09-18-13-Resolution-Lease Purchase Agreement with Capital Corporation 6417-09/16/2013RESOLUTION #R 09-18-13
A RESOLUTION REGARDING A LEASE PURCHASE AGREEMENT FOR THE
PURPOSE OF PROCURING AN "AUGER TRUCK"
WHEREAS, the City of Sanger desires to enter into that certain Lease -Purchase
Agreement Number , by and between Government Capital Corporation
and the City of Sanger, for the purpose of procuring an "Auger Truck." The City of
Sanger desires to designate this Agreement as a "qualified tax exempt obligation" of
the City for the purposes of Section 265 (b) (3) of the Internal Revenue Code of 1986,
as amended. The City desires to designate Mike Brice, City Manager, as an
authorized signer of the Agreement.
NOW THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY
OF SANGER,
Section l . That the City enter into a Lease Purchase Agreement with Government
Capital Corporation for the purpose of procuring an "Auger Truck. "
Section 2. That the Lease Purchase Agreement Number , by and
between the City of Sanger and Government Capital Corporation is designated by the
City as a "qualified tax exempt obligation" for the purposes of Section 265 (b) (3) of
the Internal Revenue Code of 1986, as amended.
Section 3. That the City of Sanger designates Mike Brice, City Manager, as an
authorized signer of the Lease Purchase Agreement Number , by and
between the City of Sanger and Government Capital Corporation.
PASSED AND APP OV + D by the Council of the City of Sanger in a meeting held
on the I LP day of , 2013.
Lessee: City of Sanger
Thomas Muir, Mayor
Fitness Signature
Tami Taber, City Secretary
BILL OF SALE AND ASSIGNMENT
For value received, Government Capital Corporation ("GCC"), hereby sells, assigns and transfers to Spirit of
Texas Bank, all of GCC's right, title and interest in, to and under (a) that certain Lease-Purchase Agreement No.
6417, dated as of September 16, 2013 (the "Agreement"), by and between Government Capital Corporation as
Lessor and City of Sanger as Lessee, (b) the property described in Exhibit A of the Agreement (the "Property"), and
(c) four (4) annual payments at $50,234.96 now or hereafter due or payable pursuant to the Agreement,
including but not limited to rental and termination payments.
1. GCC hereby represents and certifies to Spirit of Texas Bank in connection herewith that:
(a) The Agreement is in full force and effect as of the date hereof, has not been amended, changed,
modified, or waived, in any respect. GCC has duly and fully performed all of its covenants and obligations pursuant
to the Agreement to the date hereof.
(b) The Property will be constructed, equipped, delivered and installed, as appropriate, in accordance
with specifications and standards of Lessee. GCC has received no notice from or demand by Lessee with respect to
any alterations, modifications or repairs of the Property required by Lessee.
(c) No sums were paid by Lessee to GCC, no other payments of any type have been received by GCC
in or under the Agreement;
(d) The property is free and clear of all liens, claims, rights and encumbrances other than the
respective rights of GCC and Lessee under the Agreement;
(e) GCC makes absolutely no warranties, expressed or implied, as to the performance by Lessee of the
Agreement. Spirit of Texas Bank understands that this is a no-recourse assignment;
(f) Lessee is not entitled to any credit, offset or reduction in or against any payment or other obligation
of Lessee pursuant to the Agreement;
(g) GCC's duties and liabilities under any service or warranty agreements or obligations executed,
assigned or incurred by GCC in favor of Lessee shall be independent of and unaffected by this Bill of Sale and
Assignment. GCC or its predecessors in interest with respect to all or any components of the Property shall have and
retain all duties and liabilities, if any, and GCC shall hold Spirit of Texas Bank harmless from any duty, liability or
expense in connection therewith.
(h) GCC has full power and authority to consummate this sale and assignment and the undersigned
officer of GCC is duly authorized to execute and deliver this Bill of Sale and Assignment. The representations and
certifications of GCC set forth herein shall inure to the benefit of the successors and assigns of Spirit of Texas
Bank.
(i) In the event of default, GCC agrees to assist in the agreeable repossession of the above mentioned
equipment, to resell the equipment and to promptly send proceeds to Spirit of Texas Bank. However, we do not
guarantee that this amount will be sufficient to satisfy the balance of principal and interest.
(j) The parties agree that this Agreement was negotiated, made and entered into in Texas and shall be
governed and interpreted under the laws of the State of Texas. Any administrative action or other action arising out
of this Agreement, including any action involving any assignee of Lessor, whether for the enforcement thereof or
otherwise, shall be brought in Tarrant County, Texas.
2. No further assignment or reassignment of any of right, title or interest in the Agreement or the Property
shall be effective unless and until Lessee shall have received a duplicate original of such assignment or reassignment.
IN WITNESS WHEREOF, Spirit of Texas Bank and Government Capital Corporation have executed the Bill of
Sale and Assignment as of October 11, 2013.
SPIRIT OF TEXAS BANK GOVERNME ORPORATION Keith Miller
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By By:
Operations
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Date: /v-/o -/3 Date: October 8, 2013
Witnes : v C Witness: Angelica Elmor
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TEXAS MUNICIPAL LEASE-PURCHASE AGREEMENT
THIS TEXAS MUNICIPAL LEASE-PURCHASE AGREEMENT No.6417(hereafter referred to as"Agreement")dated as of September
16,2013,by and between Government Capital Corporation,a Texas corporation(herein referred to as"Lessor"),and City of Sanger,
a political subdivision or agency of the State of Texas (hereinafter referred to as "Lessee").
WITNESSETH: In consideration of the mutual covenants and conditions hereinafter set forth,the parties hereto agree as follows:
1. Term and Payments. Lessor hereby leases to Lessee and Lessee hereby leases from Lessor the property described in
Exhibit A hereto(hereinafter,with all replacement parts,substitutions,proceeds, increases,additions,accessions,repairs and accessories
incorporated therein or affixed thereto, referred to as the"Property")for the amounts to be paid in the sums(the"Lease Payments")and
on the dates(the"Lease Payment Dates")set forth in Exhibit B hereto. Except as specifically provided in Section 2 hereof,the obligation
of the Lessee to make the Lease Payments called for in Exhibit B hereto shall be absolute and unconditional in all events and shall not be
subject to any set-off,defense,counterclaim or recoupment for any reason. The term of the lease hereunder shall commence upon the
dated date of the lease and shall continue until the end of the Lessee's current fiscal period and thereafter for such additional fiscal periods
as are necessary to complete the anticipated total lease term as set forth in Exhibit B, unless earlier terminated as provided herein. The
interest is calculated on the basis of a 30/360-day year on the unpaid principal amounts from the Schedule Date of the EXHIBIT B.
