HomeMy WebLinkAboutContracts & Agreements_149-2020 Governmental Equipment Lease-Purchase Agreement CATe
Transaction Number 3893399 Faancial
1. PARTIES
LESSOR("we' 'us' or"our"): LESSEE("you"or"your"):
CATERPILLAR FINANCIAL SERVICES CORPORATION CITY OF REDLANDS
2120 West End Avenue 35 CAJON ST.
Nashville,TN 37203 REDLANDS,CA 92373-4786
In reliance on your selection of the equipment described below(each a"Unit"),we have agreed to acquire and lease the Units to you,subject to the
terms of this Lease.Until this Lease has been signed by our duly authorized representative, it will constitute an offer by you to enter into
this Lease with us on the terms stated herein.
2. DESCRIPTION OF THE UNITS
DESCRIPTION OF UNITS SERIALNIN ANNUAL FINAL LEASE DELIVERY DATE
Whether the Unit Is new or used,the Unique ID number for LEASE PAYMENT PAYMENT Enter date machine was
model number,the manufacturer, this Unit This is due per delivered to you
and the model name. period,as stated below in section 3.
(1)New 420F2 Caterpillar fiackhoe Loader $27 174.35 $101.00
TERMS AND CONDITIONS
3. Lease Payments;Current Expense You will pay us the lease payments, pay to us, on demand, a late payment charge equal to the lesser of five
Including the final lease payment set forth above (collectively, the 'Lease percent(5%)of such Payment or the highest charge allowed by law,
Payments"). Lease Payments will be paid by you to us as follows: a first 5. Security Interest To secure your obligations under this Agreement, you
payment of$27 174.35 will be paid in advance and the balance of the Lease grant us a continuing first priority security interest in each Unit(including any
Payments is payable In 5 successive annual payments of which the first 4 Additional Collateral), Including all attachments, accessories and optional
payments are in the amount of$27 174.35 each,and the last payment is in features (whether or not installed on such Units) and all substitutions,
the amount of$101.00 plus all other amounts then owing under this Lease, replacements, additions, and accessions, and the proceeds of all the
with the first Lease Payment due on the date that we sign this Lease and foregoing,including,but not limited to,proceeds in the form of chattel paper,
subsequent Lease Payments due on a like date of each year thereafter until You authorize the filing of such financing statements and will, at your
paid in full.A portion of each Lease Payment constitutes interest and the expense, do any act and execute, acknowledge, deliver, file, register and
balance of each Lease Payment is payment of principal. The Lease record any document, which we deem desirable to protect our security
Payments will be due without demand. You will pay the Lease Payments to interest in each Unit and our rights and benefits under this Agreement. You,
us at Caterpillar Financial Services Corporation; P.O. Box 100647. at your expense,will protect and defend our security interest in the Units and
Pasadena, CA 91189.0647 or such other location that we designate in will keep the Units free and clear of any and all claims,liens,encumbrances
writing. Your obligations, Including your obligation to pay the Lease and legal processes however and whenever arising.
Payments due in any fiscal year,will constitute a current expense of yours
for such fiscal year and will not constitute an indebtedness of yours within 8. Disclaimer of Warranties WE HAVE NOT MADE AND DO NOT MAKE
the meaning of the constitution and laws of the State in which you are ANY WARRANTY, REPRESENTATION OR COVENANT OF ANY KIND,
located (the 'State"). Nothing in this Agreement will constitute a pledge by EXPRESS OR IMPLIED, AS TO THE UNITS, AS TO US, YOUR LEASE
you of any taxes or other moneys, other than moneys lawfully appropriated AND PURCHASE OF THE UNITS WILL BE ON AN 'AS IS"AND"WHERE
from time to time for the payment of the 'Payments" (as defined in the last IS" BASIS AND "WITH ALL FAULTS" Nothing In this Agreement is
sentence of this Section) owing under this Agreement. You agree that, intended to limit,waive,abridge or otherwise modify any rights,claims,
except as provided in Section 7,your duties and liabilities under this or causes of action that you may have against any person or entity
Agreement and any associated documents are absolute and other than us.
