HomeMy Public PortalAbout2013.12.10 CESCO John Deere Financial Lease Agreement BackhoeFederal and State Agency
Claim for Exemption of
State and Local Sales/Use Tax
Purchaser
Name: CITY OF MCCALL
Address: 216 E PARK ST.,MACCALL, ID 83638
ID Number (If Applicable):
Seller
Name: DEERE CREDIT, INC.
Address: 6400 NW 86f" ST JOHNSTON, IA 50131
Reason for Exemption: GOVERNMENTAL ENTITY
Description of Item Being Purchased:
JD 310SK BACKHOE S/N: 1T0310SKJCE238754
JOHN DEERE
FINANCIAL
By signing below, purchaser certifies that the items being purchased are
exempt fr stare and local sales tax.
By:
Title:
Date: NY) 1Aeitav 7
Telephone Number:
/ 0, d O
;zes--csc{-7/4
Page 1 of 1
Version 1 Update July 2011
JOHN DEERE
FINANCIAL. Addendum
State and Local Government
IMaster Lease Agreement No. 10062318
Lessee:
(Name & Address)
CITY OF MCCALL
216 E PARK ST, MCCALL, ID 83638
Lessor:
DEERE CREDIT, INC.
6400 NW 86tt ST, PO BOX 6600, JOHNSTON, IA 50131-6600
Addendum to that certain Master Lease Agreement dated as of 01/04/2013 (the "Master Agreement'), and entered into by and between
Deere Credit, Inc. ("Lessor and CITY OF MCCALL ("Lessee').
RECITALS
WHEREAS, Lessor and Lessee are currently entering into the Master Agreement pursuant to which Lessor will lease certain equipment to
Lessee;
WHEREAS, the parties wish to enter into this Addendum to more accurately reflect the understanding of the parties;
NOW, THEREFORE, in consideration of the mutual covenants contained in this Addendum and other good and valuable consideration, the
receipt and sufficiency of which is expressly acknowledged, the parties hereto agree as follows:
1. Capitalized terms not otherwise defined in this Addendum shall have the meaning provided to them in the Master Agreement.
2. Section 3 of the Master Agreement is hereby replaced in its entirety with the following:
3. Taxes. Although you may be exempt from the payment of certain taxes, you agree to pay us when invoiced (a) all sales,
use, rental, gross receipts and all other taxes which may be imposed on the Equipment or its use, and (b) all taxes and
governmental charges associated with the ownership, use or possession of the Equipment including, but not limited to,
personal property and ad valorem taxes ("Taxes'). Taxes do not include those measured by our net income. If applicable law
requires tax returns or reports to be filed by you, you agree to promptly file such tax returns and reports and deliver copies to
us. You agree to keep and make available to us all tax returns and reports for Taxes paid by you.
4. Section 14 of the Master Agreement is hereby replaced in its entirety with the following:
14. Representations and Warranties. You represent and warrant to us, as of the date of this Master Agreement and of
each Schedule, and covenant to us so long as the Lease is in effect, that: (a) you are a State, or a political subdivision
thereof, for purposes of Section 103 of the Internal Revenue Code of 1986, as amended (the "Code"); (b) any
documents required to be delivered in connection with the Lease (collectively, the "Documents") have been duly
authorized by you in accordance with all applicable laws, rules, ordinances, and regulations; (c) the Documents are
valid, legal, binding agreements, enforceable in accordance with their terms and the person(s) signing the Documents
have the authority to do so, are acting with the full authorization of your governing body, and hold the offices indicated
below their signatures; (d) the Equipment is essential to the immediate performance of a governmental or proprietary
function by you within the scope of your authority and shall be used during the Lease Term only by you and only to
perform such function; (e) you intend to use the Equipment for the entire Lease Term and shall take all necessary action
to include in your annual budget any funds required to fulfill your obligations each fiscal period during the Lease Term;
(f) you have complied fully with all applicable law governing open meetings, public bidding and appropriations, required
in connection with the Lease and the debt under applicable state law; (g) your obligations to remit Lease Payments and
other amounts due and to become due under the Lease constitute a current expense and not a debt under applicable
state law; (h) all financial information you have provided is true and a reasonable representation of your financial
condition; (i) you shall not do or cause to be done any act which shall cause, or by omission of any act allow the interest
portion of any Lease Payment to become includible in our gross income for Federal income taxation purposes under
the Code; (j) you shall maintain a complete and accurate account of all assignments of the Lease in the form sufficient to
comply with book entry requirements of Section 149(a) of the Code and the regulations prescribed thereunder from
time to time; and (k) you shall comply with the information reporting requirements of Section 149(e) of the Code. Such
compliance shall include, but not be limited to, the execution of 8038-G or 8038-GC Information Returns.
5. Section 17 of the Master Agreement is hereby added as follows:
17. Non -Appropriation of Funds. You intend to remit to us all Lease Payments and other payments for the full Lease
Term if funds are legally available. In the event you are not granted an appropriation of funds at any time during the
Lease Term for the Equipment or for equipment which is functionally similar to the Equipment and operating funds are
not otherwise available to you to remit Lease Payments and other payments due and to become due under the Lease,
and there is no other legal procedure or available funds by or with which payment can be made to us, and the non -
appropriation did not result from an act or omission by you,
Dcl Governmental Operating Lease Addendum 0812409 Page 1 of 2
App 11389673
you shall have the right to return the Equipment in accordance with Section 9 of this Master Agreement and terminate the
Lease on the last day of the fiscal period for which appropriations were received without penalty or expense to you, except as
to the portion of the Lease Payments for which funds shall have been appropriated and budgeted. At least thirty (30) days
prior to the end of your fiscal period, your chief executive officer (or legal counsel) shall certify in writing that (a) funds have not
been appropriated for the fiscal period, (b) such non -appropriation did not result from any act or failure to act by you, and (c)
you have exhausted all funds legally available to pay Lease Payments. If you terminate the Lease because of a non -
appropriation of funds, you may not, to the extent permitted by applicable law, purchase, lease, or rent, during the subsequent
fiscal period, equipment performing the same functions as, or functions taking the place of, those performed by the
Equipment. This Section 17 shall not permit you to terminate the Lease in order to acquire any other equipment or to allocate
funds directly or indirectly to perform essentially the application for which the Equipment is intended.
If you terminate the Lease because of a non -appropriation of funds, the provisions of Section 8 shall not apply.
6. Except as expressly amended by this Addendum, the terms and conditions of the Master Agreement shall remain in full force
and effect. This Addendum constitutes the complete understanding of the parties hereto and supersedes all prior understandings of the
parties relating to the matters discussed herein. This Addendum may only be amended or modified by the terms of a written instrument
signed by all parties hereto.
IN WITNESS WHEREOF, the parties have caused this Addendum to be executed by their duly authorized representatives as of the date
first written above.
CITY OF MCCALL
21. ' K ST,
MCCALL, 183638
By: NIIIP
DON • = !LEY, M OR
Date:
By:
Title:
DEERE CREDIT, INC.
6400 N.W.86th STREET, PO BOX 6600
JOHNSTON, IA 50131-6600
Date:
DCI Governmerrtal Operating Lease Addendum 08A2009
Rage 2 of 2 App 11389673
JOHN DEERE
FINANCIAL
Lease Schedule
Lease Schedule No.
030-0062318-000
Master Lease Agreement No.
0062318
Lessee:
(Name & Address)
CITY OF MCCALL
216 E PARK ST, MCCALL, ID 83638
Lessor:
Lease Term Start
Date
DEERE CREDIT, INC.
