HomeMy WebLinkAboutDesert Willow Maintenance Equipment Lease - Mountan View Courser
4..::2 Y l J� :IL Ayr/ON: DESERT WILLOW
PPROVE' V D ED
RECEIVED OaraaR GOLF RESORT
38500 Portola Avenue oU
aI DATE PO Box 14062
.;s: ( n4 �.a. 0 '� . c.'( DO Palm Desert, CA 92255 6
S ENT: 0,lc- (760) 346-0015 (�
STAIN: 6 (760) 346-7444 FAX
, RIFIED BY: '-yl
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Original on M farica,t a Office
To: Ray Diaz, Mayor Benson, City Council Members
CC: Jim Seeley
From: Gregg Lindquist
Date: August 17, 1998
Re: Desert Willow Maintenance Equipment Lease, Mountain View Course
Recommendation:
That the City Council,by minute motion, authorize staff to negotiate a lease of
equipment to be used at the Desert Willow Golf Resort, authorizing the Mayor to
execute said lease for maintenance equipment.
Background:
The agreement between Kemper Sports Management(KSM) and The City of Palm
Desert (City)provides that KSM will be responsible for obtaining the maintenance
equipment to be utilized at Desert Willow, and that the expense for this process shall
be the obligation of Desert Willow Golf Resort.
KSM will proceed in accordance with the agreement, leasing the equipment under
Desert Willow's name and KSM. The leasing agency has indicated that if the City
executes the lease, they can offer a public agency interest rate which is 2 to 3%
points lower than that offered the private sector.
The total cost for the maintenance equipment is $450,313.11 (see attached list).
RDA staff is requesting authority to negotiate a lease structure which is beneficial to
Desert Willow utilizing the City's public authority to achieve a lower interest rate in
the leasing structure. The maintenance equipment lease payment is a budgeted
1
August 14, 1998
expense item in KSM's expense budget. Kemper has agreed with RDA staff through
a letter agreement that while the City's name is in the lease, the lease continues to be
an obligation on Kemper in accordance with the provisions of the Management
Agreement.
The sense of urgency is attributed to Desert Willow's need for the equipment as
soon as possible.
REVIEWED AND CONCOUR:
UV f
0 �
W. Gregg Lindquist
General Manager
Desert Willow Golf Resort
Executive Director
ity Manager
2
AUG-14-98 12 : 11 PM P. 01
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PURCHASE ORDER
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ADOW DESERT WILLOW GOLF RESORT
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38500 Portola Ave.
Pal, peeertk_CA 226D
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WMCr.Srt7P TERMS i1nW$1+/P DATE
7/14/98
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PRICE AvicuNT
8 t C 522 Walkers '
3475 27800. �100
2 ✓ Jac Sand Bakes _
7112 _ , 15024. 100
4 SRltbco Mov-N-Co Trailers
'- 962 3848. QO
4 GR 522 Groomer&
904 3616. 00
8 GE 522 Light tics 297 2376. 00
1 ,i Sprayer SDI CIAO-451t6J r
5346 ` 5346. 00
1 LP-3400 4WD 2 Tri-King 1900 72" 7 blade 24162 • 24162. #
1 3810 W/5 bladed reel 4a Wu - 15098 30196. =Q0
3 CI V Creens Mower 8/7 blade 29289 29289. pQ
' - f 17013 •51039. p0
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2 Fairway Aaartor
8360 16720. 00
1 Turfcat 428 W/60" Plaiel
1 Smithco Spray Star 3000 12576 12576. 00
24552 24552. b0
8 , 1110 Hauler
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2 White trucks " ' 8op
1 5400 Kubota Tractor 0 2fl04Q�
I Dump Trailer 2,423Q 24230.00
2 seta Greene Ring V Groomers 5995 g99j, bQ
` I Bat Greens King V VertLeuts - �7QZ 5484, ipp
1 Verti-Brush - 2033 2Q33. b0
1 set 3810 Verticuta — 3000 3000. 00
1 Broom - Tartest
— 5660 5660. DO
10 ! / • 2100 2100. p0 ,
doses for Utility CArts 5 Es
I Pendulum spreader SV Truck y 225 2250.
1 Core BArveeter �� —.�—� / 3�S 3405. 00 1
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GOLF OPERATIONS
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PURCHASE ORDER
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A ASSOCIA1_� COMMERCIAL CORPORA-_3N
VENDOR EQUIPMENT DIVISION
A • - A SUBSIDIARY OF ASSOCIATES FIRST CAPITAL CORPORATION
July 30, 1998
Greg Lindquist
City of Palm Desert
P. O. Box 14062
Palm Desert,CA 92260
Lessee: City of Palm Desert, CA
Dear Mr. Lindquist:
The Lease documentation for the equipment being acquired is enclosed. Please
review for accuracy, execute where indicated by each Red "X", and then return
along with payment (if required) to the address following the documentation list:
• Lease/Purchase Agreement— Please execute.
• Opinion of Counsel — please have your attorney execute.
• Schedule A, Equipment Description - Please execute.
• Schedule B, Payment Schedule — Please review.
• Schedule C, Delivery and Acceptance Certificate - The document should be
returned only upon final delivery and acceptance of the equipment. Associates
will pay the vendor/supplier upon receipt. Please execute and indicate the date
equipment was accepted.
• Incumbency Certificate — Please have completed by the Governing Body
members authorized to enter into the Lease on behalf of your organization. Then
have "Keeper of the Record", Such as the Secretary, execute.
• 8038G — Please complete/verify item #2, your Federal ID number, review for
accuracy and execute.
• UCC-1 — Uniform Commercial Code filing form.
• Insurance Information — Please obtain a Certificate of Coverage naming
Associates Commercial Corporation as Loss Payee and Additional Insured from
your local insurance agent and return with the executed documents
• Essential Use Letter— Please copy this letter onto your letterhead and properly
execute.
8001 Ridgepoint Drive, Irving,TX 75063-3117
(800) 868-4402 FAX (800) 315-4050
• Tax Exemptic esale Certificate — Please enclos )hotocopy, if available.
Please return all of the documents with original signatures to me at:
Associates Commercial Corporation
8001 Ridgepoint Drive
Irving, TX 75063
Attn: Frances Means
Also, please remit to my attention at the address given above, a check for $10,103.74
made payable to Associates Commercial Corporation. This represents the first
payment plus the $ 150.00 documentation fee. An invoice is enclosed for your
convenience.
