090313a Agenda PackageHARNETT COUNTY BOARD OF COMMISSIONERS
County Administration Building
102 East Front Street
Lillington, North Carolina
Regular Meeting
September 3, 2013 9:00am
1. Call to order-Chairman Jim Burgin
2. Pledge of Allegiance and Invocation-Vice Chairman Gary House
3. Consider additions and deletions to the published agenda
4. Consent Agenda
A. Minutes
B. Budget Amendments
C. Tax refunds, rebates and releases
D. Public Utilities requests approval of an increasing final adjusting change order for
Sanford Contractors/Fort Bragg Wastewater Project in the amount of$506,246.80.
The majority of the additional funding required for this change order resulted from an
aerial crossing of Jumping Run Creek along Hwy 210 at the Cumberland and Harnett
County line.
E. Sheriff's Office would like to establish a fee of $150 to offer polygraph services to
local law enforcement agencies.
F. Cooperative Extension requests permission to apply for a grant from North Carolina
State University Family & Consumer Science Foundation in the amount of$1,000 to
support kindergarten readiness program through the Parents As Teachers Program in
Cooperative Extension
G. County Engineer requests approval of easement to allow Duke Energy Progress to
install power for the pump stations for the Dunn Erwin Corrective Action Project
located at the Dunn Erwin Landfill.
H. County Engineer requests permission to decommission the fuel tank and pump at the
County garage. County vehicles will be fueled at service stations using the Wright
Express fuel cards. Fuel purchases will be in accordance with the NC State Contract
Purchasing Program.
I. County Engineer requests adoption of the fuel card usage policy. Fuel purchases will
be in accordance with the NC State Contract Purchasing Program.
J. County Engineer requests approval of contract with Clark Nexen for preliminary
feasibility study to address the reuse of Shawtown and Boone Trail schools.
K. Relay for Life of Harnett County requests waiver of room rental fees for the use of
the Commons Area Meeting Room for their Planning Committee meetings.
L. The Harnett County Fair Board requests a fee waiver for the county landfill for 2 to 3
loads of demolition, estimated $100 -$150 in cost, to prepare for the upcoming
livestock show. The Fair Board will hold a livestock show at Chandler's Way Ranch
located at 305 Creekside Drive in Angier. Owner Dave Chandler has waived the
Page 1
rental fee for the covered arena for the livestock show however some cleaning is
needed to host the show. Volunteers and Fair Board members will work to prepare
the site for the livestock show.
M. Finance Officer requests approval of new fees for Emergency Management for the
2013/2014 budget year for ABC Form Inspection of$35 and Foster Home Inspection
of$20.
N. Administration requests approval of Resolution Supporting NC DOT's US 401
Improvement Project
0. Cooperative Extension requests approval of Proclamation Celebrating the Centennial
Anniversary of Extension and Community Association
5. Period of up to 30 minutes for informal comments allowing 3 minutes for each presentation
6. Appointments
7. County Manager's report-Tommy Bums, County Manager
8. New Business
9. Closed Session
10. Adjourn
Page2
Agenda Item '/-C.
Date : 09/03/2013 Approved By :
TO : HARNETI COUNTY BOARD OF COMMISSIONERS
RE: CONSIDERATION OF REFUND FOR TAXES, INTEREST AND PENALTIES FOR ALL MUNICIPALITIES
BURGOYNE, FELIX CHARLES Ill City 0.00 Military
100 WATERS WAY 0002000836-2012-2012-000000 8.96 Refund Exemption
LILLINGTON, NC, 27546 County 8.96
2 STRITIMAN, MATTHEW City 0.00 Military
SAMUEL 0002005574-2012-2012-000000 91.00 Refund Exemption
86 SNOWDEN LN
CAMERON, NC, 28326-6063 County 91.00
3 WHITEHURST, ALLEN KYLE City() 43.16 Situs
278 GOLD CT 0001887343-2013-2011-000000 44.75 Refund Correction
BROADWAY NC, 27505-8192 County 1.59
4 WHITEHURST, ALLEN KYLE City() 42.54 Situs
278 GOLD CT 0001887343-2013-2012-000000 43.31 Refund Correction
BROADWAY NC, 27505-8192 County 0.77
5 WIENKE, DAVID JOHN City 0.00 Military
WIENKE, SAMANTHA RACHEL 0002084127-2012-2012-000000 166.49 Refund Exemption
33 WOLFPACK LN County 166.49 CAMERON, NC, 28326 -6284
6 WILLIAMS, IMANI DANIELLE City 0.00 Military
12 BUCKEYE PL 0002078328-2012-2012-000000 113.77 Refund Exemption
CAMERON, NC 283266167 County 113.77 CAMERON, NC, 28326-6167
7 WOLF, !SOBEL T City 0.00 Value
2386 NC 55 E 0000060512-2009-2009-000000 69.16 Refund Decrease
DUNN NC, 28334-0000 County 69.16
8 WOLF, !SOBEL T City 0.00 Value
2386 NC 55 E 0000060512-2010-2010-000000 69.16 Refund Decrease
DUNN NC, 28334-0000 County 69.16
9 WOLF, !SOBEL T City 0.00 Value
2386 NC 55 E 0000060512-2011-2011-000000 70.03 Refund Decrease
DUNN NC, 28334-0000 County 70.03
10 WOLF, !SOBEL T City 0.00 Value
2386 NC 55 E 0000060512-2012-2012-000000 70.03 Refund Decrease
DUNN NC, 28334-0000 County 70.03
WM. A. TONY WILDER City Total 85.70
Revenue Administrator County 660.96 Total
Total to be 746.66 Refunded
CC:
WM. A. TONY WILDER
Board Report
Date : 09/03/2013 Approved By: ________ _
TO : HARNETI COUNTY BOARD OF COMMISSIONERS
RE: CONSIDERATION OF REFUND FOR TAXES, INTEREST AND PENAL TIES FOR ALL MUNICIPALITIES
FAIRWAY POINT LLC City
125 WHISPERING PINES DR 0001169223-2011-2011-000000
SPRING LAKE NC, 28390-
0000 County
2 FAIRWAY POINT LLC City
125 WHISPERING PINES DR
SPRING LAKE NC 283900000 0001264684-2012-2012-000000
SPRING LAKE NC, 28390-County
0000
WM. A. TONY WILDER
Revenue Administrator
CC:
WM. A. TONY WILDER
0.00
1,640.42
0.00
600.00
City Total
County
Total
Total to
be
Refunded
1 ,640.42 Refund
600.00 Refund
0.00
2,240.42
2,240.42
Value Decrease
Double Billed
Agenda Item L.f-Q
Board Meeting
Agenda Item
.Se-pfeh1 be r 3, Q C(3
MEETING DATE: A-ugust 19, 2613
TO: HARNETT COUNTY BOARD OF COMMISSIONERS
SUBJECT: Final Adjusting Change Order for Sanford Contractors/Fort Bragg
Wastewater Project
REQUESTED BY: Steve Ward, HCDPU
REQUEST:
This is a formal request for the Board to approve an increasing final adjusting change order
in the amount of $506,246.80. The majority of additional funding required for this change
order resulted from an aerial crossing of Jumping Run Creek along Hwy 210 at the
Cumberland and Harnett County line. The crossing was necessitated by the inability of the
contractor to bore under the bridge/culvert at the creek due to steel pylons located beneath
the culvert. Additional final quantities and an added pump station bypass along Shady Grove
Rd were the other cost items that contributed to the change order. A summary of the change
order is included for your review. This change order and others in this project are funded
entirely by Fort Bragg through a project contingency fund negotiated prior to project
construction. Please place this item on the consent agenda at the next available meeting.
COUNTY MANAGER'S RECOMMENDATION:
C:\Users\sward\Desktop\Fort Bragg\CLIN 0003 Construction\Sanford Contractors, Inc. Final Adjusting CO Agenda
Request 7-30-13.doc Page I of I
USDA-FmHA FORM APPROVED
OMB NO. 0575-0042 Form FMHA 1924-7
(Rev. 2/87) CONTRACT CHANGE ORDER 1-=0;.:.:R::::.:DE:::.R.:...:.N.:.::O;.;... --'"""':::"~~2 ~,...--..
DATE 7/12/2013
STATE North Carolina
CONTRACTOR FOR Harnett County Wastewater Service to Fort Bragg -Contract 2 Section 2 COUNTY I Harnett
OWNER Harnett County Department of Public Utilities
--------------~~-"!?!~_<?.?.~~~~~C?_~S..!_I~':;--------------
Contractor
You are hereby requested to comply with the followinj! changes from the contracr plans and specifications:
Description of Changes DECREASE INCREASE
(Supplemental Plans and Specifications Attached) in Contract Price in Contract Price
1. Shady Grove Pump Station Bypass $110,662.05
2. Shady Grove Bore at Pump Station-Right otWay Issue $7,936.20
3. Cross Under Culvert at Station 1 68+00 per NCDOT Requirement $30,516.91
4. Highway 210 Station 121+00 to 137+00 R&R Exsting Catch Basins $17,352.14
5. Additional Labor and Expense at Ray Road due to Required Extra Depth Excavation $8,379.50
6. Aerial Crossing of Arch Culvert $95,510.00
7. Adjusted quantities $96,550.00
a. HOPE installed In Casing and Cut and Cover $53,640.00
9. Failed Pilot Hole $85,678.00
TOTALS $506,246.80
I NET CHANGE IN CONTRACT PRICE $506,246.80 I
JUSTIFICATION
See Attached summary.
Total change Is approximately 10.7% of bid price.
The Contract amount, $4,740,753.02 will be Increased by the sum of:
Dollars $506,246.80
The Contract Total Including this and previous Change Orders Will Be:
Dollars $5,246,999.82
The Contract Period Provided for Completion Will Be Unchanged: Days
The document will become a supplement to the c all provisions will apply hereto.
Requested /
Date Recommende::d~::::-.::.._ ______ ..:.....:;._...:.......;...,...:..;~....J1~.-t\-.!....tt.......;~......;_ __ ...;.\>_:f._· _· ~......;_\_":;!,_«1_4_-\-• _!_> __ ~--
Date
Accepted 0
Date
Jim Burgin, Chairman
Harnett County Board of Commissioners
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Agenda Item L/-E
Board Meeting
Agenda Item
YIEETING DATE: September 3, 2013
TO: HARNETT COU~TY BOARD OF COMYIISSIONERS
SCBJECT: New Fee
REQCESTED BY: SheriffRollins
REQUEST:
The Harnett County Sheriffs office would like to offer polygraph services to local law
enforcement agencies for an established fee of$ 150.00.
COUNTY MANAGER'S RECOMMENDATION:
C:\Users\MHAIRR\Desktop\20 13 2014\13 14 Agenda\:--.Jew SRO position.doc
I of I
Page
Board Meeting
Agenda Item
Agenda Item !:1_£
MEETING DATE: September 3, 2013
TO: HARNETT COUNTY BOARD OF COMMISSIONERS
SUBJECT: Permission to Apply for Grant
REQUESTED BY: Tyrone L Fisher, County Extension Directo~
REQUEST:
Harnett County Cooperative Extension request permission to apply for a grant from North
Carolina State University Family & Consumer Science Foundation in the amount of$1,000
to support kindergarten readiness program through the Parents As Teachers Program in
Cooperative Extension.
COUNTY MANAGER'S RECOMMENDATION:
C:\Users\swilliam~ \Desktop\County forms\agendaform20 12-2013 .doc
I of 1
Page
FOUNDATION NC State
University
Innovative Programming Grant
funded through the
North Carolina Family and Consumer Sciences Foundation
The Innovative Programming Grant is designed to support initiatives and
programs that enhance Family and Consumer Sciences educational programs at
the county, district, and/or state levels.
Funding Level: $1000
Guidelines for funds received:
• Funds will be used within a year of their receipt.
• Funds can supplement new or existing programming efforts.
• Programs receiving funding must provide impact data and success stories to
the NC Family and Consumer Sciences Foundation.
• Funds will be handled according to county, district or state grant policies
Who is eligible?
Any active FCS staff member employed through North Carolina Cooperative
Extension. Applicant can be a county, district or state staff member.
Applications should be electronically sent to Dr. Wilma Hammett. Please send
applications to wilma hammett@ncsu.edu.
NCFCSF Innovative Programming Grant
May, 2013
Board Meeting
Agenda Item
Agenda Item _4.f-{;.
MEETING DATE: September 3, 2013
TO: HARNETT COUNTY BOARD OF COMMISSIONERS
SUBJECT: Easement for power for Dunn Erwin Corrective Action Project
REQUESTED BY: Amanda Bader, County Engineer
REQUEST:
Request approval of attached easement to allow Duke Energy Progress to install power for
the pump stations for the Dunn Erwin Corrective Action Project located at the Dunn Erwin
Landfill.
COUNTY MANAGER'S RECOMMENDATION:
http://hamett.org/boc/downloads/agendafonn2013.doc Page 1 of 1
EASEMENT
NORTH CAROLINA
HARNETT COUNTY
THIS EASEMENT made this ___ day of----------· 20 __ , from COUNTY OF HARNETT,
hereinafter referred to as GRANTOR {whether one or more), to CAROLINA POWER & LIGHT COMPANY, a North
Carolina public service corporation, d/b/a PROGRESS ENERGY CAROLINAS, INC., hereinafter referred to as PEC;
W I T N E S S E T H:
THAT GRANTOR, for and in consideration of the sum of ONE DOLLAR {$1.00) and other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, does hereby grant unto PEC, its successors
and assigns, the right, privilege, and easement to go in and upon the land of GRANTOR situated in Grove Township of
said County and State, described as follows: containing 174.945 acres. more or less, and being the land described in
deeds to County of Harnett from: (1)Thelma Lucas Parrish, et vir. dated March 30, 1995, recorded in Book 1091 page
456; (2) P. J. Johnson. et ux. dated April 26, 2004, recorded in Book 1922 Page 633: (3)Jeanette Daniel Johnson. et vir.
dated March 3, 2005. recorded in Deed Book 2049 page 178; (4)Lynda Daniel Butler. et vir, dated March 3, 2005,
recorded in Deed Book 2049 Page 182: and (5) Richard Wayne Daniel, et ux. dated March 3. 2005. recorded in Deed
Book 2049 Page 186, all of Harnett County Registrv. LESS AND EXCEPT any prior out-conveyances, and to construct,
maintain, and operate electric and/or communication facilities thereon consisting of poles, cables, wires, guys, anchors,
underground conduits, enclosures, and other pertinent facilities within an easement area thirty {30) feet wide for the
overhead portion of said facilities and ten (1 0) feet wide for the underground portion of said facilities together with an area
ten (10) feet wide on all sides of the foundation of any PEC enclosure, with the right to do all things necessary, including,
but not being limited to, the right: (a) to enter said easement area at all times over the adjacent land to inspect, repair,
maintain, and alter said facilities; (b) to keep said easement area cleared of trees, shrubs, undergrowth, buildings,
structures, and obstructions; (c) to trim or cut any tree adjacent to said easement area that may, in the opinion of PEC,
endanger the overhead facilities or hinder the maintenance, operation, and use of the same; and {d) to install, at angle
points of the overhead facilities, guy wires and anchors outside of said easement area. The center line of the facilities
shall be the center line of said easement area. PEC shall not install facilities outside of said easement area without
obtaining another EASEIIIIENT, except for those facilities that may be Installed as set forth in item (d) above.
It is understood and agreed that said overhead facilities shall be approximately located as shown on the attached
copy of map entitled "Dunn-Erwin Landfill Power Line Easement for Harnett County", dated August 14, 2013, prepared by
Streamline Land Surveying, Inc., RLS, License No.C-1898, Project No. 130814HC.
TO HAVE AND TO HOLD said rights, privilege, and easement unto PEC, its successors and assigns, forever. IN
WITNESS WHEREOF, GRANTOR has caused this EASEMENT to be signed by its duly authorized officials and its official
seal to be hereunto affixed, pursuant to a resolution of its governing body, as of the date first above written.
ATTEST:
___ Clerk
HARNETT COUNTY
By:-------------
, Chairman,
--------=soa-rd-:-o-::f-::C:-o-mmissioners
{Affix Official Seal)
NORTH CAROLINA,----------COUNTY
I, --------------------··a Notary Public of------------
County, North Carolina, certify that personally appeared
before me this day and acknowledged that he(she) is Clerk of HARNETT COUNTY, and that by authority duly
given and as the act of said COUNTY, the foregoing EASEMENT was signed in its name by its Chairman,
sealed with its official seal, and attested by self as its Clerk. c Witness my hand and notarial seal, this ___ day of _____________ , 20 __ .
-----------------~~-~~ . . . -. . Notary Public
My commission expires:--------
The foregoing certificate of is certified to be correct.
This EASEMENT and this certificate are duly registered at the date and time and in the book and page shown on the first
page hereof.
Register of Deeds for------County
By:----------Deputy/Assistant
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Board Meeting
Agenda Item
Agenda Item lf -H
MEETING DATE: September 3, 2013
TO: HARNETT COUNTY BOARD OF COMMISSIONERS
SUBJECT: Fuel Usage
REQUESTED BY: Amanda Bader, PE, County Engineer
REQUEST:
Requests permission from the Board to decommission fuel tank and pump at garage. County
vehicles will be fueled at service stations using the Wright Express fuel cards. Fuel
purchases will be in accordance with the North Carolina State Contract Purchasing Program
COUNTY MANAGER'S RECOMMENDATION:
http://www .hamett.org/boc/downl oads/agendaform20 13.doc
I of I
Page
Board Meeting
Agenda Item
Agenda Item Y-I
MEETING DATE: September 3, 2013
TO: HARNETT COUNTY BOARD OF COMMISSIONERS
SUBJECT: Fuel Card Usage Policy
REQUESTED BY: Amanda Bader, PE, County Engineer
REQUEST:
Requests adoption of the fuel card usage policy. County vehicles will be fueled at service
stations using the Wright Express fuel cards. Fuel purchases will be in accordance with the
North Carolina State Contract Purchasing Program
COUNTY MANAGER'S RECOMMENDATION:
http://www .harnett.org/boc/downloads/agendaforrn20 13 .doc
I of I
Page
I. Purpose
Fuel Card Usage Policy
Engineering and Fleet Maintenance
This policy establishes the requirements for managing and using fuel cards for County-
owned and leased vehicles.
II. Background
The County will use cards issued in accordance with the North Carolina State Contract
purchasing program for the purpose of purchasing fuel for County owned or leased vehicles.
Ill. Procedures/Requirements/Responsibilities
A. Engineering and Facilities Management
1. Establish policies and assign responsibilities to manage fuel card usage.
Procedures and responsibilities must include the following:
a. Collect monthly vehicle odometer readings to the vehicle's monthly fuel
transactions to ensure fuel consumption is appropriate for the vehicle.
b. Retain monthly statements.
c. Resolve billing disputes.
2. Internal controls will be used for using fuel cards. Controls include:
a. Limit on the number of transactions during a certain time period (day, month,
week)
b. Limit dollar amount per transaction.
c. Require odometer reading at the point of sale. Fuel card usage may be
suspended for incorrect odometer readings input.
d. Prohibit non-fuel purchases.
e. Prohibit fuel purchases to unleaded fuel or diesel only. No purchases of
super unleaded or premium unleaded or equivalent will be allowed.
3. Fuel Cards will be assigned to a vehicle and shall not be used for other equipment or
vehicles.
4. Odometer readings will be used to track mileage between oil changes. If the
mileage exceeds 5500 miles between oil changes, fuel card usage will be
suspended.
B. Department Head Responsibilities
1. Request assignment of cards as needed to vehicle.
2. Review and approve monthly fuel card transactions for each authorized employee
under his or her supervision and ensure fuel card usage is consistent with the
employees' Work assignments.
3. Review monthly fuel reports to ensure calculated gas mileage is consistent and
appropriate for the vehicle.
C. Authorized Employee Responsibilities
1. Read the Fuel Card Policy.
2. Understand that in all instances, the driver is responsible for entering his/her own
assigned ID number. Immediately report a lost or stolen cards.
3. Fueling of unauthorized vehicles or equipment is strictly prohibited.
4. Odometer readings shall be accurately entered by the user.
5. Only regular unleaded fuel or diesel fuel purchases are allowed.
IV. Violations
Any violations to this policy will result in appropriate disciplinary action in accordance with the
Harnett Count Personnel Ordinance.
Harnett County Fuel Card Use Employee Agreement
1. I have read, understand, and will comply with the Fuel Card Policy.
2. I understand that I am prohibited from using premium grade fuel.
3. I agree to use the card for all fuel purchases.
4. I will immediately notify my supervisor if a card is lost or stolen.
5. I understand that I am required to comply with internal control procedures.
6. I agree not to share my FueiiD with any other person.
7. I understand that I can only use the card for fuel for the authorized vehicle the card is assigned
to.
8. If I misuse the card for personal purchases, I authorize the County to deduct from my salary or
from other monies owed me, and amount equal to the total of the personal purchases, 1 agree
to allow the County to collect any amounts owed by me even if the County no longer employs
me.
9. I understand improper use of this card may result in disciplinary actions, including termination
of employment and criminal action.
10. I understand that the County may terminate my card use privileges at any time for any reason.
Employee Signature Issuer's Signature
Employee Printed Name Issuer's Printed Name
Employee Department Date
Date
Board Meeting
Agenda Item
Agenda Item 4-0'
MEETING DATE: September 3, 2013
TO: HARNETT COUNTY BOARD OF COMMISSIONERS
SUBJECT: Preliminary Feasibility Study for Shawtown and Boone Trail Reuse
REQUESTED BY: Amanda Bader, County Engineer
REQUEST:
Request approval of contract with Clark Nexen for preliminary feasibility study to address
the reuse of Shawtown and Boone Trail schools.
COUNTY MANAGER'S RECOMMENDATION:
http:/ /hamett.org/boc/ downloads/agendaform20 13 .doc Page 1 ofl
Architecture & Engineering
July 31, 2013
County of Harnett
P.O. Box 759
Lillington, North Carolina 27546
Attn: Tommy Burns
County Manager
Re: Shawtown School, Boone Trail School, and the Old Lillington School Reuse
Preliminary Feasibility Studies, CN Comm. No 4987
Dear Amanda,
This letter is in follow up to our discussion relative to the scope of a preliminary feasibility
study to assess the potential of reusing of Shawtown School, Boone Trail School, and the
Old Lillington School for current educational facility needs.
As we discussed, we will be drawing off of experience from having recently completed two
similar projects for the Wake County Public School System where we renovated the former
Thompson School to become the Men's Leadership Academy and two buildings on the
Governor Morehead School property for the Women's Leadership Academy.
We outlined a two-step process starting with completing a preliminary walk through and
analysis of the condition of the existing buildings. Specific areas to be examined include the
current requirements of the building code for educational facilities, the ADA, visual review of
the existing building systems, and identification of other visible elements to be addressed to
meet the requirements for reusing the building. The fee for the initial evaluation of each
school will be $1,500.00.
Once an on-site review is completed and it appears that a school can be updated to meet
current code and operational requirements, then the process will move to a second step. We
will review the standard educational program requirements for the school type, for example
a middle school, in the Harnett County Schools and see what modifications or additions
would be required to meet the educational specification for the school. We will then put an
order of magnitude estimate on the cost of renovations and additions required and provide
a summary of our analysis to the county. The fee for the program evaluation of each school
selected for step two will be $1,000.00.
