Loading...
HomeMy WebLinkAboutBank One Leasing Corporation Banc One Leasing Corporation Tel 800 334 5422 PO Box 711085 Columbus OH 43271 1085 bent41L4CtiCk ANN BANK ONE January 21, 2000 Chief Michael D. Fogarty City of Carmel Police Department 3 Civic Square Carmel, IN 46032 Dear Michael: Banc One Leasing Corporation ("BOLC"), for itself, its successors, and assigns, is pleased to submit this tax- exempt equipment financing proposal to the City of Carmel. This letter is a proposal only and is based upon Lessee being an entity qualified to issue tax-exempt obligations. The terms and provisions of this financing are subject to credit and business approval in accordance with BOLC's internal procedures, as well as certain conditions set forth below: TYPE OF FINANCING: Tax-exempt Master Lease Purchase Agreement with$1.00 buy out option at end of lease term. This proposal is based upon Lessee's compliance with the requirements of the Internal Revenue Code of 1986, as amended, ("Code") related to Lessee's ability to lease the equipment on a tax-exempt basis. The Agreement shall be a net lease, subject to annual appropriation. Lessee is responsible for all costs of operation, maintenance, risk of loss, insurance, and taxes. LESSEE: City of Carmel,IN LESSOR: Banc One Leasing Corporation(BOLC)or its assignee BANK QUALIFIED: This proposal assumes that Lessee will issue less than $10 million in tax-exempt obligations this calendar year and that the Lessee will designate this lease as a "qualified" tax-exempt obligation. TYPE OF EQUIPMENT: 18—2000 Chevrolet Impala Police Package Vehicles FINANCED AMOUNT: $333,000.00 (can be negotiated higher if needed) LEASE TERM: Four(4)Years LEASE RATES: 5.42% LEASE PAYMENT AMOUNTS: Eight(8)payments of$45,623.00made semi-annually in advance to 100%recycled paper AGENCY AGREEMENT: An Agency Agreement will be established in lieu of an Escrow Funding Option. The Agreement will provide that the proceeds from this Agreement will be distributed to the - Lessee upon funding. The Lessee may invest proceeds at their discretion. Upon delivery of equipment, the Lessee will submit invoices, proof of payment and Acceptance Certificates required by Lessor to obtain a perfected lien on the equipment purchased. FEES AND SET UP EXPENSES: WAIVED PREPAYMENT/OPTION TO PURCHASE: On any payment date, Lessee may prepay in full the entire principal balance of all Lease Schedules outstanding plus an additional sum of 2% of the unamortized principal balance at the time of such prepayment. No partial prepayment will be permitted. Lessee will have full title to the Equipment upon payment of all required lease payments. LEGAL TITLE, SECURITY INTEREST: Legal title to the Equipment during the Lease Term shall vest in the Lessee. Lessee shall grant Lessor a first priority security interest in the Equipment. MAINTENANCE AND INSURANCE: All maintenance, cost of operation and insurance are the responsibility of Lessee. Lessee shall keep the Equipment in good repair and operating condition. Lessee shall bear all risk of loss or damage to the Equipment and shall be responsible for keeping the Equipment insured with companies satisfactory to Lessor and for such amounts as required by Lessor. Lessee may self insure, with Lessor's approval, provided such self insurance is in accordance with an approved program maintained by Lessee for this purpose. DOCUMENTATION: Lease documentation shall be prepared by BOLC.In this regard, the lease agreement will be substantially in the form as executed by the City of Carmel and Banc One Leasing April 1999. Funding will occur upon receipt of all documentation required by BOLC. PROPOSAL EXPIRATION: This proposal must be accepted February 4,2000.If acceptance is received by this date, the quoted Lease Rate will remain fixed if funding takes place on or before February 21,2000. If acceptance is not received by February 4,2000,or funding does not take place by February 21,2000,the Lease Rate and Lease Payment Amounts will be adjusted to market conditions and set one week prior to funding.Once set,the Lease Rate will