If you have any questions, please call me at (800) 868-4402. Thank you for doing
business with The Associates.
Sincerely,
,44&,/z kezie-//>te
Frances Means
VED — Municipal Finance Administrator
Enclosures
:mo
8001 Ridgepoint Drive, Irving,TX 75063-3117
(800) 868-4402 FAX (800) 315-4050
AS
A
EQUIPMENT LEASE-PURCHASE AGREEMENT
Lessee:(Name and Address)
City of Palm Desert Associates Commercial Corporation
38500 Portola Avenue 8001 Ridgepoint Drive
Palm Desert, CA 92260 Irving,TX 75063-3117
Lessor agrees to lease to Lessee and Lessee agrees to lease from Lessor the Equipment described in Schedule A
attached hereto ("Equipment") in accordance with the following terms and conditions of this Equipment Lease-Purchase
Agreement("Lease").
1. TERM. This Lease will become effective upon the execution hereof by Lessor. The term of this Lease will
commence on the first Lease Payment Date ("Commencement Date") pursuant to Section 2 hereunder and, unless
earlier terminated as expressly provided for in this Lease, will continue until the payment of all Lease Payments and
all other amounts authorized or required to be paid by Lessee hereunder with respect to the Equipment (the "Lease
Term").
2. RENT. Lessee agrees to pay to Lessor or its assignee the Lease Payments, including the interest portion, equal to
the amounts specified in Schedule B. The Lease Payments will be payable without notice or demand at the office of
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 Date as set forth in Schedule B and thereafter on the subsequent dates set forth in
Schedule B. Any payments received later than ten (10) days from the due date will bear interest at the highest lawful
rate from the due date. Except as specifically provided in Section 6 hereof, the obligation of Lessee to make the
Lease Payments hereunder and perform all of its other obligations hereunder will be absolute and unconditional in all
events and will not be subject to any setoff, defense, counterclaim,or recoupment for any reason whatsoever,
including , without limitation, any failure of the Equipment to be delivered or installed , any defects, malfunctions,
breakdowns or infirmities in the Equipment or any accident, condemnation or unforeseen circumstances. 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 the 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. Lessor and Lessee understand and intend that this lease shall not be
deemed to create any debt of Lessee in contravention of any applicable constitutional or statutory limitation or
requirement concerning the creation of indebtedness by Lessee, nor shall anything contained herein constitute a
pledge of the general tax revenues, funds or monies of Lessee.
3. DELIVERY AND ACCEPTANCE. Lessee shall order the Equipment, cause the equipment to be delivered and
installed at the location specified on Schedule A ("Equipment Location") and pay any and all delivery and installation
costs in connection therewith. Lessee will accept the Equipment as soon as it has been delivered and inspected.
Lessee will evidence its acceptance of the Equipment by executing and delivering to Lessor a Delivery and
Acceptance Certificate as set forth in Schedule C attached hereto (or other such form as acceptable by Lessor), upon
delivery of the Equipment.
4. DISCLAIMER OF 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, that LESSOR
LEASES AND LESSEE TAKES THE EQUIPMENT AND EACHPART THEREOF "AS-IS" 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 AS TO THE
ABSENCE OF LATENT OR OTHERDEFECTS, WHETHER OR NOT DISCOVERABLE, OR AS TO THE ABSENCE
OF ANY INFRINGEMENT OF ANY PATENT,TRADEMARK OR COPYRIGHT, OR AS TO ANY OBLIGATION BASED
ON STRICT LIABILITY IN TORT OR ANY OTHERREPRESENTATION, WARRANTY, OR COVENANT OF ANY
KIND OR CHARACTER, EXPRESS OR IMPLIED, WITH RESPECTTHERETO, IT BEING AGREED THAT ALL
RISKS INCIDENT THERETO ARE TO BE BORNE BY LESSEE AND LESSOR SHALL NOTBE OBLIGATED OR
Page 1
LIABLE FOR ACTUAL, INCIDE L, CONSEQUENTIAL, OR OTHER Di ;ES OF OR TO LESSEE OR ANY
OTHER PERSON OR ENTITY ARISING OUT OF OR IN CONNECTION WITH THE USE OR PERFORMANCE OF
THE EQUIPMENT ANDTHE 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. Lessee's sole remedy for the breach of any such
manufacturer's warranty shall be against the manufacturer of the Equipment, and not against Lessor. Lessee
expressly acknowledges that Lessor makes, and has made, no representations or warranties whatsoever as to the
existence or the availability of such warranties of the manufacturer of the Equipment.
5. RETURN OF EQUIPMENT. Unless Lessee shall have exercised its purchase option as provided in Section 20
hereof, upon the expiration or earlier termination of this Lease pursuant to the terms hereof, Lessee shall, at its sole
expense but at Lessor's option, return the Equipment to Lessor to any location in the continental United States
designated by Lessor.
6. NON-APPROPRIATION OF FUNDS; NON-SUBSTITUTION. Notwithstanding anything contained in this Lease to the
contrary, in the event no funds or insufficient funds are appropriated and budgeted or are otherwise unavailable by
any means whatsoever in any fiscal period for Lease Payments due under this Lease, Lessee will immediately notify
Lessor or its assignee in writing of such occurrence and this Lease shall terminate the last day of the fiscal period for
which appropriations have been received or made without penalty or expense to Lessee, except as to (i) the portions
of Lease Payments herein agreed upon for which funds shall have been appropriated and budgeted or are otherwise
available and (ii)Lessee's other obligations and liabilities under this Lease relating to, or accruing or arising prior to,
such termination. 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 in the manner set forth in Section 5 hereof and
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 and this Lease shall not terminate 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 or services performing functions similar to the functions of the Equipment for the fiscal period in
which such termination would have otherwise occurred or for the next succeeding fiscal period, and (ii) that it will not
during the Lease Term give priority in the application of funds to any other functionally similar equipment or to
services performing functions similar to the functions of the Equipment. This section will not be construed so as to
permit Lessee to terminate this Lease in order to purchase, lease, rent or otherwise acquire the use of any other
equipment or services performing functions similar to the functions of the Equipment, and, if this Lease terminates
pursuant to this Section, Lessee agrees that during the fiscal period immediately following the fiscal period in which
such termination occurs it will not so purchase, lease, rent or otherwise acquire the use of any such other equipment
or services.
