HomeMy WebLinkAboutReso 1990-168 - Execution and Delivery of a Lease/purchase agreement entitled "mater lease of personal Property" Ill
RESOLUTION NO. /0-1(.4
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF REDDING
AUTHORIZING THE EXECUTION AND DELIVERY OF A LEASE/PURCHASE
AGREEMENT ENTITLED "MASTER LEASE OF PERSONAL PROPERTY, "
TOGETHER WITH RELATED INSTRUMENTS, BETWEEN THE CITY OF
REDDING AND SECURITY PACIFIC LEASING CORPORATION FOR THE
LEASE/PURCHASE OF TWO 1 ,500-GPM CUSTOM CLASS "A" PUMPER FIRE
TRUCKS .
WHEREAS, the City Council of the City of Redding ( "Lessee")
has determined that a true and very real need exists for the
acquisition of two new 1 ,500-GPM Custom Class "A" Pumper Fire
Trucks; and
WHEREAS, Lessee has taken the necessary steps , including
those relating to any applicable legal bidding requirements , to
arrange for the acquisition of said fire trucks; and
WHEREAS, Lessee proposes to enter into a Lease/Purchase
Agreement substantially in the form presented to this meeting;
NOW, THEREFORE, BE IT RESOLVED by the City Council of the
City of Redding as follows:
1 . It is hereby found and determined that the terms of the
Lease/Purchase Agreement, substantially in the form presented to
this meeting and incorporated in this Resolution, are in the best
interests of Lessee for the acquisition of two new 1 ,500-GPM
Custom Class "A" Pumper Fire Trucks, and are hereby approved.
2 . The Mayor and Clerk of Lessee are hereby authorized to
execute, acknowledge, and deliver the Master Lease of Personal
Property, together with the "Commitment letter" dated March 30 ,
1990 , which forms part of the Master Lease, and any additional
and subsequent documentation relating thereto, with any changes,
insertions , and omissions therein as may be approved by the
Officers who execute the agreements, such approval to be
conclusively evidenced by such execution and delivery of the
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agreements . The City Clerk of Lessee is hereby authorized to
affix the official seal of Lessee to the documentation and attest
the same.
3 . The Mayor and Clerk of Lessee are hereby authorized and
directed to execute and deliver any and all papers, instruments,
opinions, certificates , affidavits, and other documents, and to
do or cause to be done any and all other acts and things
necessary or proper for carrying out this Resolution and the
agreements relating thereto.
I HEREBY CERTIFY that the foregoing Resolution was
introduced and read at a regular meeting of the City Council of
the City of Redding on the 17th day of April , 1990 , and was duly
adopted at said meeting by the following vote:
AYES: COUNCIL MEMBERS: Arness, Dahl , Ful ton, Moss, & Buffum
NOES: COUNCIL MEMBERS: None
ABSENT: COUNCIL MEMBERS : None
ABSTAIN: COUNCIL MEMBERS : None
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N, it z• 4 aY
Ci4y Q Reddin
ATTEST:
ETHEL A. NICHOLS , City Clerk
O• ,PPROVED: /
/'i!►7I��iw,..
RA DALL A. HAYS , City Atto ney
-2-
1111 4110
MASTER LEASE OF PERSONAL PROPERTY
SECURITY PACIFIC EQUIPMENT LEASING, INC. , herein referred to as
"Lessor", hereby leases to the undersigned "Lessee", and Lessee
hereby leases from Lessor the personal property (herein called
"Equipment") described below, upon the terms and conditions herein-
after set forth:
1. DEFINITIONS. For all purposes herein, and for the purpose of
the documents executed pursuant hereto, the following terms shall
have the following meanings (such definitions to be equally
applicable to both the singular and the plural forms thereof or to
any gender thereof) , unless the context indicates otherwise:
(a) Commitment Letter. "Commitment Letter" shall mean a
letter agreement between Lessor and Lessee describing Lessor's
commitment to Lessee to enter into the leasing transaction
described therein under and pursuant to the terms and
conditions of said Commitment Letter and this Master Lease
and the applicable Lease Schedule(s) and said Commitment
Letter shall be deemed incorporated herein and a part of this
Lease and the applicable Lease Schedule(s) .
(b) Equipment. "Equipment" shall mean all that equipment
leased to Lessee pursuant to this Lease, as more fully
described in the Lease Schedule(s) annexed or to be annexed
hereto, which must be and remain tangible personal property,
and/or any unit or part thereof, together with all additions,
accessories, attachments, components, spare parts thereto and
rights as to warranty or indemnity from any sellers, sup-
pliers, manufacturers, transporters or installers thereof.
(c) Equipment Cost. "Equipment Cost" shall mean the
aggregate cost of all Equipment leased to Lessee pursuant to
the terms of this Master Lease, or the determinable cost of
any unit or part thereof as indicated in the Lease Schedule(s)
annexed or to be annexed hereto. Nothing herein shall prevent
Lessor from increasing or decreasing said Equipment Cost on
any Lease Schedule(s) in accordance with the provisions of
Paragraph 4 hereof, to provide for any element of said
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Equipment Cost not reflected therein or to provide for
purchase returns, allowances or adjustments thereon.
(d) Lease Schedule. "Lease Schedule" shall mean a schedule
of Equipment listing, describing and pricing at Equipment
Cost, the Equipment leased, or to be leased upon Lessor's
acceptance of Lessee's request therefor.
(e) Master Lease. The terms "Master Lease of Personal
Property", "Master Lease", and/or "Lease" and all references
thereto, as used throughout this instrument, all Lease
Schedules and all documents issued and executed pursuant
hereto or thereto, shall mean this instrument as originally
executed or if later extended, renewed, amended or
supplemented, then as so extended, renewed, amended or
supplemented.
(f) Net Proceeds. In any sale by Lessor of the Equipment or
any unit or part thereof, "Net Proceeds" shall mean the amount
received in cash upon the sale thereof, less all expenses
incurred by or for Lessor in connection with such sale,
including reconditioning and removal expenses, repair costs
and commissions, reasonable attorneys' fees and less all sums
accrued and unpaid to Lessor, pursuant to this Master Lease,
to the date of such sale.
2. LEASE. Lessee may, concurrently herewith and/or from time to
time hereafter, request the lease of Equipment pursuant hereto.
Upon the favorable review and acceptance of any such request by
Lessor under the terms of a Commitment Letter, or otherwise, in
whole or in part, and upon Lessor's receipt of good, marketable
and unclouded title in and to the Equipment, said Equipment shall
be leased pursuant to the terms of this Master Lease. All items
of Equipment leased by Lessor to Lessee hereunder shall be
identified on and leased pursuant to its appropriate Lease
Schedule. Lease Schedules shall be separate and consecutively
numbered and shall be for amounts satisfactory to Lessor. It is
understood and agreed that units of Equipment may be maintained or
located at different business locations, may be scheduled at
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derent times, ma be leased •
Y for different periods, may require
different rental rates and on account of any such differences, such
units shall, at the discretion of Lessor, be leased pursuant to a
separate Lease Schedule hereto, notwithstanding that said units are
combined in one request for lease or may coexist at one single
location.
