1985 Orion Bus Lease26. ADDITIONAL PROVISIONS. Any amendments to the standard
language of this Lease will be set forth in Exhibit.0 attached
hereto.
GEORGE K. BAUM & COMPANY LESSEE
TOWN OF AVON, COLORADO
By: JACK E. ORMSBEE By:
�
William D es
Title: PUBLIC FINANCE DEPARTMENT Title: Town Manager
Quantity
ONE (1)
EXHIBIT A
DESCRIPTION OF EQUIPMENT
Description Serial Nom
ORION BUS
EQUIPMENT LOCATION
AVON, COLORADO
*To be completed upon Lessee's acceptance of the Equipment,
EXHIBIT B
PAYMENT SCHEDULE
PAGE ONE OF TWO
Lessee: TOWN OF AVON, COLORADO
Fiscal Period: DECEMBER 31
Expiration Date: 7/1/1990
Payment
Payment
Interest
Principal
Concluding
Number
Date
Payment
Portion
Portion
Payment **
1
10/1/85
$7,171.43
$ 0.00
$79171.43
$112,178.18
2
1/1/86
7,171.43
23,564.27
4,607.16
107,278.36
3
4/1/86
7,171.43
2,455.72
4,715.71
102,279.32
4
7/1/86
7,171.43
2,344.60
4,826.83
97,179.05
5
10/1/86
7,171.43
2,230.87
4,940.56
91,975.50
6
1/1/87
7,171.43
2;114.46
5,056.97
86,666.57
7
4/1/87
7,171.43
1,995.30
5,176.13-
81,250.14
8
7/1/87
7,171.43
1,873.34
5,298.09
75,724.03
9
10/1/87
7,171.43
1,748.51
5,422.92
70,086.01
10
1/1/88
7,171.43
1,620.73
5,550.70
64,333.82
11
4/1/88
7,171.43
1,489:94
5,681.49
58,465.15
12
7/1/88
7,171.43
1,356.07
5,815.36
52,477.64
13
10/1/88
7,171.43
1,219.04
5,952.39
46,368.88
14
1/1/89
7,171.43
1,078.79
6,092.64
40,136.42
15
4/1/89
7,171.43
935.23
6,236.20
33,777.75
16
7/1/89
7,171.43
788:29
6,383.14
27,290.32
17
10/1/89
7,171.43
637.89
6,533.54
20,671.52
13
1/1/90
7,171.43
483.94
6,687.49
13,918.69
19 -
4/1/90
7,171.43
326.37
6,845.06
7,029.11
20
7/1/90
71171.27
165.08
73P006.19'
0.00
*To be completed upon Lessee's acceptance of the Equipment.
*After payment of all amounts otherwise due as of that date.
ORDINANCE NO. 85 -16
SERIES OF 1985
AN ORDINANCE AUTHORIZING EXECUTION OF A CERTAIN
EQUIPMENT LEASE AGREEMENT.
COLORADO:
BE IT ORDAINED BY THE TOWN COUNCIL OF THE TOWN OF AVON,
Section 1. That a certain Equipment Lease Agreement,
together with its Exhibits, a copy of which agreement is attached
hereto as Addenda I, and the terms of it are hereby approved, and
the acquisition of the municipal property described therein are
hereby authorized.
Section 2.
The Mayor and Town Clerk are hereby author-
ized and directed to execute said Equipment Lease Agreement.
INTRODUCED, PASSED ON FIRST READING, APPROVED AND
ORDERED POSTED, THIS 10thday of September 1985, and a
public hearing on this ordinance shall be held at the regular meet-
ing of the Town Council of the Town of Avon, Colorado, on the
24th day of September , 1985, at 7:30 P.M. in the Municipal
Building of the Town of Avon Colorado.
ATTEST:
"�
Patrici J. Doyle, �o Cl�rk
Allan Nottih7ptdh, Mayor
INTRODUCED, PASSED ON SECOND READING, APPROVED AND ORDERED
POSTED THIS_24t1tlay of September , 1985.
ATTEST:
P tricia J. Doyle, Town lerk
Allan R. ottingha� Mayor
"I �-',
STATE OF COLORADO )
COUNTY OF EAGLE ) SS.
TOWN OF AVON )
NOTICE IS HEREBY GIVEN OF A PUBLIC HEARING BEFORE THE TOWN COUNCIL
OF THE TOWN OF AVON, COLORADO, AT 7:30 P.M., ON THE 24TH DAY OF
SEPTEMBER, 1985, AT THE MUNICIPAL BUILDING, 400 BENCHMARK ROAD,
AVON, COLORADO, FOR THE PURPOSE OF CONSIDERING THE ADOPTION OF
OF ORDINANCE NO. 85 -16, SERIES OF 1985:
AN ORDINANCE AUTHORIZING EXECUTION OF A CERTAIN EQUIPEMNT LEASE
AGREEMENT.
A copy of said Ordinance is attached hereto and is also on file
at the office of the Town Clerk, and may be inspected during
regular business hours.
Following this hearing, the Council may consider final passage
of this Ordinance.
This Notice is given and passed by order of the Town Council of
the Town of Avon, Colorado.
Dated this llthday of September, 1985.
TOWN OF AVON, COLORADO
BY:
Barbara R. Jo h,
Deputy Town Clerk
POSTED AT THE FOLLOWING PUBLIC PLACES WITHIN THE TOWN OF AVON
ON SEPTEMBER 11, 1985:
AVON POST OFFICE, MAIN ENTRANCE
CITY MARKET, MAIN ENTRANCE
PESTER GAS STATION
AVON MUNICIPAL BUILDING, MAIN LOBBY
George K. Baum & Company
INVESTMENT BANIKEES
MEMBER OF
NEW YORK STOCK EXCHANGE, INC.
MIDWEST STOCK EXCHANGE
September 13, 1985
Town of Avon
P.O. Box 975
Avon, Colorado 80620
Gentlemen:
SUITE 2800
621 SEVENTEENTH STREET
DENVER, COLORADO 80293
TELEPHONE (303) 292 -2332
In connection with the lease purchase financing of an Orion Bus
for the Town of Avon, Colorado at a cost of $116,000 we submit
the following for your consideration and acceptance:
Date of Lease
Lease Amount
Lease Term
Lease Payment
Payable quarterly
Lease Rate
(calculated in arrears)
10/1/85
$116,000.00
Five (5) years
in advance (20 quarters) $7,171.43
8.45%
Option to Purchase at the end of each fiscal year for an amount
as shown in the lease documentation. The terms and conditions
of the lease documentation are subject to mutual agreement be-
tween the town of Avon and the Lessor.
This proposal is subject to the approving opinion of nationally
recognized municipal bond counsel as to the legality of the
transaction and as to the interest portion of the lease payments
being exempt from all present federal and Colorado state income
tax. Further it is subject to the approval of the Lessor of the
financial condition of the Town of Avon.
Respectfully submitted,
GEORGE K. BAUM & COMPANY
JACK E. ORMSBEE
Public Finance Department
The above proposal is
Town of Avon, Colorado
this day of
Attest:
Clerk
hereby accepted for and on behalf of the
by proper authorization on its council
, 1985.
William—James, Town Manager
(To be written on cunsel's Letterhead)
OPINION OF COUNSEL
George K. Baum & Company
621 Seventeenth Street
Suite 2800
Denver, Colorado 80293
, 198
Re: Equipment Lease - Purchase Agreement dated , 198
Gentlemen:
-I have acted as Counsel to (the "Lessee ") with
respect to that certain Equipment Lease - Purchase Agreement (the
".Lease ") dated , 198 , by and between George K. Baum &
Company and the Lessee. I have reviewed the Lease and such other
documents, records and certificates of Lessee and appropriate public
officials as I have deemed relevant and am of the opinion that:
1. The Lessee is a political subdivision or agency of the State
of
2. The execution, delivery and performance by the Lessee of the
Lease have been duly authorized by all necessary action on
the part of the Lessee; and
3. The Lease constitutes a legal, valid and binding obligation
of the Lessee enforceable in accordance with its terms.
Very truly yours,
(Attorney for the Lessee)
CERTIFICATE OF APPROPRIATION
I r r of
(Name) (Title)
( "Lessee ") hereby certify that all lease
payments due by Lessee under that certain Equipment Lease - Purchase
Agreement dated as of , 198 , between Lessee and
George K. Baum & Company, as Lessor, for the fiscal year
ending , 198 , are within such fiscal year's
Budget for Lessee and within an available, unexhausted and
unencumbered appropriation for Lessee.
IN WITNESS WHEREOF, I have set my hand this day
of , 198 .
LESSEE
By:
Name:
Title:
l7,
(To be written on Lessee's Letterhead)
ESSENTIAL USE LETTER
George K. Baum & Company
621 Seventeenth Street
Suite 2800
Denver, Colorado 80293
, 198
Re: Equipment Lease - Purchase Agreement dated , 198
Gentlemen:
This letter is being written with respect to the use of the Equipment
(herein so called) to be leased to the undersigned under the
above - referenced Equipment Lease - Purchase Agreement. The Equipment
will be used by for the following
purposes: (Department or Division Using Equipment)
(State how and for what purposes the Equipment will be used)
The undersigned hereby represents that the use of the Equipment is
essential to its proper, efficient and economic operation.
Very truly yours,
LESSEE
By:
Title:
ACCEPTANCE CERTIFICATE
George K. Baum & Company
621 Seventeenth Street
Suite 2800
Denver, Colorado 80293
Gentlemen:
In accordance with the terms of the Equipment Lease - Purchase
Agreement dated October 1 , 1985, (the "Lease ") between George
K. Baum & Company ( "Lessor ") and the undersigned ( "Lessee ") , Lessee
hereby certifies and represents to, and agrees with, Lessor as
follows:
1. The Equipment, as such term is defined in the Lease, has
been delivered and installed at the Equipment Location specified in
Exhibit A to the Lease and accepted on the date indicated below.
2. Lessee has conducted such inspection and /or testing of the
Equipment as it deems necessary and appropriate and hereby
acknowledges that it accepts the Equipment for all purposes.
3. No Event of Default, as such term is defined in the Lease,
and no event which with notice or lapse of time, or both, would
become an Event of Default, has occurred and is continuing at the
date hereof.
LESSEE
By:
TOWN OF AVON, COLORADO
Title:
Date:
NOTICE AND CONSENT TO ASSIGNMENT
Lessee Name TOWN OF AVON, COLORADO SEPTEMBER 15 " 1985
Lessee Address P.O. BOX 975
Attention: AVON, COLORADO 81620
Re: Equipment Lease - Purchase Agreement dated SEPTEMBER 15, 1985
between TOWN OF AVON, COLORADO ( "Lessee ") and George K. Baum
& Company
Gentlemen:
Please be advised that George K. -Baum & Company has assigned all its
right, title and interest in and to the above - referenced Equipment
Lease - Purchase Agreement (the "Agreement "), the equipment leased
thereunder, and the right to receive payments thereunder
to Pitney Bowes Credit Corp. (the "Assignee ") .
All payments due under the Agreement should be made to the Assignee
at the following address:
5680 S. Syracuse Circle, Suite 300
Englewood, Colorado 80111
Please acknowledge your acceptance of the assignment, your
recordation of the assignment pursuant to Section 18 of the
agreement, and your agreement to make the payments due under the
Agreement to the Assignee by the signature of a duly authorized
officer in the space provided on the enclosed counterpart of this
letter and return it to us at the address shown above.
Very truly yours,
GEORGE K. BAUM & COMPANY
By: JACK E. ORMSBEE
Title: PUBLIC FINANCE DEPARTMENT
ACKNOWLEDGED AND ACCEPTED:
(LESSEE)
TOWN OF AVON, COLORADO
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1
CHATTEL MORTGAGE SECURITY AGREEMENT
(Motor Vehicle)
KNOW ALL MEN BY THESE PRESENTS,. That GEORGE X- RATTM & COMPANY
of the County of DENVER
in the State of Colorado, Mortgagor *, for good and valuable consideration, does hereby
grant unto TOWN OF AVON. COLDRAno of the
County of FA GI. F , State of Colorado, Mortgagee * *, a chattel mortgage
security interest in the following personal property (collateral) including (except as to any
consumer goods as defined in the Uniform Commercial Code) all additions, replacements
and accessories thereto:
Make Style and Model Identification Number Year Other Identification
ORION
This chattel mortgage security interest is given to secure the payment of an indebtedness
evidenced by a promissory note bearing even date herewith in the principal sum of
$ , payable to the order of the Mortgagee with interest as therein stated, and is
given in accordance with the Colorado Certificate of Title Act ( C.R.S. 42 -6 -101, et seq.)
Mortgagor warrants that he is the owner of the collateral free and clear of liens, encum-
brances and security interests. Mortgagor agrees not to remove the same from the State of
Colorado, to pay all taxes when due, to procure such insurance as may legally be required by
Mortgagee and deliver the policy to Mortgagee with a loss payable clause in favor of Mortgagee
or a certificate thereof, and in default of the foregoing, Mortgagee may procure such insurance,
the premium thereon to be secured hereby and paid by Mortgagor.
r`11.
Date of Lease 9/15/85 Lease No. 0015
EQUIPMENT LEASE - PURCHASE AGREEMENT
Lessor: GEORGE R. BAUM & COMPANY
Address: Suite 2800, 621 Seventeenth Street, Denver, Colorado 80293
Lessee: TOWN OF AVON, COLORADO
Address: P.O. BOX 975, AVON, COLORADO 81620
Lessor agrees to lease to Lessee and Lessee agrees to lease from
Lessor, the items of Equipment (the "Equipment ") described in Exhibit
A attached to this Equipment Lease - Purchase Agreement (the "Lease "),
upon the following terms and conditions:
1. DELIVERY AND ACCEPTANCE. Lessee, or if Lessee so requests,
Lessor, will cause the Equipment to be delivered to Lessee at the
location specified in Exhibit A (the "Equipment Location "). Lessee
will pay all transportation and other costs, if any, incurred in
connection with the delivery of the Equipment. Lessee will accept
the Equipment as soon as it has been delivered and is operational, or
in the event that the manufacturer or vendor allows a pre - acceptance
test period, as soon as the test period has expired. Lessee will
evidence its acceptance of the Equipment by executing and delivering
to Lessor an Acceptance Certificate (herein so called) in the form
provided by Lessor.
2. TERM. This Lease will become effective
hereof by Lessor. The term of this Lease will
the Equipment is accepted pursuant to Section 1
earlier terminated as expressly provided for in
continue until the Expiration Date set forth in
hereto (hereinafter the "Lease Term ").
upon the execution
commence on the date
above and, unless
this Lease, will
Exhibit B attached
3. RENT. Lessee agrees to pay to Lessor or its assignee the
Lease Payments (herein so called), including the interest portion,
equal to the amounts specified in Exhibit B. The Lease Payments will
be payable without notice or demand at the office of the Lessor (or
such other place as Lessor or its assignee may from time to time
designate in writing), and will commence on the first Lease Payment
dates as set forth in Exhibit B and thereafter on the dates set forth
in Exhibit B. Any payments received later than ten (10) days from
the due date will bear interest at the highest lawful rate for the
due date. Except as specifically provided in Section 4 hereof, the
Lease Payments will be absolute and unconditional in all events and
will not be subject to any set -off, defense, counterclaim, or
recoupment for any reason whatsoever.