6400 NW 86th ST, PO BOX 6600, JOHNSTON, IA 50131-6600
Lease Term End
Date
# Of Payments
LEASE TERM
Lease Payment
$4,574.74
RENEWAL TERM
01 /04/2013
01/04/2018
5
Renewal Term
Start Date
Renewal Term
End Date
# Of Payments
Sales/Use Tax
Total Lease
Payment
Purchase Option
Price
$0.00
$4,574.74
$68,500.00
Renewal Lease
Payment Amount
Sales/Use Tax
Total Renewal
Lease Payment
Purchase Option
Price
Due Date
PAYMENT TERMS
1" Payment Due
Date
Discount Rate
PAYMENT DUE AT SIGNING
Advance Lease Payment
—$4,574.74
04 01/04/2013
Internal Rate of Return minus 2 percent (2%)
Documentation Fee
$0.00
Billing Period Irregular Payments
Security Deposit
$0.00
❑ Monthly
❑ Quarterly
❑ Semi -Annual
EI Annual
❑ Irregular
Total Due At Signing
$4,574.74
"Advance Lease Payment includes the first (1) and last (0)
Lease Payment(s)
"Master Agreement" shall mean the above referenced Master Lease Agreement. "
Schedule and the Master Agreement. All of the terms and conditions set forth in
attachment thereto or hereto including, but not limited to, the Maintenance Addendum
Lease Payments. You agree to remit the Lease Payments (and
applicable sales, use and property taxes) on the dates noted above and
all other amounts when due to: DEERE CREDIT, INC., P.O. Box 4450,
Carol Stream, IL 60197-4450.
Hourly Charges. You certify that the hour meter reading on each Item of
Equipment is accurate as of the date you sign this Schedule. If you use
any Equipment during the Lease Term for more than the Hourly Limit
indicated above for that item, you will pay to us within 10 days of the
Lease Term End Date (or any earlier termination of the Lease) an amount
equal to the Excess Hour Charge for that Item for each hour in excess of
the Hourly Limit. If the Lease is terminated, cancelled or extended for any
reason, the Hourly Limit will be prorated by us in our sole discretion.
Purchase Option. You may purchase the Equipment on the Lease Term
End Date (or the Renewal Term End Date) for the applicable Purchase
Option Price (plus applicable Taxes including estimated property taxes),
provided (1) you are not in default; (2) we receive written notice of your
intent to purchase the Equipment at least 60 days before the Lease Term
End Date (or the Renewal Term End Date); and (3) we receive the
Purchase Option Price and any other amounts you owe us on or before
the Lease Term End Date (or the Renewal Term End Date). Upon receipt
of the Purchase Option Price, we will transfer to you all of our right, title
and interest in such Item(s) of Equipment AS -IS, WHERE -IS, WITHOUT
ANY WARRANTY AS TO CONDITION OR VALUE.
Renewal Term. IF A RENEWAL TERM IS PROVIDED FOR ABOVE,
THE LEASE TERM SHALL RENEW AUTOMATICALLY FOR THE
RENEWAL TERM UNLESS (1) YOU NOTIFY US AT LEAST SIXTY (60)
DAYS BEFORE THE LEASE TERM END DATE THAT YOU DO NOT
INTEND TO RENEW THE LEASE AND YOU RETURN ALL OF THE
EQUIPMENT ON OR BEFORE THE LEASE TERM END DATE, QFS (2)
YOU EXERCISE THE PURCHASE OPTION. You agree to remit to us
Schedule" shall mean this Lease Schedule. "Lease" shall mean this
the Master Agreement and any amendment, addendum, schedule or
are hereby incorporated into and made a part of this Schedule.
the Renewal Lease Payments indicated above (plus applicable taxes and other
amounts) when due and payable each Billing Period, even if we do not send
you a bill or an invoice.
Representations and Warranties. You represent and warrant to us, as of the
date you signed this Schedule, that (1) the Equipment was selected by you; (2)
the Equipment (including all manufacturer manuals and instructions) has been
delivered to, and examined by, you; (3) the safe operation and the proper
servicing of the Equipment were explained to you; (4) you received the written
warranty applicable to the Equipment and understand that your rights under the
written warranty may be limited; (5) the Equipment is unconditionally and
irrevocably accepted by you as being suitable for its intended use; (6) the
Equipment is in good condition and repair (operating and otherwise); (7) the
Equipment shall be used only for the purpose indicated herein; (8) except as
disclosed to us, neither you nor any person related to you has an equity interest in
the Equipment on the Lease Term Start Date; and (9) all information provided to
us by you is true and correct.
You acknowledge and agree that: (1) we did not select, manufacture or
supply any of the Equipment; (2) we acquired the Equipment at your direction;
(3) you selected the supplier of the Equipment; (4) you are entitled to all
manufacturer warranties ("Warranty Rights") and we assign all Warranty Rights
to you, to the extent assignable; (5) you may request an accurate and complete
statement of the Warranty Rights, including any disclaimers and limitations,
directly from the manufacturer; and (6) you assign to us all your rights (but none
of your obligations) under all purchase orders, purchase agreements or similar
documents relating to the Equipment. You waive all rights and remedies
conferred upon a lessee under Article 2A of the Uniform Commercial Code.
Lease Payments may be based on the assumption that we will be entitled to
certain tax benefits as the owner of the Equipment. If you take or fail to take
any action that results in a loss of such tax benefits, you will pay us, on
demand, the amount we calculate as the value of such lost tax benefits.
DGI NILS OL (NI STET) 11/2004
Page of 2 App 11389673
Lease Schedule — Equipment List
Supplier
(Name&Address)
Year
Make
CONTRACTOR'S
2000 E
Model
EQUIPMENT SUPPLY
OVERLAND RD, MERIDIAN, ID 836426610
EQUIPMENT
Equipment Description
INFORMATION
Serial Number
Hour
Meter
Hour
Limit
Excess
Hour
Charge
Payment
Purchase
Option
2013
JD
310SK
BACKHOE LOADER WITH CAB,
CPLR, 2LVR, AC, THUMB, 1.3YD
BKT
1T0310SKJCE23
8754
0
500/YR
$14.88/HR
$4,574.74
$68,500.00
Equipment
Location
216 E PARK ST, MCCALL, ID, 83638
OUTSIDE city limits: 0
VALLEY COUNTY
BY SIGNING THIS SCHEDULE, YOU AGREE TO ALL OF THE TERMS AND CONDITIONS OF THIS SCHEDULE AND THE MASTER AGREEMENT.
By:
Date:
CITY
216
-1�ALL,
OF MCCALL
E PARK ST
/ ( r
DEERE CREDIT, INC.
LESSOR 6400 NW 86`h ST, PO BOX 6600
JOHNSTON, IA 50131-6600
By:
i 83638
D D BAILEY, MAYOR
! /f
Title: Date:
DCi MLS OE. (NI STDT) 11/2004
Page 2 of 2
App 11389673
JOHN DEERE Equipment Return Provisions
FINANCIAL
Lease Schedule No.
030-0062318-000
Master Lease Agreement No.
0062318
Lessee:
(Name 8 Address)
CITY OF MCCALL
216 E PARK ST, MCCALL, ID 83638
Lessor:
DEERE CREDIT, INC.
6400 NW 86t ST, PO BOX 6600, JOHNSTON, IA 50131-6600
I
The following Equipment Retum Provisions are hereby incorporated into and made a
04 day of January, 2013 (the "Master Agreement"), and entered into between Deere
Lessee ("you' or `your"'). Pursuant to Section 9 of the Master Lease Agreement, all
Unsatisfactory condition shall include any condition described in Sections 1 through 4
1. Mechanical
A. Computer systems or safely and emission control equipment not in
proper working order.