3. RENT. The total rent payable hereunder, including interest
shall be the aggregate rent of and as set forth on each and every
Lease Schedule executed pursuant hereto. Lessee promises to pay
Lessor said rent including interest as indicated on the Lease
Schedule(s) .
4. LEASE SCHEDULE ADJUSTMENTS. Lessor may make adjustments for
the benefit of Lessee to the Equipment Cost and total rental listed
on any Lease Schedule pursuant to the provisions of Section 1(c)
hereinabove and/or Section 13 hereinbelow. Periodic rental
payments shall also be proportionately adjusted, so that the
adjusted total rental will be paid in full by the end of the Lease
Schedule term. Lessor will give Lessee notice of any such
adjustment within ten (10) days thereof.
5. TERM. The term of each Lease Schedule shall be and continue
for the time therein provided, or for any renewals or extensions
thereof unless earlier terminated pursuant to the provisions of
Paragraphs 13, 21, or 22 herein.
6. EOUIPMENT SELECTION AND ORDERING. Lessee has selected the
type, quantity and suppliers of the Equipment leased hereunder.
Lessee shall ensure that all Equipment is properly invoiced to
Lessor. Lessor shall insert the serial number, descriptive
material, Equipment Cost, and other relevant matters on an
appropriate Lease Schedule. LESSOR SHALL NOT BE LIABLE FOR, NOR
SHALL THE VALIDITY OF THIS LEASE, OR ANY LEASE SCHEDULE BE AFFECTED
BY ANY DELAY IN OR FAILURE OF DELIVERY OF SAID ORDERED EQUIPMENT.
Lessor shall have no duty to inspect the Equipment. If the
Equipment is not properly installed, does not operate as repre-
sented or warranted by any supplier or is unsatisfactory for any
reason, Lessee shall make any claim on account thereof solely
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ag37nst said supplier. LESSEE HEREBY ASSUMES THE RISKS, BURDENS
AND OBLIGATIONS TO ANY SUPPLIER ON ACCOUNT OF NONACCEPTANCE OF THE
EQUIPMENT AND/OR CANCELLATION OF THE LEASE AND UPON THE OCCURRENCE
OF SUCH EVENT LESSOR WILL ASSIGN, WITHOUT RECOURSE OR WARRANTY,
ITS RIGHTS AND TITLE TO SAID PURCHASE ORDER AND ANY INVOICES TO
LESSEE.
7. USE AND MAINTENANCE. Lessee agrees to use the Equipment in a
careful and proper manner, and to comply with and conform to all
federal, state, municipal, and other laws, ordinances and
regulations applicable in any way to the possession, use or
maintenance of the Equipment and to comply with and observe all
conditions of coverage of any policy of insurance maintained
thereon by Lessee, all operation and maintenance instructions and
manuals and customary trade practices applicable to the Equipment.
The Equipment shall only be used by qualified (and if required by
law or regulation, duly licensed) employees of Lessee. Subject to
the foregoing, Lessee shall be entitled to unlimited use of the
Equipment and to operate the Equipment at any time and for any
period of time at the convenience of Lessee and Lessee may use the
Equipment for such purposes and functions as it may deem necessary
or convenient.
8. CLAIMS AGAINST SUPPLIERS. Lessor authorizes and appoints
Lessee to enforce, in its own name, any claim warranty, agreement
or representation which may be made against any supplier of said
Equipment. BUT LESSOR MAKES NO EXPRESS OR IMPLIED WARRANTIES AS
TO ANY MATTER WHATSOEVER, INCLUDING, WITHOUT LIMITATION, THE EXTENT
OF OR ENFORCEABILITY OF ANY SUCH CLAIM, WARRANTY, AGREEMENT OR
REPRESENTATION. NO DEFECT OR UNFITNESS OF THE EQUIPMENT SHALL
RELIEVE LESSEE OF THE OBLIGATION TO PAY RENT OR OF ANY OTHER
OBLIGATION UNDER THIS LEASE.
9. DISCLAIMER OF WARRANTY. LESSOR, NOT BEING THE MANUFACTURER OR
SUPPLIER OF ANY OF THE EQUIPMENT NOR A DEALER IN SIMILAR EQUIPMENT,
HAS NOT MADE AND DOES NOT MAKE ANY REPRESENTATION, WARRANTY, OR
COVENANT, EXPRESS OR IMPLIED, WITH RESPECT TO THE DESIGN,
DURABILITY, FITNESS FOR USE, SUITABILITY OR MERCHANTABILITY OF THE
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EQUIPMENT IN ANY RESPECT, AND AS BETWEEN LESSOR AND LESSEE, ALL
EQUIPMENT SHALL BE ACCEPTED AND LEASED BY LESSEE "WHERE IS", "AS
IS" AND "WITH ALL FAULTS", AND LESSOR SHALL NOT BE RESPONSIBLE FOR
ANY PATENT OR LATENT DEFECTS THEREIN. LESSEE AGREES TO SETTLE SUCH
CLAIMS DIRECTLY WITH THE SUPPLIERS AND WILL NOT ASSERT ANY SUCH
CLAIMS AGAINST LESSOR.
10. TITLE. Title in or to said Equipment shall not pass to Lessee,
except in accordance with the terms, conditions and provisions of
this Lease and pursuant to the rights herein expressly granted to
Lessee. Lessor and Lessee do not intend nor admit that this Lease
is intended as security, but to the extent (at any time or from
time to time) , if any, that this Lease is asserted to be or have
been intended as security, Lessee and Lessor intend and agree that
Lessee hereby grants a security interest to Lessor in the equipment
leased hereby, the proceeds of any sale, assignment, lease, or
sublease thereof, and any other rights Lessee may have in or to
said equipment or proceeds. At the expense of Lessee, Lessee
agrees to cooperate with Lessor in executing such financing
statements or other documentation required by law, the U.C.C. or
otherwise to protect Lessor's title and rights to said Equipment
and Lessee irrevocably authorizes Lessor to file financing
statements signed only by Lessor in all jurisdiction where
permitted by law.
11. ALTERATIONS. Lessee shall notify Lessor and shall make all
alterations, modifications, additions or attachments deemed
necessary by any federal, state or local governmental agency for
the continued usefulness of the Equipment. Lessee is hereby given
the right, at its sole expense, to make other alterations,
modifications, additions or attachments to the Equipment so long
as the value or the usefulness of the Equipment is not reduced
thereby. Lessee shall not alter, remove, deface, destroy or
permanently cover any manufacturer's nameplate, serial number or
other similar distinguishing number or mark on the Equipment.
