAL CORPORATION,
also known as TFC TEXTRON, a Subsidiary
of TEXTRON, INC" Assignee of
AMERICORP FINANCIAL, INC,
Plaintiff
IN THE COURT OF COMMON PLEAS
CUMBERLAND COUNTY, PENNSYLVANIA
v.
NO, 97-0166 Civil
BACK ANALYSIS CORPORATION
Defendant
CIVIL ACTION - LAW
PLAINTIFF'S PRE.TRIAL MEMORANDUM
AND NOW, this 5th day of January, 1998, comes Plaintiff, TEXTRON FINANCIAL
CORPORATION, a/kla TFC TEXTRON, a Subsidiary of TEXTRON, INC., Assignee of AMERICORP
FINANCIAL, INC., by and through its attorneys, KNUPP & KODAK, P,C" and files the within Pre-Trial
Memorandum pursuant to Local Rule 212-4:
1. Statements of Basic Facts as to L1abllltv
On or about December 21, 1994, Defendant corporation did execute a Lease Agreement
which is attached to Plaintiff's Complaint at Exhibit "A." The Lease Agreement was accepted by
Plaintiffs Assignor on December 28, 1994. Subsequently, on December 28, 1994, Americorp Financial,
Inc" Lessor, assigned said Lease to Textron Financial Corporation, Plaintiff herein. A copy of the
Assignment is found at Exhibit "0" of Plaintiffs Complaint.
The Defendant takes the position that this was a "capital lease," however, Paragraph 8
of the Lease Agreement fully provides for title in the Lessor and, further, in Paragraphs 7 and "0" of the
Lease Agreement provides for Lessee's obligations to crate, insure and ship the equipment back to the
destination designated by the Lessor at the termination of the Lease. Nowhere in this Lease Agreement,
which speaks for itself, is there any provision that makes this a Lease Purchase Agreement or a "capital
lease." The Defendant also alleges that the transaction was unconscionable and, therefore, should be
found to be unenforceable.
('
2. Statement of Basic Facts as to Damalles
Plaintiff is requesting possession of the equipment together with the expenses of
repossession, storage, repair, sale, re-Ieasing and all unpaid Lease payments through the end of the
term, as well as attorney's fees, It is certainly agreed that the Parties are not in agreement as to the
amount to which Defendant is obligated under the Lease, Plaintiff contends that the Lease Agreement
speaks for itself and there is no need to establish any type of fair market value at the end of the Lease,
3. Statement as to Principal Issues of L1abllltv and Damalles
A. Does the document upon which Plaintiff filed suit memorialize the agreement of
the parties?
Answer: Yes,
B. Does the document upon which the Plaintiff relies unconscionable and
unenforceable?
Answer: No.
C, Is Plaintiff entitled to possession of the equipment as well as the unpaid balance
of all remaining Lease payments and other incidental damages?
Answer: Yes.
4. Summary of Lellallssues Rellardlnll Admlsslbllltv of Testlmonv
Based upon the Defendant's allegations that this should be treated as "capital lease" it
appears that the Parole Evidence Rule is an important issue in this case, as there should be no prior
or contemporaneous verbal testimony allowed as to the meaning of the document which was executed
by the Parties on December 21,1994, This is particularly true in light of the fact that the Secretary of
the
F;\USERI80NN/fiOIAl/sc,OOCIWORK12245'PRE,MEM;05J,nPB 2
CERTIFICATE OF SERVICE
I, ROBERT 0, KODAK, ESQUIRE, hereby certify that I have this date served a true and correct
KNUPP & AK, P.C,
fi!t:,
Robert D. K~. --
407 North Front Street
Post Office Box 11848
Harrisburg, PA 17108-1848
(717) 238-7151
Attorney 1.0. No, 18041
Attorney for Plaintiff
copy of the Pre-Trial Memorandum in the above-captioned matter upon the below listed individual(s) by
causing same to be transmitted via facsimile @ 1-717-238-8481 and also deposited in the United States
mail, first'class postage prepaid at Harrisburg, Dauphin County, Pennsylvania, addressed as follows:
DENNIS J SHATTO ESQUIRE
CLECKNER AND FEAREN
POST OFFICE BOX 11847
HARRISBURG PA 17108-1847
Dated: Januarv 5. 1998
F:\USERWONN/{JOIMISC,DOCIWORKIZ24' 1 PRE.MEM:O'J.nPB
PRAECIPE FOR LISTING CASE FOR TRIAL
(Must be lypewrilten and submitted in dUPliC';~~~ ~1) ~-:0't7
TO THE PROTHONOTARY OF CUMBERLAND COUNTY
OC1 0 1 lq97
,-'
(Check one)
) lor JURY trial at the nextle/m 01 civil court.