B. Mechanical components that are missing, broken or unsafe or that
do not operate normally, other than normal tune-ups, given the age
of the equipment. 4.
C. Wear on power train assembly that exceeds manufacturer's then
current standards for normal wear and tear.
D. Any air filters not within manufacturer's specifications.
E. Any gauges or fluid indicators that are damaged or do not function,
the electrical system fails to operate properly, the battery fails to
hold a charge or any wire harnesses that are not tied down and
kept secured, dry and clean.
F. Any pumps, motors, valves or cylinders not in good operating 5.
condition or that fail to meet manufacturer's rated specifications or
hydraulic system exceeds manufacturer's then -current
contaminant standards (as shown by oil sample analysis).
Equipment not serviced according to the manufacturers operating
manual.
G. Any lubricant, water or A/C seal leaks.
2. Exterior.
A. Dents larger than 2 inches in diameter.
B. Excessive number of dents or scratches.
C. Any scratch 8" or longer that reaches the metal skin.
D. Any single chip the size of a quarter or larger or multiple small
chips within one square foot.
E. Substandard paint repairs, such as peeling, bubbling or
mismatched shades that evidence poor condition in comparison
with original paint and require repainting at a cost in excess of
$200.
F. Rust holes in the body metal or a rust spot that covers more than a
4-inch square area.
G. Any glass that must be replaced due to cracks or missing glass
and any windshield damages greater than $50 in amount.
H. All frame damage and substandard frame repairs.
I. Any tires or tracks that (a) have broken side walls or excessive
cuts or damages, or (b) have less than 50% of the original useful
life remaining, or (c) are not of the same size, type grade or
equivalent quality manufacturer as were originally included on the
Equipment.
3. Cab/Operator Platform.
A. Heavy interior soil or strong odors, such as manure, that cannot be
removed by general cleaning.
LESSEE
By:
CITY OF MCCALL
216 E PARK ST
a, ID : •638
DON D BAILEY, MAYOR
Date: ♦ / ]
part of that certain John Deere Master Lease Agreement dated as of the
Credit, Inc., as Lessor ("us", "we" or "our"), and CITY OF MCCALL, as
Equipment must be returned to us in satisfactory condition.
below ("Excessive Wear and Tear').
B.
C.
Unclean condition of operator environment.
Holes, tears, or burns on the dash, floor covers, seats, headliners,
upholstery or interior.
General.
A. Equipment not operated or maintained in accordance with the
manufacturer's specifications or if components, fuels or fluids, on or
in connection with the Equipment that do not meet manufacturer's
standards were used.
B. Any other damage that in the aggregate costs $250 or more to
repair or that makes the Equipment unlawful or unsafe to operate.
Other.
A. All warranty and PIP work must be completed prior to the
Termination Date of the Lease Schedule relating to the Equipment.
B. The Equipment must be cleaned prior to its return.
6. Hour Meter. For each item of Equipment returned with a broken or
missing hour meter, you shall accept an invoice from us and remit to us
an amount equal to $1,000. You agree that the hour meter included
with the Equipment is conclusive of the number of hours of Equipment
use.
7. Invoices for Excess Wear And Tear. Upon any return of the
Equipment, we shall, in our sole discretion, determine the existence of
any Excessive Wear and Tear. In the event any item of Equipment is
returned to us with Excessive Wear and Tear, you shall, at our sole
discretion, either (i) accept an invoice from us and remit to us the cost of
repairing or replacing the affected component(s) which we determine
necessary to return the Equipment to its required condition, and/or (ii)
accept an invoice from us and remit to us an amount equal to our
estimate of (1) the cost of new tires or tracks if the tires or tracks are
damaged due to broken side walls or excessive cuts or damage , or (2)
the cost of new tires or tracks multiplied by the difference between (A)
our estimate of the percentage of the useful life of the tires and tracks
then remaining, and (B) fifty percent (50%). For example, if you return
Equipment with tires having 20% of their useful life remaining, you would
remit to us an amount equal to 30% of the cost of new tires ((50% -
20%) multiplied by the cost of new tires). Your failure to remit the
required payment to us within ten (10) days of demand shall constitute a
default by you under the terms of the Lease.
LESSOR
By:
Title:
DEERE CREDIT, INC.
6400 NW 86t ST, PO BOX 6600
JOHNSTON, IA 50131-6600
Date:
DCI EQUIPMENT RETURN PROVISIONS 02/2005
Page 1 of 1
App 11389673
JOHN DEERE Delivery and Acknowledgment
FINANCIAL
Lease Schedule No.
030-0062318-000
Master Lease Agreement No.
0062318
Lessee:
(Name & Address)
CITY OF MCCALL
216 E PARK ST, MCCALL, ID 83638
Lessor:
DEERE CREDIT, INC.
6400 NW 86t° ST, PO BOX 6600, JOHNSTON, IA 50131-6600
Capitalized terms shall have the meanings set forth in the above referenced Master Lease Agreement.
Lessee hereby represents and warrants that: (1) all of the Equipment more fully described in the above referenced Lease Schedule was
selected by Lessee; (2) all of the Equipment and the Operator's Manuals have been delivered to, and received by, Lessee; (3) All of the
Equipment has been inspected by Lessee and is in good working order; (4) all of the Equipment is unconditionally and irrevocably accepted
by Lessee for all purposes under the Lease; (5) the safe operation and the proper servicing of the Equipment have been explained to
Lessee; (6) Lessee received the manufacturer's written warranty applicable to the Equipment and Lessee understands that its rights are
subject to the limitations outlined therein; (7) No Event of Default has occurred and is continuing; and (8) no material adverse change in the
financial or business condition of Lessee has occurred since the date of the last financial statement submitted to Lessor by Lessee.
Signed by Lessee's duly authorized representative on the date shown below.
LESSEE
CITY OF MCCALL
216 E PARK ST,
MG -CAL 3638
By:
DON AILEY, MAYOR
Date: 010
ry
1 60,
LESSOR
By:
Title:
DEERE CREDIT, INC.
6400 N.W.86th STREET, PO BOX 6600
JOHNSTON, IA 50131-6600
Date:
®CI DELIVERY & ACKNOWLEDGMENT 11d2004
Pagel of 1 App 11389673
JOHN DEERE
Property Tax Acknowledgment
' FINANCIAL
Lease Schedule No.
030-0062318-000
Master Lease Agreement No.
0062318
Lessee:
(Name&Address)
CITY OF MCCALL,
216 E PARK ST, MCCALL, ID, 83638
Lessor:
DEERE CREDIT, INC.
6400 NW 86th ST, PO BOX 6600, JOHNSTON, IA 50131-6600
As Lessor and Owner
appropriate taxing authority.
Lessor will bill Lessee
Lessor for property taxes
Lease Agreement for
The equipment listed
jurisdiction(s).
of the equipment, Deere Credit,
Lessee should not report
Inc. is responsible for filing and paying property tax to the
this equipment on their property tax retum.
assessment from the taxing authority. Lessee will reimburse
John Deere Financial. Please refer to section 3 of the Master
— Equipment Listing will be reported to the following taxing
for property taxes upon receipt of an
upon receipt of an invoice from
further information.
on the attached Master Lease Schedule
216 E PARK ST _ Check here if OUTSIDE city limits
Street Address
MCCALL ID 83638 VALLEY
City State Zip County
PLEASE VALIDATE THE ABOVE INFORMATION & MAKE APPLICABLE CHANGES BELOW:
_ Check here if OUTSIDE city limits
Street Address
City State Zip County
❑ Check here if Sales/Use Tax Exempt ❑ Check here if Property Tax Exempt
Equipment Usage:
Percentage of Time:
The undersigned (the 'Lessee") acknowledges that they have verified the equipment location listed above; understands
that the Lessor will file and pay property taxes and that the Lessee is required to reimburse Lessor upon receipt of an
invoice for property taxes. Failure to reimburse Lessor for property taxes shall constitute an Event of Default as described
in Section 10 of the Lease.