7. REPRESENTATIONS, COVENANTS AND WARRANTIES. Lessee represents, covenants and warrants as of the
date hereof and at all times during the Lease Term that: (i) Lessee is a state or a fully constituted political subdivision
thereof, or its obligations hereunder constitute obligations issued on behalf of a state or a political subdivision thereof,
such that any interest derived under this Lease will qualify for exemption from Federal income taxes under section
103 of the Internal Revenue Code of 1986, as amended (the "Code"), and that it will do or cause to be done all things
necessary to preserve and keep in full force and effect (a) its existence and (b) this Lease; (ii) the execution, delivery
and performance by the Lessee of this Lease and all documents executed in connection herewith, including, without
limitation, Schedule A hereto and the Delivery and Acceptance Certificate referred to in Section 3 hereof (the Lease
together with all such documents shall be collectively referred to herein as the "Lease Documents") have been duly
authorized by all necessary action on the part of the Lessee; (iii) the Lease Documents each constitute a legal, valid
and binding obligation of the Lessee enforceable in accordance with their respective terms; (iv) no additional
governmental orders, permissions, consents, approvals or authorizations are required to be obtained and no
registrations or declarations are required to be filed in connection with the execution and delivery of the Lease
Documents; (v) Lessee has sufficient appropriations or other funds available to pay all Lease Payments and other
amounts due hereunder for the current fiscal period; (vi) the use of the Equipment by the Lessee is essential to and
will be limited to the performance by Lessee of one or more governmental functions of Lessee consistent with the
permissible scope of Lessee's authority; (vii) no portion of the Equipment will be used directly or indirectly in any trade
or business carried on by any person other than Lessee; and (viii) no portion of the Equipment will be used by an
organization described in section 501 C (3) of the Code and (ix) this Lease does not constitute an arbitrage obligation
within the meaning of section 148 of the Code and is not federally guaranteed within the meaning of section 149(b) of
the Code.
Lessee shall deliver to Lessor an opinion of Lessee's counsel in form and substance as set forth herein or as
otherwise acceptable to Lessor. In the event that a question arises as to Lessee's qualification as a political
subdivision, Lessee agrees to execute a power of attorney authorizing Lessor to make application to the Internal
Revenue Service for a letter ruling with respect to the issue.
Page 2
8. TITLE TO EQUIPMENT. Upon ptance of the Equipment by Lessee he ler, title to the Equipment will vest in
Lessee subject to Lessor's rights under this Lease; provided, however, that (i) in the event of termination of this Lease
pursuant to Section 6 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 without any action by Lessee and Lessee shall immediately
surrender possession of the Equipment to Lessor or its assignee in the manner set forth in Section 5 hereof.
9. USE; REPAIRS. Lessee will use the Equipment in a careful manner for the use contemplated by the manufacturer of
the Equipment. Lessee shall comply with all laws, ordinances, insurance policies and regulations relating to the
possession, use, operation or maintenance of the Equipment. Lessee, at its expense, will keep the Equipment in
good working order and repair and furnish all parts, mechanisms and devices required therefor.
10. 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.
11. LOCATION; INSPECTION. 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.
12. LIENS AND TAXES. Lessee shall keep the Equipment free and clear of all levies, liens and encumbrances except
those created under this Lease. 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, or
taxes when due, Lessor may, but need not, pay said charges or taxes and, in such event, Lessee shall reimburse
Lessor therefor on demand, with interest at the maximum rate permitted by law from the date of such payment by
Lessor to the date of reimbursement by Lessee.
13. 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 relieve 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 repair with the proceeds of any insurance recovery applied to the cost of such repair. If Lessor
determines that any item 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 Schedule B opposite such
Lease Payment Date. In the event that Lessee is obligated to make such payment pursuant to subparagraph (b)
above with respect to less than all of 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.
14. PERSONAL PROPERTY. The Equipment is and will remain personal property and will not be deemed to be affixed
or attached to real estate or any building thereon. If requested by Lessor, Lessee will, at Lessee's expense, furnish a
waiver of any interest in the Equipment from any party having an interest in any such real estate or building.
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 will contain a clause requiring the insurer to give Lessor or its
assigns 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 interests 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 and shall permit Lessor to participate and cooperate with Lessee in
making any claim for insurance in respect thereof.
Page 3
16. INDEMNIFICATION. Lessee s indemni Lessor against, and hold Le harmless from, anyand all claims 6 ,
fY 9
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, installation, possession, use,
operation, rejection, or return and the recovery of claims under insurance policies thereon. The indemnification
provided under this Section shall continue in full force and effect notwithstanding the full payment of all obligations
under this Lease or the termination of the Lease Term for any reason.
17. 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 the Lease Documents, the Equipment and/or
grant or assign a security interest in this Lease and the Equipment, in whole or in part, and Lessee's rights will be
subordinated thereto. . Any such assignees shall have all of the rights of Lessor under this Lease. Subject to the
foregoing, this Lease inures to the benefit of and is binding upon the successors and assigns of the parties hereto.
Lessee covenants and agrees not to assert against the assignee any claims or defenses by way of abatement setoff,
counterclaim, recoupment or the like which Lessee may have against Lessor. Upon assignment of Lessor's interests
herein, Lessor will cause written notice of such assignment to be sent to Lessee which will be sufficient if it discloses
the name of the assignee and address to which further payments hereunder should be made. 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. Lessee shall retain all notices of assignment and maintain a book-entry record (as referred to
in Section 21)which identifies each owner of Lessor's interest in the Lease. Upon Lessee's receipt of written notice of
Lessor's assignment of all or any part of its interest in the Lease, Lessee agrees to atone to and recognize any such
assignee as the owner of Lessor's interest in this Lease, and Lessee shall thereafter make such payments, including
without limitation such Lease Payments, as are indicated in the notice of assignment, to such assignee.
