2014-031 - Authorizing a Lease Purchase Agreement with Liberty National Bank for the purchase of one fire engine

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MUNICIPAL LEASE AGREEMENT THIS LEASE made this 271h day of October, 2014, by and between Liberty National Bank and The Citv of Paris. Texas ( "Lessor "), and ( "Lessee "). 1. LEASE. Lessor hereby leases to Lessee and Lessee hereby leases from Lessor all machinery, equipment and other property (collectively the "Equipment" and individually an "Item of Equipment ") described in (a) the schedule executed by the parties concurrently herewith and made a part hereof ( "Schedule 1 "), and (b) any schedule or schedules hereinafter executed by the parties hereto and made a part hereof (collectively the "Schedules" and individually a "Schedule "). 2. TERM, TERMINATION AND NONAPPROPRIATION. (a) The initial term of the Lease with respect to each item of Equipment shall commence on the date which is set out on the Schedule for that item of Equipment (the "Commencement Date" and shall terminate on the last day of Lessee's current fiscal year (the "Initial Term "). The Lease term will be automatically renewed at the end of the Initial Term and any subsequent fiscal year for an additional one year period (each, a "Renewal Term "), unless it is terminated as the result of non - appropriation of funds by Lessee, pursuant to Section 2(c) hereof. The terms and conditions during any Renewal Term shall be the same as the terms and conditions during the Initial Term, except that the rental payments shall be as provided in the Schedule. The Initial Term and the subsequent Renewal Terms set forth in the Schedule for each Item of Equipment constitute the Lease Term (the "Lease Term "). (b) The Lease Term will terminate upon the earliest of any of the following events: (i) The expiration of the Initial Term or any Renewal Term of this Lease and the nonrenewal of this Lease in the event of non - appropriation of funds pursuant to Section 2(c) hereof. (ii) A default by Lessee and Lessor's election to terminate the Lease under Section 18 hereof, or (iii) The payment by Lessee of all rent required to be paid by Lessee hereunder for the Equipment. (c) In the event sufficient funds shall not be appropriated for the payment of the rent required to be paid in the next occurring Renewal Term, then this agreement shall be deemed terminated at the end of the Initial Term or the then current Renewal Term, and Lessee shall not be obligated to make payment of the rent provided for in the Schedule of this Lease beyond such Initial Term or Renewal Term. Lessee agrees to deliver notice to Lessor of such termination of Lease at least thirty (30) days prior to the end of such Initial Term or Renewal Term, but failure to give such notice shall not extend the term beyond such Initial Term or Renewal Term. (d) Lessee intends, subject to the provisions of Section 2(c) hereof, to continue the Lease Term through the Initial Term and all Renewal Terms and to pay the rent during the Initial Term and each of the Renewal Terms, provided that lawful appropriations therefore can be obtained. Lessee further intends to do all things lawfully within its power to obtain and maintain funds from which the rent payments may be made, including making provision for such rent payments to the extent necessary in each fiscal year budget or appropriate request submitted and adopted in accordance with the applicable provisions of state law, to have such portion of the budget approved and to exhaust all available reviews and appeals in event such a portion of the budget is not approved. 3. RENT. (a) The rentforeach item of Equipment shall be that amount designated in the applicable Schedule and shall be payable to Lessor inadvance in amounts and atthe time and place asset forth in the Schedule, orto such other person, or at such other place as Lessor may from timeto time designate in writing. (b) Lessor and Lessee understand that and intend that the obligation of the Lessee to pay rent hereunder shall constitute a current expense of Lessee and shall not in anyway be construed to be a debt of Lessee in contravention of any applicable constitutional or statutory limitations or requirements concerning the creation of indebtedness by Lessee, nor shall anything contained herein constitute a pledge of the general tax revenues, funds or monies of Lessee. (c) Lessee shall pay rent, exclusively from legally available funds, in lawful money of the United States of America to Lessor, or in the event of assignment by Lessor, to its assignee, in the amounts and on the dates setforth in the Schedule hereto. The payment of rent shall be in consideration for Lessee's use of the Equipment