unconditional. Your payment and performance obligations are not 7 Non-Appropriation You have an immediate need for,and expect to make
subject to cancelation,reduction,or setoff for any reason. You agree immediate use of, the Units. This need is not temporary or expected to
to settle all claims,defenses,setoffs,counterclaims and other disputes diminish during the term of this Agreement. To that end, you agree, to the
you may have with the Supplier,the manufacturer of the Unit,or any extent permitted by law, to include in your budget for the current and each
other third party directly with the Supplier, the manufacturer or the successive fiscal year during the term of this Agreement,a sufficient amount
third party,as the case may be. You will not assert,allege or make any to permit you to discharge your obligations under this Agreement.
such claim,defense,setoff,counterclaim or other dispute against us or Notwithstanding any provision of this Agreement to the contrary,we and you
with respect to the payments due us under this Agreement.As used in agree that,in the event that prior to the commencement of any of your fiscal
this Agreement, "Payments' will mean the Lease Payments and any other years you do not have sufficient funds appropriated to make the Payments
amounts required to be paid by you. due under this Agreement for such fiscal year, you will have the option of
The portion of the Lease Payments constituting principal will bear interest terminating this Agreement as of the date of the commencement of such
(computed on the basis of actual days elapsed in a 360 day year)at the rate fiscal year by giving us sixty(60)days prior written notice of your intent to
of 3.35%per annum. terminate. No later than the last day of the last fiscal year for which
4. Late Charges If we do not receive a Payment on the date it is due,you will appropriations were made for the Payments(the"Return Date"),you will
ymxo oc 4.5 se Mal 0.bM1 O5e0e2 TO
IIIIE iS MIIIII
return to us all of the Units at your sole expense,in accordance with Section Payment when due and such failure continues for ten(10)days after the due
14 and this Agreement will terminate on the Return Date without penally or date for such Payment or (b) you fail to perform or observe any other
expense to you and you will not be obligated to pay the Lease,Payments covenant condition or agreement to be performed or observed by you under
beyond such fiscal year; provided, that you will pay all Payments for which this Agreement and such failure is not cured within twenty (20) days after
moneys have been appropriated or are otherwise available, and provided written notice of such failure from us Upon an Event of Default,we will have
further,that you will pay month to-month rent at the rate set by us for each all rights and remedies available under applicable law In addition,we may
month or part of any month that you fad to return the Units. declare all Lease Payments due or to become due during the fiscal year in
which the Event of Default occurs to be immediately due and payable by you
8 Tax Warranty You will at all times do and perform all acts and things and/or we may repossess the Units by giving you written notice to deliver the
necessary and within your control to ensure that the interest component of Units to us in the manner provided in Section 14 or in the event you fail to do
the Lease Payments will for the purposes of Federal income taxation be so within ten (10) days after receipt of such notice, and subject to all
excluded from our gross income. You will not permit or cause your applicable laws we may enter upon your premises and take possession of
obligations under this Agreement to be guaranteed by the Federal the Units Further if we financed your obligations under any extended
Government or any branch or instrumentality of the Federal Government warranty agreement such as an Equipment Protection Plan Extended
You will use the Units for the purpose of performing one or more of your Service Contract, Extended Warranty Customer Service Agreement, Total
governmental functions consistent with the scope of your authority and not in Maintenance and Repair Agreement or similar agreement, we may cancel
any trade or business carried on by a person other than you. You will report such extended warranty agreement on your behalf and receive the refund of
this Agreement to the Internal Revenue Service by filing Form 8038G, the extended warranty agreement fees that we financed but had not received
8038GC or 8038 as applicable Failure to do so will cause this Agreement from you as of the date of the Event of Default
to lose its tax exempt status. You agree that if the appropnate form is not
filed, the interest rate payable under this Agreement will be raised to the 13 Miscellaneous This Agreement may not be modified amended altered or
equivalent taxable interest rate If the use, possession or acquisition of the changed except by a written agreement signed by you and us. In the event
Units is determined to be subject to taxation,you will pay when due all taxes any provision of this Agreement is found invalid or unenforceable the
and governmental charges assessed or levied against or with respect to the remaining provisions will remain in full force and effect This Agreement
Units. together with exhibits constitutes the entire agreement between you and us
and supersedes all prior and contemporaneous writings understandings
9 Assignment You may not,without our pnor written consent,by operation of agreements, solicitations, documents and representations expressed or
law or otherwise,assign,transfer pledge hypothecate or otherwise dispose implied Any terms and conditions of any purchase order or other documents