Lessee reasonably believes that funds can be obtained sufficient
to make all Lease Payments during the Lease Term and hereby covenants
that it will do all things lawfully within its power to obtain,
maintain and properly request and pursue funds from which the Lease
Payments may be made, including making provisions for such payments
to the extent necessary in each budget submitted for the purpose of
obtaining funding, using its bona fide best efforts to have such
portion of the budget approved and exhausting all available
administrative reviews and appeals in the event such portion of the
budget is not approved. It is Lessee's intent to make Lease Payments
for the full Lease Term if funds are legally available therefor and
in that regard Lessee represents that the use of the Equipment is
essential to its proper, efficient and economic operation.
4. NONAPPROPRIATION OF FUNDS. In the event no funds or
insufficient funds are appropriated and budgeted or are otherwise
available by any means whatsoever in any fiscal period for Lease
Payments due under this Lease, then the Lessee will immediately
notify the Lessor or its assignee of such occurrence and this Lease
shall terminate on the last day of the fiscal period for which
appropriations were received without penalty or expense to Lessee of
any kind whatsoever, except as to the portions of Lease Payments
herein agreed upon for which funds shall have been appropriated and
budgeted or are otherwise available. In the event of such
termination, Lessee agrees to peaceably surrender possession of the
Equipment to Lessor or its assignee on the date of such termination,
packed for shipment in accordance with manufacturer specifications
and freight prepaid and insured to any location in the continental
United States designated by Lessor. Lessor will have all legal and
equitable rights and remedies to take possession of the Equipment.
Notwithstanding the foregoing, Lessee agrees (i) that it will not
cancel this Lease under the provisions of this Section if any funds
are appropriated to it, or by it, for the acquisition, retention or
operation of the Equipment or other equipment performing functions
similar to the Equipment for the fiscal period in which such
termination occurs or the next succeeding fiscal period thereafter,
and (ii) that it will not during the Lease Term give priority in the
application of funds to any other functionally similar equipment.
This paragraph will not be construed so as to permit Lessee to
terminate this Lease in order to acquire any other equipment or to
allocate funds directly or indirectly to perform essentially the same
application for which the Equipment is intended.
5. LIMITATION ON WARRANTIES. Lessee acknowledges and agrees
that the Equipment is of a size, design, and capacity selected by
Lessee, that Lessor is neither a manufacturer nor a vendor of such
equipment, and that LESSOR HAS NOT MADE, AND DOES NOT HEREBY MAKE,
ANY REPRESENTATION, WARRANTY, OR COVENANT, EXPRESS OR IMPLIED, WITH
RESPECT TO THE MERCHANTABILITY, CONDITION, QUALITY, DURABILITY,
DESIGN, OPERATION, FITNESS FOR USE, OR SUITABILITY OF THE EQUIPMENT
IN ANY RESPECT WHATSOEVER OR IN CONNECTION WITH OR FOR THE PURPOSES
AND USES OF LESSEE, OR ANY OTHER REPRESENTATION, WARRANTY, OR
COVENANT OF ANY RIND OR CHARACTER, EXPRESS OR IMPLIED, WITH RESPECT
THEREON, AND LESSOR SHALL NOT BE OBLIGATED OR LIABLE FOR ACTUAL,
INCIDENTAL, CONSEQUENTIAL, OR OTHER DAMAGES OF OR TO LESSEE OR ANY
OTHER PERSON OR ENTITY ARISING OUT OF OR IN CONNECTION WITH THE USE
OR PERFORMANCE OF THE EQUIPMENT AND THE MAINTENANCE THEREOF.
Lessor hereby assigns to Lessee during the Lease Term, so long as
no Event of Default has occurred hereunder and is continuing, all
manufacturer's warranties, if any, expressed or implied with respect
to the Equipment, and Lessor authorizes Lessee to obtain the
customary services furnished in connection with such warranties at
Lessee's expense.
6. AUTHORITY AND AUTHORIZATION. Lessee represents, covenants and
warrants, and as requested by Lessor, will deliver an opinion of
counsel to the effect that: (i) Lessee is a fully constituted
political subdivision or agency of the State of the Equipment
Location; (ii) the execution, delivery and performance by the Lessee
of this Lease have been duly authorized by all necessary action on
the part of the Lessee; and (iii) this Lease constitutes a legal,
valid and binding obligation of the Lessee enforceable in accordance
with its terms. Lessee agrees that (i) it will do or cause to be
done all things necessary to preserve and keep the Lease in full
force and effect, (ii) it has complied with all bidding requirements
where necessary and by due notification presented this Lease for
approval and adoption as a valid obligation on its part, and (iii) it
has sufficient appropriations or other funds available to pay all
amounts due hereunder for the current fiscal period.
7. TITLE. Upon acceptance of the Equipment by Lessee hereunder,
title to the Equipment will vest in Lessee; provided, however, that
(i) in the event of termination of this Lease by Lessee pursuant to
Section 4 hereof; (ii) upon the occurrence of an Event of Default
hereunder, and as long as such Event of Default is continuing; or
(iii) in the event that the purchase option has not, been exercised
prior to the Expiration Date, title will immediately vest in Lessor
or its assignee.
8. SECURITY INTEREST. In order to secure all of its obligations
hereunder, Lessee hereby (i) grants to Lessor a first and prior
security interest in any and all right, title and interest of Lessee
in the Equipment and in all additions, attachments, accessions, and
substitutions thereto, and on any proceeds therefrom, (ii) agrees
that this Lease may be filed as a financing statement evidencing such
security interest, and (iii) agrees to execute and deliver all
financing statements, certificates of title and other instruments
necessary or appropriate to evidence such security interest.
9. PERSONAL PROPERTY. The Equipment is and will remain personal
property and will not be deemed to be affixed to or a part of the
real estate on which it may be situated, notwithstanding that the
Equipment or any part hereof may be or hereafter become in any manner
physically affixed or attached to real estate or any building
thereon. If requested by Lessor, Lessee will, at Lessee's expense,
furnish a landlord or mortgagee waiver with respect to the Equipment.
10. USE; REPAIR. Lessee will use the Equipment in a careful
manner for the use contemplated by the manufacturer for the Equipment
and shall comply with all laws, ordinance, insurance policies and
regulations relating to, and will pay all costs, claims, damages,
fees and charges arising out of its possession, use or maintenance.
Lessee, at its expense, will keep the Equipment in good repair and
furnish all parts, mechanisms and devices required therefor. If the
Equipment is such as is customarily covered by a maintenance
agreement, Lessee will furnish Lessor with a maintenance agreement
with a party satisfactory to Lessor.
11. ALTERATIONS. Lessee will not make any alterations, additions
or improvements to the Equipment without Lessor's prior written
consent unless such alterations, additions or improvements may be
readily removed without damage to the Equipment.
12. LOCATION; INSEPECTION. The Equipment will not be removed
from, or if the Equipment consists of rolling stock, its permanent
base will not be changed from,.the Equipment Location without
Lessor's prior written consent which will not be unreasonably
withheld. Lessor will be entitled to enter upon the Equipment
Location or elsewhere during reasonable business hours to inspect the
Equipment or observe its use and operation.
13. LIENS AND TAXES. Lessee shall keep the Equipment free and
clear of all levies, liens, and encumbrances except those created
under this Agreement. Lessee shall pay, when due, all charges and
taxes (local, state and federal) which may now or hereafter be
imposed upon the ownership, leasing, rental, sale, purchase,
possession or use of the Equipment, excluding however, all taxes on
or measured by Lessor's income. If Lessee fails to pay said charges,
and taxes when due, Lessor shall have the right, but shall not be
obligated, to pay said charges and taxes. If Lessor pays any charges
or taxes for which Lessee is responsible or liable under this
Agreement, Lessee shall reimburse Lessor therefor.
14.' RISK OF LOSS; DAMAGE; DESTRUCTION. Lessee assumes all risk
of loss of or damage to the Equipment from any cause whatsoever, and
no such loss of or damage to the Equipment nor defect therein nor
unfitness or obsolescence thereof shall relive Lessee of the
obligation to make Lease Payments or to perform any other obligation
under this Lease. In the event of damage to any item of Equipment,
Lessee will immediately place the same in good repaid with the
proceeds of any insurance recovery applied to the cost of such
repair. If Lessor determines that any items of Equipment is lost,
stolen, destroyed or damaged beyond repair, Lessee at the option of
Lessor will: either (a) replace the same with like equipment in good
repair; or (b) on the next Lease Payment date, pay Lessor: (i) all
amounts then owed by Lessee to Lessor under this Lease, including the
Lease Payment due on such date; and (ii) an amount equal to the
applicable Concluding Payment set forth in Exhibit B. In the event
that Lessee is obligated to make such payment with respect to less
than all the Equipment, Lessor will provide Lessee with the pro rata
amount of the Lease Payment and-the Concluding Payment to be made by
Lessee with respect to the Equipment which has suffered the event of
loss.
15. INSURANCE. Lessee, will, at its expense, maintain at all
times during the Lease Term, fire and extended coverage, public
liability and property damage insurance with respect to the Equipment
in such amounts, covering such risks, and with such insurers as shall
be satisfactory to Lessor, or, with Lessor's prior written consent,
may self - insure against any or all such risks. In no event will the
insurance limits be less than the amount of the then applicable
Concluding Payment with respect to such Equipment. Each insurance
policy will name Lessee as an insured and Lessor or its assigns as an
additional insured and loss payee, and will contain a clause
requiring the insurer to give Lessor at least thirty (30) days prior
written notice of any alteration in the terms of such policy or the
cancellation thereof. The proceeds of any such policies will be
payable to Lessee and Lessor or its assigns as their interest may
appear. Upon acceptance of the Equipment and upon each insurance
renewal date, Lessee will deliver to Lessor a certificate evidencing
such insurance. In the event that Lessee has been permitted to
self - insure, Lessee will furnish Lessor with a letter or certificate
to such effect. In the event of any loss, damage, injury or accident
involving the Equipment, Lessee will promptly provide Lessor with
written notice thereof and make available to Lessor all information
and documentation relating thereto.
16. INDEMNIFICATION. Lessee shall indemnify Lessor against, and
hold Lessor harmless from, any and all claims, actions, proceedings,
expenses, damages or liabilities, including attorney's fees and court
costs, arising in connection with the Equipment, including, but not
limited to, its selection, purchase, delivery, possession, use,
operation, rejection or return and the recovery of claims, under
insurance policies thereon.
17. PURCHASE OPTION. Upon thirty (30) days prior written notice
from Lessee to Lessor, and provided that there is not Event of
Default, or an event which with notice or lapse of time, or both,
could become an Event of Default, then existing, Lessee will have the
right to purchase the Equipment on the Lease Payment dates set forth
in Exhibit B by paying to Lessor, on such date, the Lease Payment
then due together with the Concluding Payment amount set forth
opposite such date. Upon satisfaction by Lessee of such purchase
conditions, Lessor will transfer any and all of its right, title and
interest in the Equipment to Lessee as is, without warranty, express
or implied, except that Lessor will warrant to Lessee that the
Equipment is free and clear of any liens created by Lessor.
18. ASSIGNMENT. Without Lessor's prior written consent, Lessee
will not either (i) assign, transfer, pledge, hypothecate, grant any
security interest in or otherwise dispose of this Lease or the
Equipment or any interest in this Lease or the Equipment, or (ii)
sublet or lend the Equipment or permit it to be used by anyone other
than Lessee or Lessee's employees. Lessor may assign its rights,
title and interest in and to this Lease, the Equipment and any other
documents executed with respect to this Lease and /or grant or assign
a security interest in this Lease and the Equipment, in whole or in
part.
n
a ,
Any such assignees shall have all of the rights of Lessor under this
Lease. No assignment or reassignment of any of Lessor's right, title
or interest in this Lease or the Equipment shall be effective unless
and until Lessee shall have received a duplicate original counterpart
of the document by which the assignment or reassignment is made,
disclosing the name and address of each such assignee; provided,
however, that is such assignment is made to a bank or trust company
as paying or escrow agent for holders of certificates of a
participation in the Lease; it shall thereafter be sufficient that a
copy of the agency agreement shall have been deposited with Lessee
until Lessee shall have been advised that such agency agreement is no
longer in effect. DURING THE LEASE TERM LESSEE SHALL KEEP A COMPLETE
AND ACCURATE RECORD OF ALL SUCH ASSIGNMENTS IN FORM NECESSARY TO
COMPLY WITH THE UNITED STATES INTERNAL REVENUE CODE, SECTION 103(j),
AND THE REGULATIONS, PROPOSED OR EXISTING, FROM TIME TO TIME
PROMULGATED THEREUNDER. Subject to the foregoing, this Lease inures
to the benefit of and is binding upon the heirs, executors,
administrators, successors and assignees of the parties hereto. No
further action will be required by Lessor or by Lessee to evidence
the assignment, but Lessee will acknowledge such assignments in
writing if so requested.
19. EVENTS OR DEFAULT. The term "Event of Default ", as used
herein, means the occurrence of any one or more of the following
events:
(a) Lessee fails to make any Lease Payment (or any other
payment) as it becomes due in accordance with the terms of this
Lease, and any such failure continues for ten (10) days after the due
date thereof;
(b) Lessee fails to perform or observe any other covenant,
condition, or agreement to be performed or observed by it hereunder
and such failure is not cured within twenty (20) days after written
notice thereof by Lessor; or
(c) The discovery by Lessor that any statement,
representation, or warranty made by Lessee in this Lease or in any
writing ever delivered by Lessee pursuant hereto or in connection
herewith is false, misleading, or erroneous in any material respect.
20. REMEDIES. Upon the occurrence of an Event of Default, and as
long as such Event of Default is continuing, Lessor may, at its
option, exercise any one or more of the following remedies:
(a) By written notice to Lessee, declare an amount equal to
all amounts then due under this Lease and all remaining Lease
Payments due during the Lease Term to be immediately due and payable,
whereupon the same shall become immediately due and payable;
(b) By written notice to the Lessee, request Lessee to (and
Lessee agrees that it will), at Lessee's expense, promptly return the
Equipment to Lessor in the manner set forth in Section 4 hereof, or
Lessor, at its option, may enter upon the premises where the
Equipment is located and take immediate possession of and remove the
same;
(c) Sell or lease the Equipment or sublease it for the
account of Lessee, holding Lessee liable for all Lease Payments and
other payments due to the effective date of such selling, leasing or
subleasing and for the difference between the purchase price, rental
and other amounts paid by the purchase, lessee or sublessee pursuant
to such sale, lease or sublease and the amounts payable by Lessee
hereunder; and
(d) Exercise any other right, remedy or privilege which may
be available to it under applicable laws of the state of the
Equipment Location or any other applicable law or proceed by
appropriate court action to enforce the terms of this Lease or to
recover damages for the breach of this Lease or to rescind this Lease
as to any or all of the Equipment..
In addition, Lessee will remain liable for all covenants and
indemnities under this Lease and for all legal fees and other costs
and expenses, including court costs, incurred by Lessor with respect
to the enforcement of any of the remedies listed above or any other
remedy available to Lessor.