Except as otherwise agreed by Lessor, all alterations,
modifications, additions and attachments of whatsoever kind or
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nate made to the Equipment shall immediately ly be subject to all
the terms of this Lease.
12. LABELS. If Lessor supplies Lessee with labels, plates or other
markings showing Lessor's interest in the Equipment, Lessee shall
affix and keep the same affixed to each separately placed or housed
component thereof in a prominent place thereon.
13. LOSS AND DAMAGE. Lessee shall assume and bear risk of loss
and damage (including any governmental requisition, condemnation
or confiscation) to the Equipment and all component parts thereof
from any and every cause whatsoever, whether or not covered by
insurance. No loss or damage to the Equipment or any component
part thereof shall impair any obligation of Lessee under this
Lease, which shall continue in full force and effect except as
hereinafter expressly provided. Lessee shall repair or cause to
be repaired all damage to the Equipment. In the event that all or
part of the Equipment shall, as a result of any cause whatsoever,
become lost, stolen, destroyed, or rendered irreparably unusable
or damaged, as determined by Lessee, then Lessee shall within ten
(10) days after it shall have made such determination, fully inform
Lessor in regard thereto and shall pay Lessor the remaining rentals
due as of the date of payment thereof, and all rentals and other
sums past due or becoming due to and including such payment date,
in respect of such Equipment. Upon payment of said amounts, the
Lease Schedule shall terminate as to said Equipment.
14. INSURANCE. Commencing at such time as any risks pass to Lessor
from any supplier of the Equipment and continuing thereafter, until
Lessee has delivered possession of the Equipment to Lessor, or as
otherwise herein provided, Lessee at its expense, agrees to and
shall keep the Equipment adequately insured with responsible
insurers satisfactory to Lessor, and said insurance shall protect
all interest of Lessor and be for such risks, including the
liability of Lessor for public liability and property damage, and
be in such amounts and form as Lessor may require. Said insurance
shall name Lessor as an insured or additional insured and shall
not be excess over other coverage but shall be primary insurance
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Aland including the stated policy lim ts.
Said insurance shall
cover the interest of both the Lessor and Lessee in the Equipment,
or as the case may be, shall protect both the Lessor and Lessee in
respect to all risks arising out of the condition, delivery,
installation, maintenance, use or operations of the Equipment. All
such insurance shall provide for ten (10) days prior written notice
to Lessor of cancellation, restriction, or reduction of coverage.
All policies or certificates of insurance shall be delivered to
Lessor. Said insurance shall be in such amounts as Lessor may
require. The proceeds of said loss or damage insurance shall be
payable to Lessor, but Lessor shall remit all such insurance
proceeds to Lessee at such time as Lessee either (i) provides
Lessor satisfactory proof that the damage has been repaired and the
Equipment has been restored to good working order and condition or
(ii) has paid to Lessor the amounts otherwise due to Lessor on loss
of such Equipment.
15. TAXES. Lessee shall be responsible for the timely payment and
discharge of all license or registration fees, assessments, sales
and use taxes, rental taxes, gross receipts taxes, personal
property taxes and other taxes now or hereafter imposed by any
federal, state or local government upon the Equipment or upon the
ownership, leasing, purchase, possession or use thereof (whether
the same be assessed to Lessor or Lessee) . Lessee shall pay and
discharge at least ten (10) days before delinquency any and all
such fees, assessments and taxes directly to the proper levying
authority, unless otherwise required by law or otherwise directed
from time to time by Lessor. Lessee shall pay to Lessor the amount
of any taxes billed to or otherwise remitted by Lessor within ten
(10) days of notice thereof. Lessee, upon notice to Lessor, may,
in Lessee's own name and at Lessee's expense contest or protest
any such taxes. Lessee shall, in addition, be responsible to
Lessor for the payment and discharge of any penalties or interest.
Nothing herein shall be construed to require Lessee to be so
responsible for any federal or state taxes, or payments in lieu
thereof, imposed upon or measured by the net income of Lessor or,
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e t as provided hereinabove, any penalties or interest resulting
from Lessor's failure to timely remit such tax payments.
16. LIENS AND ENCUMBRANCES. Lessee will at all times protect and
defend, at its own cost and expense, the Lessor's interest in the
Equipment and keep the Equipment free and clear from all claims,
liens and processes and other encumbrances, except (i) the rights
of Lessor and Lessee hereunder, (ii) liens for taxes either not
yet due or being contested in good faith and by appropriate
proceedings, so long as such proceedings do not involve any danger
of the sale, forfeiture or loss of the Equipment, and (iii)
inchoate materialmen's, mechanic's, workmen's, repairmen's,
employees or other like liens arising in the ordinary course of
business and not delinquent, and (iv) liens and encumbrances
arising from the acts or omissions of Lessor which are not
otherwise the responsibility of Lessee hereunder.
17. INDEMNITY. Lessee assumes liability for and hereby agrees
(whether or not Lessor is otherwise insured thereon) to indemnify,
protect, save and keep harmless Lessor and its agents and employees
from and against any and all liabilities, obligations, losses,
damages, penalties, claims, tax claims actions, suits and
proceedings, including legal expenses and reasonable attorneys'
fees, of whatsoever kind and nature, imposed on, incurred by or
asserted against Lessor because of the manufacturer, purchase,
transportation acceptance, ownership (including absolute or strict
liability in tort, contract or otherwise) use or rejection of the
Equipment (including, without limitation, latent and other defects,
whether or not discoverable by Lessor or Lessee) , and any claim
for patent, trademark or copyright infringement.
18. LESSOR'S PERFORMANCE OPTION. Should Lessee fail to make any
payment or to do any act as provided by this Lease, then Lessor
shall have the right (but not the obligation) , without notice to
Lessee of its intention to do so and without releasing Lessee from
any obligation hereunder, to make or to do the same, to make
advances to preserve the Equipment or Lessor's interest thereto,
and to pay, purchase, contest or compromise any insurance premium,
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1111
enrance, charge, tax lien or other sum which in the judgement
of Lessor appears to affect the Equipment or the interest of Lessor
thereto, and in exercising any such rights, Lessor may incur any
liability and expend whatever amounts in its absolute discretion
it may deem necessary therefor. All sums so incurred or expended
by Lessor shall be due and payable by Lessee within ten (10) days
of notice thereof.