2. Non-Appropriation and Right of Termination. The obligations of Lessee to make Lease Payments (called for in
Exhibit B)and to make any other payments to Lessor(or to any other person)pursuant to this Agreement are subject to appropriation by
the Lessee of funds that are lawfully available to be applied for such purpose. If Lessee fails to make such an appropriation prior to a
fiscal period of Lessee for the Lease Payments scheduled in such a fiscal period,this Agreement shall terminate at the end of the last fiscal
period immediately preceding the fiscal period for which funds have not been appropriated. The Lessee shall deliver notice to Lessor of
such termination at least forty-five(45)days prior to such termination,but failure to give such notice shall not prevent the termination of
this Agreement. Upon any such termination of this Agreement, all of Lessee's right, title and interest in and its obligations under this
Agreement and to the Property shall terminate effective on the last day of the last fiscal period of Lessee for which such an appropriation
was made.
3. Taxes. In addition to the Lease Payments to be made pursuant to Section 1 hereof, Lessee agrees to indemnify and
hold Lessor harmless from and against and to pay Lessor, as additional rent,on demand, an amount equal to all licenses, assessments,
sales, use, real or personal property,gross receipts or other taxes,levies,imposts,duties or charges,if any,together with any penalties,
fines,or interest thereon imposed against or on Lessor, Lessee or the Property by any governmental authority upon or with respect to the
Property or the purchase,ownership, rental,possession,operation,return or sale of,or receipt of payments for,the Property,except any
Federal or state income taxes, if any, payable by Lessor. Lessee may contest any such taxes prior to payment provided such contest does
not involve any risk of sale, forfeiture or loss of the Property or any interest therein.
4. Lessee's Covenants and Representations. Lessee covenants and represents as follows:
(a) Lessee represents, and will provide an opinion of its counsel to the effect that, it has full power and authority to
enter into this Agreement which has been duly authorized, executed, and delivered by Lessee and is a valid and binding obligation of
Lessee enforceable in accordance with its terms, and all requirements for execution, delivery and performance of this Agreement have
been, or will be, complied with in a timely manner;
(b) Lessee has budgeted and appropriated for the current fiscal period sufficient funds to make the Lease Payments
scheduled to come due in the current fiscal period and all other Payments expected to come due in the current fiscal period; Lessee
currently expects to budget and appropriate sufficient funds to pay the Lease Payments coming due hereunder in each future fiscal period,
but the decision whether to budget and appropriate funds for any future fiscal period is solely within the discretion of the then-current
governing body of Lessee;
(c) There are no pending or threatened lawsuits or administrative or other proceedings contesting the authority for,
authorization of, performance of, or expenditure of funds pursuant to this Agreement;
(d) Information supplied and statements made by Lessee in any financial statement or current budget prior to or
contemporaneously with the Agreement are true and correct;
(e) Lessee has an immediate need for, and expects to make immediate use of, substantially all the Property, which
need is not temporary or expected to diminish in the foreseeable future.
(f) No lease, rental agreement, lease-purchase agreement, payment agreement or contract for purchase to which
Lessee has been a party at any time during the past ten(10)years has been terminated by Lessee as a result of insufficient funds being
appropriated in any Fiscal Year. No event has occurred which would constitute an event of default under any debt, revenue bond or
obligation which Lessee has issued during the past ten (10) years.
5. Use and Licenses. Lessee shall pay and discharge all operating expenses and shall cause the Property to be operated
by competent persons only. Lessee shall use the Property only for its proper purposes and will not install, use, operate or maintain the
Property improperly, carelessly,or in violation of any applicable law,ordinance, rule or regulation of any governmental authority,or in a
manner contrary to the nature of the Property or the use contemplated by its manufacturer. Lessee shall keep the property at the location
stated on the Certificate of Acceptance executed by Lessee upon delivery of the Property until Lessor,in writing,permits its removal,and
the Property shall be used solely in the conduct of the Lessee's operations. Lessee shall obtain,at its expense,all registrations, permits
and licenses, if any, required by law for the installation and operation of the Property. Any license plates used on the Property shall be
issued in the name of the Lessee. If a certificate of title is issuable with respect to the Property,it shall be delivered to the Lessor showing
the interest of the Lessor.
GOVERNMENT CAPITAL
TEXAS MUNICIPAL LEASE-PURCHASE AGREEMENT-Page 1
i
6 Maintenance Lessor shall not be obligated to make any repairs or replacements At its own expense, Lessee shall
service, repair and maintain the Property in as good condition, repair, appearance and working order as when delivered to Lessee
hereunder, ordinary wear and tear from proper use alone excepted,and shall replace any and all parts thereof which may from time to
time become worn out,lost,stolen,destroyed,or damaged beyond repair or rendered unfit for intended use,for any reason whatsoever,
all of which replacements shall be free and clear of all liens,encumbrances and claims of others and shall become part of the Property and
subject to this Agreement Lessor may,at its option,discharge such costs,expenses and insurance premiums necessary for the repair,
maintenance and preservation of the Property, and all sums so expended shall be due from Lessee in addition to rental payments
hereunder
7 Alterations
(a) Lessee may, at its own expense, install or place in or on, or attach or affix to, the Property such equipment or
accessories as may be necessary or convenient to use the Property for its intended purposes provided that such equipment or accessories
do not impair the value or utility of the Property All such equipment and accessories shall be removed by Lessee upon termination of this
Agreement, provided that any resulting damage shall be repaired at Lessee s expense Any such equipment or accessories not removed
shall become the property of Lessor
(b) Without the written consent of Lessor,Lessee shall not make any other alterations,modifications or improvements
to the Property except as required or permitted hereunder Any other alterations, modifications or improvements to the Property shall
immediately become part of the Property,subject to the provisions hereof Without the prior written consent of Lessor, Lessee shall not
affix or attach any of the Property to any real property The Property shall remain personal property regardless of whether it becomes
affixed or attached to real property or permanently rests upon any real property or any improvement thereon
8 Liens Lessee shall not directly or indirectly create, incur, assume or suffer to exist any mortgage,security interest,
pledge,lien,charge,encumbrance or claim on or with respect to the Property,title thereto or any interest therein,except the respective
rights of Lessor and Lessee hereunder
