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HomeMy WebLinkAbout8930M M M 247 RESOLUTION NO. 8930 RESOLUTION AUTHORIZING THE EXECUTION OF A MUNICIPAL LEASE AND OPTION AGREEMENT BETWEEN THE LITTLE ROCK AMBULANCE AUTHORITY AND LASALLE NATIONAL BANK; DECLARING AN EMERGENCY; AND FOR OTHER PURPOSES. WHEREAS, the City of Little Rock, Arkansas (the "City "), pursuant to Act No. 142 of the Acts of the General Assembly of the State of Arkansas for the year 1975 (the "Act ") is authorized to establish public facilities boards for the purposes set forth in the Act, which include providing emergency medical services and other medical services, and assisting in the financing of emergency medical health care facilities and other facilities related thereto within or near the City; and WHEREAS, the City has created and established the City of Little Rock, Arkansas, Emergency Medical Health Care Facilities Board, commonly known as the Little Rock Ambulance Authority d /b /a Metropolitan Emergency Medical Services (the "Authority ") for the purposes set forth above, pursuant to Ordinance No. 14,062, enacted June 16, 1981; and WHEREAS, the Authority has requested the City to approve a Municipal Lease and Option Agreement to be dated as of June 1, 1993, between the Authority and LaSalle National Bank (the "Lease") for the purpose of refinancing two existing Lease Purchase Agreements, the proceeds of which were used to acquire ambulances for the use of the Authority; and WHEREAS, the Board of Directors of the City of Little Rock finds that the Lease is necessary in order, to accomplish the objectives of the Authority previously mentioned; NOW, THEREFORE, BE IT HEREBY RESOLVED BY THE BOARD OF DIRECTORS OF THE CITY OF LITTLE ROCK, ARKANSAS: Section I. That the Little Rock Ambulance Authority is hereby authorized to execute, deliver and perform its obligations as lessee under, a Municipal Lease and Option Agreement with LaSalle National Bank in substantially the form attached hereto as Exhibit A with such changes and modifications as the Authority shall deem advisable. The principal amount of the rental obligations of the Authority pursuant to the Lease shall not exceed $2,000,000. The rental obligations of the Authority pursuant to the Lease shall be paid solely from the user fees, charges and other revenues of the Authority, and the City shall not undertake to pay, or be responsible for the performance by the Authority of, any of the obligations of the Authority pursuant to the Lease. Section 2. It is hereby ascertained and declared that there is an immediate and urgent need for the Authority to execute and deliver the Lease in order to accomplish the purposes for which the Authority was created. It is therefore -2- • M M 249 declared that an emergency exists, and that this Resolution shall therefore take effect and be in force from and after its passage. ADOPTED: June 1, 19 ` APPROVED: X �J� May Jim Dailey ATTEST: • •� City Clerk Robbie Hancock 0557y -2 -3- '� h i 250 EXHIBIT "A" MUNICIPAL LEASE AND OPTION AGREEMENT Dated as of June L, 1993 By And Among LASALLE NATIONAL BANK ( "Lessor - -) And LITTLE ROCK AMBULANCE AUTHORITY ( "Lessee ") Lease #777 , • • Lease #717 251 This Municipal Sease and Cotton Agreement (the "Agreement ") entered Into ber.aen LASALLE NATIONAL BANK ("Lessor--), whose address Is 120 Scuth LaSalle Street, Chicago, Illinois 60603, and L1t-'_e Rock Ambulance Authority, ( "Lessee "), a 'body corporate and poi it is duly organized and existing under one laws of the State of Arkansas ( "State "), whose address 1s 11C1 west Eighth Street, Little Rotk, Arkansas 72201: WITNESSETH: WHEREAS, Lessor desires to lease the Equipment, as hereinafter defined, to Lessee, and Lessee desires to lease the Equipment from Lessor, sucject to the terms and aonditioas of and for -7.e purposes sec forth In this Agreement; and - WHEREAS, Lessee is authorized under the Constitution and laws of the state to ancer into this Agreement for the purposes set forth herein; NOW THEREFORE, for and In consideration of the premises hereinafter contained, the parties hereby agree as follows: ARTICLE 1 - COVENANTS OP LESSEE Section 1.01. Covenants of Lessee. Lessee represents, covenants and warrants. for the benefit of Lessor and its assignee 71, as taiio'ws: (a) Lessee is authorized under the Constitution and Laws of the State to enter into this Agreement and the transaction contemplated hereby, and to perform all of its obligations hereunder. (b) Lessee has delivered to Lessor each of the closing documents (the "C-asing Documents ") listed in Exhibit A, in conjunction with the delivery of this Agreement. ARTICLE 2 - DEPINITIONS Section 2.01. Definitions. Unless the context clearly otherwise requires or unless otherwise defined herein, the capitalize terhis Agreement shall have the respective meaning specified '--slow. "Code" means the Internal Revenue Code of 1986, as amended, and to the extent applicable, the regulations and rulings issued thereunder. '•Dated date-, is the date when the term of this Agreement begins and Lessee's obligation to pay rent accrues, which date shay_ be Sune 1, 1993. "Egolpmant" means the property described in Exhibit F and which is the subject of this Agreement. "Lease Team,- means the period 'oetween the Dated Date and the late of termination pursuant to Article 4, Section 4.01 hereof. '•Purchase Price" shall be equal to the sum of (a) the Purchase Price, as shown, on Exhibit E to be the applicable price after the last prior Rental Payment is and has been made, (b) accrue merest thereon, calculated an a 360 -day year for the actual days elapsed, (c) any unpaid charges for or interest on late payments, and (di any ocher amounts payable to Lessor hereunder. "Rental payments" means the basic rental payments payable by Lessee pursuant to Exhibit E of this Agreement. '-Vander'- means the mar.