19. ASSIGNMENT. Any transfer, assignment, sublease, conveyance or
pledge of Lessee's interest in and to this Lease or the Equipment,
whether by operation of law or otherwise, without the prior written
consent of Lessor, shall be void. Lessor, its successors and
assigns, may assign this Lease and/or grant security interests
therein or in the Equipment, in whole or in part, without notice
to Lessee.
20. SURRENDER OF EOUIPMENT. Unless Lessee exercises its option to
purchase under Paragraph 25 hereof, at Lessor's request, upon
expiration or earlier termination of this Lease, or any renewal or
extension thereof with respect to the Equipment, Lessee shall
return the same to Lessor in good repair, condition and working
order, ordinary wear and tear resulting from proper use thereof
alone excepted (a) by delivery of the same at Lessee's cost and
expense to such place as Lessor shall specify within the county
where said Equipment is located, or (b) by loading the same within
the county where said Equipment is located at Lessee's cost and
expense (including full prepaid insurance) on board such carrier
as Lessor shall specify and shipping the same, freight collect, to
the destination designated by Lessor. Lessee shall be responsible,
at its expense, for the proper and adequate packing and crating of
the Equipment, which shall include, if necessary to preserve any
warranties or agreements in respect to the Equipment, the super-
vision and/or handling of said packing and crating by
manufacturer's representatives. Nothing herein shall prevent
Lessor from abandoning any or all of the Equipment in place upon
the expiration of Lease terms without any liability therefor to
Lessee.
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21. NTS OF DEFAULT. The occurrence Tf any of the following
events shall, at the option of Lessor, constitute an event of
default under this Lease:
(a) The nonpayment by Lessee of any rental payment when due: or
the nonpayment by Lessee of any other sum required hereunder to be
paid by Lessee, which nonpayment continues for a period of ten (10)
days following written notice thereof from Lessor.
(b) The failure of Lessee to perform any other term, covenant or
condition of this Lease which is not cured within ten (10) days
after written notice thereof from Lessor.
(c) The failure of Lessee to meet Lessee's bond or other material
credit obligations when required under the instrument(s) evidencing
such obligations.
(d) The determination that any of Lessee's representations or
warranties made herein or on any statement or certificate at any
given time in writing pursuant hereto or in connection herewith
are false or misleading in any material respect.
22. REMEDIES. Should any event of default occur and be continuing,
Lessor may without retaking possession of the leased property, hold
Lessee liable for all rents and other sums which shall become due
thereafter under the terms of this Lease and may recover such sums
from Lessee from time to time as they become due or at any time
thereafter (subject to any applicable statutes of limitation) , or
Lessor may retake (by Lessor, independent contractors, or by
requiring Lessee to assemble the Equipment for Lessor) possession
of the Equipment (without liability to Lessee therefor, which is
hereby expressly waived) and either:
(a) Retain possession of the Equipment and terminate this Lease
by giving Lessee ten (10) days written notice to that effect, in
which event Lessee shall be liable for all rents and other sums
accrued and unpaid prior to such termination.
• (b) Lease the Equipment to a third party for the account of Lessee
and recover from Lessee any deficiency between the rents provided
for herein as they fall due and those received from such third
party.
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(c Sell such Equipment •
at public or private sale, in which event
Lessee shall be liable to Lessor in the amount, if any, by which
the Net Proceeds of sale shall be less than the present value of
the then balance of rentals and interest due on the Equipment.
Lessor's pursuit and enforcement of any one or more remedy shall
not be deemed an election or waiver by Lessor of any other remedy.
Any Net Proceeds received by Lessor in excess of all remaining
rents and other amounts due Lessor hereunder shall be received for
the account of Lessee but Lessor shall have no liability for
interest thereon. Lessor shall not be entitled to recover a
greater amount in damages than Lessor could have gained by receipt
of Lessee's full, timely and complete performance of its obliga-
tions pursuant to the terms of this Lease. In addition, Lessor
shall attempt in good faith to mitigate its damages, but Lessor
shall not be obligated to sell or re-lease the Equipment and in the
event of any such sale Lessor may bid upon and purchase any of the
Equipment. Any sale or re-lease may be held at such place or
places as are selected by Lessor, with or without having the
Equipment present. Any such sale or re-lease, may be at wholesale
or retail, in bulk or in parcels. Time and exactitude of each of
the terms and conditions of the Lease are hereby declared to be of
the essence. Lessor may accept past due payments without modifying
the terms of this Lease and without waiving any further rights of
Lessor hereunder. Except as expressly provided herein, neither
Lessor nor Lessee shall be liable to the other for any consequen-
tial or incidental damages.
23. LOCATION. The location of the Equipment shall be as
hereinabove set forth and Lessee shall not remove said Equipment
therefrom without the prior written consent of Lessor.
24. INSPECTION BY LESSOR. Lessor, its agents or employees, shall
at any and all reasonable times during business hours have the
right to enter into and upon the premises where any Equipment may
be located for the purpose of inspecting the same or observing its
use.
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25. '! CHASE OPTION. Upon Lessee's re en
t of all rents and
other sums provided for in any Lease Schedule and upon the
termination of the Lease term or any renewal thereof, all the
right, title and interest of Lessor in and to the Equipment set
forth in its Lease Schedule shall vest in and become the property
of said Lessee upon payment of One Dollar ($1.00) and said Lessor
covenants that it will thereupon execute to Lessee, a Bill of Sale
of all its right, title and interest in and to the Equipment under
said Lease Schedule as evidence of said transfer of title.
Anything in this Master Lease to the contrary notwithstanding, all
replacements, equipment, repairs or accessories made to or placed
in or upon said Equipment shall become a component part thereof and
title thereto shall be immediately vested in Lessor and shall be
included under the terms hereof. All advances made by Lessor to
preserve said Equipment or the interest of Lessor therein,
including attorney's fees, or to pay insurance premium of insurance
thereof or to discharge and pay any taxes, liens or encumbrances
thereon shall be added to the unpaid balance of rentals due
hereunder and shall be repayable by Lessee to Lessor immediately
upon demand, and, if not paid upon demand, shall bear interest at
the rate of ten percent (10.00%) per annum until paid.
26. INTEREST. Any amounts required to be paid by Lessee pursuant
to this Lease and not paid when due (except as extended in
Paragraph 21(a) hereinabove) shall bear additional interest at the
greater rate (compounded annually and based upon a year having 365
days, actual day months) of (1) Lessor's then highest cost of funds
or (2) ten percent (10.00%) per annum.
27. HEADINGS. Section headings herein are used for convenience
only and shall not otherwise affect the provisions of this Lease.
28. EFFECT of WAIVER. No failure or delay on the part of Lessor
in the exercise of any power, right or privilege hereunder shall
operate as a waiver thereof, nor shall any single or partial
exercise of any such power, right or privilege preclude other or
further exercise thereof or any other right, power or privilege.
