Commercial Money Center (CMC) packaged groups of equipment leases and assigned its rights to future lease payments to entities such as NetBank, FSB. CMC also obtained surety bonds guaranteeing the payments and assigned its bond rights to NetBank. As security, CMC purportedly granted NetBank a security interest in the underlying leases and other property. Thus, NetBank had separate interests in the payment streams and in the underlying leases.
Each transaction was reflected by a Sale and Servicing Agreement (SSA) among NetBank, CMC, and a surety; surety bonds issued to CMC, which CMC then assigned to NetBank under the SSA; and an indemnity agreement between the surety and CMC. Various of the documents alternatively characterized the transaction as sale or a loan.