We will proceed to schedule the site visit upon written acceptance of this proposal and move
to complete the preliminary feasibility studies as quick as possible. If you find this proposal
consistent with our discussion, please sign and return two copies.
Archiucture & Engineering
July 31, 2013
Page 2 of 2
We look forward to proceeding with this project. Feel free to call with any questions you
may have.
Sincerely,
Clark Nexsen Architecture & Engineering
~
HCC/bas
cc: Amanda Bader, PE, LEED AP
File
Date: _____________ _
Independent Contractor: Clark Nexen shall perform duties hereunder as an independent contractor
and not as an employee. Neither Clark Nexen nor any agent or employee of Clark Nexen shall be or
shall be deemed to be an agent or employee ofthe County of Harnett.
Conformance with Law: Clark Nexen shall at all times during the term of this contract strictly adhere
to all applicable local, federal and state laws and implementing regulations as they currently exist and
may hereafter be amended. Clark Nexen shall also require compliance with these statutes and
regulations in subcontract agreements, if any, permitted under this contract. Clark Nexen also shaH
comply with any and all laws and regulations prohibiting discrimination in the specific programs(s)
which is/are the subject of this contract. In consideration of and for the purpose of obtaining any and
all federal and/or state financial assistance, Clark Nexen makes the following assurances and
certification, upon which the County relies.
a. Clark Nexen will not discriminate against any person on the basis of race, color, national
origin, age, sex, religion, and/or handicap, in performance of work under this contract.
b. At all times during the performance of this contract, no qualified individual with a
disability shall, by reason of such disability, be excluded from participation in, or denied benefits of
the service, programs, or activities performed by Clark Nexen, or be subjected to any discrimination
by Clark Nexen.
c. Clark Nexen certifies that, at the time ofthis certification, it does not knowingly employ or
contract with an illegal alien.
Harnett County is an equal employment opportunity employer. The County is a federal contractor,
and therefore the provisions and affim1ative action obligations of 41 CFR § 60-1.4( a), 41 CFR 60-
741 .5(a), and 41 CFR 60-250.4 are incorporated herein by reference, where applicable.
Assignment/Delegations/Subcontracting: Except as herein specifically provided othenvise, the duties
and obligations of Clark Nexen arising herew1der cannot be assigned, delegated, nor subcontracted
except with the express prior written consent of the County ofHarnett.
Integration of Understandings: This contract is intended as the complete integration of all
understandings between the parties. No prior or contemporaneous additions, deletions, subsequent
renewal, deletion, or other amendment hereto shall have any force or affect unless embodied herein in
writing signed by both parties.
Controlling Law: This contract shall be governed by and construed in accordance Vv'ith the laws of the
State ofNorth Carolina.
Indemnification/limit of liability paragraph: To the extent permitted by law, Clark Nexen will
indemnify and hold harmless the County of Harnett, its officers, agents and employees from and
against all loss, cost, damage, expense and liability caused by accident or other occurrence resulting
in bodily injury, including death and disease to any person or damage or destruction to property, real
or personal arising directly or indirectly from operations, products, or services rendered or purchased
under this Contract.
Mediation: Any claim, dispute or other matter in question arising out of or related to this Contract
sha11 be subject to mediation and may be considered prior to the institution of legal or equitable
proceedings by either party. The Parties agree that the mediation will be conducted and governed by
the North Carolina Rules Implementing Statewide Mediated Settlement Conferences in Superior
Court Civil Actions and the North Carolina General Statutes. The parties shall share the mediator's
fee and any filing fees equally. The mediation shall be held in Harnett County, unless another
location is mutually agreed upon. Agreements reached in mediation shall be enforceable as
settlement agreements in any court having jurisdiction thereof.
Use of County Name prohibited: Clark Nexen may not use the name or other identifying
characteristic of the County or its employees in any advertisements or promotions.
Severance Clause: in the event any provision of this Agreement is adjudged to be unenforceable or
found invalid, such provision shall be stricken and the remaining provisions shall be valid and
enforceable.
Force Majeure: Clark Nexen and County agree that they shall not be responsible to one another for
any delays, damages, costs, expenses, liabilities or other problems that may arise as a result of force
majeure. A "force majeure" is defined as any event arising from causes beyond the reasonable
control of consultant and/or county, including but not limited to fire, flood, unusual inclement
weather, acts of God, civil strikes or labor disputes, riots, acts or failures of government.
Non-appropriation Clause: Clark Nexen acknowledges that County of Harnett is a governmental
entity and the contract validity is based upon the availability of public funding under the authority of
its statutory mandate. In the event that public funds are unavailable and not appropriated for the
performance of County of Harnett's obligations under this contract, then this contract shall
automatically expire without penalty to County of Harnett thirty (30) days after written notice to
Clark Nexen ofthe non-appropriation of public funds.
Termination: Failure to satisfactorily perform the services required by this contract will be grounds
for County of Harnett to declare Clark Nexen in default. Upon default by Clark Nexen, County of
Harnett shall provide thirty (30) days written notice to Clark Nexen of its default, if said default is not
corrected by Clark Nexen within this thirty (30) day period, this contract may be canceled or annulled
in whole or in part by the County of Harnett for nonperformance or violation o this contract's terms.
Upon canceliation ofthe services of Clark Nexen by the County of Harnett an award may be made to
another vendor who submitted a proposal to the County of Harnett for this contract for goods or
services, or they may be purchased on the open market and Clark and Nexen shall be liable to County
of Harnett for costs to the County of Harnett in excess of the defaulted contract prices.
This instrument has been preaudited in the manner required by the Local Government Budget and Fiscal
Control Act.
Agenda Item 4-K
RELAY
FOR LIFE
Relay for Life of Harnett County
Relay for Life of Harnett County
Tammy Erickson -Planning Committee Chair
749 Circle Drive
Angier NC, 27501
To: Harnett County Manager
Tommy Bums
I 02 E. Front Street
Lillington NC, 27546
Mr. Bums,
Relay for Life is the American Cancer Society's signature event that celebrates cancer
survivorship and raises much needed funds for patient and family services, research and education. The
Harnett County Planning Committee has been working on getting meeting dates and locations scheduled.
We would like to use the commons room at the Governmental Complex to hold our team captains
meetings and our planning committee meetings. Relay meetings have been held in the commons room for
many years. The governmental complex is centrally located, easy to find and has adequate space for our
meetings. Our team captains meetings are currently scheduled for September 19, October 17, November
21,2013, January 16, February 20, March 20, AprillO, April28, May 15,and June 5, 2014. The
planning committee meeting are scheduled for September 12, October 3, November 7, December 5, 2013,
January 2, February 6, March 6, April 3, April24, and May 22, 2014. It is with great hope that you will
consider donating the facility for us to use. As you know we are trying to raise money for the American
Cancer Society and we have a very small budget to work with. If you are so generous as to donate the
facility for us to use we will most definitely make you an in-kind sponsor for Harnett County Relay for
Life. Sponsors and in-kind sponsors are listed on the Harnett County Relay website, listed in all
programs and printed on the back of the Relay t-shirts. Just so you are aware, Donda Blake is my co-chair
for Relay and she is a county employee and works at the Department of Social Services. She will be at
every meeting with me. Donda and I would both take responsibility for the use of the room. Thank you
so much for your time and consideration in this matter.
Thanks,
Tammy Erickson
919-639-7042 I 919-630-7145
CETE87 @aol.com
American Cancer Society
South Atlantic Division, Inc.
2202 Wnghts•:1i!e ;',enue, Su1te: 111 Wilm1ngton, NC 28403
p) 910.254.4870 I 866.620.6781 f) 910.254.4820
Cancer Information 1.800.227.2345 Rela;Forlife.org
®
Board Meeting
Agenda Item
Agenda Item_!./-.J_
MEETING DATE: September 3, 2013
TO: HARNETT COUNTY BOARD OF COMMISSIONERS
SUBJECT: Landfill Fee Wavier for County Fair Board ,/~
REQUESTED BY: Tyrone Fisher, Cooperative Extensi-M
REQUEST:
The County Fair Board is requesting a fee wavier for the County Landfill for 2 -3 loads of
demolition, estimated $100-$150, for the County Livestock Show. We will be having the
County Livestock Show at Chandler's Way Ranch, 305 Creekside Drive, Angier, NC 27501.
Mr. Dave Chandler, owner, has waved his rental fee for our show. The covered arena needs
some cleaning up to host our Livestock Show. Volunteers and fair board members have set-
up workdays at the arena to prepare the site for the show.
First workday was Friday, August 16t11 , one load was taken the Erwin Landfill, Mr. Chandler
paid $43.20 (receipt attached). Estimated at least one more load, but no more than three loads
total.
Requesting to reimburse Mr. Chandler $43.20 and waive the landfill fee for the next two
loads.
COUNTY MANAGER'S RECOMMENDATION:
\\hcfile2\Coopusers\tfisher\M y Documents\Administration\AgendaF orm20 13F airBoardLandfiiiWavi er.doc Page
I of I
HARNED COUNTY LANDFILL
P 0 BOX 760 -1 02 EAST FRONT
LILLINGTON, NC 27546
000000 CASH CUSTOMER
1.08
Scale 1 Gross Wt.
Scale 1 Tare Wt.
Net Weight
19880
17720
2160
any Harnett County Landfill, Transfer Station, or Convience
Center must be secure. Failure to do so will result in
citation under G.S. 20-116G enforced by HC Sheriff's Office
WW6Tl
LB
LB
LB
Inbound -Cash ticket
Carolyn Brown
1.80
August 12, 2013
To: Harnett County Commissioners
Re: Fee Waiver
The Harnett County Fair Board requests a fee waiver at the county landfill for the County
Fair Livestock Show.
Sincerely,
Orwra R{fb',1
Donna Rigby
Fair Board Chair
Board Meeting
Agenda Item
Agenda Item LJ.-/VJ
MEETING DATE: September 3, 2013
TO: HARNETT COUNTY BOARD OF COMMISSIONERS
SUBJECT: Fees for Emergency Management
REQUESTED BY: Kimberly Honeycutt, Interim Finance Officer
REQUEST:
Request that the following fees for the 2013 -2014 budget year be approved. The
department had requested these fees but they were omitted from the budget package.
ABC Form Inspection-new fee $35
Foster Home Inspection -new fee $20
COUNTY MANAGER'S RECOMMENDATION:
Harnett Agenda Item 1../.-h/
COUNTY
RESOLUTION SUPPORTING
NCDOT'S US 401 IMPROVEMENT PROJECT
WHEREAS, the North Carolina Department of Transportation (NCDOT) has a plan to enhance
US 401 from Cumberland County, thru Harnett County, to Wake County; and
WHEREAS, US 401 is identified by the NCDOT as a Strategic Highway Corridor; and
WHEREAS, the 39 mile US 401 project is included in the NCDOT 2012-2018 State
Transportation Improvement Program as Project# R-2609; and
WHEREAS, Harnett County, as well as the Research Triangle Region and Fort Bragg, continue
to experience an enormous amount of growth; and
WHEREAS, a transportation system drives economic growth and competitiveness, supports
rural and urban connectivity, and sustains jobs and the quality of life for our citizens; and
WHEREAS, Harnett County and its municipalities have an established Comprehensive
Transportation Plan in which this project has be identified as a need for Harnett County; and
WHEREAS, Harnett County has participated in several regional initiatives to plan for long term
growth; and
NOW, THEREFORE BE IT RESOLVED that the Harnett County Board of Commissioners do
hereby support the research and construction of the US 401 improvement project as proposed by
the North Carolina Department of Transportation. Furthermore, Harnett County advocates for the
State to fund right of way acquisition and construction following the completion of the
Environmental and Planning Phase which will be complete within the next two years.
Adopted this the __ day of ____ , 2013.
Jim Burgin, Chairman
ATTEST:
Margaret Regina Wheeler, Clerk to the Board
strong roots • new growth
www.harnett.org
Harnett
COUNTY
Proclamation Celebrating the Centennial Anniversary
of Extension and Community Association
WHEREAS, Two-thousand thirteen is a historic year, the centennial of the North Carolina
Extension and Community Association; and
WHEREAS, the organization was formally organized in 1913 as Home Demonstration Clubs,
and in the 1960's became known as Extension Homemakers Clubs, and then in 1995 became the
Extension and Community Association and is referred to as ECA; and
www.harnett.org
WHEREAS, the Extension throughout history has helped rural and urban families through the
dark depression era; turbulent years of war; to learn about food preservation, clothing construction, home
beautification; health issues of the day, nutritional needs of children; social issues; economic well-being
of the family; energy conservation; environment issues; recycling; making and selling of crafts; family
resource management; eldercare; just to name a few; and
WHEREAS, Extension has reached out our military and their families; supported and promoted
education and continuing education; promoted the welfare and good nutrition of our children; addressed
the needs of poor families; and worked with the county 4-H clubs; and
WHEREAS, through the leadership skills they gained in ECA, many ladies have become
community advocates and leaders; and
WHEREAS, ECA is the volunteer arm of Family and Consumer Sciences ofthe North Carolina
Cooperative Extension Service; and
WHEREAS, through the educational guidance and researched-based information provided by
Cooperative Extension Family and Consumer Sciences Agents from North Carolina State University and
North Carolina A&T University, ECA is a grass root institution that still actively addresses the needs of
families.
THEREFORE, BE IT RESOLVED, THAT 2013 be designated as the Centennial Anniversary
ofECA.
NOW, THEREFORE, we, the Harnett County Board of Commissioners, do hereby proclaim
2013 the Centennial of ECA, and recognize the work of the Harnett County ECA Clubs, and urge the
people of this county to become more aware of the programs, projects, and goals of this county's ECA
Clubs.
HARNETT COUNTY BOARD OF COMMISSIONERS
Jim Burgin, Chairman
Gary House, Vice Chairman Beatrice B. Hill
Joe Miller C. Gordon Springle
strong roots • new growth
Agenda Item 6
SEPTEMBER 3, 2013 APPOINTMENTS NEEDED
ADULT CARE HOME COMMUNITY ADVISORY COMMITTEE
We need members on this committee. Members receive mileage reimbursement as
claimed.
BOARD OF ADJUSTMENT
Mr. Robert Doberstein is interested in being reappointed to serve as an alternate on this
board.
We have two vacancies for alternate members on this board for District 1 and District 4
DANGEROUS DOG COMMITTEE
We have a vacancy on this committee that needs to be filled by an attorney in the County.
HARNETT COUNTY PUBLIC LIBRARY BOARD OF TRUSTEES
We have a vacancy for an at-large member on this board.
HARNETT NURSING HOME COMMUNITY ADVISORY COMMITTEE
We need members on this committee. Members receive mileage reimbursement as
claimed.
HISTORIC PROPERTIES COMMISSION
We currently have a vacancy for a regular member in District 3. Bryan Avery recently
resigned recently.
We currently have a vacancy for a regular member in District 5.
JURY COMMISSION
Edith Cox is interested in being reappointed to serve on this Commission.
MID-CAROLINA AGING ADVISORY COMMITTEE
We need members on this committee. Members receive mileage reimbursement as
claimed.
Page 1 -Appointments
Board Meeting
Agenda Item
MEETING DATE:
TO: HARNETT COUNTY BOARD OF COMMISSIONERS
SUBJECT: Approval of Lease Purchase Agreement with US Bank
REQUESTED BY: Kimberly Honeycutt, Interim Finance Officer
REQUEST:
That the Harnett County Board of Commissioners approve a lease purchase agreement with
US Bank in the amount of $739,763 for the purchase of a wheel loader and compactor for the
Landfill. The interest rate for the transaction is 1.60%.
The Board previously approved this agreement on June 28, 2013 but due time constraints, the
interest rate expired.
FINANCE OFFICER'S RECOMMENDATION: Yes
COUNTY MANAGER'S RECOMMENDATION:
DOCUMENT CHECKLIST
PLEASE EXECUTE TWO (2) ORIGINALS OF ALL DOCUMENTS
RETURN ALL ORIGINALS TO:
U.S. BANCORP GOVERNMENT LEASING AND FINANCE, INC.
MYRA AKSAMIT
950 17TH STREET, 7TH FLOOR
DENVER, CO 80202
303-585-4054
).-Master Tax-Exempt Lease Purchase Agreement -This document must be executed in the presence of a
witness/attestor. The attesting witness does not have to be a notary, just present at the time of execution.
).-Addendum/Amendment to Master Tax-Exempt Lease Purchase Agreement -This document must be
executed in the presence of a witness/attestor. The attesting witness does not have to be a notary, just present at
the time of execution.
).-Property Schedule No. 1 -This document must be executed in the presence of a witness/attestor. The attesting
witness does not have to be a notary, just present at the time of execution.
::.> Property Description and Payment Schedule -Exhibit 1
).-Lessee's Counsel's Opinion -Exhibit 2. This exhibit will need to be executed by your attorney, dated and
placed on their letterhead. Your attorney will likely want to review the agreement prior to executing this opinion.
).-Lessee's Certificate -Exhibit 3. 1) Please fill in the person's title who will be executing the certificate in the first
paragraph (note: the person who signs this exhibit cannot be the same person as the executing official(s) for all
other documents); 2) Please fill in the date that the governing body met in Line 1; 3) In the middle set of boxes,
please print the name of the executing official(s) in the far left box, print their title(s) in the middle box and have the
executing official(s) sign the line in the far right hand box; 4) Include in your return package a copy of the board
minutes or resolution for our files; and 5) The exhibit should be executed by someone other than the executing
official(s) named in the center box.
).-Payment of Proceeds Instructions -Exhibit 4. This is for the vendor payment information. If more than one
vendor is being paid please make copies of this exhibit and fill out as many as are needed.
).-Acceptance Certificate -Exhibit 5. The date that all equipment is delivered, installed and accepted is the date
that should be placed on the "DATE" line. If moneys are being deposited into escrow this exhibit should be held
and returned with the final disbursement from the escrow account.
).-Bank Qualification and Arbitrage Rebate-Exhibit 6.
).-Insurance Authorization and Verification-To be filled out by the Lessee and sent to your insurance carrier. A
valid insurance certificate, or self-insurance letter if the Lessee self-insures, is required prior to funding.
::.> Notification of Tax Treatment-Please provide your State of Sales/Use tax Exemption Certificate, if applicable.
).-Form 8038-G-Blank form provided to Lessee. Please consult your local legal/bond counsel to fill out.
,. Escrow Agreement -This document needs to be executed by the Executing Official defined in the Lessee's
Certificate-Exhibit 3.
o Investment Direction Letter-Exhibit 1. This document needs to be executed by the Executing Official.
o Schedule of Fees -Exhibit 2.
o Requisition Request -Exhibit 3. This document should be retained by Lessee and utilized to request
disbursements from the escrow account. Please make copies and fill out as many as are needed.
o Acceptance Certificate -Exhibit 4. This document should be retained by Lessee and provided to Lessor
once all the proceeds have been disbursed from the escrow account.
o Class Action Negative Consent Letter-Exhibit 6.
o IRS Form W-9. This document should be retained by Lessee and submitted with the Requisition
Request(s) for each vendor being paid. Please make copies and fill out as many as are needed.
,. First Payment Invoice -Invoice included for your convenience.
Master Tax-Exempt Lease/Purchase Agreement
Between: U.S. Bancorp Government Leasing and Finance, Inc. (the "Lessor")
13010 SW 68th Parkway, Suite 100
And:
Dated:
Portland, OR 97223
County of Harnett (the "Lessee")
P.O. Box 760
Lillington, NC 27546
Attention: Kimberly A. Honeycutt
Telephone: 910-814-6093
September 3, 2013
ARTICLE I
DEFINITIONS
The following terms will have the meanings indicated below unless the context clearly requires otherwise:
"Agreement" means this Master Tax-Exempt Lease/Purchase Agreement, including all exhibits and schedules attached hereto.
"Code" is defined in Section 3.01 (f).
"Commencement Date" is the date when the tenn of a Property Schedule and Lessee's obligation to pay rent thereunder commences, which date shall be set forth in such
Property Schedule.
"Event of Default" is defined in Section 13.01.
"Lease Payments" means the Lease Payments payable by Lessee under Article VI of this Agreement and each Property Schedule, as set forth in each Property Schedule.
"Lease Payment Dates" means the Lease Payment dates for the Lease Payments as set forth in each Property Schedule.
"Lease Term" means, with respect to a Property Schedule, the Original Term and all Renewal Terms. The Lease Term for each Property Schedule executed hereunder shall
be set forth in such Property Schedule, as provided in Section 4.02.
"Lessee" means the entity identified as such in the first paragraph hereof, and its pennitted successors and assigns.
"Lessor" means the entity identified as such in the first paragraph hereof, and its successors and assigns.
"Nonappropriation Event" is defined in Section 6.06.
"Original Term" means, with respect to a Property Schedule, the period from the Commencement Date until the end of the budget year of Lessee in effect at the
Commencement Date.
"Property" means, collectively, the property lease/purchased pursuant to this Agreement, and with respect to each Property Schedule, the property described in such Property
Schedule, and all replacements, repairs, restorations, modifications and improvements thereof or thereto made pursuant to Section 8.01 or Article IX.
"Property Schedule" means a Property Schedule in the form attached hereto for Property Schedule 1. Subsequent Property Schedules pursuant to this Agreement shall be
numbered consecutively, beginning with Property Schedule 2.
"Purchase Price" means the amount that Lessee may, in its discretion, pay to Lessor to purchase the Property under a Property Schedule, as provided in Section 11.01 and as
set forth in the Property Schedule.
"Renewal Terms" means the renewal terms of a Property Schedule, each having a duration of one year and a term coextensive with Lessee's budget year.
"State" means the state where Lessee is located.
"Vendor" means the manufacturer or contractor of the Property as well as the agents or dealers of the manufacturer or contractor from whom Lessor or Lessee purchased or is
purchasing all or any portion of the Property.
ARTICLE II
2.01 Property Schedules Separate Financings. Each Property Schedule executed and delivered under this Agreement shall be a separate financing, distinct from
other Property Schedules. Without limiting the foregoing, upon the occurrence of an Event of Default or a Nonappropriation Event with respect to a Property Schedule, Lessor
shall have the rights and remedies specified herein with respect to the Property financed and the Lease Payments payable under such Property Schedule, and except as
expressly provided in Section 12.02 below, Lessor shall have no rights or remedies with respect to Property financed or Lease Payments payable under any other Property
Schedules unless an Event of Default or Nonappropriation Event has also occurred under such other Property Schedules.
ARTICLE Ill
3.01 Covenants of Lessee. As of the Commencement Date for each Property Schedule executed and delivered hereunder, Lessee shall be deemed to represent,
covenant and warrant for the benefit of Lessor as follows:
(a) Lessee is a public body corporate and politic duly organized and existing under the constitution and laws of the State with full power and authority to enter into
this Agreement and the Property Schedule and the transactions contemplated thereby and to perfonn all of its obligations thereunder.