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Please list the following case:
fro)
(XXX) for trial without a jury, , :~!.:;
.....................................................................................................................................................................:..,..;.
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CAPTION OF CASE
(enti/e cjlpJion must be stated in full)
TEXTRON 'FINANCIAL CORPORATION, also known
as TFC TEXTRON, a Subsidiary of TEXTRON,
INC., Assignee of AKEIllCORP FINANCIAL, INC.
(check one)
',' ,".,
r.il :.<..
Assumpsit
T/espass
Trespass (Moto/ Vehicle)
(xxX
UPLEVIN
(other)
(Plaintiff)
vs.
BACK ANALYSIS CORPORATION
The t/ialllst will be called on
and
Trials commence on
(Defendant)
Pretrials will be held on
(B/iels are due 5 days before pretrials.)
vs.
(The patty listing this case fo/ t/ial shall provide
lorthwith a copy 01 the praecipe to all counsel,
pu/suant to local Rule 214.1.)
No, 166
Civil
19!1L
Indicate the attorney who will try case fo/the party who tiles this praecipe: ROBERT D.
KODAK, PO BOX 11848. HARRISBURG, PA 17108, ATTORNEY FOR PLAINTIFF
Indicate trial counsel for other parties if known: DENNIS J. SHATTO~QlJIRE,
PO BOX 11847, HARRISBURG, PA 17108,
This case is ready fo/ t/ia!.
Signed:
Print Name: _.ROBERT..D._KODAJr
Date: Oc:rOBER lL.!_9!!.~_..
Attorney lor,
PL~INTIFF
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This will be a nonjury trial.
The main legal issue which is expected to arise
in the case is the question of the admissibility of parol
evidence on the subject of whether the parties' understanding
was that title to the equipment was to be transferred to the
Defendant at the conclusion of the term of the agreement without
any further payment, notwithstanding a provision in the written
contract which seems to provide for an option to purchase at a
fair market value price. Briefs are requested from counsel at
least five days prior to commencement of the trial on this
subject.
With respect to settlement negotiations,
Plaintiff has demanded return of the goods and, in a subsequent
action, would be demanding a deficiency judgment; Defendant has
offered to return the equipment or to retain the equipment and
pay a purchase price of $8000.00,
There is a possibility that this case may be
resolved pursuant to an agreement, and counsel are requested to
notify the Court if that occurs,
By the Court,
J.
..
TEXTRON FINANCIAL
CORPORATION, also known
as TFC TEXTRON, a
subsidiary of TEXTRON, INC.,
assignee of AMERICORP
FINANCIAL, INC.,
Plaintiff
IN THE COURT OF COMMON PLEAS OF
CUMBERLAND COUNTY, PENNSYLVANIA
v.
CIVIL ACTION - LAW
BACK ANALYSIS CORPORATION,
Defendant
NO. 97-0166 CIVIL TERM
AND NOW,
ORDER OF COURT
this .5 11- day of February,
1998, upon consideration
of the attached request by counsel for a continuance of the non jury
trial in this case to afford Plaintiff an opportunity to amend ita
complaint, trial is RESCHEDULED from Monday, February 9, 1998, to
Monday, May 4, 1998, at 9:00 a.m., in Courtroom No.1, Cumberland
County Courthouse, Carlisle, Pennsylvania,
BY THE COURT,
Robert D. Kodak, Esq.
Cameron Mansion
407 North Front Street
P.O. Box 11848
Harrisburg, PA 17106-1848
Attorney for Plaintiff
Dennis J. Shatto, Esq.
31 North Second Street
P.O. Box 11847
Harrisburg, PA 17108-1847
Attorney for Defendant
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