21. NOTICES. All notices to be given under this Lease shall be
made in writing and mailed by certified mail, return receipt
requested, to the other party at its address set forth herein or at
such address as the part may provide in writing from time to time.
Any such notice shall be deemed to have been received five days
subsequent to mailing.
22. SECTION HEADINGS. All section headings contained herein are
for the convenience of reference only and are not intended to define
or limit the scope of any provision of this Lease.
23. GOVERNING LAW. This Lease shall be construed in accordance
with, and governed by the laws of, the state of the Equipment
Location.
24. DELIVERY OF RELATED DOCUMENTS. Lessee will execute or
provide, as requested by Lessor, such other documents and information
as are reasonably necessary with respect to the Transaction
contemplated by this Lease. At the request of Lessor, Lessee will
furnish Lessor annual financial statements of Lessee within
forty -five days after the end of Lessee's fiscal year.
25. ENTIRE AGREEMENT; WAIVER. This Lease, together with the
Acceptance Certificate and other attachments hereto, and other
documents or instruments executed by Lessee and Lessor in connection
herewith, constitute the entire agreement between the parties with
respect to the lease of the Equipment, and this Lease shall not be
modified, amended, altered, or changed except with the written
consent of Lessee and Lessor. Any provision of this Lease found to
be prohibited by laws shall be ineffective to the extent of such
prohibition without invalidating the remainder of this Lease. The
waiver by Lessor of any breach by Lessee of any term, covenant or
condition hereof shall not operate as a waiver of any subsequent
breach thereof.
26. ADDITIONAL PROVISIONS. Any amendments to the standard
language of this Lease will be set forth in Exhibit C attached
hereto.
GEORGE K. BAUM & COMPANY LESSEE
TOWN OF AVON, COLORADO
By: JACK E. ORMSBEE By:
Title: PUBLIC FINANCE DEPARTMENT Title:
N
EXHIBIT A
DESCRIPTION OF EQUIPMENT
Quantity Description Serial No.
ONE (1) ORION BUS
EQUIPMENT LOCATION
AVON, COLORADO
*To be completed upon Lessee's acceptance of the Equipment.
EXHIBIT B
PAYMENT SCHEDULE
PAGE ONE OF TWO
Lessee: TOWN OF AVON, COLORADO
Fiscal Period: DECEMBER 31
Expiration Date: 7/1/1990
Payment
Payment
Interest
Principal
Concluding
Number
Date
Payment
Portion
Portion
Payment **
1
10/1/85
$7,171.43
$ 0.00
$7,171.43
$112,178.18
2
1/1/86
7,171.43
2,564.27
4,607.16
107,278.36
3
4/1/86
7,171.43
2,455.72
41,715.71
102,279.32
4
7/1/86
7;171.43
2,344.60
4,826.83
97,179.05
5
10/1/86
7,171.43
21,230.87
4,940.56
91,975.50
6
1/1/87
7,171.43
2;114.46
5,056.97
86,666.57
7
4/1/87
7,171.43
11995.30
5,176.13
81,250.14
8
7/1/87
73,171.43
1,873.34
5,298.09
75,724.03
9
10/1/87
7,171.43
1,748.51
5,422.92
701-086.01
10
1/1/88
7,171.43
1,620.73
5,550.70
64,333.82
11
4/1/88
7,171.43
1,489:94
5,681.49
58,465.15
12
7/1/88
7,171.43
1,356.07
5,815.36
52,477.64
13
10/1/88
7,171.43
1,219.04
5,952.39
461368.88
14
1/1/89
7,171.43
1,078.79
6,092.64
40,136.42
15
4/1/89
7,171.43
935.23
6,236.20
33,777.75
16
7/1/89
7,171.43
788:29
61383.14
27,290.32
17
10/1/89
7,171.43
637.89
6,533.54
20,671.52
18
1/1/90
7,171.43
483.94
6,687.49
13,918.69
19
4/1/90
7,171.43
326.37
6,845.06
7,029.11
20
7/1/90
7,171.27
165.08
7,006.19'
0.00
*To be completed upon Lessee's acceptance of the Equipment.
*After payment of all amounts otherwise due as of that date.
(To be written on a nsel's Letterhead)
OPINION OF COUNSEL
George K. Baum & Company
621 Seventeenth Street
Suite 2800
Denver, Colorado 80293
, 198
Re: Equipment Lease - Purchase Agreement dated , 198
Gentlemen:
I- have acted as Counsel to (the "Lessee ") with
respect to that certain Equipment Lease - Purchase Agreement (the
"Lease ") dated , 198 , by and between George K. Baum &
Company and the Lessee. I have reviewed the Lease and such other
documents, records and certificates of Lessee and appropriate public
officials as I have deemed relevant and am of the opinion that:
1. The Lessee is a political subdivision or agency of the State
of
2. The execution, delivery and performance by the Lessee of the
Lease have been duly authorized by all necessary action on
the part of the Lessee; and
3. The Lease constitutes a legal, valid and binding obligation
of the Lessee enforceable in accordance with its terms.
Very truly yours,
(Attorney for the Lessee)
CERTIFICATE OF APPROPRIATION
I, , of
(Name) (Title)
( "Lessee ") hereby certify that all lease
payments due by Lessee under that certain Equipment Lease - Purchase
Agreement dated as of , 198 , between Lessee and
George K. Baum & Company, as Lessor, for the fiscal year
ending 198 , are within such fiscal year's
Budget for Lessee and within an available, unexhausted and
unencumbered appropriation for Lessee.
IN WITNESS WHEREOF, I have set my hand this day
of , 198 .
LESSEE
By:
Name:
Title:
(To be written on Lessee's Letterhead)
ESSENTIAL USE LETTER
George K. Baum & Company
621 Seventeenth Street
Suite 2800
Denver, Colorado 80293
, 198
Re: Equipment Lease - Purchase Agreement dated , 198
Gentlemen:
This letter is being written with respect to the use of the Equipment
(herein so called) to be leased to the undersigned under the
above - referenced Equipment Lease - Purchase Agreement. The Equipment
will be used by for the following
purposes: (Department or Division Using Equipment)
(State how and for what purposes the Equipment will be used)
The undersigned hereby represents that the use of the Equipment is
essential to its proper, efficient and economic operation.
Very truly yours,
LESSEE
By:
Title:
ACCEPTANCE CERTIFICATE
George K. Baum & Company
621 Seventeenth Street
Suite 2800
Denver, Colorado 80293
Gentlemen:
In accordance with the terms of the Equipment Lease - Purchase
Agreement dated October 1 , 1985, (the "Lease ") between George
K. Baum & Company ( "Lessor ") and the undersigned ( "Lessee ") , Lessee
hereby certifies and represents to, and agrees with, Lessor as
follows:
1. The Equipment, as such term is defined in the Lease, has
been delivered and installed at the Equipment Location specified in
Exhibit A to the Lease and accepted on the date indicated below.
2. Lessee has conducted such inspection and /or testing of the
Equipment as it deems necessary and appropriate and hereby
acknowledges that it accepts the Equipment for all purposes.
3. No Event of Default, as such term is defined in the Lease,
and no event which with notice or lapse of time, or both, would
become an Event of Default, has occurred and is continuing at the
date hereof.
LESSEE
By:
TOWN OF AVON, COLORADO
Title:
Date:
NOTICE AND CONSENT TO ASSIGNMENT
Lessee Name TOWN OF AVON, COLORADO SEPTEMBER 15 / 1985
Lessee Address P.O. BOX 975
Attention: AVON, COLORADO 81620
Re: Equipment Lease - Purchase Agreement dated SEPTEMBER 15, 19854
between TOWN OF AVON, COLORADO ( "Lessee ") and George K. Baum
& Company
Gentlemen:
Please be advised that George K.-Baum & Company has assigned all its
right, title and interest in and to the above - referenced Equipment
Lease - Purchase Agreement (the "Agreement "), the equipment leased
thereunder, and the right to receive payments thereunder
to Pitizey Bowes Credit Corp. (the "Assignee ") .
All payments due under the Agreement should be made to the Assignee
at the following address:
5680 S. Syracuse Circle, Suite 300
Englewood, Colorado 80111
Please acknowledge your acceptance of the assignment, your
recordation of the assignment pursuant to Section 18 of the
agreement, and your agreement to make the payments due under the
Agreement to the Assignee by the signature of a duly authorized
officer in the space provided on the enclosed counterpart of this
letter and return it to us at the address shown above.
Very truly yours,
GEORGE K. BAUM & COMPANY
By: JACK E. ORMSBEE
Title: PUBLIC FINANCE DEPARTMENT
ACKNOWLEDGED AND ACCEPTED:
(LESSEE)
TOWN OF AVON, COLORADO
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CHATTEL MORTGAGE SECURITY AGREEMENT
(Motor Vehicle)
KNOW ALL MEN BY THESE PRESENTS, That GEORGE. K- RATTM & COMPANY
of the County of DENVER
in the State of Colorado, Mortgagor *, for good and valuable consideration, does hereby
grant unto TOWN OF AVON, COLORAno of the
County of F.AGT.F. , State of Colorado, Mortgagee * *, a chattel mortgage
security interest in the following personal property (collateral) including (except as to any
consumer goods as defined in the Uniform Commercial Code) all additions, replacements
and accessories thereto:
Make Style and Model Identification Number Year Other Identification
ORION
This chattel mortgage security interest is given to secure the payment of an indebtedness
evidenced by a promissory note bearing even date herewith in the principal sum of
$ , payable to the order of the Mortgagee with interest as therein stated, and is
given in accordance with the Colorado Certificate of Title Act ( C.R.S. 42 -6 -101, et seq.)
Mortgagor warrants that he is the owner of the collateral free and clear of liens, encum-
brances and security interests. Mortgagor agrees not to remove the same from the State of
Colorado, to pay all taxes when due, to procure such insurance as may legally be required by
Mortgagee and deliver the policy to Mortgagee with a loss payable clause in favor of Mortgagee
or a certificate thereof, and in default of the foregoing, Mortgagee may procure such insurance,
the premium thereon to be secured hereby and paid by Mortgagor.
Mortgagor may retain possession of the collateral until any default hereunder. If default
shall occur in the payment of the debt secured or if Mortgagee feels insecure in his security, then
the Mortgagee may take immediate possession of the collateral wherever found, with or without
George K. Baum & Company
INVESTMENT BANKERS
MEMBER OF
NEW YORK STOCK EXCHANGE, INC.
MIDWEST STOCK EXCHANGE
August 27, 1985
Town of Avon
P.O. Box 975
Avon, Colorado 80620
Gentlemen:
SUITE 2800
621 SEVENTEENTH STREET
DENVER, COLORADO 80293
TELEPHONE !3037 292 -2332
In connection with the lease purchase financing of an Orion Bus
for the Town of Avon, Colorado at a cost of , we submit
the following for your consideration and accept hce°:
Date of Lease 9/15/85
Lease Amount $135,0^^ ^^ / /b,000
�Y1JJ VVV.
Lease Term Five (5) years 7� 3� IS"
Lease Payment $ 8,346 T0-6
Payable quarterly in advance (20 quarters)
Lease Pate 8.45%
(calculated in arears)
Option to Purchase at the end of each fiscal year for an amount
as shown in the lease documentation. The terms and conditions
of the lease documentation are subject to mutual agreement
between the town of Avon and the Lessor.
This proposal is subject to the approving opinion of na-ti o -na7ily "64d t 0f` Vvj
r,��d zRTN e:ipal bohd counsel as to the legality of the
transaction and as to the interest portion of the lease payments
being exempt from all present federal and Colorado state income
tax. Further it is subject to the approval of the Lessor of the
financial condition of the Town of Avon.
Respectfully submitted,
GEORGE K. BAUM & COMPANY
JACK E. ORMSBEE
Public Finance Department
The above proposal is hereby accepted for and on behalf of the
Town of Avon, Colorado by proper authorization of its council
this day of , 1985.
-----------------------
mayor
Attest:
----------------------------
Clerk
ADDENDA I
Date of Lease 9/15/85 Lease No. 0015
EQUIPMENT LEASE - PURCHASE AGREEMENT
Lessor: GEORGE R. BAUM & COMPANY
Address: Suite 2800, 621 Seventeenth Street, Denver, Colorado 80293
Lessee: TOWN OF AVON, COLORADO
Address: P.O. BOX 975, AVON, COLORADO 81620
Lessor agrees to lease to Lessee and Lessee agrees to lease from
Lessor, the items of Equipment (the "Equipment ") described in Exhibit
A attached to this Equipment Lease - Purchase Agreement (the "Lease "),
upon the following terms and conditions:
1. DELIVERY AND ACCEPTANCE. Lessee, or if Lessee so requests,
Lessor, will cause the Equipment to be delivered to Lessee at the
location specified in Exhibit A (the "Equipment Location "). Lessee
will pay all transportation and other costs, if any, incurred in
connection with the delivery of the Equipment. Lessee will accept
the Equipment as soon as it has been delivered and is operational, or
in the event that the manufacturer or vendor allows a pre - acceptance
test period, as soon as the test period has expired. Lessee will
evidence its acceptance of the Equipment by executing and delivering
to Lessor an Acceptance Certificate (herein so called) in the form
provided by Lessor.
2. TERM. This Lease will become effective
hereof by Lessor. The term of this Lease will
the Equipment is accepted pursuant to Section 1
earlier terminated as expressly provided for in
continue until the Expiration Date set forth in
hereto (hereinafter the "Lease Term ").
upon the execution
commence on the date
above and, unless
this Lease, will
Exhibit B attached
3. RENT. Lessee agrees to pay to Lessor or its assignee the
Lease Payments (herein so called), including the interest portion,
equal to the amounts specified in Exhibit B. The Lease Payments will
be payable without notice or demand at the office of the Lessor (or
such other place as Lessor or its assignee may from time to time
designate in writing), and will commence on the first Lease Payment
dates as set forth in Exhibit B and thereafter on the dates set forth
in Exhibit B. Any payments received later than ten (10) days from
the due date will bear interest at the highest lawful rate for the
due date. Except as specifically provided in Section 4 hereof, the
Lease Payments will be absolute and unconditional in all events and
will not be subject to any set -off, defense, counterclaim, or
recoupment for any reason whatsoever.
Lessee reasonably believes that funds can be obtained sufficient
to make all Lease Payments during the Lease Term and hereby covenants
that it will do all things lawfully within its power to obtain,
maintain and properly request and pursue funds from which the Lease
Payments may be made, including making provisions for such payments
to the extent necessary in each budget submitted for the purpose of
obtaining funding, using its bona fide best efforts to have such
portion of the budget approved and exhausting all available
administrative reviews and appeals in the event such portion of the
budget is not approved. It is Lessee's intent to make Lease Payments
for the full Lease Term if funds are legally available therefor and
in that regard Lessee represents that the use of the Equipment is
essential to its proper, efficient and economic operation.
a. NONAPPROPRIATION OF FUNDS. In the event no funds or
insufficient funds are appropriated and budgeted or are otherwise
available by any means whatsoever in any fiscal period for Lease
Payments due under this Lease, then the Lessee will immediately
notify the Lessor or its assignee of such occurrence and this Lease
shall terminate on the last day of the fiscal period for which
appropriations were received without penalty or expense to Lessee of
any kind whatsoever, except as to the portions of Lease Payments
herein agreed upon for which funds shall have been appropriated and
budgeted or are otherwise available. In the event of such
termination, Lessee agrees to peaceably surrender possession of the
Equipment to Lessor or its assignee on the date of such termination,
packed for shipment in accordance with manufacturer specifications
and freight prepaid and insured to any location in the continental
United States designated by Lessor. Lessor will have all legal and
equitable rights and remedies to take possession of the Equipment.