(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. To the extent
Lessee should merge with another entity under the laws of the Stale, Lessee agrees that as a condition to such merger it will require that the remaining or
resulting entity shall be assigned Lessee's rights and shall assume Lessee's obligations hereunder.
(c) Lessee has been duly authorized to execute and deliver this Agreement and the Property Schedule by proper action by its governing body, or by other
appropriate official approval, and all requirements have been met and procedures have occurred in order to ensure the validity and enforceability of this
Agreement and the Property Schedule, and Lessee has complied with such public bidding requirements as may be applicable to this Agreement and the
Properly Schedule and the acquisition by Lessee of the Property thereunder. On or before the Commencement Date for the Property Schedule, Lessee shall
cause to be delivered an opinion of counsel in substantially the form atlached to the form of the Property Schedule as Exhibit 2.
(d) During the Lease Term for the Properly Schedule, the Properly thereunder will perform and will be used by Lessee only for the purpose of performing essential
governmental uses and public functions within the permissible scope of Lessee's authority.
(e) Lessee will provide Lessor with current financial statements, budgets and proof of appropriation for the ensuing budget year and other financial information
relating to the ability of Lessee to continue this Agreement and the Property Schedule in such form and containing such information as may be requested by
Lessor.
(f) Lessee will comply with all applicable provisions of the Internal Revenue Code of 1986, as amended (the "Code"), including Sections 103 and 148 thereof, and
the regulations of the Treasury Department thereunder, from time to time proposed or in effect, in order to maintain the excludability from gross income for
federal income tax purposes of the interest component of Lease Payments under the Property Schedule and will not use or permit the use of the Property in
such a manner as to cause a Property Schedule to be a "private activity bond" under Section 141 (a) of the Code. Lessee covenants and agrees that it will use
the proceeds of the Property Schedule as soon as practicable and with all reasonable dispatch for the purpose for which the Property Schedule has been
entered into, and that no part of the proceeds of the Property Schedule shall be invested in any securities, obligations or other investments except for the
temporary period pending such use nor used, at any lime, directly or indirectly, in a manner which, if such use had been reasonably anticipated on the date of
issuance of the Agreement, would have caused any portion of the Property Schedule to be or become "arbitrage bonds" within the meaning of Section
103(b)(2) or Section 148 of the Code and the regulations of the Treasury Department thereunder proposed or in effect at the time of such use and applicable to
obligations issued on the dale of issuance of the Property Schedule.
(g) The execution, delivery and performance of this Agreement and the Property Schedule and compliance with the provisions hereof and thereof by Lessee does
not conflict with or result in a violation or breach or constitute a default under, any resolution, bond, agreement, indenture, mortgage, note, lease or other
instrument to which Lessee is a party or by which it is bound by any law or any rule, regulation, order or decree of any court, governmental agency or body
having jurisdiction over Lessee or any of its activities or properties resulting in the creation or imposition of any lien, charge or other security interest or
encumbrance of any nature whatsoever upon any property or assets of Lessee or to which it is subject.
(h) Lessee's exact legal name is as set forth on the first page of this Agreement. Lessee will not change its legal name in any respect without giving thirty (30)
days prior notice to Lessor.
ARTICLE IV
4.01 Lease of Propertv. On the Commencement Date of each Property Schedule executed hereunder, Lessor will be deemed to demise, lease and let to Lessee, and
Lessee will be deemed to rent, lease and hire from Lessor, the Property described in such Property Schedule, in accordance with this Agreement and such Property Schedule,
for the Lease Term set forth in such Property Schedule.
4.02 Lease Term. The term of each Property Schedule shall commence on the Commencement Date set forth therein and shall term ina le upon payment of the final
Lease Payment set forth in such Property Schedule and the exercise of the Purchase Option described in Section 11.01, unless terminated sooner pursuant to this Agreement
or the Property Schedule.
4.03 Oeliverv. Installation and Acceptance of Property. Lessee shall order the Property, shall cause the Property to be delivered and installed at the locations
spec~ied in the applicable Property Schedule and shall pay all taxes, delivery costs and installation costs, if any, in connection therewith. To the extent funds are deposited
under an escrow agreement or trust agreement for the acquisilion of the Property, such funds shall be disbursed as provided therein. When the Property described in such
Property Schedule is delivered, installed and accepted as to Lessee's specifications, Lessee shall immediately accept the Property and evidence said acceptance by executing
and delivering to Lessor the Acceptance Certificate substantially in the form attached to the Property Schedule.
ARTICLE V
5.01 Enjoyment of Propertv. Lessee shall during the Lease Term peaceably and quietly have, hold and enjoy the Property, without suit, trouble or hindrance from
Lessor, except as expressly set forth in this Agreement. Lessor shall not interfere with such quiet use and enjoyment during the Lease Term so long as Lessee is not in default
under the subject Property Schedule.
5.02 Location: Inspection. The Property will be initially located or based at the location specified in the applicable Property Schedule. Lessor shall have the right at all
reasonable limes during business hours to enter into and upon the property of Lessee for the purpose of inspecting the Property.
ARTICLE VI
6.01 Lease Payments to Constitute a Current Expense of Lessee. Lessor and Lessee understand and intend that the obligation of Lessee to pay Lease Payments
hereunder shall constitute a current expense of Lessee and shall not in any way be construed to be a debt of Lessee in contravention of any applicable constitutional, statutory
or charter limitation or requirement concerning the creation of indebtedness by Lessee, nor shall anything contained herein constitute a pledge of the faith and credit or taxing
power of Lessee. Upon the appropriation of Lease Payments for a fiscal year, the Lease Payments for said fiscal year, and only the Lease Payments for said current fiscal year,
shall be a binding obligation of Lessee; provided that such obligation shall not include a pledge of the taxing power of Lessee.
6.02 Payment of Lease Payments. Lessee shall promptly pay Lease Payments under each Property Schedule, exclusively from legally available funds, in lawful money
of the United States of America, to Lessor in such amounts and on such dates as described in the applicable Property Schedule, at Lessor's address set forth on the first page
of this Agreement, unless Lessor instructs Lessee otherwise. Lessee shall pay Lessor a charge on any delinquent Lease Payments under a Property Schedule in an amount
sufficient to cover all additional costs and expenses incurred by Lessor from such delinquent Lease Payment. In addition, Lessee shall pay a late charge of five cents per dollar
or the highest amount permitted by applicable law, whichever is lower, on all delinquent Lease Payments and interest on said delinquent amounts from the date such amounts
were due until paid at the rate of 12% per annum or the maximum amount permitted by law, whichever is less ..
6.03 Interest Component. A portion of each Lease Payment due under each Property Schedule is paid as, and represents payment of, interest, and each Property
Schedule hereunder shall set forth the interest component (or method of computation thereof) of each Lease Payment thereunder during the Lease Term.
6.04 Lease Payments to be Unconditional. SUBJECT TO SECTION 6.06, THE OBLIGATIONS OF LESSEE TO PAY THE LEASE PAYMENTS DUE UNDER THE
PROPERTY SCHEDULES AND TO PERFORM AND OBSERVE THE OTHER COVENANTS AND AGREEMENTS CONTAINED HEREIN SHALL BE ABSOLUTE AND
UNCONDITIONAL IN ALL EVENTS WITHOUT ABATEMENT, DIMINUTION, DEDUCTION, SET-OFF OR DEFENSE, FOR ANY REASON, INCLUDING WITHOUT
LIMITATION, ANY DEFECTS, MALFUNCTIONS, BREAKDOWNS OR INFIRMITIES IN THE PROPERTY OR ANY ACCIDENT, CONDEMNATION OR UNFORESEEN
CIRCUMSTANCES. THIS PROVISION SHALL NOT LIMIT LESSEE'S RIGHTS OR ACTIONS AGAINST ANY VENDOR AS PROVIDED IN SECTION 10.02.
6.05 Continuation of Lease by Lessee. Lessee intends to continue all Properly Schedules entered into pursuant to this Agreement and to pay the Lease Payments
thereunder. Lessee reasonably believes that legally available funds in an amount sufficient to make all Lease Payments during the term of all Property Schedules can be
obtained. Lessee agrees that its staff will provide during the budgeting process for each budget year to the governing body of Lessee notification of any Lease Payments due
under the Property Schedules during the following budget year. Notwithstanding this covenant, if Lessee fails to appropriate the Lease Payments for a Property Schedule
pursuant to Section 6.06, such Property Schedule shall terminate at the end of the then current Original Term or Renewal Term. Although Lessee has made this covenant, in
the event that it fails to provide such notice, no remedy is provided and Lessee shall not be liable for any damages for its failure to so comply.
6.06 Nonappropriation. If during the then current Original Term or Renewal Term, sufficient funds are not appropriated to make Lease Payments required under a
Property Schedule for the following fiscal year, Lessee shall be deemed to not have renewed such Property Schedule for the following fiscal year and the Property Schedule
shall terminate at the end of the then current Original Term or Renewal Term and Lessee shall not be obligated to make Lease Payments under said Property Schedule beyond
the then current fiscal year for which funds have been appropriated. Upon the occurrence of such nonappropriation (a "Nonapproprialion Event") Lessee shall, no later than the
end of the fiscal year for which Lease Payments have been appropriated, deliver possession of the Property under said Property Schedule to Lessor. If Lessee fails to deliver
possession of the Property to Lessor upon termination of said Property Schedule by reason of a Nonapproprialion Event, the termination shall nevertheless be effective but
Lessee shall be responsible for the payment of damages in an amount equal to the portion of Lease Payments thereafter coming due that is attributable to the number of days
after the termination during which the Lessee fails to deliver possession and for any other loss suffered by Lessor as a result of Lessee's failure to deliver possession as
required. In addition, Lessor may, by wrillen instructions to any escrow agent who is holding proceeds of the Property Schedule, instruct such escrow agent to release all such
proceeds and any earnings thereon lo Lessor, such sums to be credited lo Lessee's obligations under the Property Schedule and this Agreement. Lessee shall notify Lessor in
writing within seven (7) days after the failure of the Lessee to appropriate funds sufficient for the payment of the Lease Payments, but failure to provide such notice shall not
operate to extend the Lease Term or result in any liability to Lessee.
6.07 Defeasance of Lease Payments. Lessee may at any lime irrevocably deposit in escrow with a defeasance escrow agent for the purpose of paying all of the
principal component and interest component accruing under a Property Schedule, a sum of cash and non-callable securities consisting of direct obligations of, or obligations the
principal of an interest on which are unconditionally guaranteed by, the United Stales of America or any agency or instrumentality thereof, in such aggregate amount, bearing
interest al such rates and maturing on such dales as shall be required lo provide funds sufficient for this purpose. Upon such defeasance, all right, lille and interest of Lessor in
the Property under said Property Schedule shall terminate. Lessee shall cause such investment to comply with the requirements of federal tax law so that the exclusion from
gross income of the interest component of Lease Payments on said Property Schedule is not adversely affected.
ARTICLE VII
7.01 Title to the Property. Upon acceptance of the Property by Lessee and unless otherwise required by the laws of the State, title to the Property shall vest in Lessee,
subject to Lessor's interests under the applicable Property Schedule and this Agreement.
7.02 Personal Property. The Property is and will remain personal property and will not be deemed to be affixed lo or a part of the real estate on which il may be situated,
notwithstanding that the Property or any part thereof may be or hereafter become in any manner physically affixed or attached to real estate or any building thereon. If requested
by Lessor, Lessee will, at Lessee's expense, furnish a waiver of any interest in the Property from any party having an interest in any such real estate or building.
7.03 Security Interest. To the extent permitted by law and to secure the performance of all of Lessee's obligations under this Agreement with respect to a Property
Schedule, including without limitation all Property Schedules now existing are hereafter executed, Lessee grants lo Lessor, for the benefit of Lessor and its successors and
assigns, a security interest constituting a first lien on Lessee's interest in all of the Property under the Property Schedule, whether now owned or hereafter acquired, all additions,
attachments, alterations and accessions to the Property, all substitutions and replacements for the Property, and on any proceeds of any of the foregoing, including insurance
proceeds. Lessee shall execute any additional documents, including financing statements, affidavits, notices and similar instruments, in form and substance satisfactory to
Lessor, which Lessor deems necessary or appropriate to establish, maintain and perfect a security interest in the Property in favor of Lessor and its successors and assigns.
Lessee hereby authorizes Lessor to file all financing statements which Lessor deems necessary or appropriate to establish, maintain and perfect such security interest.
ARTICLE VIII
8.01 Maintenance of Property by Lessee. Lessee shall keep and maintain Lhe Property in good condition and working order and in compliance with the manufacturer's
spec~ications, shall use, operate and maintain the Property in conformity with all laws and regulations concerning the Property's ownership, possession, use and maintenance,
and shall keep the Property free and clear of all liens and claims, other than those created by this Agreement. Lessee shall have sole responsibility to maintain and repair the
Property. Should Lessee fail to maintain, preserve and keep the Property in good repair and working order and in accordance with manufacturer's specifications, and if
requested by Lessor, Lessee will enter into maintenance contracts for the Property in form approved by Lessor and with approved providers.
8.02 Liens, Taxes, Other Governmental Charges and Utility Charges. Lessee shall keep the Property free of all levies, liens and encumbrances, except for the
interest of Lessor under this Agreement. The parties to this Agreement contemplate that the Property will be used for a governmental or proprietary purpose of Lessee and,
therefore, that the Property will be exempt from all property taxes. The Lease Payments payable by Lessee under this Agreement and the Property Schedules hereunder have
been established to reflect the savings resulting from this exemption from Laxation. Lessee will lake such actions necessary under applicable law to obtain said exemption.
Nevertheless, if the use, possession or acquisition of Lhe Property is determined to be subject to taxation or later becomes subject to such taxes, Lessee shall pay when due all
taxes and governmental charges lawfully assessed or levied against or with respect to the Property. Lessee shall pay all gas, water, steam, electricity, heat, power, telephone,
utility and other charges incurred in the operation, maintenance, use, occupancy and upkeep of the Property. Lessee shall pay such taxes or charges as the same may become
due; provided that, with respect to any such taxes or charges that may lawfully be paid in installments over a period of years, Lessee shall be obligated to pay only such
installments as accrue during the then current fiscal year of Lhe Lease Term for such Property.
8.03 ~-At its own expense, Lessee shall maintain (a) casualty insurance insuring the Properly against loss or damage by fire and all other risks covered by the
standard extended coverage endorsement then in use in the State and any other risks reasonably required by Lessor in an amount equal to at least the outstanding principal
component of Lease Payments, and (b) liability insurance that protects Lessor from liability in all events in an amount reasonably acceptable to Lessor, and (c) worker's
compensation insurance covering all employees working on, in, near or about the Property; provided that Lessee may self-insure against all such risks. All insurance proceeds
from casualty losses shall be payable as hereinafter provided in this Agreement. All such insurance shall be with insurers that are authorized to issue such insurance in the
State. All such liability insurance shall name Lessor as an additional insured. All such casualty insurance shall contain a provision making any losses payable to Lessor and
Lessee as their respective interests may appear. All such insurance shall contain a provision to the effect that such insurance shall not be canceled or modified without first
giving written notice thereof to Lessor and Lessee at least thirty (30) days in advance of such cancellation or modfiication. Such changes shall not become effective without
Lessor's prior written consent. Lessee shall furnish to Lessor, on or before the Commencement Date for each Property Schedule, and thereafter at Lessor's request, certificates
evidencing such coverage, or, if Lessee self-insures, a written description of its self-insurance program together with a certification from Lessee's risk manager or insurance
agent or consultant to the effect that Lessee's self-insurance program provides adequate coverage against the risks listed above.
8.04 Advances. In the event Lessee shall fail to either maintain the insurance required by this Agreement or keep the Property in good repair and working order, Lessor
may, but shall be under no obligation to, purchase the required insurance and pay the cost of the premiums thereof or maintain and repair the Property and pay the cost thereof.
All amounts so advanced by Lessor shall constitute additional rent for the Lease Term for the applicable Property Schedule and shall be due and payable on the next Lease
Payment Date and Lessee covenants and agrees to pay such amounts so advanced by Lessor with interest thereon from the date such amounts are advanced until paid at the
rate of 12% per annum or the maximum amount permilted by law, whichever is less.
ARTICLE IX
9.01 Damage or Destruction. If (a) the Property under a Properly Schedule or any portion thereof is destroyed, in whole or in part, or is damaged by fire or other
casually, or (b) title to, or the temporary use of, the Property under a Property Schedule or any part thereof shall be taken under the exercise or threat of the power of eminent
domain by any governmental body or by any person, firm or corporation acting pursuant to governmental authority, Lessor and Lessee will cause the Net Proceeds (as
hereinafter defined) of any insurance claim, condemnation award or sale under threat of condemnation to be applied to Lhe prompt replacement, repair, restoration, modification
or improvement of the Property, unless Lessee shall have exercised its right to defease the Property Schedule as provided herein, or unless Lessee shall have exercised its
option to purchase Lessor's interest in the Property if the Property Schedule so provides. Any balance of the Net Proceeds remaining after such work has been completed shall
be paid to Lessee. For purposes of Section 8.03 and this Article IX, the term "Net Proceeds" shall mean the amount remaining from the gross proceeds of any insurance claim,
condemnation award or sale under threat of condemnation after deducting all expenses, including attorneys' fees, incurred in the collection thereof.
9.02 Insufficiency of Net Proceeds. If the Net Proceeds are insufficient to pay in full the cost of any repair, restoration, modification or improvement referred La in
Section 9.01, Lessee shall (a) complete such replacement, repair, restoration, modification or improvement and pay any costs thereof in excess of the amount of the Net
Proceeds and, if Lessee shall make any payments pursuant to this Section, Lessee shall not be entitled to any reimbursement therefor from Lessor nor shall Lessee be entitled
to any diminution of the amounts payable under Section 6.02, or (b) defease the Property Schedule pursuant to Section 6.07, or (c) exercise its option to purchase Lessor's
interest in the Property pursuant to the optional purchase provisions of the Property Schedule, if any. The amount of the Net Proceeds, if any, remaining after completing such
repair, restoration, modification or improvement or after such defeasance or purchase may be retained by Lessee.
ARTICLE X
10.01 Disclaimer of Warranties. LESSOR MAKES NO (AND SHALL NOT BE DEEMED TO HAVE MADE ANY) WARRANTIES. EXPRESS OR IMPLIED, AS TO ANY
MATTER WHATSOEVER, INCLUDING, WITHOUT LIMITATION, THE DESIGN, OPERATION OR CONDITION OF, OR THE QUALITY OF THE MATERIAL, EQUIPMENT OR
WORKMANSHIP IN, THE PROPERTY, ITS MERCHANTABILITY OR ITS FITNESS FOR ANY PARTICULAR PURPOSE, THE STATE OF TITLE THERETO OR ANY
COMPONENT THEREOF, THE ABSENCE OF LATENT OR OTHER DEFECTS (WHETHER OR NOT DISCOVERABLE), AND LESSOR HEREBY DISCLAIMS THE SAME;
IT BEING UNDERSTOOD THAT THE PROPERTY IS LEASED TO LESSEE "AS IS" ON THE DATE OF THIS AGREEMENT OR THE DATE OF DELIVERY, WHICHEVER IS
LATER, AND ALL SUCH RISKS, IF ANY, ARE TO BE BORNE BY LESSEE. Lessee acknowledges that it has made (or will make) the selection of the Property from the
Vendor based on its own judgment and expressly disclaims any reliance upon any statements or representations made by Lessor. Lessee understands and agrees that (a)
neither the Vendor nor any sales representative or other agent of Vendor, is (i) an agent of Lessor, or (ii) authorized to make or alter any tenn or condition of this Agreement,
and (b) no such waiver or alteration shall vary the terms of this Agreement unless expressly set forth herein. In no event shall Lessor be liable for any incidental, indirect, special
or consequential damage in connection wilh or arising out of this Agreement, the Property Schedules, or the existence, furnishing, functioning or use of any item, product or
service provided for in this Agreement or the Property Schedules.
10.02 Vendor's Warranties. Lessor hereby irrevocably assigns to Lessee all rights \hat Lessor may have to assert from lime lo time whatever claims and rights (including
wilhoul limitation warranties) related to the Property against the Vendor. Lessee's sole remedy for the breach of such warranty, indemnification or representation shall be
againsl the Vendor of the Property, and not against Lessor, nor shall such matter have any effect whatsoever on \he rights and obligations of Lessor with respect to this
Agreement, including \he right to receive full and timely payments hereunder. Lessee expressly acknowledges \hal Lessor makes, and has made, no representations or
warranties whatsoever as to the exislence or the availability of such warranties of the Vendor of !he Property.
10.03 Use of the Property. Lessee will not install, use, operate or maintain the Property improperly, carelessly, in violation of any applicable law or in a manner contrary
to !hal contemplaled by this Agreement and the applicable Property Schedule. Lessee shall provide all permits and licenses, if any, necessary for the installation and operation
of lhe Property. In addition, Lessee agrees to comply in all respects wilh all laws of the jurisdiction in which its operations involving any item of Property may exlend and any
legislative, executive, administrative or judicial body exercising any power or jurisdiction over the ilems of !he Property; provided that Lessee may contest in good faith the
validity or application of any such law or rule in any reasonable manner !hal does not, in the opinion of Lessor, adversely affect the interest of Lessor in and to the Property or its
interest or rights under this Agreement. Lessee shall promplly notify Lessor in writing of any pending or threatened investigation, inquiry, claim or action by any governmental
authority which could adversely affect this Agreement, any Property Schedule or the Property thereunder.
10.04 Modifications. Subject to the provisions of this Section, Lessee shall have the right, at ils own expense, to make alterations, additions, modifications or
improvements to the Property. All such alterations, additions, modifications and improvements shall thereafter comprise part of \he Property and shall be subject to the
provisions of this Agreement. Such alterations, additions, modifications and improvements shall not in any way damage the Property, substantially alter its nature or cause it to
be used for purposes other than those authorized under the provisions of stale and federal law; and the Property, on completion of any alterations, addilions, modifications or
improvements made pursuant to this Section, shall be of a value which is equal to or greater than the value of \he Property immediately prior to the making of such alterations,
additions, modifications and improvements. Lessee shall, at its own expense, make such alterations, additions, modifications and improvements to the Property as may be
required from time to time by applicable law or by any governmental authority.
ARTtCLEXI
11.01 Option to Purchase. Lessee shall have the option to purchase Lesso~s entire interest in all of the Property subject to a Property Schedule and to terminate any
restrictions herein on the Property under such Property Schedule on the last day of the Lease Term for a Property Schedule, if the Property Schedule is still in effect on such
day, upon payment in full of the Lease Payments due thereunder plus payment of One (1) Dollar to Lessor. Lessee shall give written notice to Lessor of its intent to purchase
Lesso~s interest in the Property at least sixty (60) days prior to the last day of the Lease Term for applicable Property Schedule. Upon exercise of the purchase option as set
forth in this Section 11.01 and payment of the purchase price under the applicable Property Schedule, and performance by Lessee of all other terms, conditions and provisions
hereof, Lessor shall deliver to Lessee all such documents and instruments as Lessee may reasonably require to evidence the transfer, without warranty by or recourse to
Lessor, of all of Lessor's right, title and interest in and to the Property subject to such Property Schedule to Lessee.