•ufact -arer of the Equipment as well as the agents or dealers of the manufacturer. ARTICLE 3 - DEPOSIT OP MONIES; ACQUISITION AND LEASE OP EQUIPMENT Section 3.01. Escrow DO -Osit. Excess Pr1ac1 al Transfer u en E 1 ant Acceptance. In the event that an Escrow Agreement is er.terea Lntp in conr ecuon w [n one acquu it on o: the cgo_raertc, Lessor agrees to deposit with an Escrow Agent sufficient funds to acquire the Equipment to be leased 'hereunder. Lessee acknowledges and agrees that Lessor shall be Escrow Agent unless Lessee is otherwise advised. Lessee understands that, except as provided herein or in the Escrow Agreement. no disbursements from the Escrow Account shall be made by the Escrow Agent without the receipt from Lessee of a Payment Request Form (Attachment 4) and an executed Acceptance Certificate (Exhibit G) . Accordingly, Lessee shall deliver such documents promptly upon, but in no event later than 3 aajs :ol lowing, Lessee's final acceptance of the Equipment from the Vendor. Upon the earliest of acceptance by Lessee of all the Equipment; two years from the Dated Date; or delivery of a notice to the Escrow Agent by Lessor and Lessee, the Escrow Agent shall disburse to the Lessor any funds remaining in the Escrow Account that represent any remaining portion of -he Purchase Price. The Lessor shall apply amounts so received toward the prepayment of principal in accordance with Article 11, Section 11.02. Section 3.02. Leas" is Agent - Acquisition of the Eo4lpment. Lessor hereby appoints the Lessee as its agent solely for the ?urpose of acgT::g one e.qu pment an essee herehy accepts such appointment. Lessee and Lessor will do all things necessary to effect the acquisition of the Equipment free and clear of any encumbrances and subject the same to the security interests contemplated hereunder. Lessor agrees to acquire the Equipment pursuant to the Lessee's specifications. Failure by the Vendors to perform shall not affect Lessee's obligation to make Rental Payments under this Agreement. Lessee agrees that the Equipment will be acquired in accordance with the terms, conditions and specifications therefor and or. file with the Lessor. Section 3.03. Lease of Equipment. Lessor hereby demises, leases and lets to Lessee, and Lessee rents, leases and hires from Lesser, t.:e Equipment, in accordance with the provisions of this Agreement for the Lease Term. ARTICLE 4 - LEASE TERN Section 4.01. Leese Term. This Agreement shall be In effect and shall comr..ence as of the Dated Date and w111 remain in effect thr"gnout the Lease Tern. The Lease Tern will terminate ucan the first to occur of: (a) the exercise by Lessee of the action to purchase the Equipment under Article 11: (b) Lessor's election to terminate this Agreement upon a default under Article 13; (c) the payment by Lessee of all sums required to be paid by Lessee hereunder; or (d) the occurrence of an Event of Nonapproprlation In accordance with Article 6, Section 6.04. l M M ARTICLE 3 - ENJOYM=M OF EQUIPMENT M M M 252 Section 5.01. Quiet £mlovment. Lessor hereby covenants to provide Lessee daring -he Lease Term with quiet use and enjoyment oc -no =q'a.pr..enc. Section 5.02. Use of the Equipment. Lessee ' +ill nor install, use, operate or maintain the - quipmenc lmpreoerly, carelessly, in v.o.accon or any applicable law or in a manner concrary to that contemplated by this Agreement. Section 5.C3. ASgRt o! 4Issaogtlon. During the Lease Term, the Lessor and its officers, er..oloyees and agents shall have the dgmt ac a >. reasonaole times during 'ousiness hours cc enter i. ^.:o and upon :'r.e property Or the Lessee for one purpose of 'inspecting the Equipment and all records pertaining :o the Equipment. Section 5.04. Disclaimer of Warranties. LESSEE ACKNOWLEDGES MID AGREES THAT TIM EQUIPMENT IS Or A 312£, DESIGN, CAPACITY AND MANC7ACTURE =IM-by LESSEE. LESSOR MAKES NO WARRANTY NOR REPRESENTATION, EITHER EXPRESSED OR IMPLIED, AS TO THE VALUE, DESIGN, CONDITION, MERI. . '.:.SILITY OR FITNESS FOR PARTICULAR PURPOSE OR FITNESS FOR USE OF THE EQUIPMENFT, OR ANY OTHER WARRANTY WITH RL 'r THERETO AND, AS TO THE LESSOR, THE LESSEE LEASES THE EQUIPMENT "AS IS ". In no event shall the Lessor L.. llaole for any loss or damage, including Incidence., Incited-, special or consequential damage, in connection with or arising out of this Agreement or the existence, furn.sning, functioning or the Lessee's use of any items or products or services provided for in this Agreement. Lessor agrees to ase its best efforts to assist Lessee in gaining the cooperation of the vendor and /or Manufacturer of the Equipment in providing warranty service or replacement of the Equipment. Section 5.�5. Vendors Warranties. Lessee may assert claims and righ -s chat the Lessor may have against any Vendor of any port on on:. ARTICLE 6 - RENTAL PAYMENTS Section 6.01. Rental Payments to Constituto a Current Erponso o! Lesson. It Is intended that the obligation of Lessee to pay .ec_a_ pa yasr..s nereunaer Is a currant expense or :lessee and not a debt of Lessee In contravention of any applicable limitations or requirements; however, Lessee has made its own determination In Chad regard and _n no way relies on Lessor for such determination. Nothing contained herein shall constitute a pledge of the general tax revenues, funds or monies of Lessee. Lessee shall pay Rental Payments exclusively from legally ovs!lab'a monies from its general fund and such other funds as may be designated by the Lessee in lawful money of the United States of America to Lessor at its principal office, 120 South LaSalle Streec, Chicago, Illinois (Lock Box; LaSalle National Public Finance, P. 0. Box 74523, Chicago, Illinois 60690), or at such other place as Lessor may specify in writing (or, in the event of assignment by Lessor, t0 its Assignee), in the amounts and no 'lacer than the dates set forth in Exhibit E attached hereto and made a part hereof. Lessee farther agrees to forward Rental Payments to the Lessor ur us Assignee at least ten (10) days prior to the due dace thereof. Section 6.C2. Interest and Princi al C onants. A portion of each Rental Payment is paid as interest, and the balance of each .encai eaymenc cs pain as principal. Exhibit E hereto sets fortn the interest component and the principal component of each Rental Payment during the i�`ease Term. Section 6.03. Rental Pa ant¢ to be Unconditional; Further Assurances. Except as expressly provided under this Agreement, tna co.agac_oas or Lessee co mane nenca. ayments, and cc perform and observe the covenants and agreements contained herein, shall be absolute and unconditional in all events and without notice or demand by Lessor, notwithstanding any dispute between Lessee and Lesscr, any Vendor or any other person. Lessee shall not assert any right of sac -off or counterclaim against its ob'_:gacion to make payments under this Agreement. Lessee intends to do all things lawfully within its power to cccaln and maintain funds from which the Rental Payments may