CITY OF MCCALL
LESSEE 216 E PARK ST
M^ ai 1 ID 83638
By: r
.d �1
DO A�AILE-1'5fAA
Date: * L
/.
DCE PROPERTY TAX ACKNOWLEDGMENT 11/2004 Page 1 of 1
App 11389673
JOHN D'EERE
FINANCIAL
Master Lease Agreement
I Agreement No. 10062318
Lessee:
CITY OF MCCALL
216 E PARK ST, MCCALL, ID 83638
Lessor:
DEERE CREDIT, INC.
6400 NW 86T" ST, PO BOX 6600, JOHNSTON, IA 50131-6600
This Master Lease Agreement ("Master Agreement") is entered into between Deere Credit, Inc., as Lessor ("we", "us" or "our"), and the lessee and any co -
lessee identified below ("you" or "your"). "Schedule" shall mean any Lease Schedule signed by you and us, which incorporates the terms of this Master
Agreement. "Lease" shall mean this Master Agreement and any Schedule.
TERMS AND CONDITIONS
1. Lease Term: Payments. You agree to lease from us the property
("Equipment") described in each Schedule for the Lease Term. The Lease
Term will begin on the Lease Term Start Date and end on the Lease Term
End Date. All attachments and accessories itemized on the Schedule and
all replacements, parts and repairs to the Equipment shall form part of the
Equipment. A Schedule is not accepted by us until we sign it, even if you
have made a payment to us. You agree to remit to us the Lease Payments
indicated in the Schedule and all other amounts when due and payable
each Billing Period, even if we do not send you a bill or an invoice. YOUR
PAYMENT OBLIGATIONS ARE ABSOLUTE AND UNCONDITIONAL,
AND ARE NOT SUBJECT TO CANCELLATION, REDUCTION OR
SETOFF FOR ANY REASON WHATSOEVER. For any payment which is
not received by its due date, you agree to pay a late charge equal to 4% of
the past due amount (not to exceed the maximum amount permitted by law)
as reasonable collection costs, plus interest from the due date until paid at
a rate of 1.5% per month, but in no event more than the maximum lawful
rate. Restrictive endorsements on checks you send us will not change or
reduce your obligations to us. If a payment is returned to us by the bank for
any reason, you agree to pay us a fee of $25.00, or the maximum amount
permitted by law, whichever is less. Lease Payments and other payments
may be applied, at our discretion, to any obligation you may have to us or
any of our affiliates. If the total of all payments made during the Lease
Term (and any Renewal Term), exceeds the total of all amounts due under
the Lease by less than $25.00, we may retain such excess.
2. Security Deposit. If the Schedule provides for a Security Deposit, the
Security Deposit will be held by us in a non -interest bearing account,
commingled with other funds. We may apply the Security Deposit to any
amounts due under the Lease and, if we do so, you agree to promptly remit
to us the amount necessary to restore the Security Deposit to the original
amount. The Security Deposit will be returned to you within thirty days of
termination of a Schedule and final inspection by us, provided you are not
in default.
3. Taxes. You agree to pay us when invoiced, all sales, use, rental,
gross receipts and all other taxes which may be imposed on the Equipment
or its use. You agree, at our discretion, to either (a) reimburse us annually
for all taxes and governmental charges associated with the ownership, use
or possession of the Equipment including, but not limited to, personal
property and advalorem taxes ("Property Taxes"), or (b) remit to us each
Billing Period our estimate of the pro -rated equivalent of such Property
Taxes. If the estimated Property Taxes paid by you are greater than or less
than the Property Taxes paid by us, no adjustment will be made. Taxes do
not include those measured by our net income. You agree to pay us an
administrative fee for the processing of taxes, assessments or fees which
may be due and payable under the Lease. If applicable law requires tax
returns or reports to be filed by you, you agree to promptly file such tax
returns and reports and deliver copies to us. You agree to keep and make
available to us all tax returns and reports for taxes paid by you.
4. Security Interest: Missina Information. We are the owner of the
Equipment and you have the right to use the Equipment under the terms of
the Lease. If a Schedule is deemed to be a secured transaction and not a
lease, you (a) grant us a security interest in the Equipment (and all
proceeds) to secure all of your obligations under the Lease and any other
obligations, which you may have, to us or any of our affiliates, and (b)
authorize us to file financing statements naming you as debtor. Upon
exercise of any Purchase Option Price, we will release our security interest
in the Equipment provided you have remitted the Purchase Option Price to
us and no event of default has occurred and is continuing. You agree to
keep the Equipment free and clear of liens and encumbrances, except
those in our favor, and promptly notify us if a lien or encumbrance is placed
or threatened against the Equipment. You irrevocably authorize us, at any
time, to (a) insert or correct information on the Schedules, including your
correct legal name, serial numbers and Equipment descriptions; (b) submit
notices and proofs of loss for any required insurance; and (c) endorse your
name on remittances for insurance and Equipment sale or lease proceeds.
5. Eauioment Maintenance. Operation and Use. You agree to (a)
USE THE EQUIPMENT ONLY FOR AGRICULTURAL, BUSINESS OR
COMMERCIAL PURPOSES AND NOT FOR PERSONAL, FAMILY OR
HOUSEHOLD PURPOSES; (b) not move the Equipment to another county
or state without notifying us within 30 days; (c) operate and maintain the
Equipment in accordance with all (1) laws, ordinances and regulations, (2)
manuals and other instructions issued by the manufacturer(s) and supplier(s),
and (3) insurance policy terms and requirements; (d) perform (at your own
expense) all maintenance and repairs necessary to keep the Equipment in as
good a condition as when delivered to you, reasonable wear excepted; (e) not
install any accessory or device on the Equipment which affects the value,
useful life or the originally intended function or use of the Equipment in any
way, unless it can be removed without damaging the Equipment; (f) allow us
and our agent(s) to inspect the Equipment and all of your records related to its
use, maintenance and repair, at any reasonable time; (g) keep any metering
device installed on the Equipment connected and in good working condition at
all times; (h) affix and maintain, in a prominent place on the Equipment, any
labels, plates or other markings we may provide to you; and (i) not permit the
Equipment to be used by, or to be in the possession of, anyone other than you
or your employees.
6. Insurance. You agree, at your cost, to (a) keep the Equipment insured
against all risks of physical damage for no less than its Termination Value (as
such term is defined in Section 8 below), naming us (and our successors and
assigns) as sole loss payee; and (b) maintain public liability insurance,
covering personal injury and property damage for not less than $1,000,000 per
occurrence, naming us (and our successors and assigns) as additional
insured. All insurance must be with companies and policies acceptable to us.
Your obligation to insure the Equipment continues until you return the
Equipment to us and we accept it. Each insurance policy must provide that (A)
our interest in the policy will not be invalidated by any act, omission, breach or
neglect of anyone other than us; and (B) the insurer will give us at least 30
days' prior written notice before any cancellation of, or material change to, the
policy.
Unless you provide us with evidence of the required insurance coverages,
we may purchase insurance, at your expense, to protect our interests in the
Equipment. This insurance may not (1) protect your interests; or (2) pay any
claim that you make or any claim that is made against you in connection with
the Equipment. You may later cancel any insurance purchased by us, but only
after providing us with evidence that you have obtained the insurance required
by the Lease. The cost of the insurance may be more than the cost of
insurance you may be able to obtain on your own.