of your right, title and interest in and to this Agreement and/or the Units submitted by you in connection with this Agreement which are in addition to
and/or grant or assign a security interest in this Agreement and/or the Units or inconsistent with the terms and conditions of this Agreement will not be
in whole or in part. We may not transfer, sell, assign pledge hypothecate binding on us and will not apply to this Agreement. You agree that we may
or otherwise dispose of our right, title and interest in and to this Agreement correct patent errors in this Agreement and fill in blanks including for
and/or the Units and/or grant or assign d security interest in this Agreement example correcting or filling in serial numbers VIN numbers and dates.Any
and/or the Units in whole or in part notices required to be given under this Agreement will be given to the parties
10 Indemnity To the extent permitted by law,you assume liability for,agree to in writing and by certified mail at the address provided in this Agreement or
and do indemnify,protect and hold harmless us and our employees,officers, to such other addresses as each party may substitute by notice to the other
directors and agents from and against any and all liabilities obligations which notice will be effective upon its receipt.
losses, damages, injuries, claims, demands, penalties, actions, costs and 14 Title, Return of Units Notwithstanding our designation as"Lessor" we do
expenses (including reasonable attomey's fees), of whatsoever kind and not own the Units.Legal title to the Units will be in you so long as an Event of
nature, arising out of the use, condition (including, but not limited to, latent Default hes not occurred and you have not exercised your right of
and other defects and whether or not discoverable by you or us) operation non appropriation If an Event of Default occurs or if you non appropriate,full
ownership,selection,delivery,storage,leasing or return of any item of Units, and unencumbered title to the Units will pass to us without the necessity of
regardless of where,how and by whom operated,or any failure on your part further action by the parties,and you will have no further interest in the Units
to accept the Units or otherwise to perform or comply with any conditions of If we are entitled to obtain possession of any Units or if you are obligated at
this Agreement any time to return any Units then (a) title to the Units will vest in us
11 Insurance, Loss and Damage You bear the entire risk of loss theft immediately and(b)you will at your expense promptly deliver the Unit to us
destruction or damage to the Units from any cause whatsoever No loss, properly protected and in the condition required by Section 11 You will
theft, destruction or damage of the Units will relieve you of the obligation to deliver the Unit, at our option, (i) to the nearest Caterpillar dealer selling
make Lease Payments or to perform any obligation owing under this equipment of the same type as the Unit; or(ii)on board a earner named by
Agreement You agree to keep the Units insured to protect all of our us and shipping the Unit freight collect to a destination designated by us If
interests, at your expense for such risks, in such amounts, in such forms the Unit is not in the condition required by Section 11 you must pay us hon
e
and with such companies as we may require including but not limited to fire demand, all costs and expenses incurred by us to bring the Unit into the
and extended coverage insurance explosion and collision coverage and required condition Until the Units are returned as required above,all terms of
personal liability and property damage liability insurance. Any insurance this Agreement will remain infull force and effect including without limitation,
policies relating to loss or damage to the Units will name us as loss payee as your obligation to pay Lease Payments and to insure the Units
our interests may appear and the proceeds may be applied toward the 15 Other Documents In connection with the execution of this Agreement you
replacement or repair of the Units or the satisfaction of the Payments due will cause to be delivered to us (i) either (A) a certified copy of your
under this Agreement.You agree to use operate and maintain the Units in authorizing resolution substantially in the form attached as Attachment B and
accordance with all laws, regulations and ordinances and in accordance with a copy of the minutes of the relevant meeting or (B) an opinion of your
the provision of any policies of insurance covering the Units,and will not rent counsel substantially in the form attached as Attachment C (ii)a Verification
the Units or permit the Units to be used by anyone other than you You of Insurance substantially in the form attached to this Agreement,(iii)a copy
agree to keep the Units in good repair working order and condition and of the signed Form filed with the Internal Revenue Service required in
house the Units in suitable shelter and to permit us or our assigns to inspect Section 8 above as Attachment 0 and (iv) any other documents or items
the Units at any time and to otherwise protect our interests in the Units If required by us
any Unit is customarily covered by a maintenance agreement, you will
furnish us with a maintenance agreement by a party acceptable to us. 16 Applicable Law This Agreement will be governed by the laws, excluding
the laws relating to the choice of law of the State in which you are located
12 Default,Remedies An"Event of Default' will occur if(a)you fail to pay any
SIGNATURES
LESSOR LESSEE
c.......c.iftki_______=;:_.
