04/01/85 Board of Public Works Minutes

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REGULAR MEETING APRIL 1, 1985 BANKERS LEASING ASSOCIATION INCORPORATED Mr. Karl Berliant 155 Revere Drive Northbrook, Illinois 60062 TERM: Six (6) years commencing on January 15, 1986 LEASE PAYMENTS: Twelve (12) equal semi-annual payments payable January 15th, and July 15th of each year, commencing on January 15, 1986 at the rate of $106.83 per $1,000 of total cost of equipment (payment is calculated by multiply- ing a factor of .10683 times the exact contract price.) Example: Total contract price = $2,000,000 Factor = x.10683 Payment = $213,660.00 NOTE 1: Lease payments commencing January 15, 1986 include principal and interest and will remain fixed for the full term of the lease. NOTE 2: The first payment due on January 15, 1986 will be increased by the amount of accumulated interest due on outstanding principal amount representing payments made to vendors for equipment delivered and accepted by the City in accordance with the paragraph below titled "Vendor Progress Payments". VENDOR PROGRESS PAYMENTS It is understood that Lessor may be required by specific Vendors to make payments on account of all or any part of the Equipment prior to the Commencement Date of the Lease if the equipment is delivered and accepted by the Lessee (City). In the event that Lessor shall make any such pay- ments, Lessee shall pay to Lessor as additional rental with respect to such Equipment (in addition to all rentals specified above) an amount equal to interest on such progress payments, from the date of payment by Lessor to the Commencement Date at a rate per annum equal to 2% above the lowest rate of interest charged by Bank of America National Trust and Savings Association from time to time on 90 day unsecured loans to its largest and most sub- stantial commercial and industrial borrowers ("Prime Rate"). The Prime Rate shall be determined as of the first day of the calendar month prior to the due date of such additional rental. Such additional rental shall be payable on January 15, 1986. ADDITIONAL CONDITION OF PROPOSAL: This proposal and the rental rated quoted are conditioned on existing Federal regulations as they affect the tax exempt status of interest earned on the financing of lease purchase agreements. Should these regulations be changed at any time prior to January 15, 1986, Bankers Leasing Association, Inc. reserves the right to increase the rental rate reflecting the loss of any tax exemption earned.