7. Loss or Damage. Until the Equipment is returned to us in satisfactory
condition, you are responsible for all risk of loss and damage, loss, theft,
destruction or seizure of the Equipment (an "Event of Loss'). You must
promptly notify us of any Event of Loss. If the Equipment can be repaired or
replaced, you agree to promptly repair or replace the Equipment, at your cost,
and the terms of the Lease will continue to apply. If the Equipment cannot be
repaired or replaced, you agree to pay us, within 10 days of the Event of Loss,
its Termination Value as of the day before such Event of Loss occurred. Upon
receipt of the Termination Value, we will transfer to you (or the insurance
company) all of our right, title and interest in such item(s) of Equipment (each,
an "Item") AS -IS, WHERE -IS, WITHOUT ANY WARRANTY AS TO
CONDITION OR VALUE. All insurance proceeds must be paid directly to us,
and we may apply any excess insurance proceeds to any other amounts you
owe us or any of our affiliates.
8. Early Termination. If you request, and we agree to, a termination of a
Schedule before the expiration of its Lease Term, you agree to (a) deliver the
Equipment to us at the time and place we choose; and (b) if the net proceeds
we receive from any sale, lease or other disposition of the Equipment (after
deducting all of our costs and expenses) is less than the Termination Value,
remit to us the difference. The "Termination Value" of any Item of Equipment
shall be the greater of Fair Market Value or Net Book Value as of the dale of
determination of any early termination, loss or default. "Fair Market Value" or
"FMV" is (1) the value that would be obtained in an arm's length sale of that
Item between an informed and willing seller under no compulsion to sell (but
with no deduction for shipping costs), and an informed and willing buyer, as
estimated by us; plus (2) the estimated cost to repair and refurbish the Item so
that it is in satisfactory condition, as described in Section 9. "Net Book Value"
for any Item is the sum of (1) all Lease Payments and any other amounts then
due and payable to us; plus (2) the present value of all remaining Lease
Payments and other amounts, discounted at the Internal Rate of Return or, if a
discount rate is set forth in the applicable Schedule, such discount rate (the
"Discount Rate"); plus (3) the unamortized amount of our indirect costs of
originating and administering the applicable Schedule; plus (4) the present
value of the Purchase Option Price (or, if there is no Purchase Option Price,
DCI MLA 02/2005
oft App 11389673
ADDITIONAL TERMS AND CONDITIONS OF AGREEMENT
the residual value that we assumed in calculating Lease Payments),
discounted at the Discount Rate. "Internal Rate of Return" shall be calculated
using standard finance techniques with the Equipment Cost, Lease Payments,
Lease Term and Purchase Option Price (or residual value assumption) as the
variables.
9. Retum of Eauipment. If a Schedule is terminated for any reason and
you do not (a) return the Equipment to us, (b) exercise any Purchase Option,
or (c) exercise any Renewal Option, you agree to remit to us, until such time
as the Equipment is returned to us in accordance with the provisions of this
Section, lease payments each month equal to the higher of (i) the monthly fair
market rental value of the Equipment, as determined by us in our sole
discretion, or (ii) the monthly Lease Payment set forth in the Schedule (or the
monthly lease payment equivalent if the Lease Payments are other than
monthly (e.g., for annual Lease Payments, the monthly lease payment
equivalent would be calculated by dividing the annual Lease Payment by 12)).
All Equipment must be returned to the place designated by us, at your
expense and in satisfactory condition, along with all use, maintenance and
repair records. Equipment is in satisfactory condition if it is in as good a
condition as when the Equipment was delivered to you, reasonable wear
excepted, and conforms to the standards of any Equipment Return Provisions
incorporated into the Lease.
10. Default. You will be in default if: (a) you fail to remit to us any Lease
Payment or other payment when due; (b) you breach any other provision of
the Lease and such default continues for 10 days; (c) you remove any
Equipment from the United States; (d) a petition is filed by or against you or
any guarantor under any bankruptcy or insolvency law; (e) a default occurs
under any other agreement between you (or any of your affiliates) and us (or
any of our affiliates); (f) you or any guarantor merges with or consolidates into
another entity, sells substantially all its assets, dissolves or terminates its
existence, or (if an individual) dies; or (g) you fail to maintain the insurance
required by Section 6. Time is of the essence under the Lease.
11. Remedies. If a default occurs, we may do one or more of the following:
(a) require you to return the Equipment in the manner outlined in Section 9, or
take possession of the Equipment; (b) recover from you, AS LIQUIDATED
DAMAGES FOR LOSS OF BARGAIN AND NOT AS A PENALTY (i) if the
Equipment is so returned, the sum of (1) all Lease Payments and any other
amounts then due and payable to us; plus (2) the present value of all
remaining Lease Payments and other amounts, discounted at the Discount
Rate; plus (3) the unamortized amount of our indirect costs of originating and
administering the applicable Schedule (the "Default Amount"), or (ii) if the
Equipment is not so returned, the Termination Value as of the date of such
default; (c) lease or sell the Equipment or any portion thereof at a public or
private sale and apply the net proceeds we receive from any sale, lease or
other disposition of the Equipment (after deducting all of our costs and
expenses) to the Default Amount, with you remaining liable for any deficiency;
(d) declare any other agreements between you and us (or any of our affiliates)
in default; (e) terminate any of your rights (but none of your obligations) under
any Lease and any other agreement between you and us (or any of our
affiliates); (f) charge you for the expenses incurred in connection with the
enforcement of our remedies including, without limitation, repossession, repair
and collection costs, attorneys' fees and court costs; (g) exercise any other
remedy available at law or in equity; and (h) take on your behalf (at your
expense) any action required by the Lease which you fail to take. These
remedies are cumulative, are in addition to any other remedies provided by
law, and may be exercised concurrently or separately. Any failure or delay by
us to exercise any right shall not operate as a waiver of any other right or
future right.
12. Assignment. You will not assign, pledge or otherwise transfer any of
your rights or interests in the Lease or any Equipment without our prior written
consent. Any assignment without our consent will be void. The Lease shall
be binding upon any successor or permitted assignee. We may assign the
Lease or our interest in the Equipment at any time without notice to you and
without your consent. We may provide information about you to any
prospective assignee or participant. You agree not to assert against our
assignee any claims, offsets or defenses which you may have against us.
13. Indemnity. You are responsible for all losses, damage, claims,
infringement claims, injuries to or the death of an individual, and attorneys'
fees and costs ("Claims"), incurred or asserted by any person, in any
manner related to the Equipment or the lease thereof, including its use,
condition or possession. You agree to defend and indemnify us, and hold
us harmless, against all Claims, although we reserve the right to control the
defense and to select or approve defense counsel. You will promptly notify
us of all Claims made. Your liability under this Section is not limited to the
amounts of insurance required under the Lease. This indemnity continues
beyond the termination of a Schedule, for acts or omissions, which occurred
during the Lease Term.
14. Representations and Warranties. You represent and warrant to us,
as of the date of this Master Agreement and of each Schedule, and
covenant to us so long as the Lease is in effect, that: (a) you will not change
your name without giving us at least 30 days' prior written notice; (b) each
document you sign and deliver to us is duly authorized, executed and
delivered by you, and is your valid, legal and binding agreement,
enforceable in accordance with its terms; (c) execution, delivery and
performance by you of any Lease does not and will not (1) violate any
applicable law; (2) breach any order of court or other governmental agency,
or of any undertaking you are a party to or by which you or any of your
properties are bound; (d) you will comply with all applicable laws,
ordinances and regulations; (e) all information you have given to us is true,
accurate and complete; and (f) since the date of the most recent financial
information given to us, no material adverse change in your business,
assets, or prospects has occurred. You will promptly deliver to us such
financial statements, reports and other information as we may request.