11.02 Option to Prepay. Lessee shall have the option to prepay in whole the Lease Payments due under a Property Schedule, but only if the Property Schedule so
provides, and on the terms set forth in the Property Schedule.
ARTICLE XII
12.01 Assignment by Lessor. Lessor's right, title and interest in, to and under each Property Schedule and the Property under such Property Schedule may be assigned
and reassigned in whole or in part to one or more assignees or subassignees by Lessor without the necessity of obtaining the consent of Lessee; provided that any assignment
shall not be effective unfil Lessee has received written notice, signed by the assignor, of the name, address and tax identification number of the assignee. Lessee shall retain all
such notices as a register of all assignees and shall make all payments to the assignee or assignees designated in such register. Lessee agrees to execute all documents,
including notices of assignment and chattel mortgages or financing statements that may be reasonably requested by Lessor or any assignee to protect its interests in this
Agreement and the Property Schedules.
12.02 Property Schedules Separate Financings. Assignees of lhe Lessor's rights in one Property Schedule shall have no rights in any other Property Schedule unless
such rights have been separately assigned ..
12.03 Assignment and Subleasing by Lessee. NONE OF LESSEE'S RIGHT, TITLE AND INTEREST IN, TO AND UNDER THIS AGREEMENT AND IN THE
PROPERTY MAY BE ASSIGNED, SUBLEASED OR ENCUMBERED BY LESSEE FOR ANY REASON, WITHOUT THE PRIOR WRITTEN CONSENT OF LESSOR.
12.04 Release and Indemnification Covenants. To the extent permitted by applicable law, Lessee shall indemnify, protect, hold harmless, save and keep harmless
Lessor from and against any and all liability, obligation, loss, claim and damage whatsoever, regardless of cause thereof, and all expenses in connection therewilh, including,
without limilation, counsel fees and expenses, penalties and interest (collectively, "Losses") arising out of or resulting from the entering inlo this Agreement, any Property
Schedules hereunder, the ownership of any ilem of the Property, the loss of federal lax exemption of lhe interest on any of the Property Schedules, the ordering, acquisilion,
use, operation, condition, purchase, delivery, rejection, storage or relurn of any ilem of !he Property or any accident in connection wilh the operation, use, condilion, possession,
storage or relum of any item of the Property resulting in damage to property or injury to or death to any person; provided, however, that Lessee shall no\ be required to indemnify
Lessor for Losses arising out of or resulting from Lessor's own willful or negligent conduct, or for Losses arising oul of or resulting from Lesso~ preparation of disclosure material
relating to certificates of participation in !his Agreement and any Property Schedule (other than disclosure material provided to Lessor by Lessee). The indemnification arising
under this Section shall continue in full force and effect notwithstanding the full payment of all obligations under this Agreement, or the applicable Property Schedule, or the
termination of the Lease Term for such Property Schedule for any reason.
ARTICLE XIII
13.01 Events of Default Defined. Any of the following shall constitute an "Event of Default" under a Property Schedule:
(a) Failure by Lessee to pay any Lease Payment under the Property Schedule or other payment required to be paid with respect thereto at \he lime specified
therein;
(b) Failure by Lessee to observe and perform any covenant, condition or agreement on its partie be observed or performed with respect to the Property Schedule,
other than as referred to in subparagraph (a) above, for a period of thirty (30) days after written notice specifying such failure and requesting that it be remedied
is given to Lessee by Lessor, unless Lessor shall agree in writing to an extension of such time prior to its expiration; provided that, if the failure stated in the
notice cannot be corrected within the applicable period, Lessor will not unreasonably withhold its consent to an extension of such time if corrective action is
instituted by Lessee within the applicable period and diligently pursued until the default is corrected;
(c) Any statement, representation or warranty made by Lessee in or pursuant to the Property Schedule or its execution, delivery or performance shall prove to
have been false, incorrect, misleading or breached in any material respect on the date when made;
(d) Lessee shall (i) apply for or consent to lhe appointmenl of a receiver, truslee, custodian or liquidator of Lessee, or of all or a substantial part of the assets of
Lessee, (ii) be unable, fail or admit in writing ils inability generally to pay its debts as they become due, (iii) make a general assignment for the benefit of
creditors, (iv) have an order for relief entered against it under applicable federal bankruptcy law, or (v) file a voluntary petition in bankruptcy or a petition or an
answer seeking reorganization or an arrangement with creditors or taking advantage of any insolvency law or any answer admitting the material allegations of
a petition filed against Lessee in any bankruptcy, reorganization or insolvency proceeding; or
(e) An order, judgment or decree shall be enlered by any court of competent jurisdiction, approving a petition or appointing a receiver, truslee, custodian or
liquidator of Lessee or of all or a substantial part of the assets of Lessee, in each case without its application, approval or consent, and such order, judgment or
decree shall continue unstayed and in effect for any period of 60 consecutive days.
The foregoing provisions of Section 13.01 are subject to the following limitation: if by reason of force majeure Lessee is unable in whole or in part to perform its
agreements under this Agreement and the Property Schedule (other than the obligations on the part of Lessee contained in Article VI hereof) Lessee shall not be in default
during the continuance of such inability. The term "force majeure" as used herein shall mean the following: acts of God; strikes, lockouts or other industrial disturbances; acts of
public enemies; orders or restraints of any kind of the government of the United States or of the State or any of their departments, agencies or officials, or any civil or military
aulhority; insurrections, riots, landslides, earthquakes, fires, storms, droughts, fioods, explosions, breakage or accident to machinery, transmission pipes or canals; or any other
cause or event not reasonably wilhin the control of Lessee.
A Nonappropriation Event is not an Event of Defaull.
13.02 Remedies on Default Whenever any Event of Defaull exists wilh respect to a Property Schedule, Lessor shall have the right, at its sole option without any further
demand or notice, Jo take one or any combination of the following remedial steps:
(a) Without terminating the Property Schedule, and by written notice to Lessee, Lessor may declare all Lease Payments and other amounts payable by Lessee
thereunder to the end of the then-current budget year of Lessee to be due, including without limitation delinquent Lease Paymenls under the Property
Schedule from prior budge! years, and such amounts shalllhereafter bear interest at the rate of 12% per annum or the maximum rate permitted by applicable
law, whichever is less;
(b) Lessor may terminate the Property Schedule, may enler the premises where the Property subject to the Property Schedule is located and retake possession of
the Property, or require Lessee, at Lessee's expense, to promptly return any or all of the Property to the possession of Lessor at such place within the United
States as Lessor shall specify, and Lessor may thereafter dispose of the Property in accordance with Article 9 of the Uniform Commercial Code in effect in the
State; provided, however, that any proceeds from the disposition of the property in excess of the sum required to (i) pay off any outstanding principal
component of Lease Payments, (ii) pay any other amounts !hen due under the Property Schedule, and (iii) pay Lesso~s costs and expenses associated with
the disposition of the Property (including attorneys fees), shall be paid to Lessee or such other creditor of Lessee as may be enlitled therelo, and further
provided that no deficiency shall be allowed against Lessee except with respect to unpaid costs and expenses incurred by Lessor in connection wilh the
disposition of the Property;
(c) By written notice to any escrow agent who is holding proceeds of the Property Schedule, Lessor may instruct such escrow agent to release all such proceeds
and any earnings thereon to Lessor, such sums Jo be credited to payment of Lessee's obligations under the Property Schedule;
(d) Lessor may take any action, at law or in equity, that is permitted by applicable law and that may appear necessary or desirable to enforce or to proJect any of
its rights under the Property Schedule and this Agreemenl.
Notwithstanding the foregoing, if the proceeds are insufficient to pay items (i) to (iii) in Section 13.02(b) in whole, Lessee shall remain obligated after application of
proceeds to items (i) and (ii), to pay in whole the amounts for item (iii).
13.03 No Remedy Exclusive. No remedy herein conferred upon or reserved to Lessor is intended to be exclusive and every such remedy shall be cumulative and shall
be in add ilion to every other remedy given under this Agreement now or hereafter existing at law or in equity. No delay or omission to exercise any right or power accruing upon
any defaull shall impair any such right or power or shall be construed to be a waiver thereof, but any such right or power may be exercised from time to lime and as often as may
be deemed expedient. In order to entitle Lessor to exercise any remedy reserved to it in this Article it shall not be necessary to give any notice, other than such notice as may be
required in this Article.
13.04 Costs and Attorney Fees. Upon the occurrence of an Event of Default by Lessee in the performance of any term of this Agreement, Lessee agrees to pay to
Lessor or reimburse Lessor for, in addition to all other amounts due hereunder, all of Lessor's costs of collection, including reasonable attorney fees, whether or not suit or action
is filed thereon. Any such costs shall be immediately due and payable upon written notice and demand given to Lessee, shall be secured by this Agreement until paid and shall
bear interesl at the rate of 12% per annum or the maximum amount permitted by law, whichever is less. In the event suit or action is instituted to enforce any of the terms of this
Agreement, the prevailing party shall be entitled to recover from the other party such sum as the court may adjudge reasonable as attorneys' fees at trial or on appeal of such
suit or action or in any bankruptcy proceeding, in addition to all other sums provided by law.
ARTtCLEXIV
14.01 Notices. All notices, certificates or other communications hereunder shall be sufficiently given and shall be deemed given when delivered or mailed by certified
mail, postage prepaid, to the parties hereto at the addresses as specified on the first page of this Agreement (or at such other address as either party hereto shall designate in
writing to the olher for notices to such party), to any assignee at its address as it appears on the registration books maintained by Lessee.
14.02 Arbitrage Certificates. Unless a separate Arbitrage Certificate is delivered on the Commencement Date, Lessee shall be deemed to make the following
representations and covenants as of the Commencement Date for each Property Schedule:
(a) The estimaled total costs, including taxes, freight, installation, cost of issuance, of the Property under the Property Schedule will no! be Jess than the total
principal amount of the Lease Payments.
(b) The Property under the Property Schedule has been ordered or is expected to be ordered within six months after the Commencement Date and the Property is
expected to be delivered and installed, and the Vendor fully paid, within eighteen months from the Commencement Date. Lessee will pursue the completion of
the Property and the expenditure of the net proceeds of the Property Schedule with due diligence.
(c) Lessee has not created or established, and does not expect to create or establish, any sinking fund or other similar fund (i) that is reasonably expected to be
used to pay the Lease Payments under the Property Schedule, or (ii) that may be used solely to prevent a default in the payment of the Lease Payments under
the Property Schedule.
(d) The Property under the Property Schedule has not been and is not expected to be sold or otherwise disposed of by Lessee, either in whole or in major part,
prior to the last maturity of the Lease Payments under the Property Schedule.
(e) There are no other obligations of Lessee which (i) are being sold within 15 days of !he Commencement Dale of the Property Schedule; (ii) are being sold
pursuant to the same plan of financing as the Property Schedule; and (iii) are expected to be paid from substantially the same source of funds.
(f) The officer or official who has executed the Property Schedule on Lessee's behalf is familiar with Lessee's expectations regarding the use and expenditure of
the proceeds of the Property Schedule. To the besJ of Lessee's knowledge, information and belief, the facts and estimates set forth in herein are accurate and
the expectations of Lessee set forth herein are reasonable.
14.03 Further Assurances. Lessee agrees to execute such other and further documenls, including, without limitation, confirmatory financing slatements, continuation
statements, certificates of Iitie and the like, and to take all such aclion as may be necessary or appropriate, from lime to time, in the reasonable opinion of Lessor, to perfecl,
confirm, establish, reestablish, continue, or complete the interests of Lessor in this Agreement and the Property Schedules, to consummate the transactions contemplated
hereby and thereby, and to carry out the purposes and intentions of !his Agreement and the Property Schedules.
14.04 Binding Effect. This Agreement shall inure to the benefit of and shall be binding upon Lessor and Lessee and their respective successors and assigns.
14.05 Severability. In the event any provision of this Agreement shall be held invalid or unenforceable by any court of competent jurisdiction, such holding shall not
invalidate or render unenforceable any other provision hereof.
14.06 Waiver of Jurv Trials. Lessee and lessor hereby irrevocably waive all right to trial by jury in any action, proceeding or counterclaim (whether based on contract, tort
or otherwise) arising out of or relating to this Agreement or the actions of Lessor or Lessee in the negotiation, administralion, performance or enforcement hereof.
14.07 Amendments. Changes and Modifications. This Agreement may be amended in writing by Lessor and Lessee to the extent the amendment or modification does
not apply to outstanding Property Schedules at the time of such amendment or modification. The consent of all assignees shall be required to any amendment or modification
before such amendment or modification shall be applicable to any outstanding Property Schedule.
14.08 Execution in Counterparts. This Agreement and the Property Schedules hereunder may be simultaneously executed in several counterparts, each of which shall
be an original and all of which shall consOlute but one and the same instrument.
14.09 Applicable Law. This Agreement shall be governed by and construed in accordance with the laws of the State.
14.10 Captions. The captions or headings in this Agreement are for convenience only and in no way define, limit or describe the scope or intent of any provisions or
sections of this Agreement.
IN WITNESS WHEREOF, lessor and Lessee have caused this Agreement to be executed in their names by their duly authorized representatives as of the date first
above written.
Lessor: u.s. Ban corp Government Lessee: County of Harnett
Leasing and Finance, Inc.
By: By:
Name: Name:
Title: Title:
Attest:
By:
Name:
Title:
ADDENDUM (NORTH CAROLINA)
Master Tax-Exempt Lease/Purchase Agreement
THIS ADDENDUM, which is entered into as of September 3, 2013 between U.S. Bancorp Government Leasing and Finance, Inc.
("Lessor") and County of Harnett ("Lessee"), is intended to modify and supplement Property Schedule No. 1 (the "Property Schedule") to
the Master Tax-Exempt Lease/Purchase Agreement between Lessor and Lessee dated as of September 3, 2013 (the "Master
Agreement"). Capitalized terms not otherwise defined herein shall have the meanings set forth in the Master Agreement.
In addition to the representations, warranties and covenants set forth in the Master Agreement, Lessee represents, warrants and
covenants for the benefit of Lessor that (i) Lessee has reviewed the Property Schedule with legal counsel regarding the need to obtain
approval of the Local Government Commission, and if determined that such approval is needed, has so obtained such approval, and
(ii) if Lessee is a school district, Lessee has reviewed Section 115C-528 of the General Statutes of North Carolina with its legal
counsel for compliance with all of the terms and conditions set forth therein for lease-purchase contracts, and has complied with all
said terms and conditions with respect to the Property Schedule.
IN WITNESS WHEREOF, Lessor and Lessee have caused this Addendum to be executed in their names by their duly authorized
representatives as of the date first above written.
Lessor: U.S. Bancorp Government Leasing and Lessee: County of Harnett
Finance, Inc.
By: By:
Name: Name:
Title: Title:
Attest:
B_y
Name:
Title:
!Property Schedule No. 11
Master Tax-Exempt Lease/Purchase Agreement
This Property Schedule No. 1 is entered into as of the Commencement Date set forth below, pursuant to that certain Master Tax-
Exempt Lease/Purchase Agreement (the "Master Agreement"), dated as of September 3, 2013, between U.S. Bancorp Government
Leasing and Finance, Inc., and County of Harnett.
1. Interpretation. The terms and conditions of the Master Agreement are incorporated herein by reference as if fully set forth herein.
Reference is made to the Master Agreement for all representations, covenants and warranties made by Lessee in the execution of this
Property Schedule, unless specifically set forth herein. In the event of a conflict between the provisions of the Master Agreement and
the provisions of this Property Schedule, the provisions of this Property Schedule shall control. All capitalized terms not otherwise
defined herein shall have the meanings provided in the Master Agreement.
2. Commencement Date. The Commencement Date for this Property Schedule is September 3, 2013.
3. Property Description and Payment Schedule. The Property subject to this Property Schedule is described in Exhibit 1 hereto. Lessee
shall not remove such property from the locations set forth therein without giving prior written notice to Lessor. The Lease Payment
Schedule for this Property Schedule is set forth in Exhibit 1.
4. Opinion. The Opinion of Lessee's Counsel is attached as Exhibit 2.
5. Lessee's Certificate. The Lessee's Certificate is attached as Exhibit 3.
6. Proceeds. Lessor shall disburse the proceeds of this Property Schedule in accordance with the instructions attached hereto as Exhibit
4.
7. Acceptance Certificate. The form of Acceptance Certificate is attached as Exhibit 5.
8. Additional Purchase Option Provisions. In addition to the Purchase Option provisions set forth in the Master Agreement, Lease
Payments payable under this Property Schedule shall be subject to prepayment in whole at any time by payment of the applicable
Termination Amount set forth in Exhibit 1 (Payment Schedule) and payment of all accrued and unpaid interest through the date of
prepayment.
9. Bank Qualification and Arbitrage Rebate. Attached as Exhibit 6.
10. Expiration. Lessor, at its sole determination, may choose not to accept this Property Schedule if the fully executed, original Master
Agreement (including this Property Schedule and all ancillary documents) is not received by Lessor at its place of business by October
13, 2013.
IN WITNESS WHEREOF, Lessor and Lessee have caused this Property Schedule to be executed in their names by their duly authorized
representatives as of the Commencement Date above.
Lessor: U.S. Bancorp Government Leasing and Lessee: County of Harnett
Finance, Inc.
By: By:
Name: Name:
Title: Title:
Attest:
By
Name:
Title:
\EXHIBIT 1\
!Property Description and Payment Schedule!
Re: Property Schedule No.1 to Master Tax-Exempt Lease/Purchase Agreement U.S. Bancorp Government Leasing
and Finance, Inc. and County of Harnett.
THE PROPERTY IS AS FOLLOWS: The Property as more fully described in Exhibit A incorporated herein by reference
and attached hereto. It includes all replacements, parts, repairs, additions, accessions and accessories incorporated
therein or affixed or attached thereto and any and all proceeds of the foregoing, including, without limitation, insurance
recoveries.
PROPERTY LOCATION:
Address
City, State Zip Code
USE: Wheel Loader and Compactor-This use is essential to the proper, efficient and economic functioning of Lessee or
to the services that Lessee provides; and Lessee has immediate need for and expects to rnake immediate use of
substantially all of the Property, which need is not temporary or expected to diminish in the foreseeable future.
Lease Payment Schedule
Total Principal Amount: $739,763.00
Termination
Payment No. Due Date Lease Principal Interest Amount
Payment Portion Portion (After Making Payment
for said Due Date)
1 3-0ct-2013 13,046.35 12,060.00 986.35 749,534.09
2 3-Nov-2013 13,046.35 12,076.08 970.27 737,095.73
3 3-Dec-2013 13,046.35 12,092.18 954.17 724,640.79
4 3-Jan-2014 13,046.35 12,108.30 938.05 712,169.23
5 3-Feb-2014 13,046.35 12,124.45 921.90 699,681.05
6 3-Mar-2014 13,046.35 12,140.61 905.74 687,176.22
7 3-Apr-2014 13,046.35 12,156.80 889.55 674,654.72
8 3-May-2014 13,046.35 12,173.01 873.34 662,116.52
9 3-Jun-2014 13,046.35 12,189.24 857.11 649,561.60
10 3-Jul-2014 13,046.35 12,205.49 840.86 636,989.94
11 3-Aug-2014 13,046.35 12,221.77 824.58 624,401.52
12 3-Sep-2014 13,046.35 12,238.06 808.29 611,796.32
13 3-0ct-2014 13,046.35 12,254.38 791.97 599,174.31
14 3-Nov-2014 13,046.35 12,270.72 775.63 586,535.47
15 3-Dec-2014 13,046.35 12,287.08 759.27 573,879.78
16 3-Jan-2015 13,046.35 12,303.46 742.89 561,207.21
17 3-Feb-2015 13,046.35 12,319.87 726.48 548,517.75
18 3-Mar-2015 13,046.35 12,336.29 710.06 535,811.36
19 3-Apr-2015 13,046.35 12,352.74 693.61 523,088.04
20 3-Mav-2015 13,046.35 12,369.21 677.14 510,347.75
21 3-Jun-2015 13,046.35 12,385.70 660.65 497,590.47
22 3-Jul-2015 13,046.35 12,402.22 644.13 484,816.19
23 3-Aug-2015 13,046.35 12,418.76 627.59 472,024.87
24 3-Sep-2015 13,046.35 12,435.31 611.04 459,216.50
25 3-0ct-2015 13,046.35 12,451.89 594.46 446,391.05
26 3-Nov-2015 13,046.35 12,468.50 577.85 433,548.49
27 3-Dec-2015 13,046.35 12,485.12 561.23 420,688.82
28 3-Jan-2016 13,046.35 12,501.77 544.58 407,812.00
29 3-Feb-2016 13,046.35 12,518.44 527.91 394,918.01
30 3-Mar-2016 13,046.35 12,535.13 511.22 382,006.82
31 3-Apr-2016 13,046.35 12,551.84 494.51 369,078.43
32 3-May-2016 13,046.35 12,568.58 477.77 356,132.79
33 3-Jun-2016 13,046.35 12,585.34 461.01 343,169.89
34 3-Jul-2016 13,046.35 12,602.12 444.23 330,189.71
35 3-Aug-2016 13,046.35 12,618.92 427.43 317,192.23
36 3-Sep-2016 13,046.35 12,635.74 410.61 304,177.41
37 3-0ct-2016 13,046.35 12,652.59 393.76 291,145.24
38 3-Nov-2016 13,046.35 12,669.46 376.89 278,095.69
39 3-Dec-2016 13,046.35 12,686.36 359.99 265,028.75
40 3-Jan-2017 13,046.35 12,703.27 343.08 251,944.38
41 3-Feb-2017 13,046.35 12,720.21 326.14 238,842.57
42 3-Mar-2017 13,046.35 12,737.17 309.18 225,723.28
43 3-Apr-2017 13,046.35 12,754.15 292.20 212,586.51
44 3-May-2017 13,046.35 12,771.16 275.19 199,432.21
45 3-Jun-2017 13,046.35 12,788.19 258.16 186,260.38
46 3-Jul-2017 13,046.35 12,805.24 241.11 173,070.99
47 3-Auq-2017 13,046.35 12,822.31 224.04 159,864.01
48 3-Sep-2017 13,046.35 12,839.41 206.94 146,639.42
49 3-0ct-2017 13,046.35 12,856.53 189.82 133,397.20
50 3-Nov-2017 13,046.35 12,873.67 172.68 120,137.33
51 3-Dec-2017 13,046.35 12,890.83 155.52 106,859.77
52 3-Jan-2018 13,046.35 12,908.02 138.33 93,564.51
53 3-Feb-2018 13,046.35 12,925.23 121.12 80,251.52
54 3-Mar-2018 13,046.35 12,942.46 103.89 66,920.78
55 3-Apr-2018 13,046.35 12,959.72 86.63 53,572.27
56 3-May-2018 13,046.35 12,977.00 69.35 40,205.96
57 3-Jun-2018 13,046.35 12,994.30 52.05 26,821.83
58 3-Jul-2018 13,046.35 13,011.63 34.72 13,419.85
59 3-Aug-2018 13 046.35 13 028.98 17.37 0.00
TOTALS: 769,734.65 739,763.00 29,971.65
Interest Rate: 1.60%
Lessee: County of Harnett
By:
Name:
Title:
\EXHIBIT Aj
!Property Description!
