Equipment Lease Agreement - PNC Equipment Finance - City Department Vehicles and Equipment

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City of South Bend Request for Proposals —Tax. Exempt Municipal Lease Financing- Lease Purchase Financing April 30, 2018 FINANCED AMOUNT: $6,115,434.00 PAYMENT MODE/FREQUENCY: Semi -Annually in Arrears (first payment due January, 2019) LEASE TERM: Five (5) years (will consider 4 year carve out on Technology Equipment) LEASE RATE: 2.961% LEASE RATE FACTOR: 0.10883003 LEASE PAYMENTS, Ten (10) Principal and Interest Payments of $665,542,87, IESCROW FUNDING: At lease closing, Lessor shall fund the entire Financed Amount into an escrow account from which disbursements will be made to the existing Lessor and to equipment provider(s) as directed. Escrow agent will either be Lessor or third -party provider selected by Lessor and approved by Lessee. All escrow earnings will be for the benefit of Lessee. A set-up fee for Lessor's escrow arrangement will be $250.00, due at lease closing. INSURANCE: The Lessee shall furnish confirmation of all risk physical damage insurance coverage for the full cost ofthe property. in addition, Lessee shall provide $2 million combined single limit property damage and bodily injury insurance covering the property. Lessor shall be named as loss payee and additional insured on such coverage. INDEXED FINANCING RATE: After May 18, 2'018, Lessor reserves the right to adjust the Lease Rate to current market conditions prior to documentation and funding. The Lease Rates offered herein shall be indexed to the 5-year interest rate swap as published at httos://www,tlieice,com/marketdata/reDortsJI80 /US Rates 1100) ("ICE"). On April 26, 2018, the ICE 5-year interest rate swap is 2.935%. The lease rate used to establish the periodic lease payments shall be adjusted, up or down, by the change in the interest rate swap times 0.79 and then added or subtracted to the base Lease Rate indicated herein to determine the lease rate for the lease schedule, three business days prior to lease funding. AUTHORIZED SIGNERS: The Lessee's governing board shall provide Lessor with its resolution or ordinance authorizing this Agreement and shall designate the individuals) to execute the Agreement used therein. LEGAL OPINION: The Lessee's counsel shall furnish Lessor with an opinion covering this Agreement. This opinion shall be in a form and substance satisfactory to Lessor at Lessee's cost. TAX OPINION: The Lessee's bond! counsel shall furnish Lessor with a tax opinion covering this Agreement, This opinion shall be In a form and substance satisfactory to Lessor at Lessee's cost.