Unless you are an individual, you also represent and warrant to us that:
(a) you are and will remain duly organized, validly existing and in good
standing under the laws of your jurisdiction of organization; (b) you are
qualified to do business under the laws of all other jurisdictions where
qualification is required or advisable; (c) you will not change your
jurisdiction of organization or organization type without at least 30 days'
prior written notice to us; and (d) the execution, delivery and performance
by you of the Lease will not breach any provision of your organizational
documents.
15. Governing Law; Jurisdiction; Venue. EACH LEASE WILL BE
GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH THE
LAWS OF IOWA, WHERE THIS MASTER AGREEMENT IS ACCEPTED
AND ENTERED INTO, except for its conflict of laws provisions. You
irrevocably submit to the non-exclusive jurisdiction and venue of federal and
state courts located in Des Moines, Iowa and will not claim it is an
inconvenient forum for legal action. YOU AND WE IRREVOCABLY
WAIVE ANY RIGHT YOU AND WE MAY HAVE TO A JURY TRIAL.
16. Miscellaneous. WE HAVE NOT MADE, AND DO NOT MAKE, ANY
REPRESENTATION OR WARRANTY, EXPRESS OR IMPLIED, AS TO
THE EQUIPMENT'S MERCHANTABILITY, FITNESS FOR A
PARTICULAR PURPOSE, SUITABILITY, OR OTHERWISE. WE ARE
NOT LIABLE FOR CONSEQUENTIAL OR SPECIAL DAMAGES. You
acknowledge that no supplier or dealer of the Equipment is an agent of
ours, or authorized to act for or bind us. You agree not to withhold any
amount you owe us if you believe you have a claim against us, or any
Equipment supplier(s) or manufacturer(s), but to pursue that claim
independently. Any claim you have against us must be made within two
years after the event that caused it. All notices must be in writing and will
be deemed given 5 days after mailing to the intended recipient at its
address indicated above, unless changed by a notice given in accordance
with this Section. Each Lease supersedes and replaces all prior
understandings and communications (oral or written) concerning the subject
matter thereof. No part of any Lease can be amended, waived or
terminated except by a writing signed by both you and us. Any part of this
Master Agreement may be signed in separate counterparts that, together,
will constitute one document. If a court finds any part of this Master
Agreement to be invalid or unenforceable, the remainder of this Master
Agreement will remain in effect. You permit us to monitor and record
telephone conversations between you and us. All of our rights under each
Lease shall remain in effect after the expiration of the Lease Term or
termination of the Schedule.
THE TERMS OF THIS MASTER AGREEMENT SHOULD BE READ CAREFULLY BEFORE SIGNING BECAUSE ONLY THESE WRITTEN TERMS ARE
ENFORCEABLE NO OTHER TERMS OR ORAL PROMISES MAY BE LEGALLY ENFORCED. BY SIGNING THIS MASTER AGREEMENT, YOU AGREE
TO THE TERMS ON BOTH PAGES 1 AND 2. THIS MASTER AGREEMENT IS THE COMPLETE AND EXCLUSIVE STATEMENT OF THE AGREEMENT
BETWEEN YOU AND US, EXCEPT AS WE MAY LATER AGREE IN WRITING TO MODIFY IT.
LESSEE
By:
Date:
CITY OF MCCALL
216 E PARK ST
ID 83638
DOMALD BAILEY; MAYOR
t
LESSOR
By:
Title:
DEERE CREDIT, INC.
6400 NW 86th ST, PO BOX 6600
JOHNSTON, IA 50131-6600
Date:
DCI MLA 02/2005
2of2
App 11389673
Lessee: CITY OF MCCALL
216 E PARK ST., MCCALL, ID 83638
Lessor: Deere Credit, Inc.
6400 NW 86'h ST, PO BOX 6600, JOHNSTON, IA 50131-6600
MASTER LEASE AGREEMENT NO. 0062318 Lease Schedule No. 030-0062318-000
NON -APPROPRIATION ADDENDUM —
This Non -Appropriation Addendum (this "Addendum") IS made by and between the above -referenced
lessee, renter or other customer ("City") and the above -referenced lessor or lender ("Lessor").
Introduction: City and Lessor are simultaneously herewith entering into the above -referenced lease, rental,
or other agreement (the "Lease"); and City and Lessor wish to modify and/or supplement the terms of the
Lease, as more particularly set forth herein below. This Addendum shall be effective as of the same date as
the Lease (the "Effective Date").
A. Incorporation and Effect. This Addendum is hereby made a part of, and incorporated into, the Lease as
though fully set forth therein. As modified or supplemented by the terms set forth herein, the provisions of
the Lease shall remain in full force and effect, provided that, in the event of a conflict between any
provision of this Addendum and any provision of the Lease, the provision of this Addendum shall control.
In entering into this Addendum, it is the intent of City and Lessor to conform the terms and conditions of
the Lease to the requirements of all applicable federal, state and local laws, rules and regulations relating to
governmental entities and public finance. If any term or condition of this Addendum is unenforceable or
unlawful, then such provision shall be deemed null and void without invalidating the remaining provisions
of the Lease.
B. Definitions. Capitalized terms herein that are not otherwise specifically defined herein shall have the
same meanings as set forth in the Lease. As used in this Addendum, the following terms shall have the
following -described meanings: "Goods" shall have the same meaning as the term "Equipment," "Leased
Equipment," "Goods" or "Property" (or a similar term) as defined and used in the Lease Non -Appropriation
of Funds.
C. City hereby represents, warrants and covenants to Lessor that: (a) City intends, subject only to the
provisions of this Section 3, to remit to Lessor all sums due and to become due under the Lease for the full
multi -year term thereof; (b) City's governing body has appropriated sufficient funds to pay all amounts due
to Lessor during City's current fiscal period; (c) City reasonably believes that legally available funds in an
amount sufficient to make all such payments for the full multi -year term can be obtained; and (d) City
intends to do all things lawfully within its power to obtain and maintain funds from which all such
payments to become due during the full multi -year term of the Lease, including making provision for such
payments to the extent necessary in each budget or appropriation request submitted and adopted in
accordance with applicable law. Notwithstanding the foregoing, the decision whether or not to budget and
appropriate funds is within the discretion of City's governing body. In the event City's governing body fails
to appropriate sufficient funds to make all payments and pay other amounts due and to become due during
City's future fiscal periods, City may, subject to the terms hereof, terminate the Lease as of the last day of
the fiscal period for which appropriations were received (an "Event of Non -appropriation"). City agrees to
deliver notice of an Event of Non -appropriation to Lessor at least 30 days prior to the end of City's then -
current fiscal period, or if an Event of Non -appropriation has not occurred by that date, promptly upon the
occurrence of any such Event of Non -appropriation and to return the Goods pursuant to the return
requirements stated in the Lease on or before the effective date of termination. City and Lessor understand
and intend that City's obligation to make payments and pay other amounts due under the Lease shall
constitute a current expense and shall not in any way be construed to be a debt, obligation, or liability in
contravention of any applicable constitutional or statutory limitations or requirements concerning City's
creation of indebtedness, nor shall anything contained herein constitute a pledge of City's general tax
revenues, funds or monies.