All rights and remedies existing under this Master Lease are
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cumulative to, and not exclusive of, any rights or remedies
otherwise available.
29. SURVIVAL OF WARRANTIES. All agreements, representations and
warranties of Lessee made herein shall survive the termination of
this Master Lease and any Lease Schedule.
30. APPLICABLE LAW. This Master Lease, the Lease Schedules and
all documents issued or executed pursuant hereto and the rights
and obligations of the parties thereunder and hereunder shall be
governed by the laws of the State of California. If any provision
of this Lease or any remedy provided herein be invalid under any
applicable law, such provision shall be inapplicable and deemed
omitted, but the remaining provisions of this Lease shall be and
remain effective in accordance with their terms. THIS MASTER LEASE
MAY ONLY BE AMENDED OR MODIFIED BY AN INSTRUMENT IN WRITING SIGNED
BY A DULY AUTHORIZED REPRESENTATIVE OF THE PARTY TO BE CHARGED
THEREBY. LESSEE UNDERSTANDS AND AGREES THAT NEITHER THE SUPPLIER
NOR ANY SALESMAN IS AN AGENT OF LESSOR, AND NO SUCH SUPPLIER OR
SALESMAN IS AUTHORIZED TO ALTER, AMEND OR ADD TO ANY TERM OR
CONDITION OF THIS MASTER LEASE, AND NO REPRESENTATION AS TO THE
EQUIPMENT OR ANY OTHER MATTER BY ANY SUPPLIER OR SALESMAN SHALL IN
ANY WAY AFFECT LESSEE'S DUTY TO PAY RENT AND PERFORM ITS OTHER
OBLIGATIONS AS SET FORTH HEREIN.
31. COUNTERPARTS. This Master Lease may be executed in any number
of counterparts, each of which shall be deemed an original, but
all such counterparts together shall constitute but one and the
same instrument, except to the extent, if any, that this Master
Lease constitutes chattel paper, no security interest therein may
be created except through the transfer or possession of the
original counterpart, which may be so identified by Lessor.
32. NOTICES. All correspondence, payments and/or notices required
or permitted to be given shall be in writing, and may be personally
served or sent by United States mail with postage prepaid and
properly addressed. For the purposes hereof, the addresses of the
parties hereto (until notice of a change thereof is served as
provided in the preceding sentence) shall be as follows:
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• SLESSOR:
LESSEE:
SECURITY PACIFIC EQUIPMENT CITY OF REDDING
LEASING, INC. 760 Parkview Avenue
4 Embarcadero Cntr., Suite 1200 Redding, California 96001-3396
San Francisco, CA 94111
33. REPOSSESSION. LESSEE ACKNOWLEDGES THAT, PURSUANT TO PARAGRAPH
22 HEREOF, LESSOR HAS BEEN GIVEN THE RIGHT TO REPOSSESS THE
EQUIPMENT SHOULD LESSEE BECOME IN DEFAULT OF ITS OBLIGATIONS
HEREUNDER. LESSEE HEREBY WAIVES THE RIGHT, IF ANY, TO REQUIRE
LESSOR TO GIVE LESSEE NOTICE AND A JUDICIAL HEARING PRIOR TO
EXERCISING SUCH RIGHT OF REPOSSESSION.
Dated as of: March 30, 1990
SECURITY PACIFIC EQUIPMENT
LASING, INC. CITY OF REDDING
"LESSOR" "LESSE
By — — By
Title Contract Administrator Title ://
Lease Number 4272 ByraZ/7 • 41,--4;
Title CRY USK
FORM APPROVED
CITY LEGAL C Elf.
14
----1 ITE-n nl11IRITrr`�
•
SECURITY PACIFIC EQUIPMENT
LEASING, INC.
EXECUTIVE OFFICES: FOUR EMBARCADERO CENTER, SUITE 1200 • SAN FRANCISCO.CA 94111 • PO. BOX 7722(94120) • (415) 7654300
May 5, 1990
CITY OF REDDING
760 Parkview Avenue
Redding, California 96001-3396
Attention: Ms. Karen Sundin
Financial Analyst
Reference: Commitment Letter dated March 30, 1990, and
Amendment Letter dated April 26, 1990 by and
between CITY OF REDDING, as Lessee, and SECURITY
PACIFIC EQUIPMENT LEASING, INC. , as Lessor.
Gentlemen:
It is hereby agreed that the above referenced Commitment Letter
and Amendment Letter be amended to include the following:
Termination for Lessee affirms that funds are
Non-appropriation: available for the current
fiscal year and reasonably
believes that sufficient funds
can be obtained to make all
rental payments during each
subsequent fiscal year.
Lessee hereby covenants that
it will regularly budget for
and otherwise use its best
efforts to obtain funds for
the continuation of the
rentals.
If the Lessee is unable to
appropriate funds for
subsequent fiscal years to
continue the leasing of the
Equipment and it has no funds
for such leasing from other
sources, Lessee may terminate
this agreement at the end of
the then current fiscal year
Ammil SECURITY 411 411
PAC
EQUIPMIFIC
ENT
TerM°InAl!RGf&E and shall not be obligated to
Non-appropriation: make further payments. Under
(continued) such circumstances Lessee
shall at Lessee's expense
promptly return the Equipment
to Lessor.
If the non-appropriation
provisions of this paragraph
are utilized by Lessee, Lessee
agrees not to purchase, lease
or rent equipment performing
functions similar to those
performed by the Equipment for
a period of two (2) years.
All other terms and conditions of the referenced Commitment
Letter and Amendment Letter shall remain in effect, except as
modified above.
Please indicate your acceptance by delivering to us the enclosed
copy of this Letter with your executed acceptance thereon within
ten (10) days from the date of this Letter.
ACCEPTED AND AGREED:
SECURITY PACIFIC EQUIPMENT CITY OF REDDING
SING, INC.
Date /S //9i'62j
By /A By e7,71/e7e'-
Jo - Osmundson M
Title Co tact Administrator Title Y
By CkW4. 2r. ;mac..
Title UNC
cc: Chuck Giles/SPLC
mcc
FORM APPROVED
CITY LEGAL DEF
40
•
RECEIVED
SECURITY PACIFIC EQUIPMENT
011.31811.
LEASING, INC. APR 2 7 1990
FINANCE DEPT.
EXECUTIVE OFFICES: FOUR EMBARCADERO CENTER,SUITE 1200 • SAN FRANCISCO,CA 94111 • P.O. BOX 7722(94120) • (415)765-7300
April 26, 1990
CITY OF REDDING
760 Parkview Avenue
Redding, California 96001-3396
Attention: Mr. Bob Belgeri
Financial Analyst
Reference: Commitment Letter dated March 30, 1990 by and
between CITY OF REDDING, as Lessee, and SECURITY
PACIFIC EQUIPMENT LEASING, INC. , as Lessor.