be mace. Section 6.04. Monad r__p o tip. If (a) sufficient funds are not appropriated for Rental Payments due in any fiscal year and ) cce essee snail have insufficient funds duly authorized for the Rental Payments or other amounts payable hereunder in such fiscal year from other sources, an Event of Nenappropriation shall be deemed to have occurred. The Lessee shall deliver notice thereof to the Lessor promptly, but not later than thirty (30) days after an Event of Nonappropriation. Upon the occurrence of an Event of Nonappropriation, the Lessee agrees Chat the Lessor may reclaim possession of and title to the Eq•_ pment and make demand upon Lessee for immediate payment of all ocher amounts (other than subsemuent Rental Payments) then outstanding under this Agreement, to the extent permitted by law. Lessee agrees peaceably to deliver the Equipment In accordance with Article 13, Section 13.03 hereof. Section 6.05. Nonaubstitutlon. If an Event of Nona_norooriation occurs, the Lessee hereby agrees, -o the extent permit -It by -aw, not to ?".chase, lease or rem: equipment performing functions similar to those performed by the E¢lpment for a period of one year following the date of such event. ARTICLE 7 - TITLE TO EQUIPMENT: SECURITY INTEREST Section 7.01. Title to the Equipment. During the term of this Agreement, title to the Equipment shall vest in Lessee, subject cc Lessor's r.gnts upon an Event of Default or an Event of Nonappropriation. Section 7.C2. $epnrlty Interest. Lessee grants to Lessor a security interest constituting a first lion on -he Equipment and on all aaa1: ens, attachments, accessions and substitutions thereto, and an any proceeds therefrom. Section 7.C3. Liens and Encumbrance. to Title; No Fixture. Lessee shall at all times keep the Equipment free of ail ana arcutorances ocher than Lessor s security Interest. Lessee shall not, wI,h"c the prior written consent of Lessor, attach the Equipment to real estate In any way that would cause the Equipment to become a fixture under the laws of the jurisdiction within which the Equipment 1s located. Section 7.04. Location o! Equipment. Lessee shall maintain the Equipment at the location specified in Exhibit F hereto and snau not move tae Equipment without the prior written consent tf Lessor, except during the orainary use of the Equipment by Lessee as specified in Exhibit D hereto; provided, however, that Lessee shall not move or use the Equipment in. any way :hat would a. -ect _'Acr's perfected security interest therein. ARTICLE 8 - MAnMWANCE; MODIFICATION; TAXES; INSURANCE AND OTHER CRApt_se Section 8.01. Maintenance o! Equiommt by Lessee. Lessee will, at Lessee's own cost and expense, maintain, preserve and keep c-a :qu.pmeac cn gcoc repair, we Ctlnq order and condition. If requested by Lessor, Lessee will enter into a mutually agreeab La maln[enante program to insure the proper maintenance of the equipment. i 3 �\ 1 � = M M 0 M M M M M section 9.12. Tares. Other Governmental Charges and Utility Charges. In the event that the use, possess icn or atgi is it ion of one = cc.pr..ent -a recto co pe suo,ar_ to taxation !n any form (except for Income taxes of LassOr), ;cvernmect e-arges or utility charges and expanses, Lessee will pay all such taxes and charges as cney come due. Sectien 9.:3. Provisions Regarding Insurance. At Its own expense Lessee shall_ cause casualty, public Liability and oreoercv damage i -'_ranee to me carried and maintained (arid evidenced by certificates delivered to Lessor throughout the Lease Term) in the amounts and for the coverage sac forth on =xh Ltit H, provided that the amount of casuaay and property damage insurance shall not be less than the then apci.caote Purchase Price. All policies of Insurance ccver_'ng the = quipment shall show Lessor as loss payee, and shall be cancelable only upon at least 30 days prior wr'_- er. notice to Lessor. All Insurance proceeds from casualty losses shall oe Payable as hersina`cer provides is .cis Agreement. Section 8.24. Advances. In the event Lessee shall t _o maintain the full insurance coverage recuired by this r=_ement ^- sna 11 fail to keep the Equipment .:d repair and operating condition, Lessor may )but shall be�_nder no ob'_igacicr. tol purchase the requireu __ties of insurance and pay the premiums on the same or may maka such repairs or replacements as are necessary and provide for payment thereof; and all amounts so advanced therefor by Lessor shal-1 be repaid to Lessor, together with interest thereon at the race specified in tie second sentence :f Article 13, Section 13.04 hereof. Section S.`. Modlficationa. Without the prior written consent of the Lessor, the Lessee shall not make any material a= narac_ons, cccic_cac ions or attachments to tr - qulpm.ent. All alterations, modifications and attachments to the Equipment shall Decode a part of the Equi_-..nt and shall be subject to this Agreement and the security _ttarest of Lessor. ARTICLE 9 - DAMAGE, DESTRUCTION AND CONDEMNATION; USE OP PROCEEOR Section 9.. Damage. Destruction and Condemnation. Lessee shall bear the entire risk of loss of the Equipment due to cas'_alty, conaer..na._on or otrerwise. It la) the Equipment or any portion thereof is destroyed (in whole or In part) or is damaged by :Ire or other casualty, or (b) title co, or the temporary use of the Equipment or any part thereof is taken under the exercise of the power of eminent domain, Lessee shall immediately notify Lassor. Lessee and Lessor will cause the Net Proceeds of any insurance claim or condemnation award to me applied either to the promos remelt, restoration, modification or replacement of the Equipment or, at Lessor's option, to the oavmer.t in full of the Purchase Price. Any balance of the Net Proceeds remaining after such work or ocrchase has been completed shall be paid to Lessee. The term "Net Proceeds- shall meat: the amount remaining from the gross proceeds of any insurance claim or condemnation award after detecting all expenses (including attorney's fees) incurred in the collection of such claims or award. Section 9.02. Insufficiency of Net Proceeds. If the Net Proceeds are insufficient to pay in full the cost of any repair, restoration, dca._icat_on or reoracement, Lessee shall either (a) complete the work and pay any cost in excess of the amount of Net Proceeds, or (b) Lessee shall pay to Lessor the Purchase Price. ARTICLE 10 - TAY COVENANT Section. 