9 Damage to or Destruction of Property Lessee shall bear the entire risk of loss,damage,theft or destruction of the
Property from any and every cause whatsoever,and no loss,damage,destruction or other event shall release Lessee from the obligation
to pay the full amount of the rental payments or from any other obligation under this Agreement In the event of damage to any item of
the Property, 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 Property is lost,stolen,destroyed or damaged beyond repair, Lessee,at the option of
Lessee, will either (a) replace the same with like property in good repair or (b) on the next Lease Payment Date, pay Lessor(0) all
amounts then owed by Lessee to Lessor under this Agreement,including the Lease Payment due on such date,and(u)an amount equal
to the applicable Option to Purchase Value set forth in Exhibit B
10 Insurance Lessee shall either be self-insured with regard to the Property or shall purchase and maintain insurance
with regard to the Property Lessee shall indicate on each Certificate of Acceptance executed in relation to this Agreement its election to
be self-insured or company insured with regard to the Property listed on that Certificate of Acceptance Whether Lessee is self-insured or
company insured,Lessee shall,for the term of this Agreement,at its own expense,provide comprehensive liability insurance with respect
to the Property, insuring against such risks, and such amounts as are customary for lessees of property of a character similar to the
Property In addition, Lessee shall, for the term of this Agreement,at its own expense, provide casualty insurance with respect to the
Property, insuring against customary risks, coverage at all times not less than the amount of the unpaid principal portion of the Lease
Payments required to be made pursuant to Section 1 as of the last preceding Payment Date specified in Exhibit B on which a Lease
Payment was made If insurance policies are provided with respect to the Property,all insurance policies shall be with insurers authorized
to do business in the State where the Property is located and shall name both Lessor and Lessee as insured as their respective interest
may appear Insurance proceeds from casualty losses shall be payable solely to the Lessor,subject to the provisions of Section 9 Lessee
shall,upon request,deliver to Lessor evidence of the required coverage together with premium receipts,and each insurer shall agree to
give Lessor written notice of non-payment of any premium due and ten (10) days notice prior to cancellation or alteration of any such
policy Lessee shall also carry and require any other person or entity working on, in or about the Property to carry workmen s
compensation insurance covering employees on, in or about the Property In the event Lessee fails,for any reason,to comply with the
requirements of this Section, Lessee shall indemnify, save harmless and, at Lessee's sole expense, defend Lessor and its agents,
employees, officers and directors and the Property against all risk of loss not covered by insurance
11 Indemnification Lessee shall indemnify,to the extent permitted by law, and save harmless Lessor and its agents,
employees,officers and directors from and,at Lessee's expense,defend Lessor and its agents,employees,officers and directors against
all liability,obligations,losses,damages,penalties,claims,actions,costs and expenses(including but not limited to reasonable attorneys
fees) of whatsoever kind or nature which in any way relate to or arise out of this Agreement or the ownership, rental, possession,
operation,condition, sale or return of the Property All amounts which become due from Lessee under this Section 11 shall be credited
with any amounts received by the Lessor from insurance provided by the Lessee and shall be payable by Lessee within thirty(30)days
following demand therefor by Lessor and shall survive the termination or expiration of this Agreement
12 No Warranty EXCEPT FOR REPRESENTATIONS, WARRANTIES, AND SERVICE AGREEMENTS RELATING TO THE
PROPERTY MADE OR ENTERED INTO BY THE MANUFACTURERS OR SUPPLIERS OF THE PROPERTY,ALL OF WHICH ARE HEREBY ASSIGNED
TO LESSEE, LESSOR HAS MADE AND MAKES NO REPRESENTATION OR WARRANTY, EXPRESS OR IMPLIED, AND ASSUMES NO
OBLIGATION WITH RESPECT TO THE TITLE, MERCHANTABILITY, CONDITION,QUALITY OR FITNESS OF THE PROPERTY DESCRIBED IN
EXHIBIT A FOR ANY PARTICULAR PURPOSE OR THE CONFORMITY OF THE PROPERTY TO SPECIFICATION OR PURCHASE ORDER, ITS
DESIGN, DELIVERY,INSTALLATION OR OPERATION All such risks shall be borne by Lessee without in any way excusing Lessee from its
obligations under this Agreement,and Lessor shall not be liable to Lessee for any damages on account of such risks All claims or actions
on any warranty so assigned shall be made or prosecuted by Lessee,at its sole expense,upon prior written notice to Lessor Lessor may,
but shall have no obligation whatsoever to,participate in such claim or action on such warranty,at Lessors expense Any recovery under
such a warranty shall be made payable jointly to Lessee and Lessor
TEXAS MUNICIPAL LEASE PURCHASE AGREEMENT-Page 2
13 Option to Purchase Provided Lessee has complied with the terms and conditions of this Agreement,Lessee shall have
the option to purchase not less than all of the Property which is then subject to this Agreement,"as is' at the payment date,for the Option
to Purchase Values set forth in Exhibit B by giving written notice to Lessor not less than sixty (60) days prior to the date specified in
Exhibit B for the exercise of such option, provided that upon Lessee's timely payment of all Lease Payments specified in Exhibit B,Lessee
shall be deemed to have properly exercised its option to purchase the Property and shall be deemed to have acquired all of Lessor's right,
title and interest in and to the Property,free of any lien, encumbrance or security interest except such liens, encumbrances or security
interest as may be created,or permitted and not discharged,by Lessee but without other warranties Payment of the applicable Option to
Purchase
Value shall occur on the applicable Lease Payment Date specified in Exhibit B hereto, at which time Lessor shall, unless not required
hereunder,deliver to Lessee a quitclaim bill of sale transferring Lessor's interest in the Property to Lessee free from any lien,encumbrance
or security interest except such as may be created, or permitted and not discharged, by Lessee but without other warranties Upon
Lessee's actual or constructive payment of the Option to Purchase Value and Lessors actual or constructive delivery of a quitclaim bill of
sale covering the Property, this Agreement shall terminate except as to obligations or liabilities accruing hereunder prior to such
termination
14 Default and Lessor's Remedies
(a) The occurrence of one or more of the following events shall constitute an Event of Default, whether occurring
voluntarily or involuntarily, by operation of law or pursuant to any order of any court or governmental agency
(1) Lessee fails to make any payment hereunder when due or within ten (10) days thereafter,
(2) Lessee fails to comply with any other covenant,condition or agreement of Lessee hereunder for a period of
the ten (10) days after notice thereof,
(3) Any representation or warranty made by Lessee hereunder shall be untrue in any material respect as of
the date made,
(4) Lessee makes, permits or suffers any unauthorized assignment, transfer or other disposition of this
Agreement or any interest herein, or any part of the Property or any interest therein, or
