Chapter 117 – Lease Purchase Agreement

(ORD # 1-92)

 

Chapter 117–LEASE PURCHASE AGREEMENT

 

Section 1.    Authorization of Documents.  The City is hereby authorized to enter into the Equipment Lease/Purchase Agreement dated as of September 15, 1991 (the “Lease/Purchase Agreement), between Nodaway Valley Bank (the “Bank”), as lessor, and the City, as lessee, under which the City shall lease certain equipment from the Bank (the “Equipment”), for the Rental Payments and other terms and conditions as set forth in said Lease/Purchase Agreement, in substantially the forms presented to and reviewed by the City Council at this meeting and attached to this Ordinance as Exhibit A (copies of which document shall be filed in the records of the City), with such changes therein as shall be approved by the officers executing such documents, such officers’ signatures thereon being conclusive evidence of their approval thereof.

 

Section 2.    Limited Obligations.  The Rental Payments under the Lease/Purchase Agreement shall be appropriated annually by the City and shall not constitute a debt, liability or indebtedness within the meaning of any constitutional or statutory debt limitation or restriction.

Section 3.    Execution of Documents. The Mayor and the City Clerk are hereby authorized and directed to execute and deliver the Lease/Purchase Agreement and such other documents, certificates and instruments as may be necessary or desirable to carry out and comply with the intent of this Ordinance.

 

Section 4.    Exception from Rebate Requirements. The City makes the following representations in connection with the exception for small governmental units from the arbitrage rebate requirements under Section 148(f) (4) (C) of the Internal Revenue Code of 1986, as amended (the “Code”):

 

  • the City has general taxing powers;

 

  • 95% or more of the net proceeds of the Lease/Purchase Agreement are to be used for local governmental activities of the City; and

 

  • the aggregate face amount of all tax-exempt obligations (other than private activity bonds) to be issued by the City and all entities subordinate to the City during calendar year 1991, including the obligations represented by the Lease/Purchase Agreement, is not reasonably expected to exceed $5,000,000. Pursuant to Section 148(f) (4) (C) (iv) of the Code, the City hereby allocates a portion of its $5,000,000 limitation for calendar year 1991 in an amount equal to the principal amount of the Certificates.

 

Section 5.  Designation as Qualified Tax-Exempt Obligations.  The City hereby designates the Lease/Purchase Agreement and the obligations thereunder to be “qualified tax-exempt obligations” as such term is defined in Section 265(b) (3) of the Code.  The City hereby represents that:

 

  • the reasonably anticipated amount of tax-exempt obligations

(other than private activity bonds) which will be issued by or on behalf of the

City and all entities subordinate to the City during calendar year 1991 does not exceed $10,000,000; and

 

 

  • the aggregate principal amount of obligations designated by the City as “qualified tax-exempt obligations” during calendar year 1991, including the Lease/Purchase Agreement, does not exceed $10,000,000.

 

Section 6.  Further Authority.  The officers of the City, including the Mayor and the City Clerk, shall be, and they hereby are, authorized and directed to execute all documents and take such actions as they may deem necessary or advisable in order to carry out and perform the purposes of this Ordinance, to make alterations, changes or additions in the foregoing agreements, statements, instruments and other documents herein approved, authorized and confirmed which they may approve, and the execution or taking of such action shall be conclusive evidence of such necessity or advisability.