18. EVENT OF DEFAULT. The term "Event of Default," as used herein, means the occurrence of any one or more of the
following events: (i) 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;
(ii) 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; (iii) 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 was false, misleading, or erroneous in any
material respect; (iv) Lessee becomes insolvent, or is unable to pay its debts as they become due, or makes an
assignment for the benefit of creditors, applies or consents to the appointment of a receiver, trustee, conservator or
liquidator of Lessee or of any of its assets, or a petition for relief is filed by Lessee under any bankruptcy, insolvency,
reorganization or similar laws, or a petition in, or a proceeding under, any bankruptcy, insolvency, reorganization or
similar laws is filed or instituted against Lessee and is not dismissed or fully stayed within twenty (20) days after the
filing or institution thereof; (v) Lessee fails to make any payment when due or fails to perform or observe any
covenant, condition, or agreement to be performed by it under any other agreement or obligation with Lessor or an
affiliate of Lessor and any applicable grace period or notice with respect thereto shall have elapsed or been given; or
(vi)an attachment, levy or execution is threatened or levied upon or against the Equipment.
19. REMEDIES. Upon the occurrence of any 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: (i) by written notice to Lessee, declare an
amount equal to all amounts then due under the Lease, and all remaining Lease Payments due during the fiscal year
of Lessee in which the default occurs to be immediately due and payable, whereupon the same shall become
immediately due and payable; (ii) by written notice to 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 5 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, (iii) 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 purchaser, lessee or sublessee pursuant
to such sale, lease or sublease and the amounts otherwise payable by Lessee hereunder; and (iv) exercise any other
right, remedy or privilege which may be available to it under applicable laws of the state where the Equipment is then
located 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.
20. PURCHASE OPTION. Upon thirty (30) days prior written notice from Lessee, and provided that there is no 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 any Lease Payment date set forth in Schedule B hereto by
Page 4
paying to Lessor, on such date, .ease Payment then due together with t oncluding Payment amount set forth
in Schedule B 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 Lessor will warrant that the Equipment is free and clear of any liens created by Lessor.
21. TAX ASSUMPTION; COVENANTS. The parties assume that Lessor can exclude from Federal gross income the
interest portion of each Lease Payment set forth in Schedule B under the column captioned "Interest." Lessee
covenants that it will (i) register this Lease and transfers thereof in accordance with section 149(a) of the Code and
the regulations thereunder, (ii) timely file a statement with respect to this Lease in the required form in accordance
with section 149(e) of the Code, (iii) not permit the property financed by this Lease to be directly or indirectly used for
a private business use within the meaning of section 141 of the Code, (iv) not take any action which results, directly or
indirectly, in the interest portion of any Lease Payment not being excludable from Federal gross income pursuant to
section 103 of the Code and will take any reasonable action necessary to prevent such result, and (v) not take any
action which results in this Lease becoming, and will take any reasonable action to prevent this Lease from becoming
(a) an arbitrage obligation within the meaning of section 148 of the Code or (b) federally guaranteed within the
meaning of section 149 of the Code.
Notwithstanding the earlier termination or expiration of this Lease, the obligations provided for in this Section 21 shall
survive such earlier termination or expiration.
22. 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 party may provide in
writing from time to time. Any such notice shall be deemed to have been received five days subsequent to mailing.
23. 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.
24. GOVERNING LAW. This Lease shall be construed in accordance with, and governed by, the laws of the state of the
Equipment Location.
25. 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.
26. ENTIRE AGREEMENT; WAIVER. The Lease Documents 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 law 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.
LESSEE: City of Palm Desert, CA LESSOR: Associates Commercial Corporation
By: . By:
Title: 1, Title:
Date: I
Page 5
LESSEE: City of Palm Desert, CA
OPINION OF COUNSEL
With respect to that certain Equipment Lease-Purchase Agreement ("Lease") dated
by and between Lessor and Lessee, I am of the opinion that: (I) Lessee is a tax-exempt entity under
Section 103 of the Internal revenue Code of 1986, as amended; (II) the execution, delivery and
performance by Lessee of the Lease have been duly authorized by all necessary action on the part of
Lessee; (Ill) the Lease constitutes a legal, valid and binding obligation of Lessee enforceable in
accordance with terms and all statements contained in the Lease and all related instruments are
true;(IV) there are no suits, proceedings or investigations pending or, to my knowledge, threatened
against or affecting Lessee, at law or in equity , or before or by any governmental or administrative
agency or instrumentality which, if adversely determined, would have a material adverse effect on the
transaction contemplated in the Lease or the ability of Lessee to perform its obligations under the
Lease and Lessee is not in default under any material obligation for the payment of borrowed money,
for the deferred purchase price of property or for the payment of any rent under any lease agreement
which either individually or in the aggregate would have the same such effect; and (V) all required
public bidding procedures regarding the award of the Lease have been followed by Lessee and no
governmental orders, permissions, consents, approvals or authorizations are required to be obtained
and no registrations or declarations are required to be filed in connection with the execution and
delivery of the Lease.
Counsel for Lessee: A
By Date:
SCHEDULE A
EQUIPMENT DESCRIPTION
Lessor hereby leases to Lessee under and pursuant to the Lease and Lessee hereby leases
from Lessor under and pursuant to the Lease the following items of Equipment:
DESCRIPTION (MANUFACTURER, MODEL AND SERIAL NO.*) SUPPLIER
*Lessor shall have the right to insert Serial Nos. at time of Delivery&Acceptance.
Jacobsen E-Z-Go Textron
4921 Beacon Hill
Various Lawn Care Equipment - see attached list Palm Desert, CA 92260
LESSEE: City of Palm Desert, CA Equipment Location
Desert Willows Golf Course
38500 Portola Avenue
BY: Riverside County
Palm Desert, CA 92260
TITLE:
DATE:
ATTACHMENT A
LESSEE: City of Palm Desert, CA
LESSOR: Associates Commercial Corporation
One (1) M5400SD Kubota tractor S/N 61553
One (1) P508 Provost trailer S/N 5996
One (1) C160-45K6J SDI Sprayer
Two (2) Sand Scorpion Gas Rakes S/N 1745, 1755
Two (2) Tri-King 1900 Diesel S/N 4146,4147
Two (2) Greens King Mowers S/N 1798, 1806 & 1807
Two (2) SV-3422 utility trucks S/N 3569, 3575
One (1) Pendular Spreader
One (1) Core Harvester Kit
Seven (7) Blade Reels S/N 1766, 1767, 1768, 1769, 1771, 1772 & 1773
Three (3) Eleven bladed reels S/N 1679, 1680 & 1683.