(5) Lessee becomes insolvent,or admits in writing its inability to pay its debts as they mature,or applies for,
consents to or acquiesces in the appointment of a trustee,receiver or custodian for the Lessee or a substantial part of its property, or,in
the absence of such application,consent or acquiescence,a trustee,receiver or custodian is appointed for Lessee or a substantial part of
its property and is not discharged within sixty (60) days, or any bankruptcy, reorganization, debt arrangement, moratorium, or any
proceeding under any bankruptcy or insolvency law,or any dissolution or liquidation proceeding is instituted by or against Lessee and,if
instituted against Lessee, is consented to or acquiesced in by Lessee or is not dismissed within sixty (60) days
(b) Upon the occurrence of any Event of Default specified herein,Lessor may,at its sole discretion,exercise any or
all of the following remedies
(1) Enforce this Agreement by appropriate action to collect amounts due or to become due hereunder, by
acceleration or otherwise,or to cause Lessee to perform its other obligations hereunder in which event Lessee shall be liable for all costs
and expenses incurred by Lessor,
(2) Take possession of the Property,without demand or notice and without court order or any process of law,
and remove and relet the same for Lessee's account,in which event Lessee waives any and all damages resulting therefrom and shall be
liable for all costs and expenses incurred by Lessor in connection therewith and the difference, if arty, between the amounts to be paid
pursuant to Section 1 hereof and the amounts received and to be received by Lessor in connection with any such reletting,
(3) Terminate this Agreement and repossess the Property, in which event Lessee shall be liable for any
amounts payable hereunder through the date of such termination and all costs and expenses incurred by Lessor in connection therewith,
(4) Sell the Property or any portion thereof for Lessor's account at public or private sale,for cash or credit,
without demand on notice to Lessee of Lessor's intention to do so, or relet the Property for a term and a rental which may be equal to,
greater than or less than the rental and term provided herein If the proceeds from any such sale or rental payments received under a
new agreement made for the periods prior to the expiration of this Agreement are less than the sum of(i)the costs of such repossession,
sale, relocation, storage, reconditioning, reletting and reinstallation (including but not limited to reasonable attorneys' fees), (u) the
unpaid principal balance derived from Exhibit B as of the last preceding Lease Payment Date specified in Exhibit B,and OW any past due
amounts hereunder(plus interest on such unpaid principal balance at the rate specified in Section 20 hereof,prorated to the date of such
sale), all of which shall be paid to Lessor, Lessor shall retain all such proceeds and Lessee shall remain liable for any deficiency, or
(5) Pursue and exercise any other remedy available at law or in equity,in which event Lessee shall be liable
for any and all costs and expenses incurred by Lessor in connection therewith "Costs and expenses",as that term is used in this Section
14,shall mean,to the extent allowed by law (0)reasonable attorneys'fees if this Agreement is referred for collection to an attorney not
a salaried employee of Lessor or the holder of this Agreement, (u)court costs and disbursements including such costs in the event of any
action necessary to secure possession of the Property,and(ui)actual and reasonable out-of-pocket expenses incurred in connection with
any repossession or foreclosure,including costs of storing,reconditioning and reselling the Property,subject to the standards of good faith
and commercial reasonableness set by the applicable Uniform Commercial Code Lessee waives all rights under all exemption laws
(6) Under no circumstances shall Lessee be liable under this subsection 14(b)for any amount in excess of the
sum appropriated pursuant to Section 1 hereof for the previous and current fiscal years,less all amounts previously due and paid during
such previous and current fiscal years from amounts so appropriated
15 Termination Unless Lessee has properly exercised its option to purchase pursuant to Section 13 hereof,lessee shall,
upon the expiration of the term of this Agreement or any earlier termination hereof pursuant to the terms of this Agreement,deliver the
Property to Lessor unencumbered and in at least as good condition and repair as when delivered to Lessee, ordinary wear and tear
resulting from proper use alone excepted,by loading the Property,at Lessee's sole expense,on such carrier,or delivering the Property to
such location,as Lessor shall provide or designate at or within a reasonable distance from the general location of the Property If Lessee
fails to deliver the Property to Lessor,as provided in this Section 15,on or before the date of termination of this Agreement,Lessee shall
pay to Lessor upon demand, for the hold-over period, a portion of the total payment for the applicable period as set forth in Exhibit B
prorated from the date of termination of this Agreement to the date Lessee either redelivers the Property to Lessor or Lessor repossesses
the Property
TEXAS MUNICIPAL LEASE PURCHASE AGREEMENT-Page 3
16 Assignment Without Lessor's prior written consent, Lessee will not either(►)assign,transfer, pledge,hypothecate,
grant any security interest in or otherwise dispose of this Agreement or the Property or any interest in this Agreement or the Property,or
(a)sublet or lend the Property 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 this Agreement,the Property and any other documents executed with respect to this Agreement and/or grant or
assign a security interest in this Agreement and the Property,in whole or in part Any such assignees shall have all of the rights of Lessor
under this Agreement Subject to the foregoing, this Agreement inures to the benefit of and is binding upon the heirs, executors,
administrators,successors and assigns of the parties hereto No assignment or reassignment of any of Lessor's rights,title or interest in
this Agreement or the Property shall be effective with regard to Lessee unless and until Lessee shall have received a copy of the document
by which the assignment or reassignment is made,disclosing the name and address of such assignee No further action will be required
by Lessor or by Lessee to evidence the assignment During the term of this Agreement,Lessee shall keep a complete and accurate record
of all such assignments in form necessary to comply with the United States Internal Revenue Code of 1986, Section 149 (a), and the
regulations, proposed or existing,from time to time promulgated thereunder
17 Personal Property The Property is and shall at all times be and remain personal property
18 Title Upon acceptance of the Property by Lessee hereunder,Lessee shall have title to the Property during the term of
this Agreement, however,in the event of(►)an Event of Default hereunder and for so long as such Event of Default is continuing,or(u)
termination of this Agreement pursuant to the provisions of Section 2 hereof, title shall be reverted immediately in and shall revert to
Lessor free of any right, title or interest of Lessee unless Lessor elects otherwise
19 Lessor s Right to Perform for Lessee If Lessee fails to make any payment or perform or comply with any of its
covenants or obligations hereunder, Lessor may, but shall not be required to, make such payment or perform or comply with such
