Tax Exempt Lease Purchase
DEALER/SALESMAN Golden State - Mark
LESSEE: City of Patterson, CA Contact information:
TYPE OF EQUIPMENT: Two (2) Pierce Enforcer Pumpers Kim Simon EQUIPMENT COST: $1,401,946.86 Locator: B4-B230-06-07
CUSTOMER DOWNPAYMENT: $0.00 155 East Broad St
TRADE-IN: $0.00 Columbus, OH 43215
DELIVERY TIME: Standard delivery Ph: 614-670-3994
PAYMENT MODE: Annual In Arrears Fax:(866) 852-3101
FIRST PAYMENT DUE DATE: 1 Year After Lease Commencement [email protected] LEASE COMMENCEMENT DATE: Upon contract signing with Pierce NOTE: All lease documents must be fully executed within 7 days of the date of this proposal. Failure to receive completed documents may alter the final payment schedule due to changes in rates and/or discounts.
PERFORMANCE BOND: To utilize the prepay program, a performance bond is required. Said performance bond shall be paid for directly to Pierce Manufacturing or financed by PNC Equipment Finance as part of the transaction
TYPE OF FINANCING: Tax-exempt Lease Purchase Agreement with a balloon payment at the end of lease term. Lessee shall have the option of turning-in the leased apparatus at the end of the contract term. If Lessee decides to purchase another Pierce apparatus of equal or higher value than the balloon amount, Pierce and PNC Equipment Finance will guarantee that the value of the leased vehicle will be equal to the balloon payment amount. If Lessee decides to keep the leased vehicle, it must either pay the balloon payment due or refinance the amount due for another term. Any refinancing will be subject to the credit approval of the Lessee at the discretion of PNC Equipment Finance. Said agreement shall be a net lease arrangement whereby lessee is responsible for all costs of operation, maintenance, insurance, and taxes. Maximum cumulative mileage of 10,000 miles per year.
BANK QUALIFICATION: This proposal assumes that the lessee will not be issuing more than $10 million in tax-exempt debt this calendar year. Furthermore, it is assumed that the lessee will designate this issue as a qualified tax-exempt obligation per the tax act of 1986 LEGAL TITLE: Legal title to the equipment during the lease term shall vest in the lessee, with PNC Equipment Finance perfecting a first security interest AUTHORIZED SIGNORS: The lessee's governing board shall provide PNC Equipment Finance with its resolution or ordinance authorizing this agreement and shall designate the individual(s) to execute all necessary documents used therein.
LEGAL OPINION: The lessee's counsel shall furnish PNC Equipment Finance with an opinion covering this transaction and the documents used herein. This opinion shall be in a form and substance satisfactory to PNC Equipment Finance.
VOLUNTEER FIRE DEPARTMENTS: If Lessee is a Volunteer Fire Department, a public hearing under the requirements of Section 147(f) of the Internal Revenue Code of 1986 shall be conducted to authorize this transaction. It is recommended that a notice of the public hearing be published 10 to 14 days in advance of the public hearing.
This proposal will be valid for seven (7) days from the above date and interest rate will be set three business days prior to closing. Proposal is subject to final credit approval by PNC Equipment Finance and approval of the lease documents in PNC Equipment Finance's sole discretion. To render a credit decision, lessee shall provide PNC Equipment Finance with their most recent three years' audited financial statements, copy of their most recent interim financial statement, and current budget.
Accepted by:____________________________________ Proposal submitted by _____________________ Term
Number of Payments
7 annual payments with
balloon due 1 year after
final payment
Payment Amount 7 @ 193,488.38 due in
12 months
Balloon 1 @ 406,209.94