2016-007 - Municipal Lease Agreement with Liberty National Bank for fire truck

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determined by adding the Lessor's assumed residual value for all of the Equipment plus the principal remaining for all of the Equipment as shown on the applicable Schedule. Third step — the "Stipulated Loss Value" shall be the amount determined by multiplying the Affected Equipment Percentage times the Lessor's Unrecovered Investment, and then adding to that amount any and all taxes arising out of or in connection with the Casualty Occurrence and /or the transfer of the Item of Equipment for salvage purposes. LESSOR'S DETERMINATION OF THE STIPULATED LOSS VALUE AND THE RESULTING CASUALTY PAYMENT SHALL BE CONDUCTED N A COMMEFCIALLY REASONABLE MANNER, AND, ASSUMING SUCH REASONABLENESS, SHALL BE BINDING AND CONCLUSIVE UPON LESSEE. 15. TAXES AND GENERAL COVENANTS. (a) This Lease is a lease to a governmental agency pursuant to sections271.001 et seq. of Texas Local Government Code, and, as such, the Equipment is currently exempt from all taxation by the State of Texas and any of its political subdivisions. (b) To the extent required by law, Lessee shall prepare and file all personal property tax returns and shall pay when due any and all sales, use, property and excise taxes, license and registration fees, ad valorem taxes and assessments, charges and other duties of any nature whatsoever (except for taxes based on Lessor's net income), however designated, now or hereinafter imposed by any governmental entity, whether based upon the rent or the Equipment or the purchase, delivery, ownership, leasing, use, possession or return thereof. If Lessee shall fail to pay any such taxes, fees, assessments, charges or other duties when due, Lessor may, but is not obligated to, pay such amounts. Lessee shall promptly reimburse Lessor for any and all such amounts paid by Lessor, and the failure of Lessee to reimburse Lessor promptly shall constitute an Event of Default hereunder. (c) Lessee shall keep the Equipment free and clear of all levies, liens and encumbrances. (d) Within fifteen (15) days of availability, and in any event within one hundred eighty (180) days after the end of each fiscal year, Lessee shall furnish to Lessor a balance sheet of Lessee and the related statement of changes in net assets and schedule of revenues, expenditures and changes in fund balance, showing sources and uses of income for such fiscal year, all in reasonable detail and stating in comparative form the figures as of the end of the fiscal year and for the previous corresponding period. If requested by Lessor, such financial statements shall be audited, or certified by an independent certified public accountant satisfactory to Lessor, accompanied by an opinion (inform and substance satisfactory to Lessor) of such public accountant, and must be signed by an appropriately authorized official of Lessee. 16. REPRESENTATIONS AND WARRANTIES OF THE LESSEE. The Lessee represents and warrants as follows: (a) Lessee is a public body, corporate and politic, duly organized and existing under the constitution and the laws of the State of Texas. (b) Lessee will do or cause to be done all things necessary to preserve and keep in full force and effect its existence as a body corporate and politic. (c) Lessee is authorized under the constitution and laws of the State of Texas to enter into this Lease and the transactions described herein, and to perform all of its obligations hereunder. (d) Lessee has been duly authorized to execute and deliver this Lease under the terms and provisions of the resolution of its governing body, by appropriate official approval, and further represents, covenants and warrants that all requirements have been met and procedures have occurred in order to insure the enforceability of this Lease, and Lessee has complied with such public bidding requirements as may be applicable to this Lease and the acquisition by Lessee of the