1C.01. Tar Covenant. It is the Intention of the Lessee and the Lessor that the interest portion of the Rental Payments received by the Lessor be and remain exempt from federal income taxation; however, Lessee has made its own determination in that regard and in no way relies upon Lessor for such determination. Lessee covenants that it will take (or refrain from tak!Lg, where appropriate) any and all action necessary to maintain the exemption from federal income taxation of the interest portion of the Rental Payments, and chat It will act perform any act (or neglect to take an action) or enter into any agreement or use or permit the ae of the =cuiccent or any portion thereof In a cancer that shall have the effect of terminating the exemption from federal income taxation of the interest portion of the Rental Payments, Including (without limitation) leasing a17 or any portion of the Equipment or contracting to a third party for the use or operation of all or any portion, of the Equipment if entering into such lease or contract would have such effect. In the avant any court or governmental authority having jurisdiction over Lessee or Lessor determines that the interest portion of the Rental Payments is subject to federal Income taxes, and If such determination results, directly or indirectly, in whole or in part, from Lessee's violation of this section 10.01, Lessee shall, upon demand, reimburse Lessor in an amount equal to such lost tax benefits on Rental Payments made prior to such determination of caxabi'_ity, and subsequent Rental Payments shall be similarly adjusted. ARTICLE 11 - PCACSASE RIGRTS; PREPAYMENT Section 11.71. Purchase R14hta. Lessee shall be deemed to have purchased the Equipment(a) upon payment In full_ of all Renca: Payments in accordance with Exhibit E hereof and all ocher amounts payable hereunder; or (b) upon, written notice delivered at least 30 daysrn advance of the proposed date for payment, and upon the payment of the then current Rental Payment and the Purchase Price. section 11.02. Part1a1 Preoa tai Lessee may make oa rtial prepayments of the Purchase Price, in a minimum amount of tan perpent (. sl !i the original principal amount shown on Exhibit E, at the time of any Rental_ Payment. Any prepayments may, at Lessor's option, be applied no shorter. the Lease Term. Aceordingly, Lessor shall apply such prepayments, at Lessor's option, either (al to the principal portion of the Purchase Price, thus not affectinq the Lease Term, or (b) to the principal portion of Rental Payments subsequently due, in the Inverse order of their due dace, thus shortening the Lease Term. In either case, (a) Interest shall cease to accrue on principal amounts so prepaid, and (b) Lessor shall deliver to Lessee a revised Exhibit E reflecting such prepayment. If aocroorlate, in Lessor's judgment, partial prepayments may entitle esi see co a release on any security interest on portions of the Equipment. ARTICLE 12 - ASSIM& N'T, SORLEASING, INDENNIPICATION, MORTGAGING AND SELLING Section 12.01. Assignment or Sale by Lessor. (a) This Agreement, and one obligations of Lessee to make payments hereunder, may be said, assigned or otherwise disposed of In whole or in part to one or more successors, grantees, holders, assignees or subasslgnees by Lessor, whereupon s,-- successors, grantees, holders, assignees or subassignees shall succeed co all of Lessor's rights and (except no the extent of any servicing obligations retained by Lessor) obligations hereunder. Upon any sale, discosition, assignment or reassignment, Lessee shall be provided with a notice of the same; provided, however, that failure of Lessor to provide such notice shall not affect the validity of such sale, disposition, assignment or reassignment of Lessee's obligations hereunder. During the Term of this Agreement, Lessee and any servicer shall each keep a complete and accurate register of all such assignments in form necessary to comply witn Seccicn 149(a) of the code. 253 1^ \ I- � l i 0 ' 254 (b) Lessee agrees to make all payments to the assignee designated in the assignment, notwithstanding any claim, defense, setoff or counterclaim whacsce•:er (except arising from Lessor's treat'- of this Agreement) that Lessee may from a:. -,e to came have against Lessor or Vendor. Lessee agrees to axe c, to all documents, inciudinq notices of assignment and chattel mortgages or financing statements, which may be reasonably requested by Lessor or assignee to protect its Interest in =he Equipment and in this Agreement. (c) Lessee hereby agrees that Lessor may seal or offer to sell this Agreement (1) through a certificate of participation program, whereby one or more interests are created in the Agreement, the Equipment or the Rental Payments; or (ii) with other similar inszz'mencs, agreements and obligations through a pool, crust, limited partnership, or ocher entity. Section 12.32. No sale, Asslglal or Subleasing by Laos ". This Agreement and the Interest of Lessee in the Equipment may not oe soia, assigr.ea or enc_r..cerea ey _essee without the prior written consent of Lessor. Seccioc 12.33. "lease and Indemnification Covenants. To the extent permitted by the laws and Constitution of the state, lessee sna:_ protect, nc;a harmiess and indemnify Lessor from and against any and all liability, ob ilgat .ns, 'losses, claims and da:ages whatsoever, regardless of cause thereof (except those resulticg form Lessor's intentlosal or grossly negligent acts or omissions), and expenses in connection therewith, includ4ng, ' « :chouc limitation, course! fees and expenses, penalties and intaresc arising out of or as the result of the entering into of this Agreement, the car.ershlp of any Stem of the Equipment, the ordering, acquisition, use, ccerat .n, condition, purchase, delivery, rejection, storage or return of any item of the Equipment or any act cent in co.. action with the operacien, use, condition, possession, storage or return of any Lcem of the EGp :pment. The Indemni_`ipaclon era lnq under this Paragraph shall survive the cerm!natlon of this Agreement. ARTICLE 13 - EMUS Or DEFAULT AND RPd®IRS Section 13,[1. Eventa of Default. The following constitute "Events of Default- under this Agreement: (a) failure 'oy the Lessee to Day any Rental Payment or other payment rewired to be ?aid hereunder when due for a period of 15 days after written notice is given to the Lessee by the Lessor, specifying such failure and requesting chat it as remedied; or (b) failure by the Lessee to maintain lnsursnce on the Equipment In accordance with Article 8, section 8.03. hereof for a period of 15 days after writter. notice 1s given to the Lessee by the Lessor, specifying such failure and requesting that it be remedied; or (c) failure by the Lessee to observe and Perform any other covenant, condition or agreement on its part to be observed or performed for a period of 30 days after written notice is given to the Lessee by the Lessor, specifying such fi -,14re and requesting that it be remedied; or (d) commencement of a proceeding under any federal or state bankruptcy or insolvency law seeking relief under such laws Concerning its indebtedness; or (e) the =along of any material misrepresentation herein or In any document delivered by Lessee to Lessor. If a default specified In (a), (b) or (c) above cannot be cured within the applicable period, Lessor will not unreasonably withhold its consent cc an extension of time to cure, but only if corrective action is commenced by Lessee during tte applicable period and diligently pursued until the default is cured. Lessor sha'__ give Lessee written notice of the occurrence of any Event of Default or any event which, with the giving of notice or the passage of time, or both, would constitute an Event of Default, promptly, but in no event later znan five (5) days after such occurrence. The foregoing provisions of this Section are in addition to the provisions of Article 6, section 6.04 hereof. Section 13.32. Ramedles on Default. whenever any Event of Default shall have occurred and be continuing, the Lesser shau nave the rignt, at Its sole option without any further demand or notice, to take any one or any compinacion of the following remedial steps: (a) Terminate this Agreement and retake possession of the Equipment wherever situated, and sell or lease, sublease or make other diseosition of the quipment for use over a term in a ccrozercially reasonable ma s nner, all for the account of Lessor; and declare the amount actually appropriated for the purchase or rental of the Equipment and unpaid by Lessee during the current fiscal year to be Immediately doe and payable. Lessor she' _/ apply the sale proceeds in the following manner: FIRSTLY, to pay all proper and reasonable costs and expenses associated with the recovery, repair, storage and sale of the Equipment, Including reasonable attorney's fees and expenses; SECCNOLY, to pay the Lessor (1) the amount of all unpaid Rental Payments, if any, which are then due and owing, together with Interest and lace charges thereon, (11) the then applicable Purchase Price (taking into account the payment of past due Rental Payments as aforesaid), plus a pro rata allocation of interest, at the race utilized cc establish the Interest component for the Rental Payment next due, from the next preceding due dace of a Rental Payment until the date of payment by the 'ouyer, and (111) any other amounts due hereunder. TR_PJLY, to pay the remainder of the sale proceeds, purchase moneys or other amounts paid by a buyer of the Equipment, to the Lessee; or (b) proceed by appropriate court actior, to enforce performance by tie Lessee of the applicable covenants of this Agreement or to recover for the breach thereof; or (c) use or retake such portion of the Equipment as the Lessor, Sr. Its sole discretion, may decide. All of the Lessee's right, title and interest in the Equipment shall terminate —mediately upon the occurrence of an Event of Default or Evert of Nonappropriation. Section 13.33. Return, oinmcnt. Upon an Event of Default or an Event of Non - appropriation, Lessee agrees to deliver toe EGu pmen c hemp o esspr, ac Lessee's sole cost and expense, to a reasonable location specified by Lessor. 7^ 5 M Section 13.05. Force Ma Douro. If by reason of force ma'eure Lessee is unable In whole or in part to carry out its agreement on its oars .ere-,n contained, other cnan the ooiigations on the cart of Lessee contained in Article 6 and Article 9, Seoticn 9.73. hereof, Lessee shall not be deemed in default during the continuance Of suc :h inability. The corm " -cue ma'eure'• as used herein shall mean, without limitac cn, She following: acts of Ood, strikes, icckcuts or ctner industrial disourbances; act of public enemies, orcer or restraints of any kind o- the government of a: ^e 'J iced States of America or the State or any of their departments, agencies or offlcals, or any civil or miL _ary acthcricy; _nsurrec -ions; riots; landslides; eartn.quakes, fires; storms: droughts; :_cods; or explosizn.s. ARTICLE 14 - HISCZLLANEOUS Section. 15.01. Noticea. All notices, certificates or other communicacicns hereunder shall be sufficiently given and shat_ oa Zoomed given when delivered or mailed by registered mall, postage prepaid, to the parties at the addresses set forth on the first page hereof. In addition, copies of all notices to Lessor shall ue given, as provided above, to Lessor at 417 17th Street, Suite 2080, Denver, CO 80202. Section. 14.12. HSnddng Effect. -..his Agreement shall inure to the benefit of and shall be binding upon Lessor and lessee and chair respecc: :•e successors and assigns. Section 14.33. Sevorabillty. In the even- any provision of this Agreement shall be held invalid or unenforceable by any court or ccmpecen- jur'sdlc -ion, such holding shall not invalidate or render unenforceable any ocher provision 'nereof. Section 14.74. Iacorocratlon by Reference. All Exhibits and Attachments hereto are incorporated herein. Section 14.05 Execution in Countorparta. This Agreement may be executed in several counterparts. Section 14.C6. Applicable Law. This Agreement shall be governed by and construed in accordance with the laws of Arkansas. Section 14.07. Entire Agreement. This Agreement constitutes the entire agreement between Lessor and Lessee. No waiver, consent, r..occrlcation or charge of terms of this Agreement shall 61rd either party unless in writing signed by both parties, and then such waiver, consent, modification or change shall be effective only in the sceclflc instance and for the soeciflc purpose given. There are no understandings, agreements, representations or warrancies, express or implied, not specified herein regarding this Agreement or the Equipment '_eased hereunder. Any terms and conditions of any purchase order or other document submitted by Lessee in ccnnecticn with this Agreement which are in addition to or