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1. How does the position of an equipment lessor differ from the position of a secured lender when a firm falls into bankruptcy?
2. Assume that the secured loan would have the leased equipment as collateral. Which is better protected, the lease or the loan?
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3. Does your answer depend on the value of the leased equipment if it were sold or re-leased?
4. How are leases and installment notes the same? How do they differ?
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