One (1) new CAT Wheel Loader
One (1) new CAT Compactor
\EXHIBIT 2\
\Lessee's Counsel's Opinion!
[To be provided on letterhead of Lessee's counsel.]
September 3, 2013
U.S. Bancorp Government Leasing and Finance, Inc.
13010 SW 68th Parkway, Suite 100
Portland, OR 97223
County of Harnett
P.O. Box 760
Lillington, NC 27546
Attention: Kimberly A. Honeycutt
RE: Property Schedule No. 1 to Master Tax-Exempt Lease/Purchase Agreement between U.S. Bancorp Government
Leasing and Finance, Inc. and County of Harnett.
Ladies and Gentlemen:
We have acted as special counsel to County of Harnett ("Lessee"), in connection with the Master Tax-Exempt
Lease/Purchase Agreement, dated as of September 3, 2013 (the "Master Agreement"), between County of Harnett, as
lessee, and U.S. Bancorp Government Leasing and Finance, Inc. as lessor ("Lessor"), and the execution of Property
Schedule No. 1 (the "Property Schedule") pursuant to the Master Agreement. We have examined the law and such certified
proceedings and other papers as we deem necessary to render this opinion.
All capitalized terms not otherwise defined herein shall have the meanings provided in the Master Agreement and
Property Schedule.
As to questions of fact material to our opinion, we have relied upon the representations of Lessee in the Master
Agreement and the Property Schedule and in the certified proceedings and other certifications of public officials furnished to
us without undertaking to verify the same by independent investigation.
Based upon the foregoing, we are of the opinion that, under existing law:
1. Lessee is a public body corporate and politic, duly organized and existing under the laws of the State, and
has a substantial amount of one or more of the following sovereign powers: (a) the power to tax, (b) the power of eminent
domain, and (c) the police power.
2. Lessee has all requisite power and authority to enter into the Master Agreement and the Property Schedule
and to perform its obligations thereunder.
3. The execution, delivery and performance of the Master Agreement and the Property Schedule by Lessee has
been duly authorized by all necessary action on the part of Lessee.
4. All proceedings of Lessee and its governing body relating to the authorization and approval of the Master
Agreement and the Property Schedule, the execution thereof and the transactions contemplated thereby have been
conducted in accordance with all applicable open meeting laws and all other applicable state and federal laws.
5. Lessee has acquired or has arranged for the acquisition of the Property subject to the Property Schedule,
and has entered into the Master Agreement and the Property Schedule, in compliance with all applicable public bidding laws.
6. Lessee has obtained all consents and approvals of other governmental authorities or agencies which may be
required for the execution, delivery and performance by Lessee of the Master Agreement and the Property Schedule.
7. The Master Agreement and the Property Schedule have been duly executed and delivered by Lessee and
constitute legal, valid and binding obligations of Lessee, enforceable against Lessee in accordance with the terms thereof,
except insofar as the enforcement thereof may be limited by any applicable bankruptcy, insolvency, moratorium,
reorganization or other laws of equitable principles of general application, or of application to municipalities or political
subdivisions such as the Lessee, affecting remedies or creditors' rights generally, and to the exercise of judicial discretion in
appropriate cases.
8. As of the date hereof, based on such inquiry and investigation as we have deemed sufficient, no litigation is
pending, (or, to our knowledge, threatened) against Lessee in any court (a) seeking to restrain or enjoin the delivery of the
Master Agreement or the Property Schedule or of other agreements similar to the Master Agreement; (b) questioning the
authority of Lessee to execute the Master Agreement or the Property Schedule, or the validity of the Master Agreement or the
Property Schedule, or the payment of principal of or interest on, the Property Schedule; (c) questioning the constitutionality of
any statute, or the validity of any proceedings, authorizing the execution of the Master Agreement and the Property Schedule;
or (d) affecting the provisions made for the payment of or security for the Master Agreement and the Property Schedule.
This opinion may be relied upon by Lessor, its successors and assigns, and any other legal counsel who provides an
opinion with respect to the Property Schedule.
Very truly yours,
By:--------------
Dated:------------
\EXHIBIT 31
!Lessee's Certificate!
Re: Property Schedule No. 1 to Master Tax-Exempt Lease/Purchase Agreement U.S. Bancorp Government Leasing
and Finance, Inc. and County of Harnett.
The undersigned, being the duly elected, qualified and acting _________ of the County of Harnett ("Lessee")
do hereby certify, as of September 3, 2013, as follows:
1. Lessee did, at a meeting of the governing body of the Lessee held by resolution or
ordinance duly enacted, in accordance with all requirements of law, approve and authorize the execution and delivery of
the above-referenced Property Schedule (the "Property Schedule") and the Master Tax-Exempt Lease/Purchase
Agreement (the "Master Agreement") by the following named representative of Lessee, to wit:
NAME TITLE SIGNATURE
OF EXECUTING OFFICIAL OF EXECUTING OFFICIAL OF EXECUTING OFFICIAL
And/Or
2. The above-named representative of the Lessee held at the time of such authorization and holds at the
present time the office set forth above.
3. The meeting(s) of the governing body of the Lessee at which the Master Agreement and the Property
Schedule were approved and authorized to be executed was duly called, regularly convened and attended throughout by
the requisite quorum of the members thereof, and the enactment approving the Master Agreement and the Property
Schedule and authorizing the execution thereof has not been altered or rescinded. All meetings of the governing body of
Lessee relating to the authorization and delivery of Master Agreement and the Property Schedule have been: (a) held
within the geographic boundaries of the Lessee; (b) open to the public, allowing all people to attend; (c) conducted in
accordance with internal procedures of the governing body; and (d) conducted in accordance with the charter of the
Lessee, if any, and the laws of the State.
4. No event or condition that constitutes, or with the giving of notice or the lapse of time or both would
constitute, an Event of Default or a Nonappropriation Event (as such terms are defined in the Master Agreement) exists at
the date hereof with respect to this Property Schedule or any other Property Schedules under the Master Agreement.
5. The acquisition of all of the Property under the Property Schedule has been duly authorized by the
governing body of Lessee.
6. Lessee has, in accordance with the requirements of law, fully budgeted and appropriated sufficient funds
for the current budget year to make the Lease Payments scheduled to come due during the current budget year under the
Property Schedule and to meet its other obligations for the current budget year and such funds have not been expended
for other purposes.
7. As of the date hereof, no litigation is pending, (or, to my knowledge, threatened) against Lessee in any
court (a) seeking to restrain or enjoin the delivery of the Master Agreement or the Property Schedule or of other
agreements similar to the Master Agreement; (b) questioning the authority of Lessee to execute the Master Agreement or
the Property Schedule, or the validity of the Master Agreement or the Property Schedule, or the payment of principal of or
interest on, the Property Schedule; (c) questioning the constitutionality of any statute, or the validity of any proceedings,
authorizing the execution of the Master Agreement and the Property Schedule; or (d) affecting the provisions made for the
payment of or security for the Master Agreement and the Property Schedule.
County of Harnett
By:
Title:
SIGNER MUST NOT BE THE SAME AS THE EXECUTING OFFICIAL(S) SHOWN ABOVE.
jEXHIBIT 4j
!Payment of Proceeds Instructions!
U.S. Bancorp Government Leasing and Finance, Inc.
13010 SW 68th Parkway, Suite 100
Portland, OR 97223
Re: Property Schedule No. 1 (the "Property Schedule") to Master Tax-Exempt Lease/Purchase Agreement
between U.S. Bancorp Government Leasing and Finance, Inc. ("Lessor") and County of Harnett
("Lessee").
Ladies and Gentlemen:
The undersigned, an Authorized Representative of the Lessee hereby requests and authorizes Lessor to disburse the net
proceeds of the Property Schedule as follows:
NameofPayee: --------------------------------
By check ___ __ By wire transfer ___ _
If by check, Payee's address:
If by wire transfer, instructions as follows:
Pay to Bank Name:
Bank Address:
Bank Phone #:
For Account of:
Account No.:
ABA No.:
Lessee: County of Harnett
Bv:
Name:
Title:
!EXHIBIT 5j
!Acceptance Certificate!
U.S. Bancorp Government Leasing and Finance, Inc.
13010 SW 68th Parkway, Suite 100
Portland, OR 97223
Re: Property Schedule No.1 to Master Tax-Exempt Lease/Purchase Agreement between U.S. Bancorp Government
Leasing and Finance, Inc. and County of Harnett
Ladies and Gentlemen:
In accordance with the above-referenced Master Tax-Exempt Lease/Purchase Agreement (the "Master Agreement"), the
undersigned ("Lessee") hereby certifies and represents to, and agrees with, U.S. Bancorp Government Leasing and
Finance, Inc. ("Lessor"), as follows:
(1) The Property, as such terms are defined in the above-referenced Property Schedule, has been acquired,
made, delivered, installed and accepted on the date indicated below.
(2) Lessee has conducted such inspection and/or testing of the Property as it deems necessary and appropriate
and hereby acknowledges that it accepts the Property for all purposes.
(3) No event or condition that constitutes, or with notice or lapse of time, or both, would constitute, an Event of
Default or a Nonappropriation Event (as such terms are defined in the Master Agreement) exists at the date
hereof.
Acceptance Date: --------------
Lessee: County of Harnett
By:
Name:
Title:
!EXHIBIT 6j
!Bank Qualification And Arbitrage Rebate!
U.S. Bancorp Government Leasing and Finance, Inc.
13010 SW 68th Parkway, Suite 100
Portland, OR 97223
Re: Property Schedule No. 1 to Master Tax-Exempt Lease/Purchase Agreement U.S. Bancorp Government Leasing
and Finance, Inc. and County of Harnett
Bank Qualified Tax-Exempt Obligation under Section 265
Not applicable.
Arbitrage Rebate
Eighteen Month Exception:
Pursuant to Treasury Regulations Section 1.148-?(d), the gross proceeds of this Property Schedule will be expended
for the governmental purposes for which this Property Schedule was entered into, as follows: at least 15% within six months
after the Commencement Date, at least 60% within 12 months after the Commencement Date, and 100% within 18 months
after the Commencement Date. If Lessee is unable to comply with Section 1.148-7(d) of the Treasury Regulations, Lessee
shall compute rebatable arbitrage on this Agreement and pay rebatable arbitrage to the United States at least once every five
years, and within 60 days after payment of the final Lease Payment due under this Agreement.
Lessee: County of Harnett
By:
Name:
Title:
Language for UCC Financing Statements
Schedule 1
SECURED PARTY: U.S. Bancorp Government Leasing and Finance, Inc.
DEBTOR: County of Harnett
This financing statement covers all of Debtor's right, title and interest, whether now owned or hereafter acquired, in and to
the equipment leased to Debtor under Property Schedule No. 1 dated September 3, 2013 to that certain Master Tax-
Exempt Lease Purchase Agreement dated as of September 3, 2013, in each case between Debtor, as Lessee, and
Secured Party, as Lessor, together with all accessions, substitutions and replacements thereto and therefore, and
proceeds (cash and non-cash), including, without limitation, insurance proceeds, thereof, including without limiting, all
equipment described on Exhibit A attached hereto and made a part hereof.
Debtor has no right to dispose of the equipment.
INSURANCE AUTHORIZATION AND VERIFICATION
Date: September 3, 2013 Property Schedule No:
To: County of Harnett (the "Lessee") From: U.S. Bancorp Government Leasing and Finance, Inc. (the
"Lessor")
13010 SW 68th Parkway, Suite 100
Portland, OR 97223
Attn: Myra Aksamit
TO THE LESSEE: In connection with the above-referenced Property Schedule, Lessor requires proof in the form of this document,
executed by both Lessee* and Lessee's agent, that Lessee's insurable interest in the financed property (the "Property") meets Lessor's
requirements as follows, with coverage including, but not limited to, fire, extended coverage, vandalism, and theft:
Lessor, AND ITS SUCCESSORS AND ASSIGNS, shall be covered as both ADDITIONAL INSURED and LENDER'S
LOSS PAYEE with regard to all equipment financed or leased by policy holder through or from Lessor. All such
insurance shall contain a provision to the effect that such insurance shall not be canceled or modified without first
giving written notice thereof to Lessor and Lessee at least thirty (30) days in advance of such cancellation or
modification.
Lessee must carry GENERAL LIABILITY (and/or, for vehicles, Automobile Liability) in the amount of no less than
$1,000,000.00 (one million dollars).
Lessee must carry PROPERTY Insurance (or, for vehicles, Physical Damage Insurance) in an amount no less than the
'Insurable Value' $739,763.00, with deductibles no more than $10,000.00.
*Lessee: Please execute this form and return with your document package. Lessor will fax this form to your insurance agency for
endorsement. In lieu of agent endorsement, Lessee's agency may submit insurance certificates demonstrating compliance with all
requirements. If fully executed form (or Lessee-executed form plus certificates) is not provided within 15 days, we have the right to
purchase such insurance at your expense. Should you have any questions, please contact Myra Aksamit at 303-585-4054.
By signing, Lessee authorizes the Agent named below: 1) to complete and return this form as indicated; and 2) to endorse the
policy and subsequent renewals to reflect the required coverage as outlined above.
Agency/Agent: I
Address:
Phone/Fax: I
Email:
Lessee: County of Harnett
By:
Name:
Title:
TO THE AGENT: In lieu of providing a certificate, please execute this form in the space below and promptly fax it to
Lessor at 303-585-4732. This fully endorsed form shall serve as proof that Lessee's insurance meets the above
requirements.
Agent hereby verifies that the above requirements have been met in regard to the Property listed below.
Print Name of Agency: X. ________________ _
By: x __________________________ _
(Agent's Signature)
Print Name: X. _____________ _ Date: X. _________________ __
Insurable Value: $739,763.00
ATTACHED: PROPERTY DESCRIPTION FOR PROPERTY SCHEDULE NO.: 1
Notification of Tax Treatment to Tax-Exempt Lease/Purchase Agreement
This Notification of Tax Treatment is pursuant to the Master Tax-Exempt Lease/Purchase Agreement
dated as of September 3, 2013 and the related Property Schedule No. 1 dated September 3, 2013,
between Lessor and Lessee (the "Agreement").
X
Lessee agrees that this Property Schedule SHOULD be subject to sales/use taxes
Lessee agrees that this Property Schedule should NOT be subject to sales/use taxes and
Lessee has included our tax-exemption certificate with this document package
Lessee agrees that this Property Schedule should NOT be subject to sales/use taxes and no
tax-exemption certificate is issued to us by the State
Lessee agrees that this Property Schedule is a taxable transaction and subject to any/all
taxes
Lessee agrees that this Property Schedule is subject to sales/use taxes and will pay those
taxes directly to the State or Vendor
IN WITNESS WHEREOF, Lessee has caused this Notification of Tax Treatment to be executed by their duly
authorized representative.
Lessee: County of Harnett
By:
Name:
Title:
Instructions for Form
8038-G
(Rev. September 2011)
~<fa\ Department of the Treasury
~Jitl/1 Internal Revenue Service
Information Return for Tax-Exempt Governmental Obligations
Section references are to the Internal
Revenue Code unless otherwise noted.
General Instructions
Purpose of Form
Form 8038-G is used by issuers of
tax-exempt governmental obligations to
provide the IRS with the information
required by section 149(e) and to monitor
the requirements of sections 141 through
150.
Who Must File
IF the issue price THEN, for tax-exempt
(line 21, column (b)) governmental
is... obligations issued
after December 31,
1986, issuers must
file ...
$100,000 or more A separate Form
8038-G for each issue
Less than $100,000 Form 8038-GC,
Information Return for
Small Tax-Exempt
Governmental Bond
Issues, Leases, and
Installment Sales
m For all build America bonds and
recovery zone economic
development bonds use Form
8038-B, Information Return for Build
America Bonds and Recovery Zone
Economic Development Bonds. For tax
credit bonds and specified tax credit
bonds use Form 8038-TC, Information
Return for Tax Credit Bonds and
Specified Tax Credit Bonds.
When To File
File Form 8038-G on or before the 15th
day of the 2nd calendar month after the
close of the calendar quarter in which the
bond is issued. Form 8038-G may not be
filed before the issue date and must be
completed based on the facts as of the
issue date.
Late filing. An issuer may be granted an
extension of time to file Form 8038-G
under Section 3 of Rev. Proc. 2002-48,
2002-37 I.R.S. 531, if it is determined that
the failure to file timely is not due to willful
neglect. Type or print at the top of the
form "Request for Relief under section 3
of Rev. Proc. 2002-48" and attach a letter
explaining why Form 8038-G was not
submitted to the IRS on time. Also
indicate whether the bond issue in
question is under examination by the IRS.
Do not submit copies of the trust
Sep 20,2011
indenture or other bond documents. See
Where To File next.
Where To File
File Form 8038-G, and any attachments,
with the Department of the Treasury,
Internal Revenue Service Center, Ogden,
UT 84201.
Private delivery services. You can use
certain private delivery services
designated by the IRS to meet the "timely
mailing as timely filing/paying" rule for tax
returns and payments. These private
delivery services include only the
following:
• DHL Express (DHL): DHL Same Day
Service.
• Federal Express (FedEx): FedEx
Priority Overnight, FedEx Standard
Overnight, FedEx 2Day, FedEx
International Priority, and FedEx
International First.
• United Parcel Service (UPS): UPS Next
Day Air, UPS Next Day Air Saver, UPS
2nd Day Air, UPS 2nd Day Air A.M., UPS
Worldwide Express Plus, and UPS
Worldwide Express.
The private delivery service can tell
you how to get written proof of the mailing
date.
Other Forms That May Be
Required
For rebating arbitrage (or paying a
penalty in lieu of arbitrage rebate) to the
Federal government, use Form 8038-T,
Arbitrage Rebate, Yield Reduction and
Penalty in Lieu of Arbitrage Rebate.
For private activity bonds, use Form
8038, Information Return for Tax-Exempt
Private Activity Bond Issues.
For build America bonds (Direct Pay),
build America bonds (Tax Credit), and
recovery zone economic development
bonds, complete Form 8038-B,
Information Return for Build America
Bonds and Recovery Zone Economic
Development Bonds.
For qualified forestry conservation
bonds, new clean renewable energy
bonds, qualified energy conservation
bonds, qualified zone academy bonds,
qualified school construction bonds, clean
renewable energy bonds, Midwestern tax
credit bonds, and all other qualified tax
credit bonds (except build America
bonds), file Form 8038-TC, Information
Return for Tax Credit Bonds and
Specified Tax Credit Bonds.
Cat. No. 637740
Rounding to Whole Dollars
You may show amounts on this return as
whole dollars. To do so, drop amounts
less than 50 cents and increase amounts
from 50 cents through 99 cents to the
next higher dollar.
Questions on Filing Form
8038-G
For specific questions on how to file Form
8038-G send an email to the IRS at
TaxExemptBondQuestions@irs.gov
and put "Form 8038-G Question" in the
subject line. In the email include a
description of your question, a return
email address, the name of a contact
person, and a telephone number.
Definitions
Tax-exempt obligation. This is any
obligation, including a bond, installment
purchase agreement, or financial lease,
on which the interest is excluded from
income under section 103.
Tax-exempt governmental obligation.
A tax-exempt obligation that is not a
private activity bond (see below) is a
tax-exempt governmental obligation. This
includes a bond issued by a qualified
volunteer fire department under section
150(e).
Private activity bond. This includes an
obligation issued as part of an issue in
which:
• More than 10% of the proceeds are to
be used for any private activity business
use, and
• More than 1 0% of the payment of
principal or interest of the issue is either
(a) secured by an interest in property to
be used for a private business use (or
payments for such property) or (b) to be
derived from payments for property (or
borrowed money) used for a private
business use.
It also includes a bond, the proceeds
of which (a) are to be used directly or
indirectly to make or finance loans (other
than loans described in section 141(c)(2))
to persons other than governmental units
and (b) exceeds the lesser of 5% of the
proceeds or $5 million.
Issue price. The issue price of
obligations is generally determined under
Regulations section 1.148-1(b). Thus,
when issued for cash, the issue price is
the first price at which a substantial
amount of the obligations are sold to the
public. To determine the issue price of an
obligation issued for property, see
sections 1273 and 127 4 and the related
regulations.
Issue. Generally, obligations are treated
as part of the same issue if they are
issued by the same issuer, on the same
date, and in a single transaction, or a
series of related transactions. However,
obligations issued during the same
calendar year (a) under a loan agreement
under which amounts are to be advanced
periodically (a "draw-down loan") or (b)
with a term not exceeding 270 days, may
be treated as part of the same issue if the
obligations are equally and ratably
secured under a single indenture or loan
agreement and are issued under a
common financing arrangement (for
example, under the same official
statement periodically updated to reflect
changing factual circumstances). Also, for
obligations issued under a draw-down
loan that meet the requirements of the
preceding sentence, obligations issued
during different calendar years may be
treated as part of the same issue if all of
the amounts to be advanced under the
draw-down loan are reasonably expected
to be advanced within 3 years of the date
of issue of the first obligation. Likewise,
obligations (other than private activity
bonds) issued under a single agreement
that is in the form of a lease or installment
sale may be treated as part of the same
issue if all of the property covered by that
agreement is reasonably expected to be
delivered within 3 years of the date of
issue of the first obligation.
Arbitrage rebate. Generally, interest on
a state or local bond is not tax-exempt
unless the issuer of the bond rebates to
the United States arbitrage profits earned
from investing proceeds of the bond in
higher yielding nonpurpose investments.
See section 148(f).
Construction issue. This is an issue of
tax-exempt bonds that meets both of the
following conditions:
1 . At least 75% of the available
construction proceeds are to be used for
construction expenditures with respect to
property to be owned by a governmental
unit or a section 501 (c)(3) organization,
and
2. All the bonds that are part of the
issue are qualified 501 (c)(3) bonds,
bonds that are not private activity bonds,
or private activity bonds issued to finance
property to be owned by a governmental
unit or a section 501 (c)(3) organization.
In lieu of rebating any arbitrage that
may be owed to the United States, the
issuer of a construction issue may make
an irrevocable election to pay a penalty.
The penalty is equal to 11/2% of the
amount of construction proceeds that do
not meet certain spending requirements.
See section 148(f)(4)(C) and the
Instructions for Form 8038-T.
Specific Instructions
Part !-Reporting Authority
Amended return. An issuer may file an
amended return to change or add to the
information reported on a previously filed
return for the same date of issue. If you
are filing to correct errors or change a
previously filed return, check the
Amended Return box in the heading of
the form.
The amended return must provide all
the information reported on the original
return, in addition to the new or corrected
information. Attach an explanation of the
reason for the amended return and write
across the top, "Amended Return
Explanation." Failure to attach an
explanation may result in a delay in
processing the form.
Line 1. The issuer's name is the name of
the entity issuing the obligations, not the
name of the entity receiving the benefit of
the financing. For a lease or installment
sale, the issuer is the lessee or the
purchaser.
Line 2. An issuer that does not have an
employer identification number (EIN)
should apply for one on Form SS-4,
Application for Employer Identification
Number. You can get this form on the IRS
website at IRS.gov or by calling
1-800-TAX-FORM (1-800-829-3676). You
may receive an EIN by telephone by
following the instructions for Form SS-4.