Notwithstanding the foregoing, Lessee agrees (i) that it will not
cancel this Lease under the provisions of this Section if any funds
are appropriated to it, or by it, for the acquisition, retention or
operation of the Equipment or other equipment performing functions
similar to the Equipment for the fiscal period in which such
termination occurs or the next succeeding fiscal period thereafter,
and (ii) that it will not during the Lease Term give priority in the
application of funds to any other functionally similar equipment.
This paragraph will not be construed so as to permit Lessee to
terminate this Lease in order to acquire any other equipment or to
allocate funds directly or indirectly to perform essentially the same
application for which the Equipment is intended.
5. LIMITATION ON WARRANTIES. Lessee acknowledges and agrees
that the Equipment is of a size, design, and capacity selected by
Lessee, that Lessor is neither a manufacturer nor a vendor of such
equipment, and that LESSOR HAS NOT MADE, AND DOES NOT HEREBY MAKE,
ANY REPRESENTATION, WARRANTY, OR COVENANT, EXPRESS OR IMPLIED, WITH
RESPECT TO THE MERCHANTABILITY, CONDITION, QUALITY, DURABILITY,
DESIGN, OPERATION, FITNESS FOR USE, OR SUITABILITY OF THE EQUIPMENT
IN ANY RESPECT WHATSOEVER OR IN CONNECTION WITH OR FOR THE PURPOSES
AND USES OF LESSEE, OR ANY OTHER REPRESENTATION, WARRANTY, OR
COVENANT OF ANY KIND OR CHARACTER, EXPRESS OR IMPLIED, WITH RESPECT
THEREON, AND LESSOR SHALL NOT BE OBLIGATED OR LIABLE FOR ACTUAL,
INCIDENTAL, CONSEQUENTIAL, OR OTHER DAMAGES OF OR TO LESSEE OR ANY
OTHER PERSON OR ENTITY ARISING OUT OF OR IN CONNECTION WITH THE USE
OR PERFORMANCE OF THE EQUIPMENT AND THE MAINTENANCE THEREOF.
Lessor hereby assigns to Lessee during the Lease Term, so long as
no Event of Default has occurred hereunder and is continuing, all
manufacturer's warranties, if any, expressed or implied with respect
to the Equipment, and Lessor authorizes Lessee to obtain the
customary services furnished in connection with such warranties at
Lessee's expense.
6. AUTHORITY AND AUTHORIZATION. Lessee represents, covenants and
warrants, and as requested by Lessor, will deliver an opinion of
counsel to the effect that: (i) Lessee is a fully constituted
political subdivision or agency of the State of the Equipment
Location; (ii) the execution, delivery and performance by the Lessee
of this Lease have been duly authorized by all necessary action on
the part of the Lessee; and (iii) this Lease constitutes a legal,
valid and binding obligation of the Lessee enforceable in accordance
with its terms. Lessee agrees that (i) it will do or cause to be
done all things necessary to preserve and keep the Lease in full
force and effect, (ii) it has complied with all bidding requirements
where necessary and by due notification presented this Lease for
approval and adoption as a valid obligation on its part, and (iii) it
has sufficient appropriations or other funds available to pay all
amounts due hereunder for the current fiscal period.
7. TITLE. Upon acceptance of the Equipment by Lessee hereunder,
title to the Equipment will vest in Lessee; provided, however, that
(i) in the event of termination of this Lease by Lessee pursuant to
Section 4 hereof; (ii) upon the occurrence of an Event of Default
hereunder, and as long as such Event of Default is continuing; or
(iii) in the event that the purchase option has not, been exercised
prior to the Expiration Date, title will immediately vest in Lessor
or its assignee.
8. SECURITY INTEREST. In order to secure all of its obligations
hereunder, Lessee hereby (i) grants to Lessor a first and prior
security interest in any and all right, title and interest of Lessee
in the Equipment and in all additions, attachments, accessions, and
substitutions thereto, and on any proceeds therefrom, (ii) agrees
that this Lease may be filed as a financing statement evidencing such
security interest, and (iii) agrees to execute and deliver all
financing statements, certificates of title and other instruments
necessary or appropriate to evidence such security interest.
9. PERSONAL PROPERTY. The Equipment is and will remain personal
property and will not be deemed to be affixed to or a part of the
real estate on which it may be situated, notwithstanding that the
Equipment or any part hereof may be or hereafter become in any manner
physically affixed or attached to real estate or any building
thereon. If requested by Lessor, Lessee will, at Lessee's expense,
furnish a landlord or mortgagee waiver with respect to the Equipment.
10. USE; REPAIRS. Lessee will use the Equipment in a careful
manner for the use contemplated by the manufacturer for the Equipment
and shall comply with all laws, ordinance, insurance policies and
regulations relating to, and will pay all costs, claims, damages,
fees and charges arising out of its possession, use or maintenance.
Lessee, at its expense, will keep the Equipment in good repair and
furnish all parts, mechanisms and devices required therefor. If the
Equipment is such as is customarily covered by a maintenance
agreement, Lessee will furnish Lessor with a maintenance agreement
with a party satisfactory to Lessor.
11. ALTERATIONS. Lessee will not make any alterations, additions
or improvements to the Equipment without Lessor's prior written
consent unless such alterations, additions or improvements may be
readily removed without damage to the Equipment.
12. LOCATION; INSEPECTION. The Equipment will not be removed
from, or if the Equipment consists of rolling stock, its permanent
base will not be changed from,.the Equipment Location without
Lessor's prior written consent which will not be unreasonably
withheld. Lessor will be entitled to enter upon the Equipment
Location or elsewhere during reasonable business hours to inspect the
Equipment or observe its use and operation.
13. LIENS AND TAXES. Lessee shall keep the Equipment free and
clear of all levies, liens, and encumbrances except those created
under this Agreement. Lessee shall pay, when due, all charges and
taxes (local, state and federal) which may now or hereafter be
imposed upon the ownership, leasing, rental, sale, purchase,
possession or use of the Equipment, excluding however, all taxes on
or measured by Lessor's income. If Lessee fails to pay said charges,
and taxes when due, Lessor shall have the right, but shall not be
obligated, to pay said charges and taxes. If Lessor pays any charges
or taxes for which Lessee is responsible or liable under this
Agreement, Lessee shall reimburse Lessor therefor.
14.' RISK OF LOSS; DAMAGE; DESTRUCTION. Lessee assumes all risk
of loss of or damage to the Equipment from any cause whatsoever, and
no such loss of or damage to the Equipment nor defect therein nor
unfitness or obsolescence thereof shall relive Lessee of the
obligation to make Lease Payments or to perform any other obligation
under this Lease. In the event of damage to any item of Equipment,
Lessee will immediately place the same in good repaid with the
proceeds of any insurance recovery applied to the cost of such
repair. If Lessor determines that any items of Equipment is lost,
stolen, destroyed or damaged beyond repair, Lessee at the option of
Lessor will: either (a) replace the same with like equipment in good
repair; or (b) on the next Lease Payment date, pay Lessor: (i) all
amounts then owed by Lessee to Lessor under this Lease, including the
Lease Payment due on such date; and (ii) an amount equal to the
applicable Concluding Payment set forth in Exhibit B. In the event
that Lessee is obligated to make such payment with respect to less
than all the Equipment, Lessor will provide Lessee with the pro rata
amount of the Lease Payment and -the Concluding Payment to be made by
Lessee with respect to the Equipment which has suffered the event of
loss.
15. INSURANCE. Lessee, will, at its expense, maintain at all
times during the Lease Term, fire and extended coverage, public
liability and property damage insurance with respect to the Equipment
in such amounts, covering such risks, and with such insurers as shall
be satisfactory to Lessor, or, with Lessor's prior written consent,
may self - insure against any or all such risks. In no event will the
insurance limits be less than the amount of the then applicable
Concluding Payment with respect to such Equipment. Each insurance
policy will name Lessee as an insured and Lessor or its assigns as an
additional- insured and loss payee, and will contain a clause
requiring the insurer to give Lessor at least thirty (30) days prior
written notice of any alteration in the terms of such policy or the
cancellation thereof. The proceeds of any such policies will be
payable to Lessee and Lessor or its assigns as their interest may
appear. Upon acceptance of the Equipment and upon each insurance
renewal date, Lessee will deliver to Lessor a certificate evidencing
such insurance. In the event that Lessee has been permitted to
self- insure, Lessee will furnish Lessor with a letter or certificate
to such effect. In the event of any loss, damage, injury or accident
involving the Equipment, Lessee will promptly provide Lessor with
written notice thereof and make available to Lessor all information
and documentation relating thereto.
16. INDEMNIFICATION. Lessee shall indemnify Lessor against, and
hold Lessor harmless from, any and all claims, actions, proceedings,
expenses, damages or liabilities, including attorney's fees and court
costs, arising in connection with the Equipment, including, but not
limited to, its selection, purchase, delivery, possession, use,
operation, rejection or return and the recovery of claims, under
insurance policies thereon.
17. PURCHASE OPTION. Upon thirty (30) days prior written notice
from Lessee to Lessor, and provided that there is not Event of
Default, or an event which with notice or lapse of time, or both,
could become an Event of Default, then existing, Lessee will have the
right to purchase the Equipment on the Lease Payment dates set forth
in Exhibit B by paying to Lessor, on such date, the Lease Payment
then due together with the Concluding Payment amount set forth
opposite such date. Upon-satisfaction by Lessee of such purchase
conditions, Lessor will transfer any and all of its right, title and
interest in the Equipment to Lessee as is, without warranty, express
or implied, except that Lessor will warrant to Lessee that the
Equipment is free and clear of any liens created by Lessor.
18. ASSIGNMENT. Without Lessor's prior written consent, Lessee
will not either (i) assign, transfer, pledge, hypothecate, grant any
security interest in or otherwise dispose of this Lease or the
Equipment or any interest in this Lease or the Equipment, or (ii)
sublet or lend the Equipment or permit it to be used by anyone other
than Lessee or Lessee's employees. Lessor may assign its rights,
title and interest in and to this Lease, the Equipment and any other
documents executed with respect to this Lease and /or grant or assign
a security interest in this Lease and the Equipment, in whole or in
part.
Any such assignees shall have all of the rights of Lessor under this
Lease. No assignment or reassignment of any of Lessor's right, title
or interest in this Lease or the Equipment shall be effective unless
and until Lessee shall have received a duplicate original counterpart
of the document by which the assignment or reassignment is made,
disclosing the name and address of each such assignee; provided,
however, that is such assignment is made to a bank or trust company
as paying or escrow agent for holders of certificates of a
participation in the Lease; it shall thereafter be sufficient that a
copy of the agency agreement shall have been deposited with Lessee
until Lessee shall have been advised that such agency agreement is no
longer in effect. DURING THE LEASE TERM LESSEE SHALL KEEP A COMPLETE
AND ACCURATE RECORD OF ALL SUCH ASSIGNMENTS IN FORM NECESSARY TO
COMPLY WITH THE UNITED STATES INTERNAL REVENUE CODE, SECTION 103(j),
AND THE REGULATIONS, PROPOSED OR EXISTING, FROM TIME TO TIME
PROMULGATED THEREUNDER. Subject to the foregoing, this Lease inures
to the benefit of and is binding upon the heirs, executors,
administrators, successors and assignees of the parties hereto. No
further action will be required by Lessor or by Lessee to evidence
the assignment, but Lessee will acknowledge such assignments in
writing if so requested.
19. EVENTS OR DEFAULT. The term "Event of Default ", as used
herein, means the occurrence of any one or more of the following
events:
(a) Lessee fails to make any Lease Payment (or any other
payment) as it becomes due in accordance with the terms of this
Lease, and any such failure continues for ten (10) days after the due
date thereof;
(b) Lessee fails to perform or observe any other covenant,
condition, or agreement to be performed or observed by it hereunder
and such failure is not cured within twenty (20) days after written
notice thereof by Lessor; or
(c) The discovery by Lessor that any statement,
representation, or warranty made by Lessee in this Lease or in any
writing ever delivered by Lessee pursuant hereto or in connection
herewith is false, misleading, or erroneous in any material respect.
20. REMEDIES. Upon the occurrence of an Event of Default, and as
long as such Event of Default is continuing, Lessor may, at its
option, exercise any one or more of the following remedies:
(a) By written notice to Lessee, declare an amount equal to
all amounts then due under this Lease and all remaining Lease
Payments due during the Lease Term to be immediately due and payable,
whereupon the same shall become immediately due and payable;
(b) By written notice to the Lessee, request Lessee to (and
Lessee agrees that it will), at Lessee's expense, promptly return the
Equipment to Lessor in the manner set forth in Section 4 hereof, or
Lessor, at its option, may enter upon the premises where the
Equipment is located and take immediate possession of and remove the
same;
(c) Sell or lease the Equipment or sublease it for the
account of Lessee, holding Lessee liable for all Lease Payments and
other payments due to the effective date of such selling, leasing or
subleasing and for the difference between the purchase price, rental
and other amounts paid by the purchase, lessee or sublessee pursuant
to such sale, lease or sublease and the amounts payable by Lessee
hereunder; and
(d) Exercise any other right, remedy or privilege which may
be available to it under applicable laws of the state of the
Equipment Location or any other applicable law or proceed by
appropriate court action to enforce the terms of this Lease or to
recover damages for the breach of this Lease or to rescind this Lease
as to any or all of the Equipment..
In addition, Lessee will remain liable for all covenants and
indemnities under this Lease and for all legal fees and other costs
and expenses, including court costs, incurred by Lessor with respect
to the enforcement of any of the remedies listed above or any other
remedy available to Lessor.
21. NOTICES. All notices to be given under this Lease shall be
made in writing and mailed by certified mail, return receipt
requested, to the other party at its address set forth herein or at
such address as the part may provide in writing from time to time.
Any such notice shall be deemed to have been received five days
subsequent to mailing.
22. SECTION HEADINGS. All section headings contained herein are
for the convenience of reference only and are not intended to define
or limit the scope of any provision of this Lease.
23. GOVERNING LAW. This Lease shall be construed in accordance
with, and governed by the laws of, the state of the Equipment
Location.
24. DELIVERY OF RELATED DOCUMENTS. Lessee will execute or
provide, as requested by Lessor, such other documents and information
as are reasonably necessary with respect to the Transaction
contemplated by this Lease. At the request of Lessor, Lessee will
furnish Lessor annual financial statements of Lessee within
forty -five days after the end of Lessee's fiscal year.
25. ENTIRE AGREEMENT; WAIVER. This Lease, together with the
Acceptance Certificate and other attachments hereto, and other
documents or instruments executed by Lessee and Lessor in connection
herewith, constitute the entire agreement between the parties with
respect to the lease of the Equipment, and this Lease shall not be
modified, amended, altered, or changed except with the written
consent of Lessee and Lessor. Any provision of this Lease found to
be prohibited by laws shall be ineffective to the extent of such
prohibition without invalidating the remainder of this Lease. The
waiver'by Lessor of any breach by Lessee of any term, covenant or
condition hereof shall not operate as a waiver of any subsequent
breach thereof.