inconsistent with the terms and conditions of this Agreement will not be binding on Lessor and will not apply to this Agreement. Lassea by the signature below of its auchmr4 zed reoresencative acknowledges that it has read this Agreement, understands it, and agrees to be bound by its terms and conditions. Section 14.09. No Reoedy Ezelua loci Xeioor. No remedy herein conferred upon or reserved to the Lessor is intended to foe exclusive ann every such remecy shall be cumulative and shall be in addition to every other remedy given under -his Agreemenc or now or hereafter existing at law or In equity. No delay in enforcing any remedy available to Lessor shall_ constitute a waiver thereof. No waiver of any term or provision hereof shall be effactive against Lessor unless in writing, signed by Lessor. IN WITNESS WHEREOF, Lessor has executed this Agreement in its corporate name, attested by its duly authorized officers, and Lessee has caused this Agreement to be executed in its corporate name, attested by its duly authorized officers. Al_ of the above occurred as of the date first written on tie heading hereof. LESSCR: LASALLE NATIONAL BANK Witness: By: By: _ Titre: Title: LESSEE: LITTLE ROCK AMBULANCE AUTHORITY By: Title: Witness: By: Title: 6 255 Lease 1777 Section 13.]4. Late Charge: Interest op Leto !AFQi2t. Any Rental Payment not paid on the due date thereof shall bear a lace cnaz x t ccy coi_ars laud.. 1, plus an additional finance charge. The finance charge stall accrue on the entire unpaid principal portion of the Purchase price from tine date the unpaid Rental Payment was due cnt_1 payment at a race (calculated an a 360 -day year for the actual days elapsed) equal to the lesser of (a) eighteen percent (13 %), or (b) the highest rate allowed under the laws cf the State. Section 13.05. Force Ma Douro. If by reason of force ma'eure Lessee is unable In whole or in part to carry out its agreement on its oars .ere-,n contained, other cnan the ooiigations on the cart of Lessee contained in Article 6 and Article 9, Seoticn 9.73. hereof, Lessee shall not be deemed in default during the continuance Of suc :h inability. The corm " -cue ma'eure'• as used herein shall mean, without limitac cn, She following: acts of Ood, strikes, icckcuts or ctner industrial disourbances; act of public enemies, orcer or restraints of any kind o- the government of a: ^e 'J iced States of America or the State or any of their departments, agencies or offlcals, or any civil or miL _ary acthcricy; _nsurrec -ions; riots; landslides; eartn.quakes, fires; storms: droughts; :_cods; or explosizn.s. ARTICLE 14 - HISCZLLANEOUS Section. 15.01. Noticea. All notices, certificates or other communicacicns hereunder shall be sufficiently given and shat_ oa Zoomed given when delivered or mailed by registered mall, postage prepaid, to the parties at the addresses set forth on the first page hereof. In addition, copies of all notices to Lessor shall ue given, as provided above, to Lessor at 417 17th Street, Suite 2080, Denver, CO 80202. Section. 14.12. HSnddng Effect. -..his Agreement shall inure to the benefit of and shall be binding upon Lessor and lessee and chair respecc: :•e successors and assigns. Section 14.33. Sevorabillty. In the even- any provision of this Agreement shall be held invalid or unenforceable by any court or ccmpecen- jur'sdlc -ion, such holding shall not invalidate or render unenforceable any ocher provision 'nereof. Section 14.74. Iacorocratlon by Reference. All Exhibits and Attachments hereto are incorporated herein. Section 14.05 Execution in Countorparta. This Agreement may be executed in several counterparts. Section 14.C6. Applicable Law. This Agreement shall be governed by and construed in accordance with the laws of Arkansas. Section 14.07. Entire Agreement. This Agreement constitutes the entire agreement between Lessor and Lessee. No waiver, consent, r..occrlcation or charge of terms of this Agreement shall 61rd either party unless in writing signed by both parties, and then such waiver, consent, modification or change shall be effective only in the sceclflc instance and for the soeciflc purpose given. There are no understandings, agreements, representations or warrancies, express or implied, not specified herein regarding this Agreement or the Equipment '_eased hereunder. Any terms and conditions of any purchase order or other document submitted by Lessee in ccnnecticn with this Agreement which are in addition to or inconsistent with the terms and conditions of this Agreement will not be binding on Lessor and will not apply to this Agreement. Lassea by the signature below of its auchmr4 zed reoresencative acknowledges that it has read this Agreement, understands it, and agrees to be bound by its terms and conditions. Section 14.09. No Reoedy Ezelua loci Xeioor. No remedy herein conferred upon or reserved to the Lessor is intended to foe exclusive ann every such remecy shall be cumulative and shall be in addition to every other remedy given under -his Agreemenc or now or hereafter existing at law or In equity. No delay in enforcing any remedy available to Lessor shall_ constitute a waiver thereof. No waiver of any term or provision hereof shall be effactive against Lessor unless in writing, signed by Lessor. IN WITNESS WHEREOF, Lessor has executed this Agreement in its corporate name, attested by its duly authorized officers, and Lessee has caused this Agreement to be executed in its corporate name, attested by its duly authorized officers. Al_ of the above occurred as of the date first written on tie heading hereof. LESSCR: LASALLE NATIONAL BANK Witness: By: By: _ Titre: Title: LESSEE: LITTLE ROCK AMBULANCE AUTHORITY By: Title: Witness: By: Title: 6 � � r i 256 EXHIBIT A LIST OF CLOSING DOCUMENTS 1. Municipal Lease and Option Agreement 2. Resolution of Lessee's Governing Body (Exhibit B) 3. Opinion of Lessee's Counsel (Exhibit C) 4. Certificate of Lessee (Exhibit D) 5. Schedule of Payments (Exhibit E) 6. Equipment Description (Exhibit F) 7. Acceptance Certificate (Exhibit G) 8. Insurance coverage Requirements (Exhibit H) 9. Form 8038G /GC (Attachment 1) 10. UCC -1 Financing Statement (Attachment 2) 11. Small Issuer Exemption Statement (Attachment 3 - If Applicable) 12. Payment Request Form (Attachment 4 - If Applicable) 13. Escrow Agreement (If Applicable - To Be Delivered By Escrow Agent) 14. Name of County for UCC -1 Filing 7 Lease #777 M M M Lease #777 257 