Line 3a. If the issuer wishes to authorize
a person other than an officer or other
employee of the issuer (including a legal
representative or paid preparer) to
communicate with the IRS and whom the
IRS may contact about this return
(including in writing or by telephone),
enter the name of such person here. The
person listed in line 3a must be an
individual. Do not enter the name and title
of an officer or other employee of the
issuer here (use line 1 Oa for that
purpose).
Note. By authorizing a person other than
an authorized officer or other employee of
the issuer to communicate with the IRS
and whom the IRS may contact about this
return, the issuer authorizes the IRS to
communicate directly with the individual
entered on line 3a and consents to
disclose the issuer's return information to
that individual, as necessary, to process
this return.
Lines 4 and 6. If you listed an individual
on line 3a to communicate with the IRS
and whom the IRS may contact about this
return, enter the number and street (or
P.O. box if mail is not delivered to street
address), city, town, or post office, state,
and ZIP code of that person. Otherwise,
enter the issuer's number and street (or
P .0. box if mail is not delivered to street
address), city, town, or post office, state,
and ZIP code.
Note. The address entered on lines 4
and 6 is the address the IRS will use for
all written communications regarding the
processing of this return, including any
notices.
Line 5. This line is for IRS use only. Do
not make any entries in this box.
Line 7. The date of issue is generally the
date on which the issuer physically
-2-
exchanges the bonds that are part of the
issue for the underwriter's (or other
purchaser's) funds. For a lease or
installment sale, enter the date interest
starts to accrue in a MM/DDNYYY
format.
Line 8. If there is no name of the issue
please provide other identification of the'
issue.
Line 9. Enter the CUSIP (Committee on
Uniform Securities Identification
Procedures) number of the bond with the
latest maturity. If the issue does not have
a CUSIP number, write "None."
Line 10a. Enter the name and title of the
officer or other employee of the issuer
whom the IRS may call for more
information. If the issuer wishes to
designate a person other than an officer
or other employee of the issuer (including
a legal representative or paid preparer)
whom the IRS may call for more
information about the return, enter the
name, title, and telephone number of
such person on lines 3a and 3b.
... Complete lines 1 Oa and 1 Db even
~ if you complete lines 3a and 3b.
Part II-Type of Issue m Elections referred to in Part II are
made on the original bond
documents, not on this form.
Identify the type of obligations issued
by entering the corresponding issue price
(see Issue price under Definitions earlier).
Attach a schedule listing names and EINs
of organizations that are to use proceeds
of these obligations, if different from those
of the issuer, include a brief summary of
the use and indicate whether or not such
user is a governmental or
nongovernmental entity.
Line 18. Enter a description of the issue
in the space provided.
Line 19. If the obligations are short-term
tax anticipation notes or warrants (TANs)
or short-term revenue anticipation notes
or warrants (RANs), check box 19a. If the
obligations are short-term bond
anticipation notes (BANs), issued with the
expectation that they will be refunded with
the proceeds of long-term bonds at some
future date, check box 19b. Do not check
both boxes.
Line 20. Check this box if property other
than cash is exchanged for the obligation,
for example, acquiring a police car, a fire
truck, or telephone equipment through a
series of monthly payments. (This type of
obligation is sometimes referred to as a
"municipal lease.") Also check this box if
real property is directly acquired in
exchange for an obligation to make
periodic payments of interest and
principal. Do not check this box if the
proceeds of the obligation are received in
the form of cash, even if the term "lease"
is used in the title of the issue.
Part Ill-Description of
Obligations
Line 21. For column (a), the final
maturity date is the last date the issuer
must redeem the entire issue.
For column (b), see Issue price under
Definitions earlier.
For column (c), the stated redemption
price at maturity of the entire issue is the
sum of the stated redemption prices at
maturity of each bond issued as part of
the issue. For a lease or installment sale,
write "N/A" in column (c).
For column (d), the weighted average
maturity is the sum of the products of the
issue price of each maturity and the
number of years to maturity (determined
separately for each maturity and by taking
into account mandatory redemptions),
divided by the issue price of the entire
issue (from line 21, column (b)). For a
lease or installment sale, enter instead
the total number of years the lease or
installment sale will be outstanding.
For column (e), the yield, as defined in
section 148(h), is the discount rate that,
when used to compute the present value
of all payments of principal and interest to
be paid on the obligation, produces an
amount equal to the purchase price,
including accrued interest. See
Regulations section 1 .148-4 for specific
rules to compute the yield on an issue. If
the issue is a variable rate issue, write
"VR" as the yield of the issue. For other
than variable rate issues, carry the yield
out to four decimal places (for example,
5.3125%). If the issue is a lease or
installment sale, enter the effective rate of
interest being paid.
Part IV-Uses of Proceeds of
Bond Issue
For a lease or installment sale, write "N/A"
in the space to the right of the title for Part
IV.
Line 22. Enter the amount of proceeds
that will be used to pay interest from the
date the bonds are dated to the date of
issue.
Line 24. Enter the amount of the
proceeds that will be used to pay bond
issuance costs, including fees for trustees
and bond counsel. If no bond proceeds
will be used to pay bond issuance costs,
enter zero. Do not leave this line blank.
Line 25. Enter the amount of the
proceeds that will be used to pay fees for
credit enhancement that are taken into
account in determining the yield on the
issue for purposes of section 148(h) (for
example, bond insurance premiums and
certain fees for letters of credit).
Line 26. Enter the amount of proceeds
that will be allocated to such a fund.
Line 27. Enter the amount of the
proceeds that will be used to pay
principal, interest, or call premium on any
other issue of bonds within 90 days of the
date of issue.
Line 28. Enter the amount of the
proceeds that will be used to pay
principal, interest, or call premium on any
other issue of bonds after 90 days of the
date of issue, including proceeds that will
be used to fund an escrow account for
this purpose.
Part V-Description of
Refunded Bonds
Complete this part only if the bonds are to
be used to refund a prior issue of
tax-exempt bonds. For a lease or
installment sale, write "N/A" in the space
to the right of the title for Part V.
Lines 31 and 32. The remaining
weighted average maturity is determined
without regard to the refunding. The
weighted average maturity is determined
in the same manner as on line 21, column
(d).
line 34. If more than a single issue of
bonds will be refunded, enter the date of
issue of each issue. Enter the date in an
MM/DD/YYYY format.
Part VI-Miscellaneous
Line 35. An allocation of volume cap is
required if the nonqualified amount for the
issue is more than $15 million but is not
more than the amount that would cause
the issue to be private activity bonds.
Line 36. If any portion of the gross
proceeds of the issue is or will be
invested in a guaranteed investment
contract (GIG), as defined in Regulations
section 1.148-1 (b), enter the amount of
the gross proceeds so invested, as well
as the final maturity date of the GIG and
the name of the provider of such contract.
Line 37. Enter the amount of the
proceeds of this issue used to make a
loan to another governmental unit, the
interest of which is tax-exempt.
Line 38. If the issue is a loan of
proceeds from another tax-exempt issue,
check the box and enter the date of issue,
EIN, and name of issuer of the master
pool obligation.
line 40. Check this box if the issue is a
construction issue and an irrevocable
election to pay a penalty in lieu of
arbitrage rebate has been made on or
before the date the bonds were issued.
The penalty is payable with a Form
8038-T for each 6-month period after the
date the bonds are issued. Do not make
any payment of penalty in lieu of arbitrage
rebate with this form. See Rev. Proc.
92-22, 1992-1 G.B. 736 for rules
regarding the "election document."
line 41a. Check this box if the issuer
has identified a hedge on its books and
records according to Regulations sections
1.148-4(h)(2)(viii) and 1.148-4(h)(5) that
permit an issuer of tax-exempt bonds to
identify a hedge for it to be included in
yield calculations for computing arbitrage.
line 42. In determining if the issuer has
super-integrated a hedge, apply the rules
of Regulations section 1.148-4(h)(4). If
the hedge is super-integrated, check the
box.
Line 43. If the issuer takes a "deliberate
action" after the issue date that causes
-3-
the conditions of the private business
tests or the private loan financing test to
be met, then such issue is also an issue
of private activity bonds. Regulations
section 1.141-2( d)(3) defines a deliberate
action as any action taken by the issuer
that is within its control regardless of
whether there is intent to violate such
tests. Regulations section 1.141-12
explains the conditions to taking remedial
action that prevent an action that causes
an issue to meet the private business
tests or private loan financing test from
being treated as a deliberate action.
Check the box if the issuer has
established written procedures to ensure
timely remedial action for all nonqualified
bonds according to Regulations section
1.141-12 or other remedial actions
authorized by the Commissioner under
Regulations section 1.141-12(h).
line 44. Check the box if the issuer has
established written procedures to monitor
compliance with the arbitrage, yield
restriction, and rebate requirements of
section 148.
Line 45a. Check the box if some part of
the proceeds was used to reimburse
expenditures. Figure and then enter the
amount of proceeds that are used to
reimburse the issuer for amounts paid for
a qualified purpose prior to the issuance
of the bonds. See Regulations section
1.150-2.
Line 45b. An issuer must adopt an
official intent to reimburse itself for
preissuance expenditures within 60 days
after payment of the original expenditure
unless excepted by Regulations section
1.150-2(f). Enter the date the official
intent was adopted. See Regulations
section 1.150-2(e) for more information
about official intent.
Signature and Consent
An authorized representative of the issuer
must sign Form 8038-G and any
applicable certification. Also print the
name and title of the person signing Form
8038-G. The authorized representative of
the issuer signing this form must have the
authority to consent to the disclosure of
the issuer's return information, as
necessary to process this return, to the
person(s) that have been designated in
Form 8038-G.
Note. If the issuer in Part 1 , lines 3a and
3b authorizes the IRS to communicate
(including in writing and by telephone)
with a person other than an officer or
other employee of the issuer, by signing
this form, the issuer's authorized
representative consents to the disclosure
of the issuer's return information, as
necessary to process this return, to such
person.
Paid Preparer
If an authorized officer of the issuer filled
in this return, the paid preparer's space
should remain blank. Anyone who
prepares the return but does not charge
the organization should not sign the
return. Certain others who prepare the
return should not sign. For example, a
regular, full-time employee of the issuer,
such as a clerk, secretary, etc., should
not sign.
Generally, anyone who is paid to
prepare a return rnust sign it and fill in the
other blanks in the Paid Preparer Use
Only area of the return.
The paid preparer must:
• Sign the return in the space provided
for the preparer's signature (a facsimile
signature is acceptable),
• Enter the preparer information, and
• Give a copy of the return to the issuer.
Paperwork Reduction Act Notice. We
ask for the information on this form to
carry out the Internal Revenue laws of the
United States. You are required to give us
the information. We need it to ensure that
you are complying with these laws.
You are not required to provide the
information requested on a form that is
subject to the Paperwork Reduction Act
unless the form displays a valid OMB
control number. Books or records relating
to a form or its instructions must be
retained as long as their contents may
become material in the administration of
any Internal Revenue law. Generally, tax
returns and return information are
confidential, as required by section 6103.
The time needed to complete and file
this form varies depending on individual
circumstances. The estimated average
time is:
-4-
Learning about the law or
the form ............ .
Preparing, copying,
assembling, and sending
the form to the IRS ..... .
2 hr., 41 min.
3 hr., 3 min.
If you have comments concerning the
accuracy of these time estimates or
suggestions for making this form simpler,
we would be happy to hear from you. You
can write to the Internal Revenue Service,
Tax Products Coordinating Committee,
SE:W:CAR:MP:T:M:S, 1111 Constitution
Ave. NW, IR-6526, Washington, DC
20224. Do not send the form to this
office. Instead, see Where To File.
Form8038•G Information Return for Tax-Exempt Governmental Obligations
(Rev. September 2011) .,. Under Internal Revenue Code section 149(e)
.,. See separate instructions. OMB No. 1545-0720
Caution: If the issue price is under$100,000, use Form 8038-GC.
3a Name of person (other than issuer) with whom the IRS may communicate about this return (see instructions) 3b Telephone number of other person shown on 3a
4 Number and street (or P.O. box if mail is not delivered to street address) Room/suite 5 Report number (For IRS Use
6 City, town, or post office, state, and ZIP code 7 Date of issue
8 Name of issue 9 CUSIP number
10a Name and title of officer or other employee of the issuer whom the IRS may call for more information (see
instructions)
10b Telephone number of officer or other
employee shown on 1 Oa
12
13 Transportation .
14 Public safety .
15 Environment (including sewage bonds)
16 Housing
17 Utilities
18 Other. Describe ,.._ ----------------------------=
If obligations are TANs or RANs, check only box 19a ,.._ 19
If obligations are BANs, check only box 19b ,.._
20 If obligations are in the form of a lease or installment sale, check box ,.._
23 Issue price of entire issue (enter amount from line 21, column (b))
24 Proceeds used for bond issuance costs (including underwriters' discount) .
25 Proceeds used for credit enhancement .
26 Proceeds allocated to reasonably required reserve or replacement fund
27 Proceeds used to currently refund prior issues
28
31
32
33
34
Enter the remaining weighted average maturity of the bonds to be currently refunded .
Enter the remaining weighted average maturity of the bonds to be advance refunded
Enter the last date on which the refunded bonds will be called (MM/DDIYYYY)
Enter the date(s) the refunded bonds were issued ,.._ (MM/DDIYYYY)
(e) Yield
years
years
For Paperwork Reduction Act Notice, see separate instructions. Cat. No. 637738 Form 8038-G (Rev. 9-2011)
Form 8038-G (Rev. 9-2011)
35 Enter the amount of the state volume cap allocated to the issue under section 141 (b}(5}
36a Enter the amount of gross proceeds invested or to be invested in a guaranteed investment contract
(GIC} (see instructions)
b Enter the final maturity date of the GIC..,.. --------------
c Enter the name of the GIC provider..,.. ---------------
37 Pooled financings: Enter the amount of the proceeds of this issue that are to be used to make loans
to other governmental units .
Page2
38a If this issue is a loan made from the proceeds of another tax-exempt issue, check box ..,.. D and enter the following information:
b Enter the date of the master pool obligation..,.. ---------------------
c Enter the EIN of the issuer of the master pool obligation..,.. -----------------
d Enter the name of the issuer of the master pool obligation..,.. ----------------
39 If the issuer has designated the issue under section 265(b)(3)(B)(i}(lll} (small issuer exception), check box ..,.. D
40 If the issuer has elected to pay a penalty in lieu of arbitrage rebate, check box . ..,.. D
41a If the issuer has identified a hedge, check here..,.. D and enter the following information:
b Name of hedge provider..,..
c Type of hedge..,.. ------------------
d Term of hedge..,.. ------------------
42 If the issuer has superintegrated the hedge, check box ..,.. D
43 If the issuer has established written procedures to ensure that all nonqualified bonds of this issue are remediated
according to the requirements under the Code and Regulations (see instructions), check box . ..,.. 0
44 If the issuer has established written procedures to monitor the requirements of section 148, check box . ..,.. D
45a If some portion of the proceeds was used to reimburse expenditures, check here..,.. D and enter the amount
of reimbursement . . ..,..
b Enter the date the official intent was adopted ..,..
Signature
and
Consent
Paid
Preparer
Use Only
Under penalties of perjury, I declare that I have examined this return and accompanying schedules and statements, and to the best of my knowledge
and belief, they are true, correct, and complete. I further declare that I consent to the IRS's disclosure of the issuer's return information, as necessary to
process this return, to the person that I have authorized above.
~ Signature of issuer's authorized representative Date ~ Type or print name and title
Print/Type preparer's name I Preparer's signature
I Date I Check D if I PTIN
self-employed I
Firm's name I> I Firm's EIN I>
Firm's address I> I Phone no.
Form 8038-G (Rev. 9-2011)
ESCROW AGREEMENT
THIS EscRow AGREEMENT ("Escrow Agreement') is made as of September 3, 2013 by and among
U.S. Bancorp Government Leasing and Finance, Inc. ("Lessor'), County of Harnett ("Lessee') and U.S.
BANK NATIONAL ASSOCIATION, as escrow agent ("Escrow Agent').
Lessor and Lessee have heretofore entered into that certain Master Tax-Exempt Lease/Purchase
Agreement dated as of September 3, 2013 (the "Master Agreement') and a Property Schedule No. 1
thereto dated September 3, 2013 (the "Schedule" and, together with the terms and conditions of the
Agreement incorporated therein, the "Agreement'). The Schedule contemplates that certain personal
property described therein (the "Equipment') is to be acquired from the vendor(s) or manufacturer(s)
thereof (the "Vendor'). After acceptance of the Equipment by Lessee, the Equipment is to be financed by
Lessor to Lessee pursuant to the terms of the Agreement.
The Master Agreement further contemplates that Lessor will deposit an amount equal to the
anticipated aggregate acquisition cost of the Equipment (the "Purchase Price'), being $739,763.00, with
Escrow Agent to be held in escrow and applied on the express terms set forth herein. Such deposit,
together with all interest and other additions received with respect thereto (hereinafter the "Escrow Fund'/
is to be applied to pay the Vendor its invoice cost (a portion of which may, if required, be paid prior to final
acceptance of the Equipment by Lessee); and, if applicable, to reimburse Lessee for progress payments
already made by it to the Vendor of the Equipment.
The parties desire to set forth the terms on which the Escrow Fund is to be created and to
establish the rights and responsibilities of the parties hereto.
Now, THEREFORE, in consideration of the sum of Ten Dollars ($10.00) in hand paid, and other
good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the
parties agree as follows:
1 . Escrow Agent hereby agrees to serve as escrow agent upon the terms and conditions set forth
herein. The moneys and investments held in the Escrow Fund are irrevocably held in trust for the benefit
of Lessee and Lessor, and such moneys, together with any income or interest earned thereon, shall be
expended only as provided in this Escrow Agreement, and shall not be subject to levy or attachment or
lien by or for the benefit of any creditor of either Lessee or Lessor. Lessor, Lessee and Escrow Agent
intend that the Escrow Fund constitute an escrow account in which Lessee has no legal or equitable right,
title or interest until satisfaction in full of all conditions contained herein for the disbursement of funds by
the Escrow Agent therefrom. However, if the parties' intention that Lessee shall have no legal or equitable
right, title or interest until all conditions for disbursement are satisfied in full is not respected in any legal
proceeding, the parties hereto intend that Lessor have a security interest in the Escrow Fund, and such
security interest is hereby granted by Lessee to secure payment of all sums due to Lessor under the
Master Agreement. For such purpose, Escrow Agent hereby agrees to act as agent for Lessor in
connection with the perfection of such security interest and agrees to note, or cause to be noted, on all
books and records relating to the Escrow Fund, the Lessor's interest therein.
2. On such day as is determined to the mutual satisfaction of the parties (the "Closing Date'),
Lessor shall deposit with Escrow Agent cash in the amount of the Purchase Price, to be held in escrow by
Escrow Agent on the express terms and conditions set forth herein.
On the Closing Date, Escrow Agent agrees to accept the deposit of the Purchase Price by Lessor,
and further agrees to hold the amount so deposited together with all interest and other additions received
with respect thereto, as the Escrow Fund hereunder, in escrow on the express terms and conditions set
forth herein.
3. Escrow Agent shall at all times segregate the Escrow Fund into an account maintained for
that express purpose, which shall be clearly identified on the books and records of Escrow Agent as being
held in its capacity as Escrow Agent. Securities and other negotiable instruments comprising the Escrow
Fund from time to time shall be held or registered in the name of Escrow Agent (or its nominee). The
Escrow Fund shall not, to the extent permitted by applicable law, be subject to levy or attachment or lien
by or for the benefit of any creditor of any of the parties hereto (except with respect to the security interest
therein held by Lessor).
4. The cash comprising the Escrow Fund from time to time shall be invested and reinvested by
Escrow Agent in one or more investments as directed by Lessee. Absent written direction from Lessee,
the cash will be invested in the U.S. Bank National Association Money Market Deposit Fund. See Exhibit 1
Investment Direction Letter. Lessee represents and warrants to Escrow Agent and Lessor that the
investments selected by Lessee for investment of the Escrow Fund are permitted investments for Lessee
under all applicable laws. Escrow Agent will use due diligence to collect amounts payable under a check
or other instrument for the payment of money comprising the Escrow Fund and shall promptly notify
Lessee and Lessor in the event of dishonor of payment under any such check or other instruments.
Interest or other amounts earned and received by Escrow Agent with respect to the Escrow Fund shall be
deposited in and comprise a part of the Escrow Fund. Escrow Agent shall maintain accounting records
sufficient to permit calculation of the income on investments and interest earned on deposit of amounts
held in the Escrow Fund. The parties acknowledge that to the extent regulations of the Comptroller of
Currency or other applicable regulatory entity grant a right to receive brokerage confirmations of security
transactions of the escrow, the parties waive receipt of such confirmations, to the extent permitted by law.
The Escrow Agent shall furnish a statement of security transactions on its regular monthly reports.
Attached as Exhibit 6 is the Class Action Negative Consent Letter to be reviewed by Lessee.
5. Upon request by Lessee and Lessor, Escrow Agent shall send monthly statements of
account to Lessee and Lessor, which statements shall set forth all withdrawals from and interest earnings
on the Escrow Fund as well as the investments in which the Escrow Fund is invested.
6. Escrow Agent shall take the following actions with respect to the Escrow Fund:
(a) Upon Escrow Agent's acceptance of the deposit of the Purchase Price, an
amount equal to Escrow Agent's set-up fee, as set forth on Exhibit 2 hereto, shall be disbursed
from the Escrow Fund to Escrow Agent in payment of such fee.
(b) Escrow Agent shall pay costs of the Equipment upon receipt of a duly executed
Requisition Request (substantially in the format of Exhibit 3) signed by Lessor and Lessee.
Lessor's authorized signatures are provided in Exhibit 5. Lessee's authorized signatures will be
provided in Exhibit 3 of Master Lease Purchase Agreement. Escrow Agent will use best efforts to
process requests for payment within one (1) business day of receipt of requisitions received prior
to 2:00 p.m. Central Time. The final Requisition shall be accompanied by a duly executed
Acceptance Certificate form attached as Exhibit 4 hereto.
(c) Upon receipt by Escrow Agent of written notice from Lessor that an Event of
Default or an Event of Nonappropriation (if provided for under the Master Agreement) has
occurred under the Agreement, all funds then on deposit in the Escrow Fund shall be paid to
Lessor for application in accordance with the Master Agreement, and this Escrow Agreement shall
terminate.
(d) Upon receipt by Escrow Agent of written notice from Lessor that the purchase
price of the Equipment has been paid in full, Escrow Agent shall pay the funds then on deposit in
the Escrow Fund to Lessor to be applied first to the next Lease Payment due under the Master
Agreement, and second, to prepayment of the principal component of Lease Payments in inverse
order of maturity without premium. To the extent the Agreement is not subject to prepayment,
Lessor consents to such prepayment to the extent of such prepayment amount from the Escrow
Fund. Upon disbursement of all amounts in the Escrow Fund, this Escrow Agreement shall
terminate.
