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B PNC <br />EQUIPMENT FINANCE <br />July 7, 2016 <br />Ms. Jennifer C. Hockenhull, CPA <br />Deputy City Controller <br />City of South Bend <br />Department of Administration and Finance <br />227 W. Jefferson Boulevard <br />South Bend, IN 46601 <br />Via Email: Ihockenh@southbendin.gov <br />RE: Request for Proposals, Tax Exempt Municipal Lease Financing— Lease Purchase Financing (the "RFP") <br />Dear Ms. Hockenhull, <br />PNC Equipment Finance, LLC for itself, its successors and assigns, is pleased to submit this tax-exempt Lease <br />Purchase Agreement Proposal (the "Proposal") to the City of South Bend forthe purchase of Capital Equipment <br />and Vehicles (further described below). Our Proposal is as follows: <br />LESSEE: <br />LESSOR: <br />City of South Bend <br />PNC Equipment Finance, LLC <br />TYPE OF FINANCING: Tax-exempt Lease Purchase Agreement (the "Agreement") with $1.00 <br />buyout option at end of lease term. Said Agreement shall be a net lease <br />arrangement whereby Lessee is responsible for all costs of operation, <br />maintenance, insurance and taxes. <br />NON -BANK QUALIFICATION: This Proposal assumes that the Lessee will be issuing more than $10 <br />million in tax-exempt debt during calendar year2016. Furthermore,it <br />is assumed that the Lessee will NOT designate this issue as a qualified <br />tax-exempt obligation pursuant to Section 265(b)(3) of the Internal <br />Revenue Code of 1986, as amended (the "Code"). A portion of each <br />Lease Payment allocated as "interest" will be excludable from the gross <br />income for federal income tax purposes pursuant to Section 103(a) of <br />the Code. <br />FINANCED AMOUNT: <br />PAYMENT MODE/FREQUENCY: <br />LEASE TERM: <br />LEASE RATE: <br />$78,808.00 <br />Semi -Annual in Arrears <br />(first due January 14, 2017) <br />Five (5) Years <br />1.522% <br />LEASE PAYMENTS: Ten (10) Principal and Interest payments. <br />