Garmin 430W and notes from 4/08/09 meeting

[James Carlson]

toddmbs at yahoo.com writes:
> I'm still unclear on the financing part for 976: how would 976 be paid for?  There is 1. the remainder of the balance on the note, and 2. the overhaul and upgrades.  If the bottom line cost of the plane is say $40k, that has to be financed, right or no?  And if so, does the current note get refinanced?  And does EE keep the note under it's name or is it transferred to the club?  In either case, Tim or EE would still have to keep their name on it as a guarantor - which really shouldn't be a problem for Tim because he has nothing to lose by doing so, the plane is already his right now anyway.

My understanding of what was said was that we'd pay off the note
balance (to EE's bank), EE would transfer title to us, and we'd pay
them a monthly amount to cover their current equity in the aircraft
(market value minus remaining note balance).

Since the amount left on the note is largish ($12K-$18K), we'd
probably want to finance that as well -- meaning that we'd end up
having two note payments each month, one to a bank and the other to
EE.  The sum of those, though, would likely be equal to or less than
we'd pay to a bank to finance the whole thing.

The bonus for us is that it may be easier and much less risky to the
club members to finance that amount than to finance a whole $60K for a
different aircraft.

If the club went down in flames, we'd be personally liable for a
proportion of the $12K to $18K (say a debt of around $2K to $3K each;
still financed), and we'd need to figure out what to do with the plane
(in our name) and EE's monthly payment.  The most logical choice would
be to give the plane back and have EE assume our remaining balance.

(Less a small fee for having blown the deal.  ;-})

-- 
James Carlson         42.703N 71.076W         <carlsonj at workingcode.com>