covenants and obligations on behalf of Lessee, and the amount of any such payment and the expenses (including but not limited to
reasonable attorneys fees) incurred by Lessor in performing or complying with such covenants and obligations, as the case may be,
together with interest thereon at the highest lawful rate, shall be payable by Lessee upon demand
20 Interest on Default If Lessee fails to pay any Lease Payment specified in Section 1 hereof within ten(10)days after
the due date thereof, Lessee shall pay to Lessor interest on such delinquent payment from the due date until paid at the highest lawful
rate
21 Notices Any notices to be given or to be served upon any party hereto in connection with this Agreement must be in
writing and may be given by certified or registered mail,and shall be deemed to have been given and received forty-eight(48)hours after
a registered or certified letter containing such notice,postage prepaid,is deposited in the United States mail,and if given otherwise shall
be deemed to have been given when delivered to and received by the party to whom it is addressed Such notice shall be given to the
parties at their respective addresses designated on the signature page of this Agreement or at such other address as either party may
hereafter designate
22 Security Interest As security for Lessee's covenants and obligations hereunder,Lessee hereby grants to Lessor,and
its successors, a security interest in the Property, all accessions thereto and proceeds therefrom, and, in addition to Lessor's rights
hereunder,all of the rights and benefits of a secured party under the Uniform Commercial Code as in effect from time to time hereafter in
the State in which the Property is located or any other State which may have jurisdiction over the Property Lessee agrees to execute,
acknowledge and deliver to Lessor in recordable form upon request financing statements or any other instruments with respect to the
Property or this Agreement considered necessary or desirable by Lessor to perfect and continue the security interest granted herein in
accordance with the laws of the applicable jurisdiction Lessee hereby authorizes Lessor or its agent or assigns to sign and execute on its
behalf any and all necessary UCC-1 forms to perfect the Purchase Money Security interests herein above granted to Lessor
23 Tax Exemption Lessee certifies that it does reasonably anticipate that not more than$10,000,000 of qualified tax-
exempt obligations",as that term is defined in Section 265(b)3(D)of the Internal Revenue Code of 1986("the Code"),will be issued by
it and any subordinate entities during 2013 Further,Lessee designates this issue as comprising a portion of the$10 million in aggregate
issues to be designated as "qualified tax exempt obligations" eligible for the exception contained in Section 265 (b) 3 (D) of the Code
allowing for an exception to the general rule of the Code which provides for a total disallowance of a deduction for interest expense
allocable to the carrying of tax exempt obligations
24 Continuing Disclosure Specifically and without limitation, Lessee agrees to provide audited financial statements,
prepared by a certified public accountant not later than six (6) months after and as of the end of each fiscal year Periodic financial
statements shall include a combined balance sheet as of the end of each such period, and a combined statement of revenues,
expenditures and changes in fund balances,from the beginning of the then fiscal year to the end of such period These reports must be
certified as correct by one of Lessee s authorized agents If Lessee has subsidiaries,the financial statements required will be provided on
a consolidated and consolidation basis
25 Miscellaneous
(a) Lessee shall,whenever requested,advise Lessor of the exact location and condition of the Property and shall give
the Lessor immediate notice of any attachment or other judicial process affecting the Property,and indemnify and save Lessor harmless
from any loss or damage caused thereby Lessor may,for the purpose of inspection,at all reasonable times enter upon any job,building
or place where the Property and the books and records of the Lessee with respect thereto are located
(b) Lessee will take no action that would cause the interest portion of the Lease Payments to become coverage in gross
income of the recipient for federal income tax purposes under the Internal Revenue Code of 1986(the 'Code')and Treasury Regulations
promulgated thereunder(the 'Regulations"),and Lessee will take and will cause its officers,employees and agents to take all affirmative
actions legally within its power necessary to ensure that the interest portion of the Lease Payments does not become coverage in gross
income of the recipient for federal income tax purposes under the Code and Regulations
(c) Lessee agrees to equitably adjust the payments payable under this Agreement if there is a determination for any
reason that the interest payable pursuant to this Agreement(as incorporated within the schedule of payments) is not excludable from
income in accordance with the Internal Revenue Code of 1986, as amended, such as to make Lessor and its assigns whole
(d) Time is of the essence No covenant or obligations hereunder to be performed by Lessee may be waived except by
the written consent of Lessor, and a waiver of any such covenant or obligation or a forbearance to invoke any remedy on any occasion
shall not constitute or be treated as a waiver of such covenant or obligation as to any other occasion and shall not preclude Lessor from
invoking such remedy at any later time prior to Lessee's cure of the condition giving rise to such remedy Lessor's rights hereunder are
cumulative and not alternative
(e) This Agreement shall be construed in accordance with,and governed by,the laws of the State in which the Property
is located
TEXAS MUNICIPAL LEASE PURCHASE AGREEMENT-Page 4
(f) This Agreement constitutes the entire agreement between the parties and shall not be modified,waived,discharged,
terminated, amended, altered or changed in any respect except by a written document signed by both Lessor and Lessee.
(g) Any term or provision of this Agreement found to be prohibited by law or unenforceable shall be ineffective to the
extent of such prohibition or unenforceability without, to the extent reasonably possible, invalidating the remainder of this Agreement.
(h) The Lessor hereunder shall have the right at any time or times, by notice to Lessee, to designate or appoint any
person or entity to act as agent or trustee for Lessor for any purposes hereunder.
(i) All transportation charges shall be borne by Lessee. Lessee will immediately notify Lessor of any change occurring
in or to the Property, of a change in Lessee's address, or in any fact or circumstance warranted or represented by Lessee to Lessor,or if
any Event of Default occurs.
(j) Use of the neuter gender herein is for purposes of convenience only and shall be deemed to mean and include the
masculine or feminine gender whenever and wherever appropriate.
(k) The captions set forth herein are for convenience of reference only and shall not define or limit any of the terms or
provisions hereof.
(I) Except as otherwise provided herein, this Agreement shall be binding upon and inure to the benefit of the Parties
hereto and their respective heirs, executors, administrators, legal representatives, successors and assigns, where permitted by this
Agreement. I
IN WITNESS WHEREOF, the parties have executed this Agreement as of the 24 day of 6eprattirin the year 2013.