26. ADDITIONAL PROVISIONS. Any amendments to the standard
language of this Lease will be set forth in Exhibit C attached
hereto.
GEORGE R. BAUM & COMPANY LESSEE
By: JACK E. ORMSBEE
TOWN OF AVON, COLORADO
By:
Title: PUBLIC FINANCE DEPARTMENT Title:
Quantity
*
ONE (1)
EXHIBIT A
DESCRIPTION OF EQUIPMENT
Description Serial No.
*
ORION BUS
EQUIPMENT LOCATION
*
*To be completed upon Lessee's acceptance of the Equipment.
*
l
Lessee:
Fiscal Period:
Expiration Date:
Payment Payment
Number Date
* *
1 15/85
2 12 S/85
3 3/1 86
4 6/15/
S 9/15/86
6 12/15/86
7 3/15/87
8 6/15/87
9 9/15/87
10 12/15/87
11 3/15/88
12 6/15/88
13 9/15/88
14 12/15/88
15 3/15/89
16 6/15/89
17 9/15/89
18 12/15/89
19 3/15/90
20 6/15/90
EXHIBIT B
PAYMENT SCHEDULE
PAGE ONE OF TWO
*
V
*
*
Interest Principal Concluding
Payment Portion Portion Payment **
* * * *
$ 346.06 $ 0.00 $8,346.06 1301102.23
8, 6.06 2,984.28 5,361.78 4,439.53
8,34 .06 2,857.95 5,488.11 1 ,660.04
8,346. 6 2,728.63 617.43 112, 61.34
8,346.0 2,596.27 5, 49.79 106,7 0.98
81346.06 2,460.79 518 .27 100,59 4S
346.06 ,322.12 61023. 4 94,325.
85, 46.06 2, 80.18 6,165.88 87,924.59
8,3 .06 2110 .90 6,311.16 811391.97
8,346.06 1,886. 9 6,459.87 74,724.62
8,346. 1,733.9 61,612.08 7,919.76
8,346.06 1,578.18 6,767.88 60,974.55
8,346.06 1,418.72 6,927.34 53,886.09
8,346.06 1,255.49 090.57 461651.43
8,346.06 088.42 7,257.64 39,267.56
8,346.06 17.41 71428.65 31,731.39
8,346:06 7 2.37 7,603.69 24,039.79
8,346.06 56 .21 7,782.85 16,189.55
8,346.06 379.83 7,966.23 81177.40
8,346.06 192.12 81153.78 0.00
*To be completed upon Lessee's acceptance of the Equipment. /'1111711
*After payment of all amounts otherwise due as of that date.
George K. Baum & Company
INVESTMENT BANKEES
MEMBER OF _ SUITE 2800
NEW YORK STOCK EXCHANGE, INC. 6
MIDWEST STOCK EXCHANGE 21 SEVENTEENTH STREET
DENVER, COLORADO 80293
August 27, 1985 TELEPHONE (303) 292 -2332
Town of Avon
P.O. Box 975
Avon, Colorado 80620
Gentlemen:
In connection with'the lease purchase financing of an Orion Bus
for the Town of Avon, Colorado at a cost of , we submit
the following for your consideration and acce�t Xe"
Date of Lease
Lease Amount
Lease Term
Lease Payment
9/15/85
Five (5) years
Payable quarterly in advance (20 quarters) `
Lease Pate
(calculated in arears)
8.45%
Option to Purchase at the end of each fiscal year for an amount
as shown in the lease documentation. The terms and conditions
of the lease documentation are subject to mutual agreement
between the town of Avon and the Lessor.
This proposal is subject to the approving opinion of�
al b6lrd counsel as to the legality of t e
transaction and as to t e i terest portion of the lease payments
being exempt from all present deral and Colorado state income
tax. Further it is subject to th proval of the Lessor of the
financial condition of the Town of Av
Respectfully submitted,
GEORGE K. BAUMMi & COMPANY
JACK E. ORMSB
Public Finance Department
The above proposal is hereby accepted for and on behalf of the
Town of Avon, Colorado by proper authorization of its council
this day of , 1985.
------- - - - - -- - - - --
��i U
Attest:
---------------------------
Clerk
ADDENDA I
Date of Lease 9/15/85 Lease No. 0015
EQUIPMENT LEASE - PURCHASE AGREEMENT
Lessor: GEORGE R. BAUM & COMPANY
Address: Suite 2800, 621 Seventeenth Street, Denver, Colorado 80293
Lessee: TOWN OF AVON, COLORADO
Address: P.O. BOX 975, AVON, COLORADO 81620
Lessor agrees to lease to Lessee and Lessee agrees to lease from
Lessor, the items of Equipment (the "Equipment ") described in Exhibit
A attached to this Equipment Lease - Purchase Agreement (the "Lease ") ,
upon the following terms and conditions:
1. DELIVERY AND ACCEPTANCE. Lessee, or if Lessee so requests,
Lessor, will cause the Equipment to be delivered to Lessee at the
location specified in Exhibit A (the "Equipment Location "). Lessee
will pay all transportation and other costs, if any, incurred in
connection with the delivery of the Equipment. Lessee will accept
the Equipment as soon as it has been delivered and is operational, or
in the event that the manufacturer or vendor allows a pre - acceptance
test period, as soon as the test period has expired. Lessee will
evidence its acceptance of the Equipment by executing and delivering
to Lessor an Acceptance Certificate (herein so called) in the form
provided by Lessor.
2. TERP1. This Lease will become effective
hereof by Lessor. The term of this Lease will
the Equipment is accepted pursuant to Section 1
earlier terminated as expressly provided for in
continue until the Expiration Date set forth in
hereto (hereinafter the "Lease Term").
upon the execution
commence on the date
above and, unless
this Lease, will
Exhibit B attached
3. RENT. Lessee agrees to pay to Lessor or its assignee the
Lease Payments (herein so called), including the interest portion,
equal to the amounts specified in Exhibit B. The Lease Payments will
be payable without notice or demand at the office of the Lessor (or
such other place as Lessor or its assignee may from time to time
designate in writing), and will commence on the first Lease Payment
dates as set forth in Exhibit B and thereafter on the dates set forth
in Exhibit B. Any payments received later than ten (10) days from
the due date will bear interest at the highest lawful rate for the
due date. Except as specifically provided in Section 4 hereof, the
Lease Payments will be absolute and unconditional in all events and
will not be subject to any set -off, defense, counterclaim, or
recoupment for any reason whatsoever.
Lessee reasonably believes that funds can be obtained sufficient
to make all Lease Payments during the Lease Term and hereby covenants
that it will do all things lawfully within its power to obtain,
maintain and properly request and pursue funds from which the Lease
Payments may be made, including making provisions for such payments
to the extent necessary in each budget submitted for the purpose of
obtaining funding, using its bona fide best efforts to have such
portion of the budget approved and exhausting all available
administrative reviews and appeals in the event such portion of the
budget is not approved. It is Lessee's intent to make Lease Payments
for the full Lease Term if funds are legally available therefor and
in that regard Lessee represents that the use of the Equipment is
essential to its proper, efficient and economic operation.
4. NONAPPROPRIATION OF FUNDS. In the event no funds or
insufficient funds are appropriated and budgeted or are otherwise
available by any means whatsoever in any fiscal period for Lease
Payments due under this Lease, then the Lessee will immediately
notify the Lessor or its assignee of such occurrence and this Lease
shall terminate on the last day of the fiscal period for which
appropriations were received without penalty or expense to Lessee of
any kind whatsoever, except as to the portions of Lease Payments
herein agreed upon for which funds shall have been appropriated and
budgeted or are otherwise available. In the event of such
termination, Lessee agrees to peaceably surrender possession of the
Equipment to Lessor or its assignee on the date of such termination,
packed for shipment in accordance with manufacturer specifications
and freight prepaid and insured to any location in the continental
United States designated by Lessor. Lessor will have all legal and
equitable rights and remedies to take possession of the Equipment.
Notwithstanding the foregoing, Lessee agrees (i) that it will not
cancel this Lease under the provisions of this Section if any funds
are appropriated to it, or by it, for the acquisition, retention or
operation of the Equipment or other equipment performing functions
similar to the Equipment for the fiscal period in which such
termination occurs or the next succeeding fiscal period thereafter,
and (ii) that it will not during the Lease Term give priority in the
application of funds to any other functionally similar equipment.
This paragraph will not be construed so as to permit Lessee to
terminate this Lease in order to acquire any other equipment or to
allocate funds directly or indirectly to perform essentially the same
application for which the Equipment is intended.
5. LIMITATION ON WARRANTIES. Lessee acknowledges and agrees
that the Equipment is of a size, design, and capacity selected by
Lessee, that Lessor is neither a manufacturer nor a vendor of such
equipment, and that LESSOR HAS NOT MADE, AND DOES NOT HEREBY MAKE,
ANY REPRESENTATION, WARRANTY, OR COVENANT, EXPRESS OR IMPLIED, WITH
RESPECT TO THE MERCHANTABILITY, CONDITION, QUALITY, DURABILITY,
DESIGN, OPERATION, FITNESS FOR USE, OR SUITABILITY OF THE EQUIPMENT
IN ANY RESPECT WHATSOEVER OR IN CONNECTION WITH OR FOR THE PURPOSES
AND USES OF LESSEE, OR ANY OTHER REPRESENTATION, WARRANTY, OR
COVENANT OF ANY KIND OR CHARACTER, EXPRESS OR IMPLIED, WITH RESPECT
THEREON, AND LESSOR SHALL NOT BE OBLIGATED OR LIABLE FOR ACTUAL,
INCIDENTAL, CONSEQUENTIAL, OR OTHER DAMAGES OF OR TO LESSEE OR ANY
OTHER PERSON OR ENTITY ARISING OUT OF OR IN CONNECTION WITH THE USE
OR PERFORMANCE OF THE EQUIPMENT AND THE MAINTENANCE THEREOF.
Lessor hereby assigns to Lessee during the Lease Term, so long as
no Event of Default has occurred hereunder and is continuing, all
manufacturer's warranties, if any, expressed or implied with respect
to the Equipment, and Lessor authorizes Lessee to obtain the
customary services furnished in connection with such warranties at
Lessee's expense.
6. AUTHORITY AND AUTHORIZATION. Lessee represents, covenants and
warrants, and as requested by Lessor, will deliver an opinion of
counsel to the effect that: (i) Lessee is a fully constituted
political subdivision or agency of the State of the Equipment
Location; (ii) the execution, delivery and performance by the Lessee
of this Lease have been duly authorized by all necessary action on
the part of the Lessee; and (iii) this Lease constitutes a legal,
valid and binding obligation of the Lessee enforceable in accordance
with its terms. Lessee agrees that (i) it will do or cause to be
done all things necessary to preserve and keep the Lease in full
force and effect, (ii) it has complied with all bidding requirements
where necessary and by due notification presented this Lease for
approval and adoption as a valid obligation on its part, and (iii) it
has sufficient appropriations or other funds available to pay all
amounts due hereunder for the current fiscal period.
7. TITLE. Upon acceptance of the Equipment by Lessee hereunder,
title to the Equipment will vest in Lessee; provided, however, that
(i) in the event of termination of this Lease by Lessee pursuant to
Section 4 hereof; (ii) upon the occurrence of an Event of Default
hereunder, and as long as such Event of Default is continuing; or
(iii) in the event that the purchase option has not _been exercised
prior to the Expiration Date, title will immediately vest in Lessor
or its assignee.
8. SECURITY INTEREST. In order to secure all of its obligations
hereunder, Lessee hereby (i) grants to Lessor a first and prior
security interest in any and all right, title and interest of Lessee
in the Equipment and in all additions, attachments, accessions, and
substitutions thereto, and on any proceeds therefrom, (ii) agrees
that this Lease may be filed as a financing statement evidencing such
security interest, and (iii) agrees to execute and deliver all
financing statements, certificates of title and other instruments
necessary or appropriate to evidence such security interest.
9. PERSONAL PROPERTY. The Equipment is and will remain personal
property and will not be deemed to be affixed to or a part of the
real estate on which it may be situated, notwithstanding that the
Equipment or any part hereof may be or hereafter become in any manner
physically affixed or attached to real estate or any building
thereon. If requested by Lessor, Lessee will, at Lessee's expense,
furnish a landlord or mortgagee waiver with respect to the Equipment.
10. USE; REPAIRS. Lessee will use the Equipment in a careful
manner for the use contemplated -by the manufacturer for the Equipment
and shall comply with all laws, ordinance, insurance policies and
regulations relating to, and will pay all costs, claims, damages,
fees and charges arising out of its possession, use or maintenance.
Lessee, at its expense, will keep the Equipment in good repair and
furnish all parts, mechanisms and devices required therefor. If the
Equipment is such as is customarily covered by a maintenance
agreement, Lessee will furnish Lessor with a maintenance agreement
with a party satisfactory to Lessor.
11. ALTERATIONS. Lessee will not make any alterations, additions
or improvements to the Equipment without Lessor's prior written
consent unless such alterations, additions or improvements may be
readily removed without damage to the Equipment.
12. LOCATION; INSEPECTION. The Equipment will not be removed
from, or if the Equipment consists of rolling stock, its permanent
base will not be changed from,.the Equipment Location without
Lessor's prior written consent which will not be unreasonably
withheld. Lessor will be entitled to enter upon the Equipment
Location or elsewhere during reasonable business hours to inspect the
Equipment or observe its use and operation.
13. LIENS AND TAXES. Lessee shall keep the Equipment free and
clear of all levies, liens, and encumbrances except those created
under this Agreement. Lessee shall pay, when due, all charges and
taxes (local, state and federal) which may now or hereafter be
imposed upon the ownership, leasing, rental, sale, purchase,
possession or use of the Equipment, excluding however, all taxes on
or measured by Lessor's income. If Lessee fails to pay said charges,
and taxes when due, Lessor shall have the right, but shall not be
obligated, to pay said charges and taxes. If Lessor pays any charges
or taxes for which Lessee is responsible or liable under this
Agreement, Lessee shall reimburse Lessor therefor.
14.' RISK OF LOSS; DAMAGE; DESTRUCTION. Lessee assumes all risk
of loss of or damage to the Equipment from any cause whatsoever, and
no such loss of or damage to the Equipment nor defect therein nor
unfitness or obsolescence thereof shall relive Lessee of the
obligation to make Lease Payments or to perform any other obligation
under this Lease. In the event of damage to any item of Equipment,
Lessee will immediately place the same in good repaid with the
proceeds of any insurance recovery applied to.the cost of such
repair. If Lessor determines that any items of Equipment is lost,
stolen, destroyed or damaged beyond repair, Lessee at the option of
Lessor will: either (a) replace the same with like equipment in good
repair; or (b) on the next Lease Payment-date, pay Lessor: (i) all
amounts then owed by Lessee to Lessor under this Lease, including the
Lease Payment due on such date; and (ii) an amount equal to the
applicable Concluding Payment set forth in Exhibit B. In the event
that Lessee is obligated to make such payment with respect to less
than all the Equipment, Lessor will provide Lessee with the pro rata
amount of the Lease Payment and. the Concluding Payment to be made by
Lessee with respect to the Equipment which has suffered the event of
loss.