remain fixed for the Lease Term. BANK ONE INDIANA N.A.: Contact: Mary Dowling 111 Monument Circle Indianapolis,IN 46277 317-321-6625 This proposal,including the"Agency"structure,is subject to credit approval by BOLC and approval of the lease documents in BOLC's sole discretion. To render a credit decision,Lessee shall provide BOLC with their most recent three years' audited financial statements,a copy of the current year's budget and a copy of a recent bond,note,or COP official statement,if available. We appreciate your interest in Banc One Leasing Corporation and look forward to your favorable response. Should you have any questions regarding this proposal or our ability to further serve you, please contact me at 614-213-3066 or toll free at 800-334-5422 extension 33066. Sincerely, Banc One Leasing Corporation 1 Alan L. Zuel e Assistant Vice President ACCEPTED BY: City of Carmel, IN c By: Name: James C. Brainard Title: Mayor , City of Carmel Date: 02/02/2000 AMORTIZATION SCHEDULE ---- Aggregate Of Lending Loans ---- Lessor Banc One Leasing Corporation Prepared Jan-19-2000 8:21 by Alan L.Zuelke Parameter filename CarmelINCityof Parameter path c:\ivory2\prms\ Comment City of Carmel,IN starting debt remaining date balance takedowns service interest principal balance Feb-21-00 0.00 333,000.00 45,623.00 0.00 45,623.00 287,377.00 Aug-21-00 287,377.00 0.00 45,623.00 7,787.88 37,835.12 249,541.88 333,000.00 91,246.00 7,787.88 83,458.12 Feb-21-01 249,541.88 0.00 45,623.00 6,762.56 38,860.44 210,681.44 Aug-21-01 210,681.44 0.00 45,623.00 5,709.44 39,913.56 170,767.88 0.00 91,246.00 12,472.00 78,774.00 Feb-21-02 170,767.88 0.00 45,623.00 4,627.79 40,995.21 129,772.67 Aug-21-02 129,772.67 0.00 45,623.00 3,516.82 42,106.18 87,666.49 0.00 91,246.00 8,144.61 83,101.39 Feb-21-03 87,666.49 0.00 45,623.00 2,375.75 43,247.25 44,419.24 Aug-21-03 44,419.24 0.00 45,623.00 1,203.76 44,419.24 0.00 0.00 91,246.00 3,579.51 87,666.49 TOTAL 333,000.00 364,984.00 31,984.00 333,000.00 apsiNSVIJS lia SuperTRUMP 7.71 financial model Page 1 Ivory Consulting Corporation • i? /Si I ,,„ City of CCarmel -�TON G$1101 February 14, 2000 Mary Dowling 111 Monument Circle Indianapolis, IN 46277 Dear Ms. Dowling: On February 2, 2000, the Board of Public Works and Safety approved a contract to do business with your company. Enclosed is a copy of the signed agreement. Please call Clerk-Treasurer Diana Cordray at 571-2414 if you have any questions. Sincerely, � r Robin L. Butler Deputy Clerk Enclosure pc: Chief Michael Fogarty, Carmel Police Department ONE CIVIC SQUARE CARMEL,INDIANA 46032 317/571-2400 • :i, i„ ;rYt:;'„;,,;,.',- r'.'7- t!:v+Yr...Y•v L,. ::r::+'Y:Y'.J .':::k'':'•'' ..` •i:t^.'. �ri 4 "':r`. J ':`i'+vri��,�:,.`•�.• ;',ti�,':ri{riF ��. 1 4Y 1CI%!j1!f5f1t, ,�r } ya �$ ;< . •0. ',,f ±5.Y1rYr'ir ' 4 '1L 1. ,J5. Date: 1/19/00 i From: Alan L. Zuelke 61r6 To: Mary Dowling Mary, You may want to hand delivery this proposal to Chief Fogarty. The Request has a condition that the office must be in Indiana. I believe that we can satisfy this condition by our banking presence locally. This proposal contemplates an agency agreement. In this arrangement, we will fund the entire principal sum of the project to Carmel immediately. They only need to supply proof of payment, invoices and an acceptance certificate at the completion or delivery of all vehicles. This arrangement will alleviate any delivery problems like the ones that occurred last year. With this arrangement, or an escrow,the city will lock in the interest rate within the 30 day proposal period. Funding must occur before the proposal expiration date which is February 21, 2000. This rate would then be fixed throughout the lease term. Recent rate increases and the expectation that rates may continue to rise makes this arrangement most attractive. Call me if you have any questions. I'll be out of the office from January 20t"through January 29th. I may have occasion to review voice mail so leave me a number where I can reach you. o you ,s t PAX I& &sa I — sic; Riv-ZZ • U3 Q Can cLIS© a 0 ay, 2s Crr'ovJ array e477 eft L