One (1) Ventrium S/N 20822
One (1) LF3400 4WD S/N 1726
One (1) LF3810 4WD
One (1) Verticle Reel
One (1) GKV Verticle Reel
Eight (8) 522 Walking mowers
Four (4) GK522 Groomers
Eight (8) GK522 Light Kits
Four (4) Mow-N-Go trailers
One (1) I-Jac T422
One (1) Smith-Co Spray Star
Eight (8) 1110 Hauler Utility trucks
Two (2) Cushman White trucks
One (1) Vecti-Brush
One (1) Rad 60" brush
Ten (10) Utility boxes
One (1) Cushman Core harvester
One (1) Turf-Co MMIII
together with all future attachments, accessories, replacement parts, additions, and all chattel
paper, documents, general intangibles, instruments, accounts, contract rights and leases now
existing or hereafter arising with respect to the above collateral, and all rental payments, and
other income relating thereto or arising therefrom, and all cash and non-cash proceeds thereof.
07/30/1998 Page 1
Schedule B - City of Palm Desert, CA
Compound Period • Monthly
Nominal Annual Rate .... : 5.750 %
Effective Annual Rate ... : 5.904 %
Periodic Rate : 0.4792 %
Daily Rate • 0.01575 %
CASH FLOW DATA
Event Start Date Amount Number Period End Date
1 Loan 08/01/1998 427,949.60 1
2 Payment 08/01/1998 9,953.74 48 Monthly 07/01/2002
AMORTIZATION SCHEDULE - Normal Amortization
Date Payment Interest Principal Balance
Loan 08/01/1998 427,949.60
1 08/01/1998 9,953.74 0.00 9,953.74 417,995.86
2 09/01/1998 9,953.74 2,002.90 7,950.84 410,045.02
3 10/01/1998 9,953.74 1,964.80 7,988.94 402,056.08
4 11/01/1998 9,953.74 1,926.52 8,027.22 394,028.86
5 12/01/1998 9,953.74 1,888.05 8,065.69 385,963.17
1998 Totals 49,768.70 7,782.27 41,986.43
6 01/01/1999 9,953.74 1,849.41 8,104.33 377,858.84
7 02/01/1999 9,953.74 1,810.57 8,143.17 369,715.67
8 03/01/1999 9,953.74 1,771.55 8,182.19 361,533.48
9 04/01/1999 9,953.74 1,732.35 8,221.39 353,312.09
10 05/01/1999 9,953.74 1,692.95 8,260.79 345,051.30
11 06/01/1999 9,953.74 1,653.37 8,300.37 336,750.93
12 07/01/1999 9,953.74 1,613.60 8,340.14 328,410.79
13 08/01/1999 9,953.74 1,573.64 8,380.10 320,030.69
14 09/01/1999 9,953.74 1,533.48 8,420.26 311,610.43
15 10/01/1999 9,953.74 1,493.13 8,460.61 303,149.82
16 11/01/1999 9,953.74 1,452.59 8,501.15 294,648.67
17 12/01/1999 9,953.74 1,411.86 8,541.88 286,106.79
1999 Totals 119,444.88 19,588.50 99,856.38
18 01/01/2000 9,953.74 1,370.93 8,582.81 277,523.98
19 02/01/2000 9,953.74 1,329.80 8,623.94 268,900.04
20 03/01/2000 9,953.74 1,288.48 8,665.26 260,234.78
21 04/01/2000 9,953.74 1,246.96 8,706.78 251,528.00
22 05/01/2000 9,953.74 1,205.24 8,748.50 242,779.50
23 06/01/2000 9,953.74 1,163.32 8,790.42 233,989.08
24 07/01/2000 9,953.74 1,121.20 8,832.54 225,156.54
25 08/01/2000 9,953.74 1,078.88 8,874.86 216,281.68
26 09/01/2000 9,953.74 1,036.35 8,917.39 207,364.29
27 10/01/2000 9,953.74 993.62 8,960.12 198,404.17
07/30/1998 Page 2
Schedule B - City of Palm Desert, CA
Date Payment Interest Principal Balance
28 11/01/2000 9,953.74 950.69 9,003.05 189,401.12
29 12/01/2000 9,953.74 907.55 9,046.19 180,354.93
2000 Totals 119,444.88 13,693.02 105,751.86
30 01/01/2001 9,953.74 864.20 9,089.54 171,265.39
31 02/01/2001 9,953.74 820.65 9,133.09 162,132.30
32 03/01/2001 9,953.74 776.88 9,176.86 152,955.44
33 04/01/2001 9,953.74 732.91 9,220.83 143,734.61
34 05/01/2001 9,953.74 688.73 9,265.01 134,469.60
35 06/01/2001 9,953.74 644.33 9,309.41 125,160.19
36 07/01/2001 9,953.74 599.73 9,354.01 115,806.18
37 08/01/2001 9,953.74 554.90 9,398.84 106,407.34
38 09/01/2001 9,953.74 509.87 9,443.87 96,963.47
39 10/01/2001 9,953.74 464.62 9,489.12 87,474.35
40 11/01/2001 9,953.74 419.15 9,534.59 77,939.76
41 12/01/2001 9,953.74 373.46 9,580.28 68,359.48
2001 Totals 119,444.88 7,449.43 111,995.45
42 01/01/2002 9,953.74 327.56 9,626.18 58,733.30
43 02/01/2002 9,953.74 281.43 9,672.31 49,060.99
44 03/01/2002 9,953.74 235.08 9,718.66 39,342.33
45 04/01/2002 9,953.74 188.52 9,765.22 29,577.11
46 05/01/2002 9,953.74 141.72 9,812.02 19,765.09
47 06/01/2002 9,953.74 94.71 9,859.03 9,906.06
48 07/01/2002 9,953.74 47.68 9,906.06 0.00
2002 Totals 69,676.18 1,316.70 68,359.48
Grand Totals 477,779.52 49,829.92 427,949.60
SCHEDULE C
DELIVERY AND ACCEPTANCE CERTIFICATE
Pursuant to that certain Equipment Lease-Purchase Agreement dated as ofy
the undersigned Lessee herebyacknowledges receipt of the e ui rl�ent as more
("Lease"), 9 9 P q P ,
fullydescribed in Schedule A to the Lease ("Equipment") is installed and ingood working
condition and Lessee hereby accepts the Equipment after full inspection thereof as satisfactory
for all purposes under the Lease executed by Lessee and Lessor as of the date set forth
below:
Various Lawn Care Equipment - see attached list
SERIAL NUMBERS
LESSEE: City of Palm Desert, CA
By: X
TITLE:
DATE ACCEPTED:
• Form 8038-G Informati"^ Return for Tax-Exempt Governmental ' -'igations
Under Internal Revenue Code section 149(e)
(Rev. May 1995) C See separate instructions. OMB No.1545-0720
Department of the Treasury (Note:Use Form 8038-GC if the issue price is under$100,000.)