15. INSURANCE. Lessee, will, at its expense, maintain at all
times during the Lease Term, fire and extended coverage, public
liability and property damage insurance with respect to the Equipment
in such amounts, covering such risks, and with such insurers as shall
be satisfactory to Lessor, or, with Lessor's prior written consent,
may self- insure against any or all such risks. In no event will the
insurance limits be less than the amount of the then applicable
Concluding Payment with respect to such Equipment. Each insurance
policy will name Lessee as an insured and Lessor or its assigns as an
additional insured and loss payee, and will contain a clause
requiring the insurer to give Lessor at least thirty (30) days prior
written notice of any alteration in the terms of such policy or the
cancellation thereof. The proceeds of any such policies will be
payable to Lessee and Lessor or its assigns as their interest may
appear. Upon acceptance of the Equipment and upon each insurance
renewal date, Lessee will deliver to Lessor a certificate evidencing
such insurance. In the event that Lessee has been permitted to
self- insure, Lessee will furnish Lessor with a letter or certificate
to such effect. In the event of any loss, damage, injury or accident
involving the Equipment, Lessee will promptly provide Lessor with
written notice thereof and make available to Lessor all information
and documentation relating thereto.
16.. INDEMNIFICATION. Lessee shall indemnify Lessor against, and
hold Lessor harmless from, any and all claims, actions, proceedings,
expenses, damages or liabilities, including attorney's fees and court
costs, arising in connection with the Equipment, including, but not
limited to, its selection, purchase, delivery, possession, use,
operation, rejection or return and the recovery of claims, under
insurance policies thereon.
17. PURCHASE OPTION. Upon thirty (30) days prior written notice
from Lessee to Lessor, and provided that there is not Event of
Default, or an event which with notice or lapse of time, or both,
could become an Event of Default, then existing, Lessee will have the
right to purchase the Equipment on the Lease Payment dates set forth
in Exhibit B by paying to Lessor, on such date, the Lease Payment
then due together with the Concluding Payment amount set forth
opposite such date. Upon satisfaction by Lessee of such purchase
conditions, Lessor will transfer any and all of its right, title and
interest in the Equipment to Lessee as is, without warranty, express
or implied, except that Lessor will warrant to Lessee that the
Equipment is free and clear of any liens created by Lessor.
18. ASSIGNMENT. Without Lessor's prior written consent, Lessee
will not either (i) assign, transfer, pledge, hypothecate, grant any
security interest in or otherwise dispose of this Lease or the
Equipment or any interest in this Lease or the Equipment, or (ii)
sublet or lend the Equipment or permit it to be used by anyone other
than Lessee or Lessee's employees. Lessor may assign its rights,
title and interest in and to this Lease, the Equipment and any other
documents executed with respect to this Lease and /or grant or assign
a security interest in this Lease and the Equipment, in whole or in
part.
Any such assignees shall have all of the rights of Lessor under this
Lease. No assignment or reassignment of any of Lessor's right, title
or interest in this Lease or the Equipment shall be effective unless
and until Lessee shall have received a duplicate original counterpart
of the document by which the assignment or reassignment is made,
disclosing the name and address of each such assignee; provided,
however, that is such assignment is made to a bank or trust company
as paying or escrow agent for holders of certificates of a
participation in the Lease; it shall thereafter be sufficient that a
copy of the agency agreement shall have been deposited with Lessee
until Lessee shall have been advised that such agency agreement is no
longer in effect. DURING THE LEASE TERM LESSEE SHALL KEEP A COMPLETE
AND ACCURATE RECORD OF ALL SUCH ASSIGNMENTS IN FORM NECESSARY TO
COMPLY WITH THE UNITED STATES INTERNAL REVENUE CODE, SECTION 103(j),
AND THE REGULATIONS, PROPOSED OR EXISTING, FROM TIME TO TIME
PROMULGATED THEREUNDER. Subject to the foregoing, this Lease inures
to the benefit of and is binding upon the heirs, executors,
administrators, successors and assignees of the parties hereto. No
further action will be required by Lessor or by Lessee to evidence
the.assignment, but Lessee will acknowledge such assignments in
writing if so requested.
19. EVENTS OR DEFAULT. The term "Event of Default ", as used
herein, means the occurrence of any on.e or more of the following
events:
(a) Lessee fails to make any Lease Payment (or any other
payment) as it becomes due in accordance with the terms of this
Lease, and any such failure continues for ten (10) days after the due
date thereof;
(b) Lessee fails to perform or observe any other covenant,
condition, or agreement to be performed or observed by it hereunder
and such failure is not cured within twenty (20) days after written
notice thereof by Lessor; or
(c) The discovery by Lessor that any statement,
representation, or warranty made by Lessee in this Lease or in any
writing ever delivered by Lessee pursuant hereto or in connection
herewith is false, misleading, or erroneous in any material respect.
20. REMEDIES. Upon the occurrence of an Event of Default, and as
long as such Event of Default is continuing, Lessor may, at its
option, exercise any one or more of the following remedies:
(a) By written notice to Lessee, declare an amount equal to
all amounts then due under this Lease and all remaining Lease
Payments due during the Lease Term to be immediately due and payable,
whereupon the same shall become immediately due and payable;
(b) By written notice to the Lessee, request Lessee to (and
Lessee agrees that it will), at Lessee's expense, promptly return the
Equipment to Lessor in the manner set forth in Section 4 hereof, or
Lessor, at its option, may enter upon the premises where the
Equipment is located and take immediate possession of and remove the
same;
(c) Sell or lease the Equipment or sublease it for the
account of Lessee, holding Lessee liable for all Lease Payments and
other payments due to the effective date of such selling, leasing or
subleasing and for the difference between the purchase price, rental
and other amounts paid by the purchase, lessee or sublessee pursuant
to such sale, lease or sublease and the amounts payable by Lessee
hereunder; and
(d) Exercise any other right, remedy or privilege which may
be available to it under applicable laws of the state of the
Equipment Location or any other applicable law or proceed by
appropriate court action to enforce the terms of this Lease or to
recover damages for the breach of this Lease or to rescind this Lease
as to any or all of the Equipment..
In addition, Lessee will remain liable for all covenants and
indemnities under this Lease and for all legal fees and other costs
and expenses, including court costs, incurred by Lessor with respect
to the enforcement of any of the remedies listed above or any other
remedy available to Lessor.
21. NOTICES. All notices to be given under this Lease shall be
made in writing and mailed by certified mail, return receipt
requested, to the other party at its address set forth herein or at
such address as the part may provide in writing from time to time.
Any such notice shall be deemed to have been received five days
subsequent to mailing.
22. SECTION HEADINGS. All section headings contained herein are
for the convenience of reference only and are not intended to define
or limit the scope of any provision of this Lease.
23. GOVERNING LAW. This Lease shall be construed in accordance
with, and governed by the laws of, the state of the Equipment
Location.
24. DELIVERY OF RELATED DOCUMENTS. Lessee will execute or
provide, as requested by Lessor, such other documents and information
as are reasonably necessary with respect to the Transaction
contemplated by this Lease. At the request of Lessor, Lessee will
furnish Lessor annual financial statements of Lessee within
forty -five days after the end of Lessee's fiscal year.
25. ENTIRE AGREEMENT; WAIVER. This Lease, together with the
Acceptance Certificate and other attachments hereto, and other
documents or instruments executed by Lessee and Lessor in connection
herewith, constitute the entire agreement between the parties with
respect to the lease of the Equipment, and this Lease shall not be
modified, amended, altered, or changed except with the written
consent of Lessee and Lessor. Any provision of this Lease found to
be prohibited by laws shall be ineffective to the extent of such
prohibition without invalidating the remainder of this Lease. The
waiver by Lessor of any breach by Lessee of any term, covenant or
condition hereof shall not operate as a waiver of any subsequent
breach thereof.
26. ADDITIONAL PROVISIONS. Any amendments to the standard
language of this Lease will be set forth in Exhibit C attached
hereto.
GEORGE K. BAUM & COMPANY LESSEE
TOWN OF AVON, COLORADO
BY: JACK E. ORMSBEE
By:
Title: PUBLIC FINANCE DEPARTMENT Title:
r
Quantity
*
ONE (1)
EXHIBIT A
DESCRIPTION OF EQUIPMENT
Description
*
ORION BUS
EQUIPMENT LOCATION
Serial No.
*
*To be completed upon Lessee's acceptance of the Equipment.
Lessee:
Fiscal Period:
Expiration Date:
Payment Payment
Number Date
* *
1 \6/15/
2 1
3
4 5 //
6 12/15/86
7 3/15/87
8 6/15/87
9 9/15/87
10 12/15/87
11 3/15/88
12 6/15/88
13 9/15/88
14 12/15/88
15 3/15/89
16 6/15/89
17 9/15/89
18 12/15/89
19 3/15/90
20 6/15/90
EXHIBIT B
PAYMENT SCHEDULE
PAGE ONE OF TWO
�U
*
Interest Principal Concluding
Payment Portion, Portion Payment **
* * * *
$ 346.06 $ 0.00 $8,346.06 130,102.23
8, 46.06 2,984.28 5,361.78 4,439.53
8,34 .06 2,857.95 5,488.11 1 9660.04
8,346. 6 21728.63 2617.43 112, 61.34
8,346.0 2,596.27 5, 49.79 106,7 0.98
8,346.06 2,460.79 5,8 .27 100,59 45
346.06 ,322.12 6,023. 4 94,325.
8, 46.06 2, 80.18 6,165.88 87,924.59
8,3 .06 2,0 .90 6,311.16 81,391.97
8,346.06 1,886. 9 6,459.87 74,724.62
8,346. 1,733.9 6,612.08 72919.76
8,346.06 11578.18 6,767.88 60,974.55
8,346.06 1,418.72 6,27.34 53,886.09
8,346.06 1,255.49 090.57 462651.43
8,346.06 088.42 7,257.64 39,267.56
8,346.06 17.41 7,428.65 31,731.39
8,346.06 7 2.37 7,603.69 24,039.79
8,346.06 56 .21 7,782.85 16,189.55
8,346.06 379.83 7,966.23 8,177.40
8,346.06 192.12 8,153.78 0.00
t
*To be completed upon Lessee's acceptance of the Equipment.
*After payment of all amounts otherwise due as of that date.
i
i
`s
t
1
Date of Lease
9/15/85 Lease No. 0015
EQUIPMENT LEASE- PURCHASE AGREEMENT
Lessor: GEORGE R. BAUM & COMPANY
Address: Suite 2800, 621 Seventeenth Street, Denver, Colorado 80293
Lessee: TOWN OF AVON, COLORADO
Address: P.O. BOX 975, AVON, COLORADO 81620
Lessor agrees to lease to Lessee and Lessee agrees to lease from
Lessor, the items of Equipment (the "Equipment ") described in Exhibit
A attached to this Equipment Lease - Purchase Agreement (the "Lease ") ,
upon the following terms and conditions:
1. DELIVERY AND ACCEPTANCE. Lessee, or if Lessee so requests,
Lessor, will cause the Equipment to be delivered to Lessee at the
location specified in Exhibit A (the "Equipment Location "). Lessee
will pay all transportation and other costs, if any, incurred in
connection with the delivery of the Equipment. Lessee will accept
the Equipment as soon as it has been delivered and is operational, or
in the event that the manufacturer or vendor allows a pre - acceptance
test period, as soon as the test period has expired. Lessee will
evidence its acceptance of the Equipment by executing and delivering
to Lessor an Acceptance Certificate (herein so called) in the form
provided by Lessor.
2. TERM. This Lease will become effective
hereof by Lessor. The term of this Lease will
the Equipment is accepted pursuant to Section 1
earlier terminated as expressly provided for in
continue until the Expiration Date set forth in
hereto (hereinafter the "Lease Term ").
upon the execution
commence on the date
above and, unless
this Lease, will
Exhibit B attached
3. RENT. Lessee agrees to pay to Lessor or its assignee the
Lease Payments (herein so called), including the interest portion,
equal to the amounts specified in Exhibit B. The Lease Payments will
be payable without notice or demand at the office of the Lessor (or
such other place as Lessor or its assignee may from time to time
designate in writing), and will commence on the first Lease Payment
dates as set forth in Exhibit B and thereafter on the dates set forth
in Exhibit B. Any payments received later than ten (10) days from
the due date will bear interest at the highest lawful rate for the
due date. Except as specifically provided in Section 9 hereof, the
Lease Payments will be absolute and unconditional in all events and
will not be subject to any set -off, defense, counterclaim, or
recoupment for any reason whatsoever.
Lessee reasonably believes that funds can be obtained sufficient
to make all Lease Payments during the Lease Term and hereby covenants
that it will do all things lawfully within its power to obtain,
maintain and properly request and pursue funds from which t -he Lease
Payments may be made, including making provisions for such payments
to the extent necessary in each budget submitted for the purpose of
obtaining funding, using its bona fide best efforts to have such
portion of the budget approved and exhausting all available
administrative reviews and appeals in the event such portion of the
budget is not approved. It is Lessee's intent to make Lease Payments
for the full Lease Term if funds are legally available therefor and
in that regard Lessee represents that the use of the Equipment is
essential to its proper, efficient and economic operation.
4. NONAPPROPRIATION OF FUNDS. In the event no funds or
insufficient funds are appropriated and budgeted or are otherwise
available by any means whatsoever in any fiscal period fo.r Lease
Payments due under this Lease, then the Lessee will immediately
notify the Lessor or its assignee of such occurrence and this Lease
shall terminate on the last day of the fiscal period for which
appropriations were received without penalty or expense to Lessee of
any kind whatsoever, except as to the portions of Lease Payments
herein agreed upon for which funds shall have been appropriated and
budgeted or are otherwise available. In the event of such
termination, Lessee agrees to peaceably surrender possession of the
Equipment to Lessor or its assignee on the date of such termination,
packed for shipment in accordance with manufacturer specifications
and freight prepaid and insured to any location in the continental
United States designated by Lessor. Lessor will have. all legal and
equitable rights and remedies to take possession of the Equipment.
Notwithstanding the foregoing, Lessee agrees (i) that it will not
cancel this Lease under the provisions of this Section if any funds
are appropriated to it, or by it, for the acquisition, retention or
operation of the Equipment or other equipment performing functions
similar to the Equipment for the fiscal period in which such
termination occurs or the next succeeding fiscal period thereafter,
and (ii) that it will not during the Lease Term give priority in the
application of funds to any other functionally similar equipment.
This paragraph will not be construed so as to permit Lessee to
terminate this Lease in order to acquire any other equipment or to
allocate funds directly or indirectly to perform essentially the same
application for which the Equipment is intended.