(e) This Escrow Agreement shall terminate eighteen (18) months from the date of
this Escrow Agreement. It may, however, be extended by mutual consent of Lessee and Lessor
in writing to Escrow Agent. All funds on deposit in the Escrow Fund at the time of termination
under this paragraph, unless otherwise directed by Lessee in writing (electronic means
acceptable), shall be transferred to Lessor.
7. The fees and expenses, including any legal fees, of Escrow Agent incurred in connection
herewith shall be the responsibility of Lessee. The basic fees and expenses of Escrow Agent shall be as
set forth on Exhibit 2 and Escrow Agent is hereby authorized to deduct such fees and expenses from the
Escrow Fund as and when the same are incurred without any further authorization from Lessee or Lessor.
Escrow Agent may employ legal counsel and other experts as it deems necessary for advice in connection
with its obligations hereunder. Escrow Agent waives any claim against Lessor with respect to
compensation hereunder.
8. Escrow Agent shall have no liability for acting upon any written instruction presented by Lessor in
connection with this Escrow Agreement, which Escrow Agent in good faith believes to be genuine.
Furthermore, Escrow Agent shall not be liable for any act or omission in connection with this Escrow
Agreement except for its own negligence, willful misconduct or bad faith. Escrow Agent shall not be liable
for any loss or diminution in value of the Escrow Fund as a result of the investments made by Escrow
Agent.
9. Escrow Agent may resign at any time by giving thirty (30) days' prior written notice to Lessor
and Lessee. Lessor may at any time remove Escrow Agent as Escrow Agent under this Escrow
Agreement upon written notice. Such removal or resignation shall be effective on the date set forth in the
applicable notice. Upon the effective date of resignation or removal, Escrow Agent will transfer the
Escrow Fund to the successor Escrow Agent selected by Lessor.
10. Lessee hereby represents, covenants and warrants that pursuant to Treasury Regulations
Section 1.148-?(d), the gross proceeds of the Agreement will be expended for the governmental purposes
for which the Agreement was entered into, as follows: at least 15% within six months after the
Commencement Date, such date being the date of deposit of funds into the Escrow Fund, at least 60%
within 12 months after the Commencement Date, and 100% within 18 months after the Commencement
Date. If Lessee is unable to comply with Section 1.148-?(d) of the Treasury Regulations, Lessee shall, at
its sole expense and cost, compute rebatable arbitrage on the Agreement and pay rebatable arbitrage to
the United States at least once every five years, and within 60 days after payment of the final rental or
Lease Payment due under the Agreement.
11. In the event of any disagreement between the undersigned or any of them, and/or any other
person, resulting in adverse claims and demands being made in connection with or for any moneys
involved herein or affected hereby, Escrow Agent shall be entitled at its option to refuse to comply with any
such claim or demand, so long as such disagreement shall continue, and in so refusing Escrow Agent
may refrain from making any delivery or other disposition of any moneys involved herein or affected
hereby and in so doing Escrow Agent shall not be or become liable to the undersigned or any of them or to
any person or party for its failure or refusal to comply with such conflicting or adverse demands, and
Escrow Agent shall be entitled to continue so to refrain and refuse so to act until:
(a) the rights of the adverse claimants have been finally adjudicated in a court assuming
and having jurisdiction of the parties and the moneys involved herein or affected hereby; or
(b) all differences shall have been adjusted by Master Agreement and Escrow Agent shall
have been notified thereof in writing signed by all of the persons interested.
12. All notices (excluding billings and communications in the ordinary course of business)
hereunder shall be in writing, and shall be sufficiently given and served upon the other party if delivered
(a) personally, (b) by United States registered or certified mail, return receipt requested, postage prepaid,
(c) by an overnight delivery by a service such as Federal Express or Express Mail from which written
confirmation of overnight delivery is available, or (d) by facsimile with a confirmation copy by regular
United States mail, postage prepaid, addressed to the other party at its respective address stated below
the signature of such party or at such other address as such party shall from time to time designate in
writing to the other party, and shall be effective from the date of mailing.
13. This Escrow Agreement shall inure to the benefit of and shall be binding upon the parties
hereto and their respective successors and assigns. No rights or obligations of Escrow Agent under this
Escrow Agreement may be assigned without the prior written consent of Lessor.
14. This Escrow Agreement shall be governed by and construed in accordance with the laws in
the state of the Escrow Agent's location. This Escrow Agreement constitutes the entire Agreement
between the parties hereto with respect to the subject matter hereof, and no waiver, consent, modification
or change of terms hereof shall bind any party unless in writing signed by all parties.
15. This Escrow Agreement and any written direction may be executed in two or more
counterparts, which when so executed shall constitute one and the same agreement or direction.
IN WITNESS WHEREOF, the parties hereto have caused this Escrow Agreement to be duly executed
as of the day and year first above set forth.
U.S. Bancorp Government Leasing and
Finance, Inc., as Lessor
By:
Name:
Title:
Address: 13010 SW 68"' Parkway, Suite 100
Portland, OR 97223
County of Harnett, as Lessee
By:
Name:
Title:
Address: P.O. Box 760
Lillinoton, NC 27546
U.S. BANK NATIONAL ASSOCIATION, as Escrow
Agent
By:
Name:
Title:
Address: U.S. Bank National Association
5540 Center View Dr., Ste 200
Raleigh, NC 27606-3386
EXHIBIT 1 TO ESCROW AGREEMENT
INVESTMENT DISCLOSURE AND AUTHORIZATION LETTER
U.S. Bancorp and U.S. Bank TRADE SERVICES
Proprietary and Non-Proprietary Products
U.S. Bancorp offers investment trading services to Corporate Trust customers ("Accounts") through its fixed income
trading unit (U.S. Bank, NA) or an affiliated broker dealer (collectively the "Money Center"). Such trades may
include: fixed income U.S. Government securities; U.S. Government Agency securities; negotiable or non-negotiable
certificates of deposit; unsecured commercial paper; bank notes; medium term notes; municipal bonds; corporate
bonds; and variable rate demand notes where U.S. Bancorp, its affiliates or an associated party is the issuer or
product provider, e.g., U.S. Bank Notes and U.S. Bancorp Medium Term Notes (collectively "Proprietary Assets").
Descriptions of Proprietary Assets are set forth in Exhibit A attached hereto. Additional specific information on
assets available through the Money Center, including credit ratings, may be obtained upon request to your Account
Manager.
Corporate Trust Services Customers using the Money Center receive competitive market pricing on directed asset
transactions as follows:
Non-Proprietary Assets. Purchasers are charged a spread or "mark" which is the difference between the
Money Center's purchase price for the asset and the sale price to an Account. The mark on non-proprietary
assets is typically less than .50% of the securities' par value, and in no case will it exceed 2% of the securities'
par value, calculated on an annualized basis.
Proprietary Assets. US Bank receives a financial benefit from the sale of Proprietary Assets. The yield for
Proprietary Assets is set as a spread below U.S. Bank's wholesale funding cost, i.e., the cost of raising funds
from other, non-retail sources. Generally, the resulting financial benefit to U.S. Bank will be equivalent to .25%
to .75% of the product's par value calculated on an annualized basis.
By signing this form and providing investment directions to U.S. Bank, you acknowledge that you have reviewed
investment alternatives and you approve asset purchases using the Money Center, including purchases of
Proprietary Assets, and U.S. Bank's or an affiliate's receipt of compensation (as described above) resulting from
such directed trades. Unless specifically waived by written agreement, you will receive written confirmation notices
of all Money Center Account trades from U.S. Bank. You will be provided prior written notice of any changes in the
Money Center pricing structure described above. As a directing Account party you control the initiation and terms of
investments selected for your Account. At any time, you may direct that the purchase of an asset be executed
through an independent broker. Further, you may revoke this Investment Disclosure and Authorization Letter at any
time upon written notice to U.S. Bank.
If you desire to engage U.S. Bank to provide trading services to your Account, including the purchase of Proprietary
Assets for your Account, and you approve of U.S. Bank's or its affiliates' compensation in connection with such
transactions, all as described herein, please sign below and return this Letter. Authorization will continue to be
required directing U.S. Bank to buy or sell securities as required by the Account's governing documents. In the
absence of specific written direction to the contrary regarding any future directed investments for your Account, U.S.
Bank will utilize the Money Center for placing and executing directed investments for your Account.
ACKNOWLEDGED AND APPROVED:
County of Harnett
Company Name
Trust Account Number-includes
existing and future sub-accounts unless
otherwise designated.
Signature of Authorized Directing
Party
Title
Date
EXHIBIT A
U.S. BANK PROPRIETARY PRODUCTS
Certificates of Deposit. Certificates of deposit may be negotiable or non-negotiable, i.e., required to be
held by the account until their deposit maturity date. Certificates evidence the general deposit liability of U.S. Bank
to hold for a fixed period the funds deposited with it for, and pay interest to, the deposit owner at a rate as in effect
for the deposit period on the date the certificate of deposit is issued. Interest rates paid on such certificates of
deposit are set at the time they are issued at levels equal to current rates for comparable deposits established by
U.S. Bank from time to time. Certificates of deposit are FDIC insured per depositor, as determined under FDIC
regulations, up to applicable FDIC limits.
Eurodollar Deposits. Eurodollar deposits evidence the general liability of U.S. Bank to hold for a fixed
period the funds deposited with it for, and pay interest to, the deposit owner at a rate as in effect for the deposit
period on the date the certificate of deposit is made. Such deposits are established and maintained at the Cayman
Island foreign branch of U.S. Bank. Interest rates paid on such Eurodollar deposits are set at the time they are
issued at levels equal to current rates for comparable deposits established by U.S. Bank from time to time. As
deposits maintained outside the United States, the Eurodollar deposits could be subject to law changes or other
actions by the government of the country where the deposits are maintained. Eurodollar deposits are not FDIC
insured or guaranteed by any governmental agency or authority, or by U.S. Bank. -
Repurchase Agreements. Repurchase agreements are contracts with U.S. Bank for the purchase of U.S.
government or other debt securities at a specified price and U.S. Bank's obligation to repurchase those securities
back at a higher price after a specified period, or at the demand of the investing party. The differences in the
purchase and repurchase price provides earnings to the trust account and both prices are established at market
competitive levels at the commencement of the transaction at the earning rate for non-collateralized U.S. Bank
obligations less the collateral value costs based on market levels for the type and amount of collateral. The
repurchase price paid on such repurchase agreements are set at the time they are issued at levels equal to current
rates for comparable repurchase agreements established by U.S. Bank from time to time. The repurchase
agreements are not FDIC insured or guaranteed by any governmental agency or authority, or by U.S. Bank.
Bankers' Acceptances. Bankers' Acceptances are a method of financing that a bank may provide to its
customers to support the import, export or domestic shipment of goods or to finance the storage of properly titled
goods. A bankers' acceptance is often issued in conjunction with a Letter of Credit. A U.S. Bank bankers'
acceptance is purchased at a discount to its face value and redeemed on the maturity date at the face value. The
bankers' acceptances are not FDIC insured or guaranteed by any governmental agency or authority.
U.S. Bank or U.S. Bancorp Term or Daily Liquid Commercial Paper. Interest rates paid on fixed-income
unsecured term commercial paper securities issued by U.S. Bank, or its parent corporation, U.S. Bancorp, are set at
the time they are issued at levels comparable to current rates for commercial paper securities of similar terms,
security and market demand as indicated by Bloomberg on-line quotations of such rates. Interest rates paid on the
daily liquid (open-ended) unsecured commercial paper issued by U.S. Bank is calculated on the daily balance
method (actual/360), accrued daily and paid monthly. Daily liquid commercial paper interest rates are determined at
U.S. Bank's discretion as a daily variable rate priced based on nationally recognized indexes including the Target
Fed Funds (TFF) index less a funding spread or 1 month LIBOR less a funding spread. Reset and payment date of
LIBOR priced products will be the first of each month. Commercial paper securities are not FDIC insured or
guaranteed by any governmental agency or authority, or by U.S. Bank.
If you determine to discontinue investment of your trust account funds in an investment described above,
you can direct U.S. Bank as account trustee to sell such investment and purchase different securities. U.S. Bank
does not have a duty nor will it undertake any duty to provide investment advice to you. Investment advice, if
needed, should be obtained from your financial advisor.
1
1 Revised 2/15/11
U.S. BANK NATIONAL ASSOCIATION
DAILY LIQUID COMMERCIAL PAPER AUTHORIZATION FORM
The daily liquid (open-ended) U.S. Bank commercial paper investment is an unsecured promissory note
issued by U.S. Bank National Association which meets the liquidity needs of U.S. Bank's Corporate Trust
Services customers.
U.S. Bank uses the daily balance method to calculate interest on this product (actual/360). Interest is
accrued daily and credited monthly to the trust account. The owner of the accounts is U.S. Bank as agent
for its trust customers. Interest rates are determined at U.S. Bank's discretion as a daily variable rate
priced based on nationally recognized indexes including the Target Fed Funds (TFF) index less a funding
spread or 1 month LIBOR less a funding spread. Reset and payment date of LIBOR priced products will
be the first of each month.
U.S. Bank daily liquid (open-ended) commercial paper is not FDIC insured or guaranteed by any
government agency or authority, or by U.S. Bank. US Bank does not have a duty nor will it undertake any
duty to provide investment advice to you. Investment advice, if needed, should be obtained from your
financial advisor.
For current interest rate information, please contact your account manager.
AUTOMATIC AUTHORIZATION
Based upon your prior review of investment alternatives, in the absence of specific written direction to the
contrary, U.S. Bank is hereby directed to invest and reinvest proceeds and other available moneys on your
behalf in a U.S. Bank Open-Ended Commercial Paper. The U.S. Bank Commercial Paper is a permitted
investment under the operative documents and this authorization is the permanent direction for
investment of the moneys until notified in writing of alternate instructions. The Account Number listed is
intended to include any and all existing and future sub-accounts, unless specific written instructions are
given excluding such accounts.
COUNTY OF HARNETT
Company Name
Trust Account Number-includes
existing and future sub-accounts unless
otherwise designated.
Revised effective 9/15/10
Signature of Authorized Directing
Party
Title
Date
EXHIBIT 2
Schedule of Fees for Services as
Escrow Agent
For
County of Harnett
Equipment Lease Purchase Escrow
CTS01010A Acceptance Fee The acceptance fee includes the administrative review of WAIVED
documents, initial set-up of the account, and other reasonably required
services up to and including the closing. This is a one-time, non-refundable
fee, payable at closing.
CTS04460 Escrow Agent Annual fee for the standard escrow agent services WAIVED
associated with the administration of the account. Administration fees are
payable in advance.
Direct Out of Pocket Expenses Reimbursement of expenses associated
with the performance of our duties, including but not limited to publications,
legal counsel after the initial close, travel expenses and filing fees.
Extraordinary Services Extraordinary Services are duties or responsibilities
of an unusual nature, including termination, but not provided for in the
governing documents or otherwise set forth in this schedule. A reasonable
charge will be assessed based on the nature of the services and the
responsibility involved. At our option, these charges will be billed at a flat fee
or at our hourly rate then in effect.
At Cost
Account approval is subject to review and qualification. Fees are subject to change at our
discretion and upon written notice. Fees paid in advance will not be prorated. The fees set
forth above and any subsequent modifications thereof are part of your agreement.
Finalization of the transaction constitutes agreement to the above fee schedule, including
agreement to any subsequent changes upon proper written notice. In the event your
transaction is not finalized, any related out-of-pocket expenses will be billed to you directly.
Absent your written instructions to sweep or otherwise invest, all sums in your account will
remain uninvested and no accrued interest or other compensation will be credited to the
account. Payment of fees constitutes acceptance of the terms and conditions set forth.
IMPORTANT INFORMATION ABOUT PROCEDURES FOR OPENING A NEW ACCOUNT:
To help the government fight the funding of terrorism and money laundering
activities, Federal law requires all financial institutions to obtain, verify and record
information that identifies each person who opens an account.
For a non-individual person such as a business entity, a charity, a Trust or other legal
entity we will ask for documentation to verify its formation and existence as a legal
entity. We may also ask to see financial statements, licenses, identification and
authorization documents from individuals claiming authority to represent the entity or
other relevant documentation.
EXHIBIT 3
REQUISITION REQUEST
The Escrow Agent is hereby requested to pay from the Escrow Fund established and maintained under
that certain Escrow Agreement dated as of September 3, 2013 (the "Escrow Agreement") by and among U.S.
Bancorp Government Leasing and Finance, Inc. (the "Lessor"), County of Harnett (the "Lessee'), and U.S. Bank
National Association (the "Escrow Agent"), the amount set forth below to the named payee(s). The amount shown
is due and payable under a purchase order or contract (or has been paid by and not previously reimbursed to
Lessee) with respect to equipment being financed under that certain Master Tax-Exempt Lease Purchase
Agreement dated as of September 3, 2013 (the "Master Agreement') and Property Schedule No. 1 thereto dated
September 3, 2013 (the "Schedule" and, together with the terms and conditions of the Master Agreement
incorporated therein, the "Master Agreement'), by and between the Lessor and the Lessee, and has not formed
the basis of any prior requisition request.
PAYEE AMOUNT INVOICE No. EQUIPMENT
Total requisition amount$ _____ _
The undersigned, as Lessee under the Master Agreement, hereby certifies:
1. The items of the Equipment being acquired with the proceeds of this disbursement have been delivered and
installed at the location(s) contemplated by the Master Agreement. The Lessee has conducted such inspection
and/or testing of the Equipment being acquired with the proceeds of this disbursement as it deems necessary and
appropriate, and such Equipment has been accepted by Lessee.
2. The costs of the Equipment to be paid from the proceeds of this disbursement have been properly incurred, are
a proper charge against the Escrow Fund and have not been the basis of any previous disbursement.
3. No part of the disbursement requested hereby will be used to pay for materials not yet incorporated into the
Equipment or for services not yet performed in connection therewith.
4. The Equipment is covered by insurance in the types and amounts required by the Agreement.
5. No Event of Default or Event of Nonappropriation (if applicable), as each such term is defined in the Master
Agreement, and no event which with the giving of notice or lapse of time, or both, would become such an Event of
Default or Event of Nonappropriation has occurred and is continuing on the date hereof.
6. If Lessee paid an invoice prior to the commencement date of the Master Agreement, and is requesting
reimbursement for such payment, Lessee has satisfied the requirements for reimbursement set forth in Treas.
Reg. §1.150-2.
Request Date:
Lessor: U.S. Bancorp Government Leasing
and Finance, Inc.
By:
Name:
Title:
Lessee: County of Harnett
By:
Name:
Title:
Exhibit 4
Acceptance Certificate
U.S. Bancorp Government Leasing and Finance, Inc.
13010 SW 68th Parkway, Suite 100
Portland, OR 97223
Re: Property Schedule No.1 to Master Tax-Exempt Lease/Purchase Agreement between U.S. Bancorp
Government Leasing and Finance, Inc. and County of Harnett
Ladies and Gentlemen:
In accordance with the above-referenced Master Tax-Exempt Lease/Purchase Agreement (the "Master
Agreement"), the undersigned ("Lessee") hereby certifies and represents to, and agrees with, U.S. Bancorp
Government Leasing and Finance, Inc. ("Lessor"), as follows:
(1) The Property, as such terms are defined in the above-referenced Property Schedule, has been
acquired, made, delivered, installed and accepted on the date indicated below.
(2) Lessee has conducted such inspection and/or testing of the Property as it deems necessary and
appropriate and hereby acknowledges that it accepts the Property for all purposes.
(3) No event or condition that constitutes, or with notice or lapse of time, or both, would constitute, an
Event of Default or a Nonappropriation Event (as such terms are defined in the Master Agreement)
exists at the date hereof.
Acceptance Date: --------------
Lessee: County of Harnett
By:
Name:
Title:
September 3, 2013
County of Harnett
P.O. Box 760
Lillington, NC 27546
Exhibit 6
Class Action Negative Consent Letter
RE: USBGLF/County of Harnett--Class Action Litigation Claims
Dear Kimberly A. Honeycutt:
U.S. Bank National Association ("U.S. Bank") has established its policies and procedures relative to class action
litigation claims filed on behalf of its clients' accounts. This policy may impact future claims filed by U.S. Bank on behalf
of the above-referenced account. Listed below are the policies regarding class action litigation claims:
1. U.S. Bank will file class action litigation claims, at no charge, on behalf of open, eligible agency or custody
accounts upon receipt of proper documented authorization. This notice, with your ability to opt out as
further described below, constitutes such documented authorization.
2. U.S. Bank will not file claims for agency or custody accounts that were open during the class action period
but were closed prior to receipt of any notice of the class action litigation.
3. Assuming requisite information is provided by the payor to identify the applicable account, settlement
proceeds of the class action litigation will be posted within a reasonable time following receipt of such
proceeds to the entitled accounts that are open at such time. If entitled accounts are closed prior to
distribution and receipt of settlement proceeds, they will be remitted to entitled beneficiaries or successors
of the account net of any research and filing fees. Proceeds, less any research and filing fees, will be
escheated if the entitled beneficiaries or successors of the account cannot be identified /located.
If you wish U.S. Bank to continue to file class action litigation proofs of claim on behalf of your account, you do not need
to take any further action. However, if you do not wish U.S. Bank to file class action proofs of claim on behalf of your
account, you may notify us of this election by returning this letter with your signature and date provided below within 30
days or by filing a separate authorization letter with your Account Manager by the same date.
The authorization and understanding contained in this communication constitutes an amendment of any applicable
provisions of the account document for the above-referenced account.
If you have any questions, please contact me at the below number.
Sincerely,
Shawna Hale
Vice President
919-424-3944
0 No, U.S. Bank is not authorized to file class action litigation proofs of claim on behalf of the above-referenced
account(s). By making this election, I acknowledge that U.S. Bank is not responsible for forwarding notices received on
class action or litigation claims.
Authorized Signer Date
Form W-9 Request for Taxpayer Give Form to the
requester. Do not (Rev. December 2011) Identification Number and Certification Department of the Treasury send to the IRS. Internal Revenue Service
Name (as shown on your income tax return)
C\i Business name/disregarded entity name, if different from above
(J) 0> ro a. Check appropriate box for federal tax classification: c: 0 0 Individual/sole proprietor D C Corporation D S Corporation D Partnership D Trust/estate
Q) IJI c.§ D Exempt payee ~:;:: 0 Limited liability company. Enter the tax classification (C=C corporation, S=S corporation, P=partnership) ~ "" 0 0 2 --------------------------------........ c: Ul ·-c: 0 ""-Other (see instructions) ~ c. 0 <;:: Address (number, street, and apt. or suite no.) Requester's name and address (optional) ·c:;
Q) c. (/) City, state, and ZIP code (J)
Q) en
List account number(s) here (optional)
Ill :F. iilllll Taxpayer Identification Number (TIN)
Enter your TIN in the appropriate box. The TIN provided must match the name given on the "Name" line I Social security number I . . . . . . . . . . to avoid backup Withholding. For mdJVJduals, th1s 1s your soc1al secunty number (SSN). However, for a
resident alien, sole proprietor, or disregarded entity, see the Part I instructions on page 3. For other
entities, it is your employer identification number (EIN). If you do not have a number, see How to get a
TIN on page 3.