Internal Revenue Service
Part I Reporting Authority If Amended Return, check here
1 Issuer❑s name 2 Issuer❑s employer identification
number
City of Palm Desert 95-2859459
3 Number and street(or P.O.box if mail is not delivered to street address) Room/suite 4 Report number
P.O. Box 14062. G19
5 City,town,or post office,state,and ZIP code 6 Date of issue
Palm Desert,CA 92260
7 Name of Issue 8 CUSIP Number
Part II Type of Issue (check applicable box(es) and enter the issue price)
9 Education(attach schedule--see instructions) 9
10 Health and hospital(attach schedule—see instructions) 10
11 Transportation 11
12 ®_Public safety 12
13 Environment(including sewage bonds) 13
14 ®Housing 14
15 .— Utilities 15
16 ®Other. Describe(see instructions) 16 $427,949.60
17 If obligations are tax or other revenue anticipation bonds, check box
18 If obligations are in the form of a lease or installment sale,check box X
Part Ill Description of Obligations
(a) (b) (c) (d) (e) (f) (g)
Maturity Interest rate Issue price Stated redemption Weighted Yield Net interest
date price at maturity average maturity cost
19 Final maturity. N/A N/A % N/A N/A
20 Entire issue . $427,949.60 N/A 4 years 5.75% 5.75%
Part IV Uses of Proceeds of Bond Issue (including underwriters❑ discount)
21 Proceeds used for accrued interest 21
22 Issue price of entire issue(enter amount from line 20,column(c)) 22 $427,949.60
23 Proceeds used for bond issuance costs(including underwriters❑discount..23 0.00
24 Proceeds used for credit enhancement 24 0.00
25 Proceeds allocated to reasonably required reserve or replacement fund 25 0.00
26 Proceeds used to currently refund prior issues 26 0.00
27 Proceeds used to advance refund prior issues 27 0.00
28 Total(add lines 23 through 27) 28
29 Nonrefunding proceeds of the issue(subtract line 28 from line 22 and enter amount here) 29 $427,949.60
Part V Description of Refunded Bonds (complete this part only for refunding bonds)
30 Enter the remaining weighted average maturity of the bonds to be currently refunded 30
31 Enter the remaining weighted average maturity of the bonds to be advance refunded 31
32 Enter the last date on which the refunded bonds will be called 32
33 Enter the date(s)the refunded bonds were issued ❑ 33
Part VI Miscellaneous
34 Enter the amount of the state volume cap allocated to the issue under section 141(b)(5) 34
Enter the amount of the bonds designated by the issuer under section 265(b)(3)(B)(i)(III)(small issuer
35 exception) ❑ 35
a. Enter the amount of gross proceeds invested or to be invested in a guaranteed investment contract
36 (see instructions) 36
bEnter the final maturity date of the guaranteed investment contract.
a. Pooled financings: a Proceeds of this issue that are to be used to make loans to other governmental
37 units 37
b If this issue is a loan made from the proceeds of another tax-exempt issue,check box and enter the name of the
issuer and the date of the issue....
38 If the issuer has elected to pay a penalty in lieu of arbitrage rebate,check box.
39 If the issuer has identified a hedge,check box
Under penalties of perjury, I declare that I have examined this return and accompanying schedules and statements,and to the
Please best of my knowledge and belief,they are true,correct,and complete.
Sign
Here X
Signature of issuer's authorized representative Date Type or print name and title
PACE FOR USE OF FILING OFFICER
•
FINANCING STATEMENT — FOLLOW INSTRUCTIONS CAREFULLY
This Financing Statement is presented for filing pursuant to the Uniform Commercial Code
and will remain effective,with certain exceptions,for 5 years from date of filing.
A. NAME&TEL.S OF CONTACT AT FILER(optional) B.FILING OFFICE ACCT.S (optional)
Fran Means 800/868-4402
C.RETURN COPY TO: (Name and Mailing Address)
Associates Commercial Corporation
VED - Municipal Finance Division
ATTN: Fran Means
8001 Ridgepoint Drive
Irving, TX 75063-3117
D.OPTIONAL DESIGNATION fif applicable): LESSOR/LESSEE CONSIGNOR/CONSIGNEE NON-UCC FIUNG
1. DEBTOR'S EXACT FULL LEGAL NAME-insert only one debtor name (la or 1b)
la.ENTITY'S NAME
OR City of Palm Desert
1 b.INDIVIDUAL'S LAST NAME FIRST NAME MIDDLE NAME SUFFIX
lc.MAILING ADDRESS CITY STATE COUNTRY POSTAL CODE
P. 0. Box 14062 Palm Desert CA USA 92260
1d.S.S.OR TAX I.D.# OPTIONAL Ile.TYPE OF ENTITY 1 f.ENTITY'S STATE 1 g.ENTITY'S ORGANIZATIONAL I.D.#,if any
ADD'NL INFO RE OR CONTRY
95-2859459 ENTITY DEBTORI 'ORGANIZATIONF I (NONE
2. ADDITIONAL DEBTOR'S EXACT FULL LEGAL NAME-insert only one debtor name (2a or 2b)
2s.ENTITY'S NAME
OR
2b.INDIVIDUAL'S LAST NAME FIRST NAME MIDDLE NAME SUFFIX
2c.MAILING ADDRESS CITY STATE COUNTRY POSTAL CODE
2d.S.S.OR TAX I.D.# OPTIONAL Ile.TYPE OF ENTITY 2f.ENTITY'S STATE 2g.ENTITY'S ORGANIZATIONAL I.D.#,if any
ADD'NL INFO RE OR COUNTRY OF
ENTITY DEBTOR I (ORGANIZATION I n NONE
3. SECURED PARTY'S (ORIGINAL S/P or ITS TOTAL ASSIGNEE) EXACT FULL LEGAL NAME-insert only one secured party name (3a or 3b)
3a.ENTITY'S NAME
Associates Commercial Corporation
OR 3b.INDIVIDUAL'S LAST NAME FIRST NAME MIDDLE NAME SUFFIX
3c.MAILING ADDRESS CITY STATE COUNTRY POSTAL CODE
8001 Ridgepoint Drive Irving TX USA 75063-3117
4.This FINANCING STATEMENT covers the following types or Items of property:
Various Lawn Care Equipment (See attached List)
5.CHECK u I I This FINANCING STATEMENT is signed by the Secured Party instead of the Debtor to perfect a security interest 7.If filed in Florida(check one)
BOX (a)in collateral already subject to a security Interest in another jurisdiction when It was brought Into this state,or when the — Documentary —Documentary stamp
lif applicable) debtor's location was changed to this state,or Ibl in accordance with other statutory provisions)additional data may be required) stamp tax paid tax not applicable