5. LIMITATION ON WARRANTIES. Lessee acknowledges and agrees
that the Equipment is of a size, design, and capacity selected by
Lessee, that Lessor is neither a manufacturer nor a vendor of such
equipment, and that LESSOR HAS NOT MADE, AND DOES NOT HEREBY MAKE,
ANY REPRESENTATION, WARRANTY, OR COVENANT, EXPRESS OR IMPLIED, WITH
RESPECT TO THE MERCHANTABILITY, CONDITION, QUALITY, DURABILITY,
DESIGN, OPERATION, FITNESS FOR USE, OR SUITABILITY OF THE EQUIPMENT
IN ANY RESPECT WHATSOEVER OR IN CONNECTION WITH OR FOR THE PURPOSES
AND USES OF LESSEE, OR ANY OTHER REPRESENTATION, WARRANTY, OR
COVENANT OF ANY KIND OR CHARACTER, EXPRESS OR IMPLIED, WITH RESPECT
THEREON, AND LESSOR SHALL NOT BE OBLIGATED OR LIABLE FOR ACTUAL,
INCIDENTAL, CONSEQUENTIAL, OR OTHER DAMAGES OF OR TO LESSEE OR ANY
OTHER PERSON OR ENTITY ARISING OUT OF OR IN CONNECTION WITH THE USE
OR PERFORMANCE OF THE EQUIPMENT AND THE MAINTENANCE THEREOF.
Lessor hereby assigns to Lessee during the Lease Term, so long as
no Event of Default has occurred hereunder and is continuing, all
manufacturer's warranties, if any, expressed or implied with respect
to the Equipment, and Lessor authorizes Lessee to obtain the
customary services furnished in connection with such warranties at
Lessee's expense.
6. AUTHORITY AND AUTHORIZATION. Lessee represents, covenants and
warrants, and as requested by Lessor, will deliver an opinion of
counsel to the effect that: (i) Lessee is a fully constituted
political subdivision or agency of the State of the Equipment
Location; (ii) the execution, delivery and performance by the Lessee
of this Lease have been duly authorized by all necessary action on
the part of the Lessee; and (iii) this Lease constitutes a legal,
valid and binding obligation of the Lessee enforceable in accordance
with its terms. Lessee agrees that (i) it will do or cause to be
done all things necessary to preserve and keep the Lease in full
force and effect, (ii) it has complied with all bidding requirements
where necessary and by due notification presented this Lease for
approval and adoption as a valid obligation on its part, and (iii) it
has sufficient appropriations or other funds available to pay all
amounts due hereunder for the current fiscal period.
7. TITLE. Upon acceptance of the Equipment by Lessee hereunder,
title to the Equipment will vest in Lessee; provided, however, that
(i) in the event of termination of this Lease by Lessee pursuant to
Section 4 hereof; (ii) upon the occurrence of an Event of Default
hereunder, and as long as such Event of Default is continuing; or
(iii) in the event that the purchase option has not, been exercised
prior to the Expiration Date, title will immediately vest in Lessor
or its assignee.
8. SECURITY INTEREST. In order to secure all of its obligations
hereunder, Lessee hereby (i) grants to Lessor a first and prior
security interest in any and all right, title and interest of Lessee
in the Equipment and in all additions, attachments, accessions, and
substitutions thereto, and on any proceeds therefrom, (ii) agrees
that this Lease may be filed as a financing statement evidencing such
security interest, and (iii) agrees to execute and deliver all
financing statements, certificates of title and other instruments
necessary or appropriate to evidence such security interest.
9. PERSONAL PROPERTY. The Equipment is and will remain personal
property and will not be deemed to be affixed to or a part of the
real estate on which it may be situated, notwithstanding that the
Equipment or any part hereof may be or hereafter become in any manner
physically affixed or attached to real estate or any building
thereon. If requested by Lessor, Lessee will, at Lessee's expense,
furnish a landlord or mortgagee waiver with respect to the Equipment.
10. USE; REPAIk.-j. Lessee will use the Equipment in a caref ul
manner-for the use contemplated by the manufacturer for the Equipment
and shall comply with all laws, ordinance, insurance policies and
regulations relating to, and will pay all costs, claims, damages,
fees and charges arising out of its possession, use or maintenance.
Lessee, at its expense, will keep the Equipment in good repair and
furnish all parts, mechanisms and devices required therefor. If the
Equipment is such as is customarily covered by a maintenance
agreement, Lessee will furnish Lessor with a maintenance agreement
with a party satisfactory to Lessor.
11. ALTERATIONS. Lessee will not make any alterations, additions
or improvements to the Equipment without Lessor's prior written
consent unless such alterations, additions or improvements may be
readily removed without damage to the Equipment.
12. LOCATION; INSEPECTION. The Equipment will not be removed
from, or if the Equipment consists of rolling stock, its permanent
base will not be changed from, the Equipment Location without
Lessor's prior written consent which will not be unreasonably
withheld. Lessor will be entitled to enter upon the Equipment
Location or elsewhere during reasonable business hours to inspect the
Equipment or observe its use and operation.
13. LIENS AND TAXES. Lessee shall keep the Equipment free and
clear of all levies, liens, and encumbrances except those created
under this Agreement. Lessee shall pay, when due, all charges and
taxes (local, state and federal) which may now or hereafter be
imposed upon the ownership, leasing, rental, sale, purchase,
possession or use of the Equipment, excluding however, all taxes on
or measured by Lessor's income. If Lessee fails to pay said charges,
and taxes when due, Lessor shall have the right, but shall not be
obligated, to pay said charges and taxes. If Lessor pays any charges
or taxes for which Lessee is responsible or liable under this
Agreement, Lessee shall reimburse Lessor therefor.
14." RISK OF LOSS; DAMAGE; DESTRUCTION. Lessee assumes all risk
of loss of or damage to the Equipment from any cause whatsoever, and
no such loss of or damage to the Equipment nor defect therein nor
unfitness or obsolescence thereof shall relive Lessee of the
obligation to make Lease Payments or to perform any other obligation
under-this Lease. In the event of damage to any item of Equipment,
Lessee will immediately place the same in good repaid with the
proceeds of any insurance recovery applied to the cost of such
repair. If Lessor determines that any items of Equipment is lost,
stolen, destroyed or damaged beyond repair, Lessee at the option of
Lessor will: either (a) replace the same with like equipment in good
repair; or (b) on the next Lease Payment date, pay Lessor: (i) all
amounts then owed by Lessee to Lessor under this Lease, including the
Lease Payment due on such date; and (ii) an amount equal to the
applicable Concluding Payment set forth in Exhibit B. In the event
that Lessee is obligated to make such payment with respect to less
than all the Equipment, Lessor will provide Lessee with the pro rata
amount of the Lease Payment and- the Concluding Payment to be made by
Lessee with respect to the Equipment which has suffered the event of
loss.
15. INSURANCE. .,essee, will, at its expense, maintain at all
times during the Lease Term, fire and extended coverage, public
liability and property damage insurance with respect to the Equipment
in such amounts, covering such risks, and with such insurers as shall
be satisfactory to Lessor, or, with Lessor's prior written consent,
may self- insure against any or all such risks. In no event will the
insurance limits be less than the amount of the then applicable
Concluding Payment with respect to such Equipment. Each insurance
policy will name Lessee as an insured and Lessor or its assigns as an
additional insured and loss payee, and will contain a clause
requiring the insurer to give Lessor at least thirty (30) days prior
written notice of any alteration in the terms of such policy or the
cancellation thereof. The proceeds of any such policies will be
payable to Lessee and Lessor or its assigns as their interest may
appear. Upon acceptance of the Equipment and upon each insurance
renewal date, Lessee will deliver to Lessor a certificate evidencing
such insurance. In the event that Lessee has been permitted to
self- insure, Lessee will furnish Lessor with a letter or certificate
to such effect. In the event of any loss, damage, injury or accident
involving the Equipment, Lessee will promptly provide Lessor with
written notice thereof and make available to Lessor all information
and documentation relating thereto.
16. INDEMNIFICATION. Lessee shall indemnify Lessor against, and
hold Lessor harmless from, any and all claims, actions, proceedings,
expenses, damages or liabilities, including attorney's fees and court
costs, arising in connection with the Equipment, including, but not
limited to, its selection, purchase, delivery, possession, use,
operation, rejection or return and the recovery of claims, under
insurance policies thereon.
17. PURCHASE OPTION. Upon thirty (30) days prior written notice
from Lessee to Lessor, and provided that there is not Event of
Default, or an event which with notice or lapse of time, or both,
could become an Event of Default, then existing, Lessee will have the
right to purchase the Equipment on the Lease Payment dates set forth
in Exhibit B by paying to Lessor, on such date, the Lease Payment
then due together with the Concluding Payment amount set forth
opposite such date. Upon satisfaction by Lessee of such purchase
conditions, Lessor will transfer any and all of its right, title and
interest in the Equipment to Lessee as is, without warranty, express
or implied, except that Lessor will warrant to Lessee that the
Equipment is free and clear of any liens created by Lessor.
18. ASSIGNMENT. Without Lessor's prior written consent, Lessee
will not either (i) assign, transfer, pledge, hypothecate, grant any
security interest in or otherwise dispose of this Lease or the
Equipment or any interest in this Lease or the Equipment, or (ii)
sublet or lend the Equipment or permit it to be used by anyone other
than Lessee or Lessee's employees. Lessor may assign its rights,
title and interest in and to this Lease, the Equipment and any other
documents executed with respect to this Lease and /or grant or assign
a security interest in this Lease and the Equipment, in whole or in
part.
Any such assignees shall have all of the rights of Lessor under this
Lease. No assignment or reassignment of any of Lessor's right, title
or interest in this Lease or the Equipment shall be effective unless
and until Lessee shall have received a duplicate original counterpart
of the document by which the assignment or reassignment is made,
disclosing the name and address of each such assignee; provided,
however, that is such assignment is made to a bank or trust company
as paying or escrow agent for holders of certificates of a
participation in the Lease-, it shall thereafter be sufficient that a
copy of the agency agreement shall have been deposited with Lessee
until Lessee shall have been advised that such agency agreement is no
longer in effect. DURING THE LEASE TERM LESSEE SHALL KEEP A COMPLETE
AND ACCURATE RECORD OF ALL SUCH ASSIGNMENTS IN FORM NECESSARY TO
COMPLY WITH THE UNITED STATES INTERNAL REVENUE CODE, SECTION 103(j),
AND THE REGULATIONS, PROPOSED OR EXISTING, FROM TIME TO TIME
PROMULGATED THEREUNDER. Subject to the foregoing, this Lease inures
to the benefit of and is binding upon the heirs, executors,
administrators, successors and assignees of the parties hereto. No
f urtber action will be required by Lessor or by Lessee to evidence
the assignment, but Lessee will acknowledge such assignments in
writing if so requested.
19. EVENTS OR DEFAULT. The term "Event of Default ", as used
herein, means the occurrence of any one or more of the following
events:
(a) Lessee fails to make any Lease Payment (or any other
payment) as it becomes due in accordance with the terms of this
Lease, and any such failure continues for ten (10) days after the due
date thereof;
(b) Lessee fails to perform or observe any other covenant,
condition, or agreement to be performed or observed by it hereunder
and such failure is not cured within twenty (20) days after written
notice thereof by Lessor; or
(c) The discovery by Lessor that any statement,
representation, or warranty made by Lessee in this Lease or in any
writing ever delivered by Lessee pursuant hereto or in connection
herewith is false, misleading, or erroneous in any material respect.
20. REMEDIES. Upon the occurrence of an Event of Default, and as
long as such Event of Default is continuing, Lessor may, at its
option, exercise any one or more of the following remedies:
(a) By written notice to Lessee, declare an amount equal to
all amounts then due under this Lease and all remaining Lease
Payments due during the Lease Term to be immediately due and payable,
whereupon the same shall become immediately due and payable;
(b) By written notice to the Lessee, request Lessee to (and
Lessee agrees that it will), at Lessee's expense, promptly return the
Equipment to Lessor in the manner set forth in Section 4 hereof, or
Lessor, at its option, may enter upon the premises where the
Equipment is located and take immediate possession of and remove the :=
same; :a..-.
(c) Sell or lease the Equipment or sublease it for the
account of Lessee, holding Lessee liable for all Lease Payments and
other payments due to the effective date of such selling, leasing or
subleasing and for the difference between the purchase price, rental
and other amounts paid by the purchase, lessee or sublessee pursuant
to such sale, lease or sublease and the amounts payable by Lessee
hereunder; and
(d) Exercise any other right, remedy or privilege which may
be available to it under applicable laws of the state of the
Equipment Location or any other applicable law or proceed by
appropriate court action to enforce the terms of this Lease or to
recover damages for the breach of this Lease or to rescind this Lease
as to any or all of the Equipment..
In addition, Lessee will remain liable for all covenants and
indemnities under this Lease and for all legal fees and other costs
and expenses, including court costs, incurred by Lessor with respect
to the enforcement of any of the remedies listed above or any other
remedy available to Lessor.
21. NOTICES. All notices to be given under this Lease shall be
made in writing and mailed by certified mail, return receipt
requested, to the other party at its address set forth herein or at
such address as the part may provide in writing from time to time.
Any such notice shall be deemed to have been received five days
subsequent to mailing.
22. SECTION HEADINGS. All section headings contained herein are
for the convenience of reference only and are not intended to define
or limit the scope of any provision of this Lease.
23. GOVERNING LAW. This Lease shall be construed in accordance
with, and governed by the laws of, the state of the Equipment
Location.
24. DELIVERY OF RELATED DOCUMENTS. Lessee will execute or
provide, as requested by Lessor, such other documents and information
as are reasonably necessary with respect to the Transaction
contemplated by this Lease. At the request of Lessor, Lessee will
furnish Lessor annual financial statements of Lessee within
forty -five days after the end of Lessee's fiscal year.
25. ENTIRE AGREEMENT; WAIVER. This Lease, together with the
Acceptance Certificate and other attachments hereto, and other
documents or instruments executed by Lessee and Lessor in connection
herewith, constitute the entire agreement between the parties with
respect to the lease of the Equipment, and this Lease shall not be
modified, amended, altered, or changed except with the written
consent of Lessee and Lessor. Any provision of this Lease found to
be prohibited by laws shall be ineffective to the extent of such
prohibition without invalidating the remainder of this Lease. The
waiver by Lessor of any breach by Lessee of any term, covenant or
condition hereof shall not operate as a waiver of any subsequent
breach thereof.
0
26. ADDITIONAL PROVISIONS. Any amendments to the standard
language of this Lease will be set forth in Exhibit C attached
hereto.
GEORGE K. BAUM & COMPANY LESSEE
TOWN OF AVON, COLORADO
By: JACK E. ORMSBEE By:
Title: PUBLIC FINANCE DEPARTMENT Title:
Quantity
ONE ( 1 )
EXHIBIT A
DESCRIPTION OF EQUIPMENT
Description Serial No.
ORION BUS
EQUIPMENT LOCATION
AVON, COLORADO
*To be completed upon Lessee's acceptance of the Equipment.