Lessor: Governm C ital orporation
Keith Miller
Director of
Witness Signature: 3
rationsAuthor zed i ature n�, _- �,n
---
Author or Print Name: y�',aq�CIt vr�-t
Southlake,TX 7609 J gaaid/
Print Title: �i
Lessee: City of Sanger J J
Witness Signature: ` ((
Mike Brice, Cy Manager -- � J ) I •-Taber
T ber
502 Elm Street Print Name: i l.C-1 (,�L,�
Sanger,TX 76266
Print Title: atc+__-_ , �Y X
TEXAS MUNICIPAL LEASE-PURCHASE AGREEMENT- Page 5
EXHIBIT A
DESCRIPTION OF PROPERTY
TEXAS MUNICIPAL LEASE-PURCHASE AGREEMENT No 6417 (THE "AGREEMENT")
BY AND BETWEEN
Lessor, Government Capital Corporation and Lessee, City of Sanger
Dated as of September 16, 2013
QTY DESCRIPTION
One (1) Digger Derrick as follows
1 ALTEC Model DM47-B, 47 foot Digger Derrick with hydraulic extending full capacity
intermediate and upper booms Built in accordance with standard specifications and to
include the following features
A Pole Setting Sheave Height 46 4 feet
B Maximum Horizontal Reach from centerline of rotation 37 0 feet
C Digging Radius from centerline of rotation 17 9 to 26 7 feet
D Lift Capacity at 10 Ft Radius 12,340 lbs (Without optional equipment installed)
See complete load chart for capacities with installed options
E Boom Articulation -20 to 80 degrees
F Continuous Rotation with high capacity worm gear drive gearbox
G Insulated, 46 KV and below
H Hydraulic Overload Protection (HOP) System
I Load Indicator Gauge
J Electronic Controls
K Manual override of electronically controlled boom, winch, and digger functions at
the main control valve
L Standard/Low Speed Selector
M Remote Control Retrofitable
N Proportional Hydraulic Control System
O Hydraulic System
P Fiberglass hydraulic upper boom and boom tip with provision for platform
attachment
Q Transferable Hydraulic Pole Guides and Steel Boom Flares at the boom tip with
adjustable alignment guides
R Pole Guide Tilt Interlock
S Bearings
T Boom Stow Protection System
U Auger Stow Protection
✓ Two-part load line attachment point on the intermediate boom
W Unit is painted with a powder coat paint process which provides a finish-painted
surface that is highly resistant to chipping, scratching, abrasion and corrosion
X Structural Warranty
Y Manuals Two (2) operator and Maintenance/Parts manuals
2 Rear mount pedestal
3 Rear Mount Altec Opti-View Control Seat, installed on curb side of turntable, includes twin multi-
function joystick controls and foot throttle
4 Turntable Mounted Winch
5 Winch Normal Speed with 15,000 lbs bare drum capacity
6 Digger, Two-Speed Mechanical Shift, 12,000 ft-lbs
7 2 50 in Hex Output Shaft With 2 50 in Hex Extension Shaft
8 Digger Storage
9 Platform - fiberglass pin-on
10 Derrick is Rated for Platform Use
11 Platform Cover
12 153 - Platform Liner
13 Foot throttle
14 Four-Lever Upper Controls and Tool Circuit, transferable and pullout, for use with 8 foot
personnel jib
TEXAS MUNICIPAL LEASE-PURCHASE AGREEMENT- Page 6
EXHIBIT A (Continued)
DESCRIPTION OF PROPERTY
TEXAS MUNICIPAL LEASE-PURCHASE AGREEMENT No 6417 (THE "AGREEMENT")
BY AND BETWEEN
Lessor, Government Capital Corporation and Lessee, City of Sanger
Dated as of September 16, 2013
15 Standard Hydraulic Side Load Protection
16 Code 450 Outriggers, A-frame, folding shoe, 153 maximum spread, for use as auxiliary
or primary outriggers
17 Code 41 Outriggers, A-frame, fixed shoe, 149 maximum spread, for use as auxiliary
outriggers only
Unit & Hydraulic Acc
18 Unit Installation Components
19 Dirt Auger, 18" Dia , With 2-1/2" Hex X 104" Long 070090055
20 Custom Carbide Teeth Auger AUGER ASSEMBLY,STEP ROCK,BULLET,8 INSIDE TEETH
TOTAL,18 00 IN DIA,2 50 IN HEX,104 00 IN L,900054335
21 Winch Rope For Turntable Winch
22 Load Line Swivel Hook, 8-1/2 Ton (Crosby)
23 DL/DM Series Derrick Subbase (Rigid)
24 Subbase Storage With Drop Down Door (Paddle Latch) At Rear
25 Insert Subbase Stop At 10'
26 Standard 1" Space between Subbase and frame for hose routing and ease of
maintenance
27 HVI-22 Hydraulic Oil (Standard)
28 Reservoir, 60 Gallon, (Altec Standard) Installed at front of cargo area
29 Standard Altec PTO Functionality for Automatic Transmissions
30 Install Tool Circuit For Hose Reel Installation, Below Rotation
31 Spring Loaded Hose Reel, 50 FT Hose Capacity Install hose reel at curbside rear,
payout to the curbside
32 50' Conductive Hose Kit, Black, Includes Quick Disconnects and Dust Caps
33 Piston Pump, Pressure Compensated, right hand rotation, provides 43 gpm max system
flow at 3000 psi max system pressure
Body
34 Altec Body SAME AS 970001280-349073
35 Steel Body
36 Bobtail Service Line With Step (BSLS)
37 Approximate Body Length (Engineering to Determine Final Length) 140"
38 94 Inch Body Width
39 46 Inch Body Compartment Height
40 18 Inch Body Compartment Depth
41 Finish Paint Body Altec White (Applies To Steel And Aluminum)
42 Undercoat Body
43 2 Inch x 4 Inch Drop-In Wood Cargo Retaining Board At Top Of Side Access (Preferred
Option)
44 Treadplate On Streetside Compartment Tops (Not a Walking Surface)
45 Treadplate On Curbside Compartment Tops (Not a Walking Surface)
46 Stainless Steel Rotary Paddle Latches With Keyed Locks
47 Standard Master Body Locking System
48 One Chock Holder On Each Side of Body With Retaining Lip In Fender Panel
49 Hotstick Shelf Extending Full Length Of Body On Streetside
50 Two Hotstick Brackets On Streetside
51 Standard Drop-Down Hotstick Door For One (1) Shelf On Streetside, Stainless Steel
Slam Paddle Latch With Keyed Lock
52 1st Vertical (SS) - Adjustable Shelf With Removable Dividers On 4 Inch Centers
53 2nd Vertical (SS) - Locking Swivel Hooks On An Adjustable Rail - Left Wall
54 2nd Vertical (SS) - Locking Swivel Hooks On An Adjustable Rail - Rear Wall
55 2nd Vertical (SS) - Locking Swivel Hooks On An Adjustable Rail - Right Wall
56 3rd Vertical (SS) - Locking Swivel Hooks On An Adjustable Rail - Left Wall
57 3rd Vertical (SS) - Locking Swivel Hooks On An Adjustable Rail - Rear Wall
TEXAS MUNICIPAL LEASE-PURCHASE AGREEMENT-Page 7
EXHIBIT A (Continued)
DESCRIPTION OF PROPERTY
TEXAS MUNICIPAL LEASE-PURCHASE AGREEMENT No 6417 (THE "AGREEMENT")
BY AND BETWEEN
Lessor, Government Capital Corporation and Lessee, City of Sanger
Dated as of September 16, 2013
58 3rd Vertical (SS) - Locking Swivel Hooks On An Adjustable Rail - Right Wall
59 1st Horizontal (SS) - Fixed Shelf With Lip, No Slots, No Dividers (Plain Shelf)