Gentlemen:
It is hereby agreed that the above referenced Commitment Letter
be amended as follows:
Insurance: Notwithstanding the language
in Paragraph 14 of the Master
Lease, so long as Lessee is
not in default under the terms
and conditions of said Lease,
Lessee will have the right to
maintain deductibles of
$500, 000. 00 for physical
damage covetages and
$500, 000. 00 deductibles for
liability coverages, on all
Equipment leased pursuant to
this commitment. However,
Lessor will require that it be
added as an "additional
covered party"/"additional
insured" to Lessee' s excess
coverages.
All other terms and conditions of the referenced Commitment
Letter shall remain in effect, except as modified above.
Ommm 410
SECURITY •
PACT FIC
EQUIPMENT
®
.'® LEASING, INC.
Please indicate your acceptance by delivering to us the enclosed
copy of this Letter with your executed acceptance thereon within
ten (10) days from the date of this Letter.
ACCEPTED AND AGREED:
SECURITY PACIFIC EQUIPMENT
LEASING, INC. CITY OF REDDING
Date 77.%7-,a /J/79U
By - ` 1 -- I. / G By `7:/.
Eileen S. Uyem: 'su :J)
Title Contract Administrator Title MA OR
By Q
cm CURK
Title
cc: Chuck Giles/SPLC
FORM APPROVED
mcc
CITY LEGAL D71'.
PURCHASING AGREEMENT
(Disclosed)
110
Reference is made to that certain Master Lease dated as of March 30, 1 by and between
SECURITY PACIFIC EQUIPMENT LEASING, INC. (hereinafter called the
"Lessor") and CITY OF REDDING
(hereinafter called the "Lessee"). For the purposes of this Purchasing Agreement, capitalized terms used
herein shall have the meanings assigned in said Master Lease.
WHEREAS, Section 6 of said Master Lease contemplates that Lessor shall be responsible for the ordering of
Equipment upon its purchase orders, and
WHEREAS, Lessor and Lessee deem it appropriate and convenient that Lessee, from time to time, be responsible
for the ordering of Equipment,
NOW THEREFORE, upon the terms and conditions of this Purchasing Agreement, Lessee is hereby appointed a
special purchasing agent and attorney-in-fact to order Equipment in the name and on behalf of Lessor. This
appointment and authorization is in addition to and not in substitution of the provisions of Section 6 of the
Master Lease.
Terms and Conditions of this Purchasing Agreement shall be as follows:
• 1. This appointment and orisation is revocable at any time by Lessor, without notice to Lessee, but shall otherwise expire
on Aprl30, 19
2. Lessee shall receive no compensation hereunder.
3. Lessee shall notify Lessor in writing of any Equipment ordered by Lessee pursuant hereto within thirty (30)
days thereof and shall indicate the Cost thereof (including price, sales and other taxes, transportation charges and
installation costs). Upon Lessor's receipt of invoices for Equipment ordered, Lessor will prepare Lease Schedules as
deemed appropriate. Upon acceptance of the Lease Schedules and the Equipment by Lessee, Lessor will promptly pay the
suppliers of said Equipment or, if Lessee has made payments or progress payments directly to the supplier on behalf of
Lessor,then,Lessor shall reimburse Lessee therefor.
4. The authority and appointment herein contained is further limited to the extent of $337,000.00 aggregate Cost
ordered pursuant to this Purchasing Agreement.
5. The following legend shall be inserted on any purchase orders issued by Lessee pursuant to this Purchasing Agreement.
'NOTICE TO VENDORS"
THIS PURCHASE ORDER IS FOR THE PURCHASE BY SECURITY PACIFIC EQUIPMENT LEASING, INC.
OF THE EQUIPMENT DESCRIBED HEREIN AND
IS EXECUTED BY CITY OF REDDING
AS ITS ATTORNEY-IN-FACT BY VIRTUE OF POWER OF ATTORNEY FROM THE FORMER TO THE LATTER.
ALL INVOICES MUST SHOW "SOLD TO SECURITY PACIFIC EQUIPMENT LEASING, INC. •
AND SHOULD BE SENT TO THE FOLLOWING ADDRESS:
Four Embarcadero Center, Suite 1200
San Francisco, CA 94111
THIS PURCHASE ORDER GRANTS TO SECURITY PACIFIC EQUIPMENT LEASING, INC.
THE RIGHT TO PURCHASE THE EQUIPMENT,
BUT, NOTWITHSTANDING THE FOREGOING, SECURITY PACIFIC F.QUIPMFJ'1T !TARING, INC_
SHALL NOT BE LIABLE TO VENDOR FOR THE
PURCHASE PRICE OR OTHER CHARGES IN CONNECTION HEREWITH, IN THE EVENT OF NONPAYMENT
HEREOF VENDOR SHALL LOOK SOLELY TO THE LESSEE IDENTIFIED HEREON.
(Lessor's Name) SECURITY PACIFIC EQUIPMENT LEASING, INC_
By (Lessee's Name) CITY OF REDDING FORM APPROVED
By
(Title) CITY LEGAL DEP .
6. This Purchasing Agreement applies only as stated herein and shall not be deemed to create any joint venture or enterprise
between Lessor and Lessee.
7. All terms, conditions and provisions of the Master Lease shall apply herein, to Equipment ordered by Lessee hereunder, to
Equipment leased pursuant to the Master Lease and to the respective rights and liabilities of the Lessee and Lessor under
the Master Lease.
Dated as of: March 30, 1990
SECURITY PACIFIC EQUIPMENT LEASING, INC. CITY E D1iNG
By By lz� MAYOR
Contract Administrator(Title) (Title)
By Bys ..���'-Q MY CLERK
(Title) (Title)
7/R9 7-01 f Pc
• LEASE INSURANOAUTHORIZATI4N LETTER
To: Note: Complete Insurance Broker's Name
Address
City, State, Zip
Attn: Agent's Name
Phone: and Phone Number
(If agent does not provide both coverages,
Re: CITY OF REDDING please use reverse side for the physical
damage carrier)
The INSURANCE REQUIREMENTS listed below are required to cover:
Two (2) New Fire Trucks
This equipment is/will be located at Redding, California
Evidence of insurance in the form of a binder or cover letter is acceptable until formal certificates can he
issued. Mail this within five (5) working days to:
SECURITY PACIFIC EQUIPMENT LEASING, INC. (hereinafter "Security Pacific')
ATTN: Insurance Specialist
Four Embarcadero Center, Suite 1200
San Francisco, CA 94111
I. BODILY INJURY AND PROPERTY DAMAGE REQUIREMENT
A. $2,000,000.00 single limit Bodily Injury and Property Damage Coverage.
B. Endorsement:
It is understood and agreed that Security Pacific is included as an additional insured with respect to
the ownership, maintenance or existence of certain personal property leased to the named insured by
Security Pacific and that the insurance company shall be liable under this policy for the full amount of
the loss up to and including the total limits of liability as set forth in the declarations without right
of contribution from any contingent insurance which may be effected by Security Pacific and without
regard to any breach of warranty by the (Lessee) insured. It is also understood that the leased equip-
ment is leased on a net finance basis, i.e., a non-operating lease, and that Security Pacific has na
maintenance or other obligations with respect thereto.