D. Additional Representations, Warranties and Covenants of City. In addition to the other representations,
warranties and covenants made by City as set forth in the Lease, City hereby represents, warrants and
nrr oprii >n Aelcie-du to Ma: k; L tr M_ ail andir-
1 of 3
covenants to Lessor that: (a) City has the power and authority under applicable law to enter into the Lease
and this Addendum and the transactions contemplated herein and therein and to perform all of its
obligations hereunder and thereunder, (b) City has duly authorized the execution and delivery of the Lease
and this Addendum by appropriate official action of its governing body and has obtained such other
authorizations, consents and/or approvals as are necessary to consummate the Lease and this Addendum,
(c) all legal and other requirements have been met, and procedures have occurred, to render the Lease and
this Addendum enforceable against City in accordance with their terms, and City has complied with such
public bidding requirements as may be applicable to the Lease and this Addendum and the transactions
contemplated herein and therein, (d) upon Lessor's request, City will provide Lessor with a copy of City's
current financial statements within I50 days after the end of each fiscal period, and (e) during the term of
the Lease, unless and until the Lease is terminated in accordance with Section 3 above, City shall provide
to Lessor, no later than 10 days prior to the end of each fiscal period, with current budgets or other proof of
appropriation for the ensuing fiscal period, and such other financial information
relating to City's ability to continue the Lease, as Lessor may request.
E. Indemnification. To the extent City is or may be obligated to indemnify, defend or hold Lessor harmless
under the terms of the Lease, any such indemnification obligation shall arise only to the extent permitted by
applicable law and shall be limited solely to sums lawfully appropriated for such purpose in accordance
with Section 3 above.
F. Remedies. To the extent Lessor's remedies for a City default under the Lease include any right to
accelerate amounts to become due under the Lease, such acceleration shall be limited to amounts to become
due during City's then current fiscal period. In the event that City is obligated to return the Goods to Lessor,
the same shall be done at City expense so long as the destination is not more than 100 miles distant from
the City of McCall, Idaho; otherwise, Lessor shall pay the expense of transportation to the destination
designated by Lessor. So long as the lease payment for the then current fiscal year has been paid, upon
delivery of the Goods in the manner prescribed and so long as the Goods shall be in the same condition as
when received by City (ordinary wear and tear excepted) and is in good operating order and maintenance as
required in the Lease, City's obligation to Lessor shall be deemed satisfied.
G. Tax warranties. Notwithstanding anything in the Lease to the contrary, City makes no warranties
regarding whether any portion of the lease payments are interest or that the interest is exempt from taxation
because of City's governmental status. City will and does warrant that it is a municipal corporation
organized under the laws of the state of Idaho, and will complete any IRS or other tax agency forms that
Lessor directs so long as the information sought and factual representations to be made on the forms can be
made accurately within the format of the forms. City reserves the right to include any explanation of data
that City deems necessary to avoid misrepresenting any facts on said forms. A determination that the lease
payments, or any part of the lease payments, are includable in Lessor's gross income shall not constitute a
default under the Lease and will not result in any increase in amounts payable under the lease.
H. Accessions and attachments. Notwithstanding anything in the Lease to the contrary, any accessions or
attachments made to the Goods by the City are not part of the Goods, and are not part of the Lease unless
the accessions or attachments are provided by Lessor or Lessor's affiliate and are part of the description of
the Goods contained in the lease, or, are bona fide replacements of original equipment integral to the Goods
at the time of delivery to the City. At termination of the Lease before the Goods are returned to Lessor, City
will remove any accessions or attachments it has affixed to the Goods and will repair any damage to the
Goods occasioned by the removal of the same.
I. Preservation of right of offset. Notwithstanding anything in the Lease to the contrary, City retains the
right to offset against amounts due under the Lease any defense, claim, setoff, or counterclaim or other
right, existing or future, which City may have against the Lessor.
J. Insurance. Notwithstanding anything in the Lease to the contrary, Lessor shall not be City's attorney in
fact in any way or for any reason including but not limited to insurance. City shall not be obligated to
assign any insurance policies, titles, rights or benefits to Lessor.
Nora-%aprv¢!i a':,an ._
n •M_ _IP .:nd L++:: 1
2 of
K. Opinion letter by Counsel for City. The opinion letter, if any, required by Lessor from counsel for the
City shall only require that counsel opine on: 1) whether the City is duly organized and legally existing as a
political subdivision under the Constitution and laws of the state of Idaho; 2) whether the Lease has been
duly authorized, executed and delivered by the City and, subject to any applicable bankruptcy, insolvency,
moratorium, or other limitations found in Idaho law, is enforceable against City in accordance with its
terms; 3) whether there is any litigation pending or, within counsel's best knowledge, threatened which
seeks to restrain, enjoin, or in any other way challenges the authority of City to enter into the Lease or
make an appropriation for payment of an annual lease payment; and 4) whether the Lease has been
authorized, approved, and executed in accordance with all applicable open meeting, public records, and
public bidding laws. No further opinions shall be required unless Lessor is willing to fully and adequately
compensate counsel for the additional requested opinions and the liability thereby assumed.
L. Governing Law. Notwithstanding anything in the Lease to the contrary, the Lease and this Addendum
shall be governed by, construed and enforced in accordance with the laws of the state of Idaho.
M. Miscellaneous. This Addendum, together with the provisions of the Lease not expressly inconsistent
herewith, constitutes the entire agreement between the parties with respect to the matters addressed herein,
and shall supersede all prior oral or written negotiations, understandings and commitments. This
Addendum may be executed in any number of counterparts, each of which shall be deemed to be an
original, but all of which together shall be deemed to constitute one and the same agreement. A facsimile or
other copy of this Addendum with facsimile or copied signatures shall have the full force and effect of the
original for all purposes, including the rules of evidence applicable to court proceedings.
Lessee: City Of McCall Owner: Deere Credit, Inc.
216 E PARK ST., 6400 NW 86TH ST, PO BOX 6600
MOLL, ID 83638 JOHNSTON, IA 50131-6600
By: % fl_.��� %G By:
onal Bailey, Mayor
Date: 74:7 Title: Date:
n t. i, . `M. Aland t b,
3 of
Man.�u.et in.bacan.ce
SHERY HARMON
MEMBER SERVICES
January 17, 2013
Deere Credit, Inc,
It's Successors and/or Assigns
22408 Network Place
Chicago, IL 60673-1224
RE: City of McCall — Certificate Request
I am summarizing ICRNIP's position regarding additional insured language on our
certificates of insurance.
As outlined, the member referenced above is a governmental entity within the State of
Idaho. Idaho Code § 6-923 allows for political subdivisions to purchase insurance for
"themselves and their employees." This is also specifically prohibited by the Idaho
Constitution Article VIII, Section 4:
No county, city, town, township, board of education, or school district, or
other subdivision, shall lend, or pledge the credit or faith thereof directly
or indirectly, in any manner, to, or in aid of any individual, association or
corporation, for any amount or for any purpose whatever, or become
responsible for any debt, contract or liability of any individual, association
or corporation in or out of this state.
Governmental entities do not have the lawful authority to purchase insurance on behalf
of private parties, such as Deere Credit, Inc.
Even though we cannot use the terminology of "additional insured", we can provide you
with a Certificate of Insurance, which shows that there is insurance on the property and
that we will accept a tender of your defense if you are named party to a lawsuit solely
because of your relationship with this member and not as a result of your own conduct.
I hope this information will better explain who we are, who our member is and why we
cannot supply you with the words "additional insured" on your certificate of insurance.
Please let me know as soon as possible that this situation has been resolved in the favor
of our member.