6. REQUIRED SIGNATURE(S) 8.1 I This FINANCING STATEMENT is to be filed(for record)
X u for recorded)In the REAL ESTATE RECORDS
Attach Addendum fif applicablel
9. Check to REQUEST SEARCH CERTIFICATEIS)on Debtorlsl
IADDITIONAL FEE]
(optional) IIAll Debtors nDebtor I nDebtor 2
ORDER FROM:APPERSON BUSINESS FORMS
P.O.BOX 16363,CHARLOTTE,NC 28297
_ _ _._. (P00 438-0162
General Instruct for National Financing Statement (For CC1) (Trans)
Please type or laser-print this form. Be sure IL ie completely legible. Read all Instructions. •
Fill in form very carefully; mistakes may have important legal consequences. Follow Instructions completely. If you have questions,
consult your attorney. Filing officer cannot give legal advice.
Do not insert anything in the open space in the upper portion of this form; it is reserved for filing officer use.
When properly completed, send Filing Officer Copy, with required fee, to filing officer. If you want an acknowledgment, also send
Acknowledgment Copy, otherwise detach. If you want to make a search request, complete item 9 and send Search Request Copy,
otherwise detach. Always detach Debtor and Secured Party Copies.
If you need to use attachments, use 8-1/2 X 11 inch sheets and put at the top of each additional sheet the name of the first Debtor,
formatted exactly as it appears in item 1 of this form; you are encouraged to use Addendum (Form UCC1Ad).
Item Instructions
1. Debtor name: Enter only one Debtor name in item 1, en entity's name (1 a) or an individual's name(1 b). Enter Debtor's exact full
legal name. Don't abbreviate.
1 a. Entity Debtor. "Entity' means an organization having a legal identity separate from its owner. A partnership is an entity; a sole
proprietorship is not an entity, even if it does business under a trade name. If Debtor is a partnership, enter exact full legal name of
partnership;you need not enter names of partners as additional Debtors. If Debtor is a registered entity(e.g., corporation, limited
partnership, limited liability company), it is advisable to examine Debtor's current filed charter documents to determine correct name,
entity type, and state of organization.
1 b. Individual Debtcr. "Individual" means a natural person and a sole proprietorship, whether or not operating under a trade name. Don't
use prefixes (Mr., Mrs., Ms.). Use suffix box only for titles of lineage (Jr., Sr., Ill) and not for other suffixes or titles (e.g., M.D.).
Use married woman's personal name (Mary Smith, not Mrs. John Smith). Enter individual Debtor's family name (surname) in Last
Name box,first given name in First Name box,and all additional given names in Middle Name box.
For both entity and individual Debtors: Don't use Debtor's trade name, D/B/A, A/K/A, F/K/A,etc. in place of Debtor's legal name;yet./
may add such other names as additional Debtors if you wish.
1 c. An address is always required for the Debtor named in 1 a or 1 b.
lc'. Debtor's social security or tax identification number is required in some states. Enter social security number of a sole proprietor, not
tax identification number of the sole proprietorship.
1 e,f,g. "Additional information re entity Debtor" is optional. It helps searchers to distinguish this Debtor from others with the same or a
similar name. Type of entity and state of organization can be determined from Debtor's current filed charter documents.
Organizational I.D. number, if any, is assigned by the agency where the charter document was filed; this is different from taxpayer
1.D. number;this should be entered preceded by the 2-character U.S. Postal identification of state of organization (e.g., CA1 2345,
for a California corporation whose organizational I.D. number is 12345).
Note: If Debtor is a transmitting utility as defined in applicable Commercial Code, attach Addendum (Form UCC1 Ad) and check box Ad8.
2. if an additional Debtor is included, complete item 2, determined and formatted per Instruction 1. To include further additional
Debtors, or one or more additional Secured Parties, attach either Addendum (Form UCC1Ad) or other additional page(s), using correct
name format. Follow Instruction 1 for determining and formatting additional names.
3. Enter information, determined and formatted per Instruction 1. If there is more than one Secured Party, see Instruction 2. If there
has been a total assignment of the Secured Party's interest prior to filing this form,you may provide either assignor Secured Party's
or assignee's name and address in item 3.
4. Use item 4 to indicate the types or describe the items of collateral. If space in item 4 is insufficient, put the entire collateral
description or continuation of the collateral description on either Addendum (Form UCC1 Ad) or other attached additional page(s).
6, 6. All Debtors must sign. Under certain circumstances, Secured Party may sign instead of Debtor; if applicable, check box in item 5
and provide Secured Party's signature in item 6, and under certain circumstances, in some states,you must also provide additional
data; use Addendum (Form UCC1Ad) or attachment to provide such additional data.
7: If filing in the state of Florida you must check one of the two boxes in item 7 to comply with documentary stamp tax requirements.
8. If the collateral consists of or includes fixtures, timber, minerals, and/or mineral-related accounts, check the box in item 8 and
complete the required information on Addendum (Form UCC1Ad). If the collateral consists of or includes crops, consult applicable
law of state where this Financing Statement is to be filed and complete Ad3b, and Ad4 if required, on Addendum (Form UCC1Ad)
and, if required, check box in item 8.