60 1st Vertical (CS) - Locking Swivel Hooks On An Adjustable Rail - Left Wall
61 1st Vertical (CS) - Locking Swivel Hooks On An Adjustable Rail - Rear Wall
62 1st Vertical (CS) - Locking Swivel Hooks On An Adjustable Rail - Right Wall
63 2nd Vertical (CS) - Gripstrut Access Steps With Two (2) Sloped Grab Handles Provide
12 guage treadplate scuff panels on each wall of access step area
64 3rd Vertical (CS) - Locking Swivel Hooks On An Adjustable Rail - Left Wall
65 3rd Vertical (CS) - Locking Swivel Hooks On An Adjustable Rail - Rear Wall
66 3rd Vertical (CS) - Locking Swivel Hooks On An Adjustable Rail - Right Wall
67 1st Horizontal (CS) - Fixed Shelf With Removable Dividers On 8 Inch Centers
Body and Chassis Accessories
68 34" L Steel Tailshelf, Width to Match Body
69 Cable Step Installed At Rear, Single Step Curbside rear
70 Rigid Step Mounted Beneath Side Access Steps
71 Compartment Top Access Step from Body Floor Access to curbside sidepack top
72 Riding Seat Access Step (For Derricks)
73 U-Shaped Grab Handle Curbside rear
74 ICC (Underride Protection) Bumper Installed At Rear
75 Dock Bumpers (Pair), Fixed Mounting (Rectangular Bumper), Installed At Rear Frame
Rails So They Are The Furthest Point Back
76 T-125 Style Pintle Hitch
77 Set Of D-Rings for Trailer Safety Chain, installed one each side of towing device mount
78 Glad Hands At Rear, Straight Type
79 Lower Boom Rest Weldment
80 Mounting Brackets for Lights, Located on Lower Boom Rest
81 Outrigger Pad, 24" x 24" x 3", Wood With Rope Handle
82 Outrigger Pad Holder, 25" L x 25" W x 5" H, Fits 24" x 24" x 4" And Smaller Pads,
Bolt-On, Bottom Washout Holes, 3/4" Lip Retainer
83 Wheel Chocks, Rubber with Metal Hairpin Style Handle
84 Mud Flaps With Altec Logo (Pair)
85 Safety Harness And 4 5' Lanyard (Fits Medium To Xlarge) Includes Pouch and Placards
86 5 LB Fire Extinguisher With Light Duty Bracket, Installed
87 Triangular Reflector Kit, Installed
88 Slope Indicator Assembly For Machine With Outriggers
89 Vinyl manual pouch for storage of all operator and parts manuals
Electrical Accessories
90 Install Two Speed Throttle System Install switch adjacent to outrigger tool controls on
curbside rear
91 Altec Standard Multi-Point Grounding System
92 Lights and reflectors in accordance with FMVSS #108 lighting package
93 Altec Standard Amber LED Strobe Light With Brush Guard Installed one each side of
lower boom stow
94 Dual Tone Back-Up With Outrigger Motion Alarm
95 PTO Hour Meter, Rectangular With 10,000 Hour Display
96 Altec Modular Panel System (AMPS) - Includes Mounting Panel and Accessory
Switches
97 Power Distribution Module Is A Compact Self-Contained Electronic System That
Provides A Standardized Interface With The Chassis Electrical System
98 DM47B-TR FA Installation
99 Focus Factory Build
100 Finish Paint Body Accessories Altec White
TEXAS MUNICIPAL LEASE-PURCHASE AGREEMENT—Page 8
EXHIBIT A (Continued)
DESCRIPTION OF PROPERTY
TEXAS MUNICIPAL LEASE-PURCHASE AGREEMENT No 6417 (THE "AGREEMENT")
BY AND BETWEEN
Lessor, Government Capital Corporation and Lessee, City of Sanger
Dated as of September 16, 2013
101 Altec Standard, Components mounted below frame rail shall be coated black by Altec
102 Apply Non-Skid Paint to all walking surfaces
103 English Safety And Instructional Decals
104 Vehicle Height Placard - Installed In Cab
105 Dielectric test unit according to ANSI requirements
106 Stability test unit according to ANSI requirements
107 Placard, HVI-22 Hydraulic Oil
Chassis
108 Chassis
109 Altec Supplied Chassis
110 2014 Model Year
111 International 4300 Set Back Axle
112 4x2 Drivetrain
113 Chassis Cab To Axle Length - 120 inch
114 Conventional Cab
115 Chassis Color - White NAV9036
116 Maxxforce 9
117 250 HP Engine Rating
118 Allison RDS-3500 Automatic Transmission
119 GVWR 33,000 LBS
120 13,000 LBs Front Axle Rating
121 20,000 LBs Rear Axle Rating
122 11R22 5 Front Tire
123 11R22 5 Rear Tire
124 Air Brakes
125 07BEJ - Navistar 7000 series Recommended Exhaus
(Right-Horizontal-Under-cab-Vertical)
126 12VZA - International PTO Throttle Wiring
127 International Heavy Duty Tail Light Wiring (08HAB)
128 International Transmission Dipstick Relocated to RH Side Of Transmission (13WGH)
129 No Prewire Chassis
130 No Idle Engine Shut-Down Required
131 50 Gallon Fuel Tank Left Hand
132 Air Conditioning
133 AM/FM Radio
134 Power Door Locks
135 Power Windows
136 Cruise Control
137 Towing Package
138 Drive Controlled Locking Differential
139 Air Ride Drivers Seat
140 Air Ride Passenger Seat
PROPERTY LOCATION
202 Railroad Ave
Sanger, TX 76266
TEXAS MUNICIPAL LEASE-PURCHASE AGREEMENT—Page 9
EXHIBIT B
>> SCHEDULE OF PAYMENTS & OPTION TO PURCHASE PRICE <<
LEASE PURCHASE AGREEMENT No. 6417 (THE "AGREEMENT") BY AND BETWEEN
Lessor: Government Capital Corporation and
Lessee: City of Sanger
chedule dated as of September 16, 2013
PYMT PMT DATE TOTAL INTEREST PRINCIPAL OPTION TO PURCHASE
NO. MO DAY YR PAYMENT PAID PAID after pmt on this line
1 2/15/2014 $50,234.96 $2,322.19 $47,912.77 N/A
2 2/15/2015 $50,234.96 $4,115.25 $46,119.71 $97,320.21
3 2/15/2016 $50,234.96 $2,782.39 $47,452.57 $49,177.63
4 2/15/2017 $50,234.96 $1,411.01 $1.00
Grand Totals $200,939.84 $10,630.84c$48,823_1-5Th
190,309.00
Accepted By Lessee:
Mike Brice, City Manager
TEXAS MUNICIPAL LEASE-PURCHASE AGREEMENT-Page 10
INCUMBENCY, INSURANCE, AND ESSENTIAL USE CERTIFICATES
TEXAS MUNICIPAL LEASE-PURCHASE AGREEMENT No.6417 (THE "AGREEMENT")
BY AND BETWEEN
Lessor, Government Capital Corporation and Lessee, City of Sanger
Dated as of September 16, 2013
I,Tami Taber,do hereby certify that I am the duly elected or appointed and acting City Secretary(Keeper of the Records),of City
of Sanger, a political subdivision or agency duly organized and existing under the laws of the State of Texas,that I have custody of the
records of such entity,and that,as of the date hereof,the individual(s)named below are the duly elected or appointed officer(s)of such
entity holding the office(s) set forth opposite their respective name(s). I further certify that (i) the signature(s) set opposite their
respective name(s)and title(s)are their true and authentic signature(s),and(ii)such officers have the authority on behalf of such entity
to enter into that certain Texas Municipal Lease-Purchase Agreement dated as of September 16, 2013, between such entity and
Government Capital Corporation.