C. Endorsement:
It is understood and agreed that this policy shall not be cancelled nor any reduction or restriction of
coverage be affected until at least thirty (30) days prior written notice has been given to: Security
Pacific, Attention: Insurance Specialist, Four Embarcadero Center, Suite 1200, San Francisco, California
94111.
II. PERSONAL PROPERTY/PHYSICAL DAMAGE REQUIREMENTS
A. All Risk Coverage for not less. than $ 337,000.00
B. Endorsement:'
It is understood and agreed that Security Pacific is included as an additional insured with respect to
the ownership, maintenance or existence of certain personal property leased to the named insured by
' Security Pacific and that the insurance company shall be liable under this policy for the full amount o'
the loss up to and including the total limits of liability as set forth in the declarations without righ:
of contribution from any contingent insurance which may be effected by Security Pacific and withou:
regard to any breach of warranty by the (Lessee) insured. It is also understood that the leased equip-
ment is leased on a net finance basis, i.e., a non-operating lease, and that Security Pacific has n:
maintenance or other obligations with respect thereto.
C. Endorsement:
It is understood and agreed that this'-policy shall not be cancelled nor any reduction or restriction o'
coverage be effected until at least thirty (30) days prior written notice has been given to: Security
Pacific, Attention: Insurance Specialist, Four Embarcadero Center, Suite 1200, San Francisco, California
94111.
*A standard lender's loss payable endorsement may be substituted for Item 11(B).
The undersigned Lessee hereby authorizes you to provide Security Pacific the above coverages:
NOTE: Enter Lessee's Name: CITY OF REDDING
By: ` i' e- c .67/4 7)/
Title: //�� Y
Date:• )7Lc.& S , /79V
,(�, f=QT\ /7
• •
SECURITY PACIFIC NATIONAL BANK
Sm#gmusw
EXECUTIVE OFFICES FOUR EMBARCADERO CENTER,SUITE 1200 • SAN FRANCISCO,CA 94111 • PA BOX 7722(94120) • (415)765.7300
March 30, 1990
CITY OF REDDING
760 Parkview Avenue
Redding, California 96001-3396
Attention: Mr. Bob Belgeri
Financial Analyst
Gentlemen:
We are pleased to inform you that, pursuant to your request, we
are agreeable to entering into a leasing transaction with you in
accordance with the terms of the Master Lease and other
documentation enclosed herewith and upon the following additional
terms and conditions. The capitalized terms used herein have the
same meanings as set forth in the Master Lease.
Lessor: SECURITY PACIFIC EQUIPMENT LEASING,
INC.
Lessee: CITY OF REDDING
Equipment: Two (2) new fire trucks
Lessor reserves the right to
approve any and all items of
Equipment prior to any scheduling
under this leasing line.
Cost of Equipment: Estimated at: $337, 000. 00
Lessor has approved the leasing
line hereunder for the full
estimated cost. However, in the
event of cost overruns, Lessor
reserves the right to exclude
undelivered and unaccepted items of
Equipment in order to stay within
the estimated Cost, or to include
such items and to adjust the
Rentals and rental rates on this
overrun.
Delivery and Takedown: April, 1990
SECURITY411
•
PACIFIC
EQUIPMENT
4, LEASING, INC.
2
Equipment Location: Redding, California
Term of Lease: Seven (7) Years
The Lease Term for each item of
Equipment will commence on and as
of the date of acceptance of said
Equipment by the Lessee.
Interest Rate: Seven and 90/100 percent (7.90%)
Rentals: Lessee will be required to make
fourteen (14) equal consecutive
semi-annual rental payments, each
in advance, at $90.77 per $1, 000 of
Equipment Cost.
Should the proposed leased
Equipment not be accepted by Lessee
and the Lease Schedule not executed
prior to the Expiration Date,
referred to below, Lessor reserves
the right to extend its commitment
with respect to any portion of this
transaction beyond the Expiration
Date and/or to adjust the rentals.
Property Taxes: Lessee shall be responsible for the
negotiating and filing of property
taxes on Equipment and shall
indemnify Lessor to the extent of
any such unpaid property taxes
(including penalties and interest)
and costs of Lessor associates
therewith.
Purchase Option: At the expiration of the seven (7)
year lease term, Lessee shall have
the option to purchase all of
Lessor's right, title and interest
in and to the Equipment for one
dollar ($1. 00) .
Insurance: To be provided Lessor in accordance
with the enclosed Lease Insurance
Authorization Letter, prior to
funding.
Financing Statements: Appropriate Financing Statement(s)
will be required.
Ommm SECURITY •
PACIFIC
EQUIPMENT
magnmee#® LEASING, INC.
3
Lease Schedules: A $10, 000 minimum Equipment Cost
requirement will apply on all lease
scheduling under this commitment.
Should Lessee request scheduling
for amounts between $5, 000 and
$10,000, a $150. 00 scheduling fee
will be due and payable upon
execution of the Lease Schedule.
Financial Statements: Lessee's audited annual financial
statements including fund balances
are to be mailed to Lessor within
120 days from Lessee's fiscal year
end as well as such other
information as Lessor may from
time to time reasonably request,
and Lessor (and its affiliates and
their representative agents,
employees, officers and directors)
are hereby irrevocably authorized
to interchange and utilize all
credit information files and
facilities in possession of
Security Pacific Corporation,
Security Pacific National Bank and
their respective subsidiaries and
affiliates and others as may be
necessary or desirable for the
analysis, processing, review and
collection of any transactions with
Lessee.
Tax Status Lessee represents that it is
Representation: qualified as a "political
subdivision" within the meaning of
subsections (a) and (c) to Section
103 of the Internal Revenue Code of
1986 ("Code") and that this
transaction will constitute an
obligation of the Lessee within the
meaning of said subsections.
Lessee agrees to cooperate with
Lessor in providing evidence as
deemed necessary or desirable by
Lessor to substantiate such tax
status.
Filing Requirements: Lessee further represents that it
shall comply with the filing
requirements set forth in Section
149 (e) of the Code with respect to
this transaction. Your filing is
• SECURITY
PACIFIC
wagEQUIPMENT
LEASING. INC.