CATERPILLAR FINANCIAL SERVICES CORPORATION CITY OF ordo
Signature S rig na
Name(print) Name(print)PIN(
L. \/V 5
1 't Title Title IN(0
Date Date 1 f 1 f aO
ACT No GOViEA,E 65666?I N4]OO1.1¢3262010 1.al Pm CT
CM:
Financial
Verification of Insurance
Lessee:
LESSOR(we) LESSEE(you)
CATERPILLAR FINANCIAL SERVICES CORPORATION CITY
CAJON REDLANDS
2120 West End Avenue 35
ST
Nashville, TN 37203-0001 REDLANDS, CA 92373-4786
Subject: Insurance Coverage Requirements
1 The above-named Lessor and Lessee have entered into Governmental Equipment Lease-Purchase Agreement Transaction
Number 3893399(the"Agreement') In accordance lwiith the Agreement, Lessee has` instructedA the insurance agent named below
Company:Pt 1Ii MNT l iSu f`CtJt�G 3 -sf IM 1 V P5
Address'0'130)( S413 P S DENk Cat 91109 - 8113
Phone No 9 `(� ` 5 - 0 2:1
Agents Name. P IL 4'`�N T X
to issue
a All Risk Physical Damage Insurance on the Equipment(as defined in the Agreement)evidenced by a Certificate of Insurance and
Long Form Loss Payable Clause naming the Lessor and/or its Assignee, as loss payee
The Coverage Required the aggregate purchase price for the Equipment
b Public Liability Insurance evidenced by a Certificate of Insurance, naming the Lessor and/or its Assignee as Additional Insured,
with a minimum of$1,000,000 per occurrence is required.
2 Proof of insurance coverage will be provided to Lessor or its Assignee prior to the time the Equipment is delivered to Lessee
Model# Equipment Description Serial# VIN# Value Including Tax
1 420F2 Caterpillar Backhoe Loader $127 023.00
SIGNATURES
LESSEE
CITY OF RE ND
Signature n- ,� i
Name(print) ?N ,
UL Yv ' FO T
Title \O
Date —if / ..,c)
6.5658110YR:7,m 137 PM CT
Form W_GdJ1N5
IIII 111f0, III I
h.A1111311 2
Concluding Payment Schedule to
Governmental Agreement
Quote number 656 6811
Dated UUJI 1 ,20 20
between
Caterpillar Financial Services Corporation
and
CITY OF REDLANDS
Description of Unit I Caterpillar 420F2
Number
of
Payments Beginning Payment Interest Concluding
Date Due Made Balance Amount Balloon 3 35000°! Payment(*)
May-20-20 I 127 430.00 27 174.35 0 00 0.00 100,255.65
May-20 21 2 100.255 65 27 174.35 0.00 3,358.56 76,439 86
May-20-22 3 76,439 86 27 174.35 0,00 2,560.74 51,826.25
May 20 23 4 51 826.25 27 174 35 0.00 1 736,18 26,388.08
May-20-24 5 26,388.08 27 174.35 0.00 884.00 97 73
May 20 25 6 97 73 0.00 101.00 3.27 0.00
t o t a l 135,871 75 101 00 8,542 75
(*)Does not include any rent payment or other amount then due
Initialed
( s 'e
6811 Caterpillar Financial Services Corporation Pz