Name Title Signature
Mike Brice City Manage`,+"����►�i�it'� ,,i
����...•
IN WITNESS HEREOF, I have dullcuted i certificate and affixed the seal of such entity hereto this 2/ 7
day of
..(yt-o 4eyt 110.41,— , 2013, ;
By Lessee:
•
\ • • .7 RE.
•
rVa�abv
TXAS ``` 'ami Taber, City Secretary
Lessee certifies that property and liability insurance,if applicable,have been secured in accordance with the Agreement and such coverage
will be maintained in full force for the term of the Agreement. "Lessor or its Assigns" should be designated as loss payee until Lessee is
notified, in writing, to substitute a new loss payee. The following information is provided about insurance—
(PLEASE FILL IN THE INFORMATION BELOW)
INSURANCE COMPANY/AGENT'S NAME:
INSURANCE COMPANY ADDRESS:
PHONE NUMBER:
POLICY NUMBER:
I, Mike Brice, City Manager, of City of Sanger("Lessee"), hereby certify that the Equipment, to be leased to the undersigned under the
certain Lease Agreement,dated as of September 16, 2013, between such entity and Government Capital Corporation ("Lessor"), will be
used by the undersigned Lessee for the following purpose:
(PLEASE FILL OUT PRIMARY USE BELOW)
PRIMARY USE-- �/[ec�r 1(� �<
The undersigned hereby represents that the use of the Equipment is essential to its proper, efficient and economic operation.
IN WITNESS WHEREOF, I have set my hand this cam-
q day of t�� � �/� -�, 2013.
By Lessee:
Mike Brice, City Manager
For Lessee: City of Sanger
TEXAS MUNICIPAL LEASE-PURCHASE AGREEMENT-Page 11
CERTIFICATE OF ACCEPTANCE
TEXAS MUNICIPAL LEASE-PURCHASE AGREEMENT No 6417 (THE "AGREEMENT")
BY AND BETWEEN
Lessor, Government Capital Corporation and Lessee, City of Sanger
Dated as of September 16, 2013
1 ACCEPTANCE In accordance with the Agreement, Lessee hereby certifies that all of the Property described herein (i) has been
received by Lessee,(ii)has been thoroughly examined and inspected to the complete satisfaction of Lessee,(iii)had been found by Lessee
to be in good operating order,repair and condition,(iv) has been found to be of the size,design,quality,type and manufacture specified
by Lessee,(v)has been found to be and is wholly suitable for Lessee's purposes,and(vi)is hereby unconditionally accepted by Lessee,in
the condition received, for all purposes of this Agreement
By Lessee
(*)
Mike Brice, i y Manager
For Lessee City of Sanger
ACCEPTED on this the day of �� f/` , 2013
(*) ACCEPTANCE MUST BE SIGNED ONLY IF NO ESCROW AGREEMENT IS INCLUDED
2 PROPERTY
DIGGER DERRICK, SEE ATTACHED EXHIBIT A
3 USE The primary use of the Property is as follows (PLEASE FILL OUT PRIMARY USE BELOW)
PRIMARY USE--
4 PROPERTY LOCATION
202 Railroad Ave
Sanger,TX 76266
5 INVOICING Invoices shall be sent to the following address, including to whose attention invoices should be directed
Attn Cheryl Davenport, Finance Director
502 Elm Street
Sanger,TX 76266 y
6 INSURANCE Lessee certifies that property and liability insurance have been secured in accordance with the Agreement and such
coverage will be maintained in force for the term of the Agreement Lessor will be designated as loss payee until Lessee is notified, in
writing,to substitute a new loss payee (PLEASE CONFIRM INSURANCE TYPE BELOW)
Company Insured Election to self-insure in accordance with Section 10 of the Agreement
7 MAINTENANCE In accordance with Section 6 of the Agreement, Lessee agrees to,at its own expense,service, repair and maintain
the Property for the term of the Agreement as follows (PLEASE CONFIRM MAINTENANCE TYPE BELOW)
Maintenance Contract Election to self-maintain
TEXAS MUNICIPAL LEASE PURCHASE AGREEMENT-Page 12
NICHOLS, JACKSON, DILLARD, HAGER & SMITH, L.L.P.
Robert L Dillard,III Attorneys& Counselors at Law ROBERT L DILLARD,JR (1913-2000)
E-mail rdillard@njdhs corn 1800 Ross Tower H LOUIS NICHOLS(1916-2010)
500 North Akai2d Street
Dallas,Texas 75201 LAWRENCE W JACKSON
(214)965-9900 OF COUNSEL
Fax(214)965-0010
E-mail NJDHS�a NJDHS corn
October 1, 2013
Government Capital Corporation
Attention Documentation Department
345 Mixon Drive
Southlake, Texas 76092
RE Texas Municipal Lease-Purchase Agreement No 6417
Dear Lessor,
I have acted as Counsel to the City of Sanger with respect to that certain Texas Municipal
Lease-Purchase Agreement No 6417, by and between Government Capital Corporation as
Lessor and City of Sanger as Lessee I have reviewed the Agreement and such other documents,
records and certificates of Lessee and appropriate public officials as I have deemed relevant and
am of the opinion that
1 The Lessee is a political subdivision of the State of Texas, with the requisite power
and authority to incur obligations, the interest on which is exempt from taxation by
virtue of Section 103(a) of the Internal Revenue Code of 1986,
2 The execution, delivery and performance by the Lessee of the Agreement have been
duly authorized by all necessary action on the part of the Lessee, and
3 The Agreement constitutes a legal, valid and binding obligation of the Lessee
enforceable in accordance with its terms
4 The above opinions may be relied upon by the-Lessee, Lessor;or its Assigns
Very truly yours,
NICHOLS, JACKSON, DILLARD,
HAGER& MITH, L L P
1 r
a
CY= Robert L Dillard II
62667