4
Filing Requirements: to be made on Internal Revenue
(continued) Service form 8038-G and is to be
delivered to the Internal Revenue
Service by no later than the
fifteenth day of the second
calendar month following the
calendar quarter of funding.
Should Lessee fail to make the
filing in the manner or within the
time required, Lessee shall
indemnify Lessor for any resulting
loss of Federal income tax
exemption to the interest portion
of the rental payment. Lessee
further agrees to provide Lessor
with a copy of the filing
simultaneously with the filing made
to the Internal Revenue Service.
Opinion of Counsel: Lessee shall provide Lessor with an
opinion from Lessee's counsel
stating that the Master Lease of
Personal Property dated as of March
30, 1990 and other documents
required of the Lessee hereunder
including this Commitment Letter
have been duly authorized, executed
and delivered by Lessee and that
such documents are valid and
binding obligations of CITY OF
REDDING in accordance with their
respective terms. In addition,
such opinion shall confirm the true
and exact name of Lessee.
Such opinion shall also affirm that
the Lessee qualifies as a
"political subdivision" within the
meaning of subsections (a) and (c)
to Section 103 of the Internal
Revenue Code of 1986 ("Code") and
that this transaction constitutes
an obligation of the Lessee within
the meaning of said subsections.
Said opinion shall be delivered to
Lessor prior to the commencement of
said Lease and said opinion must be
acceptable to Lessor's counsel.
. SECURITY ® •
PACIFIC
EQUIPMENT
sesszn/, LEASING, INC.
5
Purchasing Agreement: By use of the Purchasing Agreement
it is contemplated that the Lessee
will order the Equipment as
Lessor's agent.
Upon Lessee's acceptance of the
Equipment for Lessor and upon
receipt of the supplier's invoice,
the original invoice shall be
promptly forwarded to Lessor.
Lessee shall also forward to Lessor
a copy of Lessee's cancelled
check(s) to evidence any payments
or progress payments made by Lessee
for the Equipment. Lessor shall
not be obligated to release funds
to the suppliers and/or reimburse
Lessee for the payments or progress
payments made on its behalf until
Lessor has received the executed
Lease Schedule(s) and, if
applicable, copies of cancelled
checks.
Registration and Titling: All motor vehicles leased under
this leasing commitment in the
state of California are to be
registered and titled as follows:
Registered Owner:
SECURITY PACIFIC EQUIPMENT
LEASING, INC. (Lessor)
CITY OF REDDING (Lessee)
760 Parkview Avenue
Redding, California 96001-3396
Lienholder:
SECURITY PACIFIC EQUIPMENT
LEASING, INC.
4 Embarcadero Center, Suite 1200
San Francisco, California 94111
It is hereby agreed that Lessee
shall be responsible for the
correct titling of all motor
vehicles leased under this leasing
commitment. As lienholder of the
vehicles, Security Pacific
Equipment Leasing, Inc. will
require the original Certificates
Ammm SECURITY111
PACIFIC
EQUIPMENT
, LEASING. INC.
6
Registration and Titling: of Title for retention in our files
(continued) throughout the duration of the
lease term.
All costs associated with the
registration and titling of
vehicle(s) leased pursuant to this
commitment will be for the account
of the Lessee.
Lessee Representation: Lessee hereby warrants that this
transaction does not violate any
terms or conditions of any material
credit agreement or any other
agreements or instrument to which
Lessee is a party.
Documentation: The following additional documents
are necessary to this transaction:
a) Master Lease of Personal
Property
(original and one copy)
b) Resolution
(original and one copy)
c) Purchasing Agreement
(original and one copy)
d) Information Form (one copy)
e) Lease Insurance Authorization
Letter (two copies)
f) Opinion of Counsel
g) Original Vehicle Title(s)
h) 149 (e) Filing
Please execute items a through e
above and return them to Lessor,
along with items f, g and h as soon
as possible. Upon Lessor's
acceptance, copies will be returned
for Lessee's files.
The form, substance and enforceability of all instruments
required by Lessor in completing the transaction proposed in this
Commitment Letter must be satisfactory to Lessor's legal
counsel. Lessee agrees to give Lessor such evidence of
compliance with the conditions of the Commitment Letter as such
legal counsel may require. Expenses incurred for or attributable
to any significant amount of lease negotiation, tailoring, or
redrafting shall be for the account of the Lessee.
SECURITY •
PACIFIC
EQUIPMENT
LEASING. INC.
7
Expiration Date of Lessor's obligation to acquire
This Commitment: and fund Equipment hereunder,
terminates and expires on April 30,
1990.
If the Equipment has not been delivered at the above described
Location and accepted by Lessee on Lessor's forts prior to the
above Expiration Date, or there is, prior to said Expiration
Date, in Lessor's opinion, an adverse change in Lessee's
financial condition since the date shown on the latest financial
statement(s) which Lessee has furnished Lessor, then, at Lessor's
option, Lessor may terminate its obligations under this
Commitment Letter as to any Equipment which has not theretofore
been accepted by Lessee on Lessor's forms.
This will be a non-cancelable net lease transaction whereby
maintenance, insurance, full indemnification, property taxes,
documentation costs and all items of a similar nature will be for
Lessee's account.
It is understood that Lessor's obligations are contained only in
this Commitment Letter and any amendment to it in writing, signed
by Lessor's authorized officer. The provisions hereof supersede
all prior and contemporaneous discussions, lease applications and
proposals with respect to the transaction described herein.
If Lessee agrees to enter into the leasing transaction and obtain
Lessor's firm commitment on the terms set forth in this Letter
and in the Master Lease, Lessee must indicate Lessee's acceptance
by executing and delivering to Lessor, at Lessor's office in San
Francisco, California, the enclosed copy of this Letter within
ten (10) days from the date of this letter.
Please be assured of our desire to give you the best and most
efficient leasing service.
Very truly yours,
SECURITY PACIFIC EQUIPMENT LEASING, INC.
By � .(y4_ cam l {- )L 1 %-.\
1 , Eileen S. U. ematsu
Contract Administrator
ACCEPTANCE:
Lessee hereby agrees to enter into the leasing transaction
described herein on the terms and conditions and with the
Ommws SECURITY • •
PACIFIC
EQUIPMENT
=5. LEASING. INC. 8
agreements and covenants as set forth herein and agrees that this
Commitment Letter shall constitute part of the Master Lease.
CITY OF REDDING
Date /6--- /f1',
y % j
BYf
f.f
Title
R
By C ,e,: GCS• /-c« .,
Title CITY CLERK
Enclosures FORM APPROVED
cc: Chuck Giles/SPLC ..e.e.a,
mlm CITY LEGAL PT.