EXHIBIT B RESOLUTION OF GOVERNING BODY: EXTRACT OF MINUTES Lessee: Little Rock Ambulance Authority Date of Agreement: June 1, 1993 At a duly called meeting of the governing body of Lessee (as defined in the Agreement) held on the day of I , 1993 the following resolution was introduced and adopted. RESOLVED, whereas the governing body of Lessee has determined that a true and very real need exists for the acquisition of the Equipment described in the Municipal Lease and Option Agreement presented to this meeting; -and WHEREAS, the governing body of Lessee has taken the necessary steps, including any legal bidding requirements, under applicable law to arrange for the acquisition of such Equipment. BE IT RESOLVED, by the governing body of Lessee that the Municipal Lease and Option Agreement substantially in the form presented to this meeting is in the best interests of Lessee for the acquisition of such Equipment, and the governing body of Lessee designates and confirms the following persons to execute and deliver, and to witness (or attest), respectively, the Municipal Lease and Option Agreement, with such changes thereto as such persons deem appropriate, and any related documents necessary to the consummation of the transactions contemplated by the Municipal Lease and Option Agreement: FURTHERMORE BE IT RESOLVED, that the governing body of Lessee hereby represents that the reasonably anticipated amount of qualified tax- exempt obligations which have been and will be issued by the Lessee does not exceed $10,000,000 for the calendar year within which this Municipal Lease and Option Agreement is to be a "qualified tax- exempt obligation" pursuant to Section 265 (b)(3) of the Internal Revenue Code. (Name of Parry to Execute Municipal Lease (Title) and Option Agreement) (Name of Party to Witness Municipal Lease (Title) and Option Agreement) The undersigned further certifies that the above resolution has not been repealed or amended and remains in full force and effect and further certifies that the above and foregoing Municipal Lease and Option Agreement is the same as presented at said meeting of the governing body of Lessee. Seal: Secretary/Clerk Date M M Lease #777 EXHIBIT C OPINION OF LESSEE'S COUNSEL (Please furnish in this form on Attorney's Letterhead) LASALLE NATIONAL BANK 410 17th Street #2080 Denver, CO 80202 Lessee: Little Rock Ambulance Authority Date of Agreement: June 1, 1993 Gentlemen: As counsel for Little Rock Ambulance Authority ( "Lessee "), I have examined duly executed originals Of the Municipal Lease and Option Agreement (the "Agreement ") dated June 1, 1993, between Lessee and LaSalle National Bank ( "Lessor "), and based upon the examination and upon such other examination as I have deemed necessary or appropriate, I am of the opinion that: Lessee is a public body corporate and politic, legally existing under the laws of the State of Arkansas. 2. The Agreement has been duly authorized, executed and delivered by Lessee, pursuant to constitutional, statutory and/or home rule provision which authorizes this transaction and Resolution No. attached as Exhibit B to the Agreement. 3. The Agreement is a legal, valid and binding obligation of Lessee, enforceable in accordance with its terms. In the event the Lessor obtains a judgement against Lessee in money or damages, as a result of an event of default under the Agreement, Lessee will be obligated to pay such judgement. 4. Applicable public bidding requirements have been complied with. 5. To the best of my knowledge, no litigation is pending or threatened in any court or other tribunal, state or federal, in any way questioning or affecting the validity of the resolution or the Agreement. 6. The signatures of the officers of Lessee which appear on the Agreement are true and genuine; I know said officers and know them to hold the offices set forth below their names. 7. The Lessee is a political subdivision within the meaning of Section 148 of the Internal Revenue Code and the related regulations and rulings and that the portion of payments identified as deferred interest charges to maturity, upon receipt, will not be includable in Federal gross incomes under statutes, regulations, court decisions and rulings existing on the date of this opinion and consequently, will be exempt from present Federal income taxes and income tax of the State of Arkansas. 258 r EXHIBIT D CERTIFICATE OF LESSEE M IM 259 Lease #777 THE UNDERSIGNED, duly authorized representative of the named Lessee under that certain Municipal Lease and Option Agreement dated June 1, 1993 (the "Agreement ") with LaSalle National Bank as Lessor (the "Lessor') hereby certifies as follows in accordance with the requirements of the Agreement. Capitalized terms used herein have the same meaning as in the Agreement. A. INCUMBENCY OF OFFICER AND SIGNATURE I hold the position noted under my signature, and I have all authority necessary to execute and deliver this Certificate. The following officer of the Lessee is duly elected or appointed, and the signature opposite the name is true and correct, and where required, has been filed with the appropriate officials of the State: Signature Title: B. ESSENTIAL USE: The Equipment will be used by the following governmental agency department for the specific purpose of: 2. The Equipment is essential for the functioning of the Lessee and is immediately needed by the Lessee. Such need is neither temporary nor expected to diminish during the Lease Term. The Equipment is expected to be used by the Lessee for a period in excess of the Lease Term. 3. Funds are expected to come from the general fund of the Lessee. C. SECTION 265(b)(3) MATTERS: Lessee (a) maintains a register or list of Exempt Government Obligations, (b) files, when required, Form 8038G or Form 8038GC, and (c) therefore can certify that the total Exempt Government Obligations issued to date in the current calendar year, including the Agreement, are less than $10,000,000. This Certificate is based upon facts, circumstances, estimates and expectations of the Lessee as of the date on which the Agreement was executed, and to the best of my knowledge and belief, as of this date, such facts, circumstances and estimates are true and correct and such expectations are reasonable. IN WITNESS WHEREOF, I have executed and delivered this certificate as of the day of , 1993. WITNESS: Signature Title: is m m 260 EXHIBIT E SCHEDULE OF PAYMENTS DATED DATE: JUNE 1, 1993 LITTLE ROCK AMBULANCE AUTHORITY PMT PAYMENT PAYMENT INTEREST PRINCIPAL PURCHASE # DATE AMOUNT AMOUNT AMOUNT PRICE 1 1 - Jul -93 43,926.45 7,318.49 36,607.96 1,605,253.47 2 1 - Au,--93 43,926.45 7,151.31 36,775.14 1,566,610.98 3 1 - Sep -93 43,926.45 6,983.37 36,943.08 1,527,841.29 4 1 - Oct -93 43,926.45 6,814.66 37,111.79 1,488,943.98 5 1 - Nov -93 43,926.45 6,645.19 37,281.26 1,449,918.64 6 1 - Dec -93 43,926.45 6,474.94 37,451.51 1,410,764.84 7 1 - Jan-94 43,926.45 6,303.91 37,622.54 1,371,482.15 8 1 - Feb -94 43,926.45 6,132.10 37,794.35 1,332,070.17 9 1 - Mar -94 43,926.45 5,959.50 37,966.95 1,292,528.45 10 1 - Apr -94 43,926.45 5,786.12 38,140.33 1,252,856.57 11 1 - May -94 43,926.45 5,611.95 38,314.50 1,213,054.11 12 1 - Jun -94 43,926.45 5,436.98 38,489.47 1,173,120.63 13 1 - Jul -94 43,926.45 5,261.21 38,665.24 1,133,055.70 14 1 - Aug -94 43,926.45 5,084.64 38,841.81 1,092,858.89 15 1 - Sep -94 43,926.45 4,907.26 39,019.19 1,052,529.77 16 1 - Oct -94 43,926.45 4;729.07 39,197.38 1,012,067.89 17 1 - Nov -94 43,926.45 4,550.07 39,376.38 971,472.83 18 1 - Dec -94 43,926.45 4,370.25 39,556.20 930,744.15 19 1 - Jan-95 43,926.45 4,189.61 39,736.84 889,881.40 20 1 - Feb -95 43,926.45 4,008.15 39,918.30 848,884.14 21 1 - Mar -95 43,926.45 3,825.85 40,100.60 807,751.94 22 1 - Apr -95 43,926.45 3,642.73 40,283.72 766,484.34 23 1 - May -95 43,926.45 3,458.76 40,467.69 725,080.90 24 1 - Jun -95 43,926.45 3,273.96 40,652.49 683,541.17 25 1 - Jul -95 43,926.45 3,088.32 40,838.13 641,864.71 26 1 - Aug -95 43,926.45 2,901.82 41,024.63 600,051.07 27 1 - Sep -95 43,926.45 2,714.48 41,211.97 558,099.78 28 1 - Oct -95 43,926.45 2,526.27 41,400.18 516,010.41 29 1 - Nov -95 43,926.45 2,337.21 41,589.24 473,782.50 30 1 - Dec -95 43,926.45 2,147.29 41,779.16 431,415.58 31 1 - Jan-96 43,926.45 1,956.50 41,969.95 388,909.21 32 1 - Feb -96 43,926.45 1,764.84 42,161.61 346,262.92 33 1 - Mar -96 43,926.45 1,572.30 42,354.15 303,476.25 34 1 - Apr -96 43,926.45 1,378.88 42,547.57 260,548.74 35 1 - May -96 43,926.45 1,184.58 42,741.87 217,479.93 36 1 - Jun -96 43,926.45 989.39 42,937.06 174,269.35 37 1 - Jul -96 43,926.45 793.31 43,133.14 130,916.54 38 1 - Aug -96 43,926.45 596.34 43,330.11 87,421.02 39 1 - Sep -96 43,926.45 398.46 43,527.99 43,782.33 • 261 40 1 - Oct -96 43,926.45 199.70 43,726.75 0.00 - - - -- ---- - ----------- --- - - - - -- ---------- -- -- ------ -- - - -- ----------- ---- -- ---- ------- ------- --- - - -- --------------- - - - - -- TOTALS 1,757,058.00 154,469.77 1,602,588.23 LESSEE: LITTLE ROCK AINSULANCE AUTHORITY M- TITLE: r EXHIBIT F DESCRIPTION OF THE EQUIPMENT Page 1 of 3 NEW EQUIPMENT: MEMS COMMUNICATION SYSTEM UPGRADE 800 Mhz Trunked Radio System Mobile Eauioment Smartnet Spectra C9 Mobile Radio 22 Front and Rear control Heads 21 Smartnet Digital STX Trunked Portable 3 Watt 33 Single Unit Rapid Charger 9 Six Unit Rapid Charger 2 Remote Speaker Mic with clip 33 Bravo Pagers 75 Fixed End Eauioment Smartnet Spectra Desktop Control Station 14 People Finder Paging Encoder 1 Programming Package 1 MSR2000 UHF Base Station 1 Automatic Vehicle Locating Coded Lanmarc 500 GPS Radio Modem 20 GPS Antenna Kit 20 Coded CMX4500 Mobile Status Terminal 20 Coded Base Station Controller 1 Coded NC5000 Network Controller 1 Equipment Cabling Kit 1 System Engineering Analysis 1 Project Management 1 Installation and Testing 1 Training and Documentation 1 REFINANCED EQUIPMENT FROM LEASE #564: Three (3) 1992 Type III Excellence Golden Eagle Ambulances/E350 Ford Chassis - Diesel 11 Lease #777 263 EXHIBIT F (CONTINUED) Lease #777 Page 2 of 3 REFINANCED EQUIPMENT FROM LEASE #537: 1. Equipment included in current lease Number Description Seven (7) Used Type III Ambulances Three (3) New Type III Ambulances Medical Equipment Communication Equipment 2. Equipment and Ambulances. Number Description Four (4) Type III Ambulances One (1) Toyota 1988 Camry Medical Equipment Communication Equipment Computer Hardware and Software, Office Furniture and Other Equipment 3. Building and Lease -Hold Improvements Number Description One (1) 7,200 sq. ft. building located on the property described below: Part of Block 288 and adjacent West Hall of Ringo Street, Original City of Little Rock, Pulaski County, Arkansas, more particularly described as follows: Beginning at the point of intersection of the Centerline of Ringo Street with the extended North line of Block 288; thence in a Southerly direction along the Centerline of Ringo Street a distance of 122 feet, more or less to a point on the Northerly Control of Access Line of 1 -630; thence in a Westerly direction along said Control of Access Line a distance of 182 feet to a point on the West line of the East Half of Block 288; thence in a Northerly direction along said West line a distance of 119 feet more or less to a point on the North line of Block 288; thence in a Easterly direction along the North line of Block 288 extended a distance of 180.2 feet to the point of beginning and containing 25,785 square feet more or less. 12 r LOCATED: EXHIBIT F (CONTINUED) Page 3 of 3 LESSEE: "LITRE ROCK AMBULANCE AUTHORITY Name: Title: _ Date: _ 13 Lease #777 264 M To Lessor: -r EXHIBIT G ACCEPTANCE CERTIFICATE LASALLE NATIONAL BANK 410 Seventeenth Street, Suite 2080 Denver, Colorado 80202 • Lease #777 In accordance with the terms of the Municipal Lease and Option Agreement (the "Lease ") dated June 1, 1993 between LaSalle National Bank (the "Lessor"), and the undersigned (the "Lessee "), Lessee hereby certifies and represents to, and agrees with, Lessor as follows: 1. The Equipment, as such term is defined in the Lease, has been delivered and installed at the Equipment Location specified in Exhibit F - Description of Equipment to the Lease and accepted on the date indicated below. 2. Lessee has conducted such inspection and/or testing of the Equipment as it deems necessary and appropriate and hereby acknowledges that it accepts the Equipment. 3. No Event of Default, as such term is defined in the Lease, and no event which with notice or lapse of time, or both, would become an Event of Default, has occurred and is continuing at the date hereof. LESSEE: LITTLE ROCK AMBULANCE AUTHORITY Signature Name: Title: Date: 14 2f� r • 266 COUNTY NAME In order to file the UCC -1's included in these documents, we will need the county in which the municipality resides. Please provide below and return with your documentation: County PULASKI 18