EXHIBIT B
PAYMENT SCHEDULE
PAGE ONE OF TWO
Lessee: TOWN OF AVON, COLORADO
Fiscal Period: DECEMBER 31
Expiration Date: 7/1/1990
Payment Payment Interest
Number Date Payment Portion
Principal
Portion
Concluding
Payment **
1
10/1/85
$7,171.43
$ 0.00
$75,171.43
$112,178.18
2
1/1/86
7,171.43
29564.27
4,607.16
107,278.36
3
4/1/86
7,171.43
2,455.72
4,715.71
102,279.32
4
7/1/86
7,171.43
2,344.60
4,826.83
97,179.05
5
10/1/86
7,171.43
2,230.87
4,940.56
91,975.50
6
1/1/87
7,171.43
2;114.46
5,056.97
86,666.57
7
4/1/87
7,171.43
1,995.30
5,176.13
813,250.14
8
7/1/87
7,171.43
1,873.34
5,298.09
75,724.03
9 -
10/1/87
7,171.43
1,748.51
5,422.92
70,086.01
10
1/1/88
7,171.43
1,620.73
5,550.70
64,333.82
11
4/1/88
7,171.43
1,489:94
5,681.49
58,465.15
12
7/1/88
7,171.43
1,356.07
53,815.36
52,477.64
13
10/1/88
7,171.43
1,219.04
5,952.39
46,368.88
14
1/1/89
7,171.43
1,078.79
6,092.64
40,136.42
15
4/1/89
7,171.43
9.35.23
6,236.20
33,777.75
16
7/1/89
7,171.43
788:29
6,383.14
273,290.32
17
10/1/89
71171.43
637.89
6,533.54
205,671.52
18
1/1/90
7,171.43
483.94
6,687.49
13,918.69
19
4/1/90
7,171.43
326.37
6,845.06
7,029.11
20
7/1/90
7,171.27
165.08
73,006.19'
0.00
*To be completed upon Lessee's acceptance of the Equipment.
*After payment of all amounts otherwise due as of that date.
(To be written on04'ounsel's Letterhead
OPINION OF COUNSEL
George K. Baum & Company
621 Seventeenth Street
Suite 2800
Denver, Colorado 80293
, 198
,.Re: Equipment Lease - Purchase Agreement dated , 198
Gentlemen:
- I. have acted as Counsel to (the "Lessee ") with
respect to that certain Equipment Lease - Purchase Agreement (the
".Lease ") dated , 198 , by and between George K. Baum &
Company and the Lessee. I have reviewed the Lease and such other
documents, records and certificates of Lessee and appropriate public
officials as I have deemed relevant and am of the opinion that:
1. The Lessee is a political subdivision or agency of the State
of
2. The execution, delivery and performance by the Lessee of the
Lease have been duly authorized by all necessary action on
the part of the Lessee; and
3. The Lease constitutes a legal, valid and binding obligation
of the Lessee enforceable in accordance with its terms.
Very truly yours,
(Attorney for the Lessee)
CERTIFICATE OF APPROPRIATION
of
(Name) (Title)
( "Lessee ") hereby certify that all lease
payments due by Lessee under that certain Equipment Lease - Purchase
Agreement dated as of , 198 ,,between Lessee and
George K. Baum & Company, as Lessor, for the fiscal year
ending , 198 , are within such fiscal year's
Budget for Lessee and within an available, unexhausted and
unencumbered appropriation for Lessee.
IN WITNESS WHEREOF, I have set my hand this day
of , 198
LESSEE
By:
Name:
Title:
0
(To be written on Lessee's Letterhead)
ESSENTIAL USE LETTER
George K. Baum & Company
621 Seventeenth Street
Suite 2800
Denver, Colorado 80293
, 198
Re: Equipment Lease - Purchase Agreement dated 198
Gentlemen:
This letter is being written with respect to the use of the Equipment
(herein so called) to be leased to the undersigned under the
above - referenced Equipment Lease - Purchase Agreement. The Equipment
will be used by for the following
purposes: (Department or Division Using Equipment)
(State how and for what purposes the Equipment will be used)
The undersigned hereby represents that the use of the Equipment is
essential to its proper, efficient and economic operation.
Very truly yours,
LESSEE
By:
Title:
ACCEPTANCE CERTIFICATE
George K. Baum & Company
621 Seventeenth Street
Suite 2800
Denver, Colorado 80293
Gentlemen:
In accordance with the terms of the Equipment Lease - Purchase
Agreement dated October 1 , 1985, (the "Lease ") between George
K. Baum & Company ( "Lessor ") and the undersigned ( "Lessee ") , Lessee
hereby certifies and represents to, and agrees with, Lessor as
follows:
1. The Equipment, as such term is defined in the Lease, has
been delivered and installed at the Equipment Location specified in
Exhibit A to the Lease and accepted on the date indicated below.
2. Lessee has conducted such inspection and /or testing of the
Equipment as it deems necessary and appropriate and hereby
acknowledges that it accepts the Equipment for all purposes.
3. No Event of Default, as such term is defined in the Lease,
and no event which with notice or lapse of time, or both, would
become an Event of Default, has occurred and is continuing at the
date hereof.
LESSEE
By:
TOWN OF AVON, COLORADO
Title:
Date:
NOTICE AND CONSENT TO ASSIGNMENT
Lessee Name TOWN OF AVON, COLORADO SEPTEMBER 15 F 1985
Lessee Address P.O. BOX 975
Attention: AVON, COLORADO 81620
Re: Equipment Lease - Purchase Agreement dated SEPTEMBER 15, 1984
between TOWN OF AVON, COLORADO ( "Lessee ") and George K. Baum
& Company
Gentlemen:
Please be advised that George K. Baum & Company has assigned all its
right, title and interest in and to the above - referenced Equipment
Lease - Purchase Agreement (the "Agreement "), the equipment leased
thereunder, and the right to receive payments thereunder
to Pitney Bowes Credit Corp. (the "Assignee ").
All payments due under the Agreement should be made to the Assignee
at the following address:
5680 S. Syracuse Circle, Suite 300
Englewood, Colorado 80111
Please acknowledge your acceptance of the assignment, your
recordation of the assignment pursuant to Section 18 of the
agreement, and your agreement to make the payments due under the
Agreement to the Assignee by the signature of a duly authorized
officer in the space provided on the enclosed counterpart of this
letter and return it to us at the address shown above.
Very truly yours,
GEORGE K. BAUM & COMPANY
By: JACK E. ORMSBEE
Title: PUBLIC FINANCE DEPARTMENT
ACKNOWLEDGED AND ACCEPTED:
(LESSEE)
TOWN OF AVON, COLORADO
By:
Title:
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S L
CHATTEL MORTGAGE SECURITY AGREEMENT
(Motor Vehicle)
KNOW ALL MEN BY THESE PRESENTS, That GEORGE K- RATTM & COMPANY
of the County of DENVER
in the State of Colorado, Mortgagor, for good and valuable consideration, does hereby
grant unto TOWN OF AVON, COLORADO of the
County of EAGT.R , State of Colorado, Mortgagee ", a chattel mortgage
security interest in the following personal property (collateral) including (except as to any
consumer goods as defined in the Uniform Commercial Code) all additions, replacements
and accessories thereto:
Make Style and Model Identification Number Year Other Identification
ORION
This chattel mortgage security interest is given to secure the payment of an indebtedness
evidenced by a promissory note bearing even date herewith in the principal sum of
$ , payable to the order of the Mortgagee with interest as therein stated, and is
given in accordance with the Colorado Certificate of Title Act ( C.R.S. 42 -6 -101, et seq.)
Mortgagor warrants that lie is the owner of the collateral free and clear of liens, encum-
brances and security interests. Mortgagor agrees not to remove the same from the State of
Colorado, to pay all taxes when due, to procure such insurance as may legally be required by
Mortgagee and deliver the policy to Mortgagee with a loss payable clause in favor of Mortgagee
or a certificate thereof, and in default of the foregoing, Mortgagee may procure such insurance,
the premium thereon to be secured hereby and paid by Mortgagor.
Mortgagor may retain possession of the collateral until anv default hereunder. If default
Town of Avon P. O. Box 975, Avon, CO 81620 (303) 9994280
I I ) 11 ----
IL
�I/UkA
I
9/11/85
Bill:
Jack Ormsbee called today to say that it would
be difficult to do a lease on this equipment
unless the combined total would be $50,000.00
minimum. Also, the interest rate would be higher
than that stated below - -- -but he could quote
a more definite figure when we have better
purchase information.
De;landa
The Town of Avon is contemplating the purchase of a second hand front .end
loader (general description attached) and a new street sweeper (approximately
$18,000.00) sometime in 1986. Unfortunately, at this time we do not have
actual purchase information.
However, we are interested in getting a quote from you for a lease (or leases)
on the above and any information further that we need in order to apply.
I r;alize that any quote that you give at this point would only be a "ball-
park," figure since we cannot give you more data.
Thank you in advance for your help in this matter.
Regards,
Det,anda Drankie icz
Finance Officer
9/10/85 i
Bill:
Jack Ormsbee called today with the following information regarding the above:
interest rate - 3.50% to 8.75°0, depending upon when we actually 3
apply for lease
term - 3 to 5 years (3 years in standard for used equipment .;
and 5 for new) 3
processing - approximately 2 weeks for lease documents; no money down
N.
a
DeNlanda
rNB �, COLORADO NATIONAL
FIE ®� J, LEASING, INC.
June 17, 1985
Mr. Bill James
Town Manager
Town of Avon
P. 0. Box 975
Avon, Colorado 81620
Dear Mr. James:
On behalf of Colorado National Leasing, Inc. ( "Lessor "), we are
pleased to outline our proposal to finance the Equipment described
below:
Lessee:
Town of Avon
Lessor: Colorado National Leasing, Inc., reserving
the right to syndicate the transaction to
other corporations. Lessee agrees to
cooperate in any such syndication.
Description
of Equipment:
One Orion 31 Passenger Transit Bus
Maximum Delivered Cost: The maximum delivered cost of the
Equipment shall not exceed $116,000 in the
aggregate, including any applicable sales,
use or similar taxes, transportation
charges and assembly and installation
costs.
Outside
Acceptance Date: If any item of Equipment is not delivered
to and accepted under the lease by Lessee
on or before December 15, 1985, then
Lessor shall have no obligation to lease
such item.
Term: The term of the lease for each item of
Equipment commences upon its acceptance by
Lessee and continues for five years from
the rent commencement date.
Interest
Rentals: Term Paid Payment Rate
5 yrs. Monthly $2,444 10.0%
All payments are in advance. See attached
Exhibit B Lease Schedule.
Building 51, Suite 150
14142 Denver West Parkway
Golden, Colorado 80401
(303) 278 -7750
Form of Transaction: This transaction is a net lease under
which all costs of operating, maintaining
or insuring the Equipment, and taxes and
other claims associated with its use will
be paid by lessee. Lessee will comply
with all laws and regulations concerning
use of the Equipment. For federal income
tax purposes, Lessor and Lessee will
characterize this transaction as a munici-
pal tax - exempt lease.
Disposition of Equip-
ment at End of Term: Lessee agrees that it will purchase all of
the leased Equipment at the maturity of
the lease for $1.00.
Income Tax Benefits: The foregoing lease amortization rate and
basic rent payments are based on Lessor's
receiving all available income from the
Lease on a tax - exempt basis based on the
assertion made by Lessee that it is a
political subdivision of the state of
Colorado.
Approval of Transaction: The proposed lease is subject to (i)
approval of Lessor's Investment Committee,
(ii) in the opinion of Lessor there is no
adverse change in Lessee's financial con-
dition prior to Lessee's acceptance of the
Equipment, (iii) no change in ownership of
the Lessee prior to Lease funding, and
(iv) all appropriate documentation satis-
factory to Lessor, Lessors legal counsel
and to Lessee.
Fee: Upon Lessee's acceptance of this proposal,
Lessee shall pay Lessor a fee of $1,000.
If Lessor's Investment Committee does not
approve this transaction, the deposit will
be refunded to Lessee in full, less any
expenses referred to below which are
incurred by Lessor.
Fees and Expenses: All legal, appraisal and other fees and
expenses incurred by Lessor in connection
with the proposed lease are to be paid by
Lessee. If the lease is not consummated,
these expenses will be deducted from the
deposit when refunded as provided above.
Any deficiency is to be paid by Lessee.
Documentation: Lease will be documented on Colorado
National Leasing, Inc. documents.
Funding: All Vendors, Manufacturers or Suppliers
will be paid promptly by Colorado National
Leasing, Inc. after all documents have
been properly executed.
Financial Statements: Lessee shall furnish Lessor with all
appropriate financial statements and other
such credit information and documentation
so that Lessor may make a credit decision
on this proposal.
Expiration
of Proposal: This proposal expires 30 days from date of
issuance.
If the foregoing meets with your approval, please so indicate by
signing this letter in the space provided below and returning it to
the undersigned. Upon receipt of all required items, including the
required deposits, the proposal will be submitted to our Investment
Committee for review.
This letter outlines the principal terms and conditions of our propo-
sal, but should not be construed as a commitment until it has been
accepted by you and approved by us.
Sincerely,
COLORADO NATIONAL LEASING, INC.
Kenneth B. Shuss
Lease Marketing Officer
ACCEPTED AND AGREED TO THIS DAY OF,_r�, , 19�
T OWN OF AVON
i
By
Title
PAYMFNT
NO.
NITIAL BALANCE
RENT
PAYMENT
EXHIBIT B
EQUIPMENT LEASE SCHEDULE
DESIGNATED REDUCTION OF
INTEREST PRINCIPAL
---- - - - - -- ------ - - - - --
LEASE 0
BALANCE OF AGREED
PRINCIPAL OPTION PRICE
---- - - - - -- ------ - - - - --
116,000.00 120,640.00
1
2,444.00
1,004.59
1,439.41
114,560.59
119,048.46
2
2,444.00
987.85
1,456.15
113,104.44
117,442.71
3
2,444.00
971.10
1,472.90
111,631.54
115,822.75
4
2,444.00
954.36
1,489.64
110,141.90
114,188.59
5
2,444.00
937.62
1,506.38
108,635.52
112,540.22
6
2,444.00
920.87
1,523.13
107,112.39
110,877.64
7
2,444.00
904.13
1,539.87
105,572.52
109,200.85
8
2,444.00
887.39
1,556.61
104,015.91
107,509.86
9
2,444.00
870.64
1,573.36
102,442.56
105,804.66
10
2,444.00
853.90
1,590.10
100,852.46
104,085.25
11
2,444.00
837.16
1,606.84
99,245.62
102,351.63
12
2,444.00
820.42
1,623.58
97,622.03
100,603.80
13
2,444.00
803.67
1,640.33
95,981.70
98,841.77
14
2,444.00
786.93
1,657.07
94,324.63
97,065.53
15
2,444.00
770.19
1,673.81
92,650.82
95,275.08
16
2,444.00
753.44
1,690.56
90,960.26
93,470.43
17
2,444.00
736.70
1,707.30
89,252.96
91,651.56
1F
2,444.00
719.96
1,724.04
87,528.92
89,818.49
19
2,444.00
703.21
1,740.79
85,788.13
87,971.21
20
2,444.00
686.47
1,757.53
84,030.60
86,109.73
21
2,444.00
669.73
1,774.27
82,256.33
84,234.03
22
2,444.00
652.98
1,791.02
80,465.31
82,344.13
23
2,444.00
636.24
1,807.76
78,657.55
80,440.02
24
2,444.00
619.50
1,824.50
76,833.05
78,521.70
25
2,444.00
602.75
1,841.25
74,991.80
76,589.18
26
2,444.00
586.01
1,857.99
73,133.81
74,642.45
27
2,444.00
569.27
1,874.73
71,259.08
72,681.51
28
2.444.00
552.52
1.891.48
69.367.61
70,706.36