The URL can be used to link to this page

Home My WebLink AboutPNC Leasing THE TOM GALLIGAN 501 E. C~urt Av mute February 4, 1997 PNC Leasing Corp., Kentucky 330 Guthrie Green. Suite 301 Louisville, KY 40202-2514 Gentlemen: This letter is being provided in conjunction with the Leese document~ exEK ut* ~ on Februa~/4, 1997. Rather than purchasing the equipment described in these documents from ihs respective vendors for a cash price, our Board felt that it would be more beneficial t 3 finance the equipment from your institution. We recognize that the total financing cost exceeds the purchase price with t~e difference representing interest. We understand that in allowing us this pricing, PNC is assuming that ou; la~ exemption as a political subdivision flows through to them making this income i:~ rtially exempt from Federal Income Tax. Sincerely, McCauley Deputy Mayor hm ...... '~'~ i! 3 03 61 THE NVILI-, ~,:.-c TOM GALLI6AN "~' -.. ~. -~ ~ ~ ~ ~ 501 E. C~u~ Mawr .... ;..-_..,_..~ ..~!.: .... ;--'? jd/~nv~e, i:~ na 471~ DEPARTMEI~ OF LAW (81~} 28~6 ~ MAR~ SEEMICI~ F~ ~1~) FebruarY 4, 1997 PNC Leasing Corp., Kentucky 330 Guthde Green Suite 301 Louisville, KY 40202 RE: Lease Agreement between City of Jeffersonville, indiana and PNC i.~;a.~;Ing Corporation Dear Sir or Madam: This letter has been issued at your request for the purpose of facilEating the cap.foned Lease Agreement. Please be advised that the Jeffersonville Fire Department operated under the auspices of the City of Jeffersonville, indiana, and that the City has accessibility to tax revenue funds for its operation. Financing for the lease of the two fire trucks in question was approved at a me~lin!l of the Common Council of the City of Jeffereonville held on July 9, 1996, The Cit~', threugh its Mayor and Common Council has the authority to enter into e lease a ~d to bind the City of jeffemonville to the terms and conditions of the lease beyond th~- t=-rms of office of the sitting Mayor and Common Council. The officials authorized by the Council to sign documents on its behalf include Mayor Thomas R. Gailigan and ;)e puty Mayor Philip W. McCauley. The City of Jeffersonviiis (the lessee) has designated this Lease Purchase as a "qualified tax-exempt obligation" pursuant to Section 265(b)(3) of the Internal P.f,v¢ hue Code. The City has not issued, and does not intend to issue, more than ten million dollars(S10,000,000.00) of 'lax-exempt obtigations' in the 1997 calendar year T~e City understands that should it be determined that this obligation does not quality "qualified tax-exempt obligation" the interest rate as set forth in the documents f~xE outed on or about this date will be adjusted to the taxable rate equivalent for the entire t~rm the Lease. Page Two February 4, 1997 PNC Leasing Corp., Kentucky If I can by of any further assistance, please do not hesitate to contact me. Yours very truly, Anne Marie Sedwick Cit7 Attorney AMS/gs EXHIBIT DESORI1~ON OF EQUIPMENT Th~ Eq~ipmenl which is ~e ~ d ~ a~c~ ~ ~ ~ A~ ~ ~ ~: 2 ~u~num ~ ~ f~ °n~ ~t 16 4g 3~lJ~ 32 1.~" dbl~ ~ h~ S0' ~n 2 16' ~io~ of 10,~ ~i ~t~on h~. one ~ one ~11~ ~th ~ ~l~ ~plints ~ 1~ 2 ~ 03~IOR 16 6~3 2.5" 4 ~3 1.~" A~ Mo~ 4 HQP ~ier ~ Li~, Po~ble 1~ ~, H~ Du~ ~ 2 4~20~, ~ Wire ~le T~ ~k Plug 2 472~, ~t~ ~m T~l~k F~Je Eu~ 6 MSA 6 ~A~r~ 6 ~469 S~ 2 E~ Bg~A 2 E~ 4~ 02 2 ~n ~o~ Cl~p 2 E~ ~97A 6 S320 2 1/2" To~ ~ all ~ili~, ~io~ ~d ~p~en~ ~o. ~ ~ ~flifi~ that ~ d~lion ~e ~ pro~ ~ fo~ ~ ~t~ aa ~ f~ ~n o~e ~" ~ ~n~ in t~ a~ch~ ~ ~d ~ ~. LES~: C~ ~ ~~E, ~I~A LOCATION OF EQUIPMENT: }~.