ITlJ -[0 -1 I I I I
Note. If the account is in more than one name, see the chart on page 4 for guidelines on whose
number to enter.
I Employer identification number I
[0-1 1111111
1@111 Certification
Under penalties of perjury, I certify that:
1. The number shown on this form is my correct taxpayer identification number (or I am waiting for a number to be issued to me), and
2. 1 am not subject to backup withholding because: (a) I am exempt from backup withholding, or (b) I have not been notified by the Internal Revenue
Service (IRS) that I am subject to backup withholding as a result of a failure to report all interest or dividends, or (c) the IRS has notified me that 1 am
no longer subject to backup withholding, and
3. 1 am a U.S. citizen or other U.S. person (defined below).
Certification instructions. You must cross out item 2 above if you have been notified by the IRS that you are currently subject to backup withholding
because you have failed to report all interest and dividends on your tax return. For real estate transactions, item 2 does not apply. For mortgage
interest paid, acquisition or abandonment of secured property, cancellation of debt, contributions to an individual retirement arrangement (IRA), and
generally, payments other than interest and dividends, you are not required to sign the certification, but you must provide your correct TIN. See the
instructions on page 4.
Sign Signature of
Here u.s. person ~ Date~
General Instructions
Section references are to the Internal Revenue Code unless otherwise
noted.
Purpose of Form
A person who is required to file an information return with the IRS must
obtain your correct taxpayer identification number (TIN) to report, for
example, income paid to you, real estate transactions, mortgage interest
you paid, acquisition or abandonment of secured property, cancellation
of debt, or contributions you made to an IRA.
Use Form W-9 only if you are a U.S. person (including a resident
alien), to provide your correct TIN to the person requesting it (the
requester) and, when applicable, to:
1. Certify that the TIN you are giving is correct (or you are waiting for a
number to be issued),
2. Certify that you are not subject to backup withholding, or
3. Claim exemption from backup withholding if you are a U.S. exempt
payee. If applicable, you are also certifying that as a U.S. person, your
allocable share of any partnership income from a U.S. trade or business
is not subject to the withholding tax on foreign partners' share of
effectively connected income.
Note. If a requester gives you a form other than Form W-9 to request
your TIN, you must use the requester's form if it is substantially similar
to this Form W-9.
Definition of a U.S. person. For federal tax purposes, you are
considered a U.S. person if you are:
• An individual who is a U.S. citizen or U.S. resident alien,
• A partnership, corporation, company, or association created or
organized in the United States or under the laws of the United States,
• An estate (other than a foreign estate), or
• A domestic trust (as defined in Regulations section 301. 7701-7).
Special rules for partnerships. Partnerships that conduct a trade or
business in the United States are generally required to pay a withholding
tax on any foreign partners' share of income from such business.
Further, in certain cases where a Form W-9 has not been received, a
partnership is required to presume that a partner is a foreign person,
and pay the withholding tax. Therefore, if you are a U.S. person that is a
partner in a partnership conducting a trade or business in the United
States, provide Form W-9 to the partnership to establish your U.S.
status and avoid withholding on your share of partnership income.
Cat. No. 10231X Form W-9 (Rev. 12-2011)
Form W-9 (Rev. 12-2011)
The person who gives Form W-9 to the partnership for purposes of
establishing its U.S. status and avoiding withholding on its allocable
share of net income from the partnership conducting a trade or business
in the United States is in the following cases:
• The U.S. owner of a disregarded entity and not the entity,
• The U.S. grantor or other owner of a grantor trust and not the trust,
and
• The U.S. trust (other than a grantor trust) and not the beneficiaries of
the trust.
Foreign person. If you are a foreign person, do not use Form W-9.
Instead, use the appropriate Form W-8 (see Publication 515,
Withholding of Tax on Nonresident Aliens and Foreign Entities).
Nonresident alien who becomes a resident alien. Generally, only a
nonresident alien individual may use the terms of a tax treaty to reduce
or eliminate U.S. tax on certain types of income. However, most tax
treaties contain a provision known as a "saving clause." Exceptions
specified in the saving clause may permit an exemption from tax to
continue for certain types of income even after the payee has otherwise
become a U.S. resident alien for tax purposes.
If you are a U.S. resident alien who is relying on an exception
contained in the saving clause of a tax treaty to claim an exemption
from U.S. tax on certain types of income, you must attach a statement
to Form W-9 that specifies the following five items:
1. The treaty country. Generally, this must be the same treaty under
which you claimed exemption from tax as a nonresident alien.
2. The treaty article addressing the income.
3. The article number (or location) in the tax treaty that contains the
saving clause and its exceptions.
4. The type and amount of income that qualifies for the exemption
from tax.
5. Sufficient facts to justify the exemption from tax under the terms of
the treaty article.
Example. Article 20 of the U.S.-China income tax treaty allows an
exemption from tax for scholarship income received by a Chinese
student temporarily present in the United States. Under U.S. law, this
student will become a resident alien for tax purposes if his or her stay in
the United States exceeds 5 calendar years. However, paragraph 2 of
the first Protocol to the U.S.-China treaty (dated April 3D, 1984) allows
the provisions of Article 20 to continue to apply even after the Chinese
student becomes a resident alien of the United States. A Chinese
student who qualifies for this exception (under paragraph 2 of the first
protocol) and is relying on this exception to claim an exemption from tax
on his or her scholarship or fellowship income would attach to Form
W-9 a statement that includes the information described above to
support that exemption.
If you are a nonresident alien or a foreign entity not subject to backup
withholding, give the requester the appropriate completed Form W-8.
What is backup withholding? Persons making certain payments to you
must under certain conditions withhold and pay to the IRS a percentage
of such payments. This is called "backup withholding." Payments that
may be subject to backup withholding include interest, tax-exempt
interest, dividends, broker and barter exchange transactions, rents,
royalties, nonemployee pay, and certain payments from fishing boat
operators. Real estate transactions are not subject to backup
withholding.
You will not be subject to backup withholding on payments you
receive if you give the requester your correct TIN, make the proper
certifications, and report all your taxable interest and dividends on your
tax return.
Payments you receive will be subject to backup
withholding if:
1. You do not furnish your TIN to the requester,
2. You do not certify your TIN when required (see the Part II
instructions on page 3 for details),
3. The IRS tells the requester that you furnished an incorrect TIN,
4. The IRS tells you that you are subject to backup withholding
because you did not report all your interest and dividends on your tax
return (for reportable interest and dividends only), or
5. You do not certify to the requester that you are not subject to
backup withholding under 4 above (for reportable interest and dividend
accounts opened after 1983 only).
Page2
Certain payees and payments are exempt from backup withholding.
See the instructions below and the separate Instructions for the
Requester of Form W-9.
Also see Special rules for partnerships on page 1.
Updating Your Information
You must provide updated information to any person to whom you
claimed to be an exempt payee if you are no longer an exempt payee
and anticipate receiving reportable payments in the future from this
person. For example, you may need to provide updated information if
you are a C corporation that elects to be an S corporation, or if you no
longer are tax exempt. In addition, you must furnish a new Form W-9 if
the name or TIN changes for the account, for example, if the grantor of a
grantor trust dies.
Penalties
Failure to furnish TIN. If you fail to furnish your correct TIN to a
requester, you are subject to a penalty of $50 for each such failure
unless your failure is due to reasonable cause and not to willful neglect.
Civil penalty for false information with respect to withholding. If you
make a false statement with no reasonable basis that results in no
backup withholding, you are subject to a $500 penalty.
Criminal penalty for falsifying information. Willfully falsifying
certifications or affirmations may subject you to criminal penalties
including fines and/or imprisonment.
Misuse of TINs. If the requester discloses or uses TINs in violation of
federal law, the requester may be subject to civil and criminal penalties.
Specific Instructions
Name
If you are an individual, you must generally enter the name shown on
your income tax return. However, if you have changed your last name,
for instance, due to marriage without informing the Social Security
Administration of the name change, enter your first name, the last name
shown on your social security card, and your new last name.
If the account is in joint names, list first, and then circle, the name of
the person or entity whose number you entered in Part I of the form.
Sole proprietor. Enter your individual name as shown on your income
tax return on the "Name" line. You may enter your business, trade, or
"doing business as (DBA)" name on the "Business name/disregarded
entity name" line.
Partnership, C Corporation, or S Corporation. Enter the entity's name
on the "Name" line and any business, trade, or "doing business as
(DBA) name" on the "Business name/disregarded entity name" line.
Disregarded entity. Enter the owner's name on the "Name" line. The
name of the entity entered on the "Name" line should never be a
disregarded entity. The name on the "Name" line must be the name
shown on the income tax return on which the income will be reported.
For example, if a foreign LLC that is treated as a disregarded entity for
U.S. federal tax purposes has a domestic owner, the domestic owner's
name is required to be provided on the "Name" line. If the direct owner
of the entity is also a disregarded entity, enter the first owner that is not
disregarded for federal tax purposes. Enter the disregarded entity's
name on the "Business name/disregarded entity name" line. If the owner
of the disregarded entity is a foreign person, you must complete an
appropriate Form W-8.
Note. Check the appropriate box for the federal tax classification of the
person whose name is entered on the "Name" line (Individual/sole
proprietor, Partnership, C Corporation, S Corporation, TrusVestate).
Limited Liability Company (LLC). If the person identified on the
"Name" line is an LLC, check the "Limited liability company" box only
and enter the appropriate code for the tax classification in the space
provided. If you are an LLC that is treated as a partnership for federal
tax purposes, enter "P" for partnership. If you are an LLC that has filed a
Form 8832 or a Form 2553 to be taxed as a corporation, enter "C" for
C corporation or "S" for S corporation. If you are an LLC that is
disregarded as an entity separate from its owner under Regulation
section 301.7701-3 (except for employment and excise tax), do not
check the LLC box unless the owner of the LLC (required to be
identified on the "Name" line) is another LLC that is not disregarded for
federal tax purposes. If the LLC is disregarded as an entity separate
from its owner, enter the appropriate tax classification of the owner
identified on the "Name" line.
Form W-9 (Rev. 12-2011)
Other entities. Enter your business name as shown on required federal
tax documents on the "Name" line. This name should match the name
shown on the charter or other legal document creating the entity. You
may enter any business, trade, or DBA name on the "Business name/
disregarded entity name" line.
Exempt Payee
If you are exempt from backup withholding, enter your name as
described above and check the appropriate box for your status, then
check the "Exempt payee" box in the line following the "Business name/
disregarded entity name," sign and date the form.
Generally, individuals (including sole proprietors) are not exempt from
backup withholding. Corporations are exempt from backup withholding
for certain payments, such as interest and dividends.
Note. If you are exempt from backup withholding, you should still
complete this form to avoid possible erroneous backup withholding.
The following payees are exempt from backup withholding:
1. An organization exempt from tax under section 501 (a), any IRA, or a
custodial account under section 403(b)(7) if the account satisfies the
requirements of section 401 (f)(2),
2. The United States or any of its agencies or instrumentalities,
3. A state, the District of Columbia, a possession of the United States,
or any of their political subdivisions or instrumentalities,
4. A foreign government or any of its political subdivisions, agencies,
or instrumentalities, or
5. An international organization or any of its agencies or
instrumentalities.
Other payees that may be exempt from backup withholding include:
6. A corporation,
7. A foreign central bank of issue,
8. A dealer in securities or commodities required to register in the
United States, the District of Columbia, or a possession of the United
States,
9. A futures commission merchant registered with the Commodity
Futures Trading Commission,
1 0. A real estate investment trust,
11. An entity registered at all times during the tax year under the
Investment Company Act of 1940,
12. A common trust fund operated by a bank under section 584(a),
13. A financial institution,
14. A middleman known in the investment community as a nominee or
custodian, or
15. A trust exempt from tax under section 664 or described in section
4947.
The following chart shows types of payments that may be exempt
from backup withholding. The chart applies to the exempt payees listed
above, 1 through 15.
IF the payment is for ...
Interest and dividend payments
Broker transactions
Barter exchange transactions and
patronage dividends
THEN the payment is exempt
for ...
All exempt payees except
for 9
Exempt payees 1 through 5 and 7
through 13. Also, C corporations.
Exempt payees 1 through 5
Payments over $600 required to be Generally, exempt payees
reported and direct sales over 1 through 7 2
$5,000 1
1 See Form 1099-MISC, Miscellaneous Income, and its instructions.
2 However, the following payments made to a corporation and reportable on Form
1 099-MISC are not exempt from backup withholding: medical and health care
payments, attorneys' fees, gross proceeds paid to an attorney, and payments for
services paid by a federal executive agency.
Page3
Part I. Taxpayer Identification Number (TIN)
Enter your TIN in the appropriate box. If you are a resident alien and
you do not have and are not eligible to get an SSN, your TIN is your IRS
individual taxpayer identification number (ITIN). Enter it in the social
security number box. If you do not have an ITIN, see How to get a TIN
below.
If you are a sole proprietor and you have an EIN, you may enter either
your SSN or EIN. However, the IRS prefers that you use your SSN.
If you are a single-member LLC that is disregarded as an entity
separate from its owner (see Limited Liability Company (LLC) on page 2),
enter the owner's SSN (or EIN, if the owner has one). Do not enter the
disregarded entity's EIN. If the LLC is classified as a corporation or
partnership, enter the entity's EIN.
Note. See the chart on page 4 for further clarification of name and TIN
combinations.
How to get a TIN. If you do not have a TIN, apply for one immediately.
To apply for an SSN, get Form SS-5, Application for a Social Security
Card, from your local Social Security Administration office or get this
form online at www.ssa.gov. You may also get this form by calling
1-800-772-1213. Use Form W-7, Application for IRS Individual Taxpayer
Identification Number, to apply for an ITIN, or Form SS-4, Application for
Employer Identification Number, to apply for an EIN. You can apply for
an EIN online by accessing the IRS website at www.irs.gov/businesses
and clicking on Employer Identification Number (EIN) under Starting a
Business. You can get Forms W-7 and SS-4 from the IRS by visiting
IRS.gov or by calling 1-800-TAX-FORM (1-800-829-3676).
If you are asked to complete Form W-9 but do not have a TIN, write
"Applied For" in the space for the TIN, sign and date the form, and give
it to the requester. For interest and dividend payments, and certain
payments made with respect to readily tradable instruments, generally
you will have 60 days to get a TIN and give it to the requester before you
are subject to backup withholding on payments. The 60-day rule does
not apply to other types of payments. You will be subject to backup
withholding on all such payments until you provide your TIN to the
requester.
Note. Entering "Applied For" means that you have already applied for a
TIN or that you intend to apply for one soon.
Caution: A disregarded domestic entity that has a foreign owner must
use the appropriate Form W-8.
Part II. Certification
To establish to the withholding agent that you are a U.S. person, or
resident alien, sign Form W-9. You may be requested to sign by the
withholding agent even if item 1, below, and items 4 and 5 on page 4
indicate otherwise.
For a joint account, only the person whose TIN is shown in Part I
should sign (when required). In the case of a disregarded entity, the
person identified on the "Name" line must sign. Exempt payees, see
Exempt Payee on page 3.
Signature requirements. Complete the certification as indicated in
items 1 through 3, below, and items 4 and 5 on page 4.
1. Interest, dividend, and barter exchange accounts opened
before 1984 and broker accounts considered active during 1983.
You must give your correct TIN, but you do not have to sign the
certification.
2.1nterest, dividend, broker, and barter exchange accounts
opened after 1983 and broker accounts considered inactive during
1983. You must sign the certification or backup withholding will apply. If
you are subject to backup withholding and you are merely providing
your correct TIN to the requester, you must cross out item 2 in the
certification before signing the form.
3. Real estate transactions. You must sign the certification. You may
cross out item 2 of the certification.
Form W-9 (Rev. 12-2011)
4. Other payments. You must give your correct TIN, but you do not
have to sign the certification unless you have been notified that you
have previously given an incorrect TIN. "Other payments" include
payments made in the course of the requester's trade or business for
rents, royalties, goods (other than bills for merchandise), medical and
health care services (including payments to corporations), payments to
a nonemployee for services, payments to certain fishing boat crew
members and fishermen, and gross proceeds paid to attorneys
(including payments to corporations).
5. Mortgage interest paid by you, acquisition or abandonment of
secured property, cancellation of debt, qualified tuition program
payments (under section 529), IRA, Coverdell ESA, Archer MSA or
HSA contributions or distributions, and pension distributions. You
must give your correct TIN, but you do not have to sign the certification.
What Name and Number To Give the Requester
For this type of account:
1. Individual
2. Two or more individuals Ooint
account)
3. Custodian account of a minor
(Uniform Gift to Minors Act)
4. a. The usual revocable savings
trust (grantor is also trustee)
b. So-called trust account that is
not a legal or valid trust under
state law
5. Sole proprietorship or disregarded
entity owned by an individual
6. Grantor trust filing under Optional
Form 1 099 Filing Method 1 (see
Regulation section 1.671-4(b)(2)(i)(A))
For this type of account:
7. Disregarded entity not owned by an
individual
8. A valid trust, estate, or pension trust
9. Corporation or LLC electing
corporate status on Form 8832 or
Form 2553
10. Association, club, religious,
charitable, educational, or other
tax-exempt organization
11. Partnership or multi-member LLC
12. A broker or registered nominee
13. Account with the Department of
Agriculture in the name of a public
entity (such as a state or local
government, school district, or
prison) that receives agricultural
program payments
14. Grantor trust filing under the Form
1 041 Filing Method or the Optional
Form 1099 Filing Method 2 (see
Regulation section 1.671-4(b)(2)(i)(B))
Give name and SSN of:
The individual
The actual owner of the account or,
if combined funds, the first
individual on the account
The minor'
The grantor-trustee '
The actual owner '
The owner'
The grantor•
Give name and EIN of:
The owner
Legal entity'
The corporation
The organization
The partnership
The broker or nominee
The public entity
The trust
1 List first and circle the name of the person whose number you furnish. If only one person on a
joint account has an SSN, that person's number must be furnished.
2 Circle the minor's name and furnish the minor's SSN.
3 You must show your individual name and you may also enter your business or "DBA" name on
the "Business name/disregarded entity" name line. You may use either your SSN or EIN (if you
have one), but the IRS encourages you to use your SSN.
" List first and circle the name of the trust, estate, or pension trust. (Do not furnish the TIN of the
personal representative or trustee unless the legal entity itself is not designated in the account
title.) Also see Special rules for partnerships on page 1.
*Note. Grantor also must provide a Form W-9 to trustee of trust.
Privacy Act Notice
Page4
Note. If no name is circled when more than one name is listed, the
number will be considered to be that of the first name listed.
Secure Your Tax Records from Identity Theft
Identity theft occurs when someone uses your personal information
such as your name, social security number (SSN), or other identifying
information, without your permission, to commit fraud or other crimes.
An identity thief may use your SSN to get a job or may file a tax return
using your SSN to receive a refund.
To reduce your risk:
• Protect your SSN,
• Ensure your employer is protecting your SSN, and
• Be careful when choosing a tax preparer.
If your tax records are affected by identity theft and you receive a
notice from the IRS, respond right away to the name and phone number
printed on the IRS notice or letter.
If your tax records are not currently affected by identity theft but you
think you are at risk due to a lost or stolen purse or wallet, questionable
credit card activity or credit report, contact the IRS Identity Theft Hotline
at 1-800-908-4490 or submit Form 14039.
For more information, see Publication 4535, Identity Theft Prevention
and Victim Assistance.
Victims of identity theft who are experiencing economic harm or a
system problem, or are seeking help in resolving tax problems that have
not been resolved through normal channels, may be eligible for
Taxpayer Advocate Service (TAS) assistance. You can reach TAS by
calling theTAS toll-free case intake line at 1-877-777-4778 or TIY!TDD
1-800-829-4059.
Protect yourself from suspicious emails or phishing schemes.
Phishing is the creation and use of email and websites designed to
mimic legitimate business emails and websites. The most common act
is sending an email to a user falsely claiming to be an established
legitimate enterprise in an attempt to scam the user into surrendering
private information that will be used for identity theft.
The IRS does not initiate contacts with taxpayers via emails. Also, the
IRS does not request personal detailed information through email or ask
taxpayers for the PIN numbers, passwords, or similar secret access
information for their credit card, bank, or other financial accounts.
If you receive an unsolicited email claiming to be from the IRS,
forward this message to phishing@irs.gov. You may also report misuse
of the IRS name, logo, or other IRS property to the Treasury Inspector
General for Tax Administration at 1-800-366-4484. You can forward
suspicious emails to the Federal Trade Commission at: spam@uce.gov
or contact them at www.ftc.gov/idtheft or 1-877-IDTHEFT
(1-877 -438-4338).
Visit IRS.gov to learn more about identity theft and how to reduce
your risk.
Section 6109 of the Internal Revenue Code requires you to provide your correct TIN to persons (including federal agencies) who are required to file information returns with
the IRS to report interest, dividends, or certain other income paid to you; mortgage interest you paid; the acquisition or abandonment of secured property; the cancellation
of debt; or contributions you made to an IRA, Archer MSA, or HSA. The person collecting this form uses the information on the fomn to file infomnation returns with the IRS,
reporting the above information. Routine uses of this information include giving it to the Department of Justice for civil and criminal litigation and to cities, states, the District
of Columbia, and U.S. possessions for use in administering their laws. The information also may be disclosed to other countries under a treaty, to federal and state agencies
to enforce civil and criminal laws, or to federal law enforcement and intelligence agencies to combat terrorism. You must provide your TIN whether or not you are required to
file a tax return. Under section 3406, payers must generally withhold a percentage of taxable interest, dividend, and certain other payments to a payee who does not give a
TIN to the payer. Certain penalties may also apply for providing false or fraudulent information.
bancorp. FIRST PAYMENT INVOICE
Government Leasing and Finance, Inc.
PLEASE RETURN THIS PORTION WITH YOUR PAYMENT
SCHEDULE NUMBER: 077-0019215-001 DUE DATE: October 3, 2013
CREATE DATE: August 15, 2013 AMOUNT DUE: $13,046.35
County of Harnett
P.O. Box 760
Lillington, NC 27546
U.S. Bancorp Government Leasing and Finance, Inc.
ATTN: Myra Aksamit
950 1 ih Street, 7frl Floor
Attention: Accounts Payable Dept.
Customer Phone Number: 910-814-6093
Denver, CO 80202
>»>»» PLEASE RETAIN THIS PORTION FOR YOUR RECORDS ««<<<<
All payments MUST be sent to this address:
U.S. Bancorp Government Leasing and Finance, Inc.
PO BOX 959067
ST. LOUIS, MO 63179-9067
U.S. Bancorp Government Leasing and Finance, Inc.
ATTN: Myra Aksamit
950 1ih Street, 7frl Floor
ACCOUNT: 077-0019215-001
AMOUNT DUE: $13,046.35
Denver, CO 80202
DUE DATE: October 3, 2013
CREATE DATE: August 15,2013
QUESTIONS? PLEASE CALL (303-585-4054)
INVOICE SUMMARY
Current Charges [Payment #1]
Total Due
TOTAL AMOUNT DUE THIS INVOICE MUST
BE PAID WITHIN TEN (10) DAYS OF DUE DATE TO AVOID LATE CHARGES
$13,046.35
$13,046.35