BID- EXCHANGE LEASING INCORPORATED FOR VARIOUS CAPITAL EQUIPMENT
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~ Exchange Leasing, Inc.
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January 29, 1981
City of Clearwater
Purchasing Division
P. O. Box 4748
Clearwater, FL 33518
RE: Bid No. 19-81
Dear Sir:
We are pleased to present the
for your consideration. This
will not become binding until
following municipal lease purchase proposal
proposal is not a binding offer by us. It
approved by our Senior Credit Committee.
LESSEE:
The City of Clearwater
LESSOR:
Exchange Leasing, Inc.
EQUIPNENT:
Various captial equipment
LOCATION:
711 Maple Street
Clearwater. Florida
COST OF EQU!PMENT:
Maximum $549.999
This bid is subject to the interest income
accruing under this transaction being exemot
from Federal and State Income taxation bd
on the provisions of Section 103 of the
Internal Revenue Code of 195q. as amended.
TERM OF LEASE:
60 months
RENT AL :
It is anticipated that the lease rentals
will be based on a rate factor of 2.08q,
which is the equivalent of 9.5% per year
interest, payable monthly in advance.
(See the Attachment to Bid Response Form
for various cost and rental schedules.)
Cl~en.t,.a~-;:orate-.f..acr-6r~e:;:fbcerl
~~.;:tlte--t~.o""'f~2.6chel}u:re-uiiOer
~e:-mast-er~~-wi-i-l~eo::e:Sl:ab."tish_ed"
et':Jt~~~gui.pmenM..s~ccept:e. .
Due to ant~ipated fluctuations in
interest rates, the applicable rental
rate for equipment covered by each
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A Wholly Owned Sub~idiary of Exchange Bancorporation Inc
_ Post Office Box 3227. Tampa, Florida 33601 Telephone (813; 224 5513
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The City of
January 29,
Page Two
Clcan-lalr
1981
I
schedule under the master lease will be
subject to periodic adj ustment by the
lessor. However, the rental rate w~ll
never exceed the equivalent of the
maximum interest rate permitted under
Florida law for governmental obligations,
which maximum rate is 1.5% in excess of
the 20 "bond buyer" Average Yield Index.
PURCHASE OPTION:
The Lessee may purchase the equipment at
the end of the initial lease term for the
sum of $1. 00.
COMMENCE~ffiNT DATE:
The equipment shall be purchased in .fu1l
by Exchange Leasing, Inc. and the lease
activated on or before December 31, 1981.
NET LEASE:
This proposal and the subsequent lease
agreement are considered a net lease,
therefore, all fixed expenses including,
but not limited to, maintenance, insuranc~,
attorney's fees, etc. are to be paid by
the Lessee.
IN SURAN CE :
As set forth in the attached lease.
VARIATION IN THE COST
OF EQUIPMENT:
If the actual cost of the equipment varies
from the cost as stated herein, the rent
as indicated will be adjusted to reflect
such variation in the equipment cost.
However, we shall have 'D:O~J;'.:!.;gatiOll to
lease when the ~~etli-=:ask;ex~e,rlsttli1!'
f;O-Sra)""f.'rPqll1l>me,IJJ:=.Show.n;be-:i;e."jD dipnO~
~Zm,
SPECIAL COVENANTS:
Lessor shall provide the following:
- Termination for non-appropriation
- Title to rest with Lessee
Lessee shall provide the following:
The tax exempt nature of this trans-
action is to be provided in the form
of Counsel's Opinion for the
City of Clearwater's attorney.
~
..
The City of
Januar~/ 29.
Page Three
cleaJater
1981
I
If the equipment has not been delivered to the above described location and
accepted by you, and if you have not executed the necessary lease documents,
including an Owner's ~aiver, prior to the above commencement date, then, at
our option, we may terminate any obligations we may have and you shall pur-
chase from us, at its cost to us, such equipment as we may have purchased
or have become obligated to purchase. All vendor warranties will be passed
through to the Lessee.
This proposal is not a binding offer by us. It will not become binding until
approved by our Senior Credit Committee. However, before submitting the
proposal to the Committee, we must know if the proposal is acceptable to you.
If so, please indicate your approval by ~eli-vering.....t<>~s~:i:1jri.~al::1W::iiiay:s
~~~.::i-e~ and initialed copy of the lease. Thereupon,
your approval will constitute an offer to enter into this transaction which
will be~ome binding on us upon our notice to you that the transaction has
been approved by our Senior Credit Committee. Documentation on the transaction
must be satisfactory in form and content to Exchange Leasing, Inc.
Thank you for considering Exchange Leasing. Inc. and we look forward to an
early and favorable reply.
RFT:ps
Enclosures
We hereby agree to enter into the leasing transaction described in the fore-
going letter to us on the terms and conditions set forth above and in the
attached lease.
THE CITY OF CLEARI-JATER
BY:
~I.~
,
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DATE:
Mlv\t"-lt,Jjf I