~willeFir~Dept, 937WaliSL,~t leffersonvill~lN4?130 EXI-I]BIT "B" ACCEPTANCE CEKTIFICAT~ The undersigned, as Lessee under the Lease and Purchase Agreement (the "Agr~-~ ~ tt ~) dated February 3, 1997 with PNC L_oo_ _~ng Corp,, Kentucky ("Lessor'), acknowledge~ reo,'ip: in good conaifiun of all of the equipment described in the Agreement and in Ex~bit A theses) fl~s 24TH day of MARCH .., 1997 and certifies that Lessor has fully ~ sa~tfactl~dl/ L~ms~ ~ntfums that the Commencement Date of tho A~ment is l~m, CR 24 ~ 9_1~ _ and it will wmmen~ payments in accordance with Article VI of tho Agreement. The undersigned officer of the Lesse~ hereby reaffirms in all respects the Certifia,t,~' a ~ to Arbitrage attached as Exhibit D to the Agreement, end represents that to the best of his or her knowledge~ information and belief, the expectations therein expressed were reasonable ~.'; eli ho Commen~rnent Date, no facts, estimates or circumstances other than those expressed th~ e~t that would materially afl'ect the expectations expressed therein. LESSEE: CITY OF JEFF~R. SONVILLE, EN'DIAlqA 1 5,263.45 2,167.43 3,096.02 36,673.18 2 5,263.45 1,998.70 3,264.75 33,408.43 3 5,263.45 1,820.77 3,442.68 29,965.74 4 5,263.45 1,633.14 3,630.3I 26,335.43 5 5,263.45 1,4.35.29 3,828.16 22,507.27 6 5~263A5 1,226.65 4,036.80 18,470.47 7 5,263.4:5 1,006.64 4,~56.81 14,213.~6 8 5,263.45 774.65 4,488.80 9,724.86 9 5~263.45 530.01 4,733.44 4,991.42 10 5,263.45 272.03 4,991.42 Exl~t C to tl~ L~s~ and l~r~Ka~ Agr~m~t dat~ F~aaty 03, 1997. Lessee: C~ ~ Jefl'erMm~lJP~ Indiana #30363 EXHIBIT "D" CERTIFICATE AS TO AKB~GE L the undersigned officer of City of Jeffersonville, Indiana (the "Lessee") being the person au' y cl~'ged, with others, with the Mayor's responsibility for issuing the Lessee's oblig~on in t~e ~onn of tha~ certain Agreement entitled "Lease and Purchase A~reement" (the "Agreemant') &~ ed February 3, 1997, and i~ued sn~d date HEREBY CEPcr~Y THAT: 1. The Agreement was issued by the Lessee under and pursuant to law to finance t~e acquisition of certain equipment descn'bed therein. 2. Pursuant to the Agreement, the Lessee is entitled to receive said equipmant in consideration for the obligation nfthe Lessee under the Agreement, Said equipment will be.u,~ ed in furtherance ofthe public purposes of the Le~se~. The lessee does not intend to sell said equtpx a~nt or said Agreement or to otherwise dispose of said equipment during the term of the Agre~r a~ ~. The Lessee will not reeelvc any monies, funds or other "proceeds" as a result of the Agre~,~,~m l. 3. The Lesse~ has not received notice that its C{~tificate may not be relied upon wit~ respect to its issues t~or has been advised that any adverse action by the Commiss/oner o/' b,t~ hal Revenue is contemplated. To the best of my knowledge, information and heliefthe expectations herdn expre~:'~d are reasonable and there are no facts, estimates or ciroumstances other than those expressed h,e :e~ 1 that would materially affect the expe~-'tations heroin expressed. IN ~I'I'NES8 WHEREOF, I have hereunto s~t my hand this ~ da3~ of , 1~ 97 . LESSEE: CITY OF ~EFFERSONVILLE, INDIANA TITLE PNC Leasing Corp., Kentucky 330 Guthrie Green, Suite 301 Louisville. KY 40202-2514 Gentlemen: This letter is being provided in conjunction with the Lease documents on March 25, ~997 covering ancillary equipment that has been mounted on or wil b~ stored in the two 1997 Pierce Arrow Pumpers financed under Lease Rather than purchasing the equipment described in these documents from th ~ respective vendors for a cash price, our Board felt that it would be rno~e beneficial t~. finance the equipment from your institution. We recognize that the total financing cost exceeds the purchase price with th~ difference representing interest. We understand that in allowing us this pricing, PNC is assuming that our E~c exemption as a political subdivision flows through to them making this income pmtial}y exempt fi.om Federal Income Tax. Sinserely, M¢Cauley Deputy Mayor hm