9. Check box 9 to request Search Certificate(s) on all or some of the Debtors named in this Financing Statement. The Certificate will
list all Financing Statements on file against the designated Debtor currently effective on the date of the Certificate, including this
Financing Statement. There is an additional fee for each Certificate. This item is optional. If you have checked box 9, file copy 3
(Search Request Copy) of this form together with copies 1 and 2. Not all states will honor a search request made via this form;
some states require a separate request form.
Instructions re Optional Items A-D
A. To assist filing officers who might wish to communicate with filer, filer may provide information in item A. This item is optional.
B. If filer has an account with filing officer or is authorized to pay fees by means of a card (credit or debit) and wishes to use such means
of payment, check the appropriate box and enter filer's account number in item B, or, in the alternative, filer may present this
information by a cover letter.
C. Complete item C if you want acknowledgment copy returned and you have presented simultaneously a carbon or other copy of this
form for use as an acknowledgment copy.
D. If filer desires to use titles of lessee and lessor, or consignee and consignor, instead of Debtor and Secured Party, check the appropriate
box in item D. This item is optional. If this is not a UCC security interest filing (e.g., a tax lien,judgment lien, etc.), check the
appronriate box in item D, complete items 1-9 as applicable and attach any other items required under other law.
ATTACHMENT A
LESSEE: City of Palm Desert, CA
LESSOR: Associates Commercial Corporation
One (1) M5400SD Kubota tractor S/N 61553
One (1) P508 Provost trailer S/N 5996
One (1) C160-45K6J SDI Sprayer
Two (2) Sand Scorpion Gas Rakes S/N 1745, 1755
Two (2) Tri-King 1900 Diesel S/N 4146,4147
Two (2) Greens King Mowers S/N 1798, 1806 & 1807
Two (2) SV-3422 utility trucks S/N 3569, 3575
One (1) Pendular Spreader
One (1) Core Harvester Kit
Seven (7) Blade Reels S/N 1766, 1767, 1768, 1769, 1771, 1772 & 1773
Three (3) Eleven bladed reels S/N 1679, 1680 & 1683.
One (1) Ventrium S/N 20822
One (1) LF3400 4WD S/N 1726
One (1) LF3810 4WD
One (1) Verticle Reel
One (1) GKV Verticle Reel
Eight (8) 522 Walking mowers
Four (4) GK522 Groomers
Eight (8) GK522 Light Kits
Four (4) Mow-N-Go trailers
One (1) I-Jac T422
One (1) Smith-Co Spray Star
Eight (8) 1110 Hauler Utility trucks
Two (2) Cushman White trucks
One (1) Vecti-Brush
One (1) Rad 60" brush
Ten (10) Utility boxes
One (1) Cushman Core harvester
One (1) Turf-Co MMIII
together with all future attachments, accessories, replacement parts, additions, and all chattel
paper, documents, general intangibles, instruments, accounts, contract rights and leases now
existing or hereafter arising with respect to the above collateral, and all rental payments, and
other income relating thereto or arising therefrom, and all cash and non-cash proceeds thereof.
INSURANCE FACT SHEET
LEASE NO.: VALUE PRICE:
MUNICIPALITY: City of Palm Desert, CA
CONTACT: PHONE:
EQUIPMENT DESCRIPTION:
Pursuant to Section 13 of the Equipment Lease-Purchase Agreement dated as of
, Lessee is obligated to provide insurance coverage naming Associates Leasing, Inc.
as Loss Payee and Additional Insured. Please complete this form and return it with your
documentation package and contact your insurance agent to forward a Certificate of Insurance showing
coverage. If you are self insured, please note as such below.
PARENT INSURANCE COMPANY:
ADDRESS:
CITY: STATE: ZIP:
PHONE:
UNDERWRITER/AGENT COMPANY:
ADDRESS:
CITY: STATE: ZIP:
CONTACT: PHONE:
POLICY NO: EXPIRATION DATE:
PUBLIC LIABILITY AMOUNT: DEDUCTIBLE:
PHYSICAL DAMAGE
AMOUNTS: COMPREHENSIVE: DEDUCTIBLE:
PHYSICAL DAMAGE
AMOUNTS: COLLISION: DEDUCTIBLE:
OTHER COVERAGE: AMOUNTS: DEDUCTIBLE:
OTHER COVERAGE: AMOUNTS: DEDUCTIBLE:
INDICATE IF SELF-INSURED, OR IF POLICY IS CONTINUOUS:
SELF-INSURED: YES NO
LIABILITY: PHYSICAL DAMAGE: OTHER: ALL:
CONTINUOUS UNTIL END OF LEASE/PURCHASE AGREEMENT: YES: NO:
ESSENTIAL USE LETTER
(Sample)
(Please complete on your letterhead)
Associates Commercial Corporation
8001 Ridgepoint Drive
Irving, TX 75063-3117
Gentlemen:
RE: Equipment Lease-Purchase Proposal
I am furnishing the following information to facilitate the credit review process for the proposed
Equipment Lease-Purchase transaction.
A detailed explanation of the use and application of the equipment is as follows:
The equipment is essential to the organization for the following reasons:
This equipment replaces previous equipment: No Yes
If yes, the previous equipment was originally purchased in 19
Other equipment being used for the same purpose consists of :
The useful life of the equipment in the operation of the department is:
The future plans for the equipment are:
The program/department has been in operation for years.
The source of funds for the payments due under the Equipment Lease-Purchase Agreement
for the current fiscal year is the fund(s).
The fund(s) generates its revenue from:
Sincerely,
Lessee:
By:
Title:
Date:
ASSOCI) :S COMMERCIAL CORPOR ION
VENDOR EQUIPMENT DIVISION
A SUBSIDIARY OF ASSOCIATES FIRST CAPITAL CORPORATION
A O C
TM E
INVOICE
Date: July
30, 1998 Invoice #:
Bill to: Unit#: Remit to:
Attn: Frances Means
City of Palm Desert Associates Commercial Corp
P. O. Box 14062 8001 Ridgepoint Drive
Palm Desert, CA 92260 Irving, TX 75063-3117
This invoice covers the first installment due UPON RECEIPT of$9,953.74 in connection with
the financing of :
Various Lawn Care Equipment - see attached list
Documentation Fee: $ 150.00
Date Due: UPON RECEIPT Amount Due: $ 10,103.74