Sincerely,
Shery Harmon
Member Services
C'ourLies kink 71anagement Program, ljnderwriters 3100 Vista .Avenue, Suite 300 Boise, Idaho
83705 P O 1 k,x 15249 * Boise. Idaho 83715
Phone (208) 336-3100 '* Fax (2.08) 336-2100
JOHN DEERE
FINANCIAL
DEERE CREDIT, INC. LEASING PLAN
THE LEASE LISTED BELOW HAS BEEN ACCEPTED.
CITY OF MCCALL
216 E PARK ST
MCCALL, ID 83638
CONTRACT DETAILS:
0 3 0-- 0 0-6 2 318- =0-0 0
826000223
04JAN13
04JAN18
0017-000112
ANNUAL
04TH
EQUIPMENT
FEB 8 2013� D
CONTRAC-T—MIIMBE-R--
TAX ID OR SSN
LEASE BEGIN DATE
LEASE MATURITY DATE
DEALER NUMBER
PAYMENT FREQUENCY
PAYMENT DUE DAY
SEE CONTRACT FOR DETAILS
EQUIPMENT LOCATION (2):
216 E PARK ST
MCCALL, ID 83638
(2) USED FOR SALES, PROP. AND RENTAL TAX.
RUN DATE
O1FEB13
CO -LESSEE OR CONTACT:
SEE CONTRACT FOR DETAILS
INSURANCE:
0_r0-0- -- NON-S,ENT_RY__I-NS_-
. - INS. EFFECTIVE DATE
▪ - INS. EXPIRATION DATE
MAKE PAYMENTS TO:
JOHN DEERE FINANCIAL
P.O. Box 4450
CAROL STREAM IL 60197-4450
LEASE DEALER OR ORIGINATOR:
CONTRACTOR'S EQUIPMENT SUPPLY
2000 E OVERLAND RD
MERIDIAN, ID 83642
* FOR INQUIRIES PLEASE CALL 800-771-0681
* THANK YOU FOR DOING BUSINESS WITH DEERE CREDIT, INC.
CERTIFICATE OF ULTRAGAIS PHYSICAL DAMAGE INSURANCE
UltraGard: The Ultimate in Physical Damage Protection!
This certifies that, if an amount is shown above as "INSURANCE PREMIUM", the equipment for which Deere Credit Inc., Deere & Co. or John Deere Construction
Equipment Company (JDC) holds the borrower's, purchaser's, or lessee's (the certificate holder's) contract, with the number shown above, is insured under a policy of
physical damage insurance issued by SENTRY SELECT INSURANCE COMPANY, Stevens Point Wisconsin insuring JDC's interest, the John Deere dealer's interest
and the certificate holder's interest except as provided elsewhere in this certificate, in covered property. The insurance shall begin on the earlier of the "INS EFFECTIVE
DATE" above or date certificate holder takes possession of the covered property and shall terminate, without additional notice when the first of the following occur: (1)
Certificate holder's indebtedness to JDC is discharged (unless certificate holder continues voluntary payments, acceptable to JDC and us outside bankruptcy) or early
termination of the lease agreement; (2) JDC's security interest in covered property terminates; (3) JDC or JDC's designee repossesses covered property; (4) A
judgment is entered against the certificate holder on the certificate holder's debt or lease, in favor of JDC, its assigns or successors; or (5) The "INS EXPIRATION
DATE" shown in the note or lease acceptance form.
This certificate is not a contract of insurance, and JDC is not acting as an insurer. The rights of the certificate holder are described in the certificate and based on the
policy indicated above issued by SENTRY SELECT INSURANCE COMPANY (we, us, or our). Certificate holder may request from us, in writing, a copy of the policy on
which this certificate is based. In the case of loss or damage to covered equipment from a covered cause of loss, the certificate holder must notify SENTRY SELECT
INSURANCE COMPANY as soon as practicable by calling toll free (800) 635-3377. Certificate holder will cooperate with SENTRY SELECT INSURANCE COMPANY
and comply with all Duties In The Event Of Loss Or Damage, including filing of a completed sworn Proof of Loss within 60 days of our request. Failure to do so will void
coverage for the certificate holder's interest in the damaged covered property under this policy. SEE POLICY TERMS ON REVERSE SIDE.
\ JDCFLI STOCK (25JMO PRINTED IN U.S.A.
ULT001 (0605) page 1 of 2
" U L T R A G A R D P O L I C Y T E R M S
T H E F O L L O W I N G P O L I C Y " T E R M S : D O N O T A P P L Y U N L E S S A
C E R T I F I C A T E O F U L T R A , G A R D P H Y S I C A L D A M A G E I N S U R A N C E
A P P E A R S O N T H E R E V E R S E S I D E A N D A N I N S U R A N C E P R E M I U M H A S
B E E N P A I D . T H I S I N S U R A N C E D O E S N O T A P P L Y T O R E P A I R O R
O V E R H A U L L O A N C O N T R A C T S .
T h e f o l l o w i n g i s a b r i e f s u m m a r y o f - t h e ' " c o v e c a g e s l p r d v i d e d u n d e r t h e p h y s i c a l
d a m a g e c o v e r a g e p r o v i d e d b y S E N T R Y S E L E C T I N S U R A N C E C O M P A N Y .
C O V E R A G E
C o v e r a g e i s p r o v i d e d f o r t h e e q u i p m e n t , l i s t e d a s S E C U R I T Y o n t h e f r o n t o f t h i s
c o n t r a c t , f o r l o s s o r d a m a g e f r o m a c o v e r e d c a u s e o f l o s s . C o v e r e d c a u s e s o f l o s s
m e a n s r i s k o f d i r e c t p h y s i c a l l o s s o r d a m a g e e x c e p t a s e x c l u d e d b e l o w .
E X C L U S I O N S
1 . W e w i l l n o t p a y f o r l o s s o r d a m a g e c a u s e d d i r e c t l y o r i n d i r e c t l y b y a n y o f t h e
f o l l o w i n g . S u c h l o s s o r d a m a g e i s e x c l u d e d r e g a r d l e s s o f a n y o t h e r c a u s e o r e v e n t t h a t
c o n t r i b u t e d c o n c u r r e n t l y o r i n a n y s e q u e n c e t o t h e l o s s o r d a m a g e f r o m a s i n g l e e v e n t :
( a ) S e i z u r e o r d e s t r u c t i o n o f p r o p e r t y b y o r d e r o f g o v e r n m e n t a l a u t h o r i t y . B u t w e w i l l
p a y f o r a c t s o f d e s t r u c t i o n o r d e r e d b y g o v e r n m e n t a l a u t h o r i t y a n d t a k e n a t t h e t i m e o f
a f i r e t o p r e v e n t i t s s p r e a d i f t h e f i r e w o u l d b e c o v e r e d u n d e r t h i s P o l i c y . ( b ) A n y
w e a p o n e m p l o y i n g a t o m i c f i s s i o n o r f u s i o n ; o r n u c l e a r r e a c t i o n o r r a d i a t i o n , o r
r a d i o a c t i v e c o n t a m i n a t i o n f r o m a n y o t h e r _ c a u s e . B u t w e w i l l p a y f o r d i r e c t l o s s
c a u s e d b y r e s u l t i n g f i r e i f t h e f i r e w o u l d b e c o v e r e d u n d e r t h i s P o l i c y . ( c ) W a r ,
i n c l u d i n g u n d e c l a r e d o r c i v i l w a r ; w a r l i k e a c t i o n b y a m i l i t a r y f o r c e , i n c l u d i n g a c t i o n
i n h i n d e r i n g o r d e f e n d i n g a g a i n s t a n a c t u a l o r e x p e c t e d a t t a c k , b y a n y g o v e r n m e n t ,
s o v e r e i g n , o r o t h e r a u t h o r i t y u s i n g m i l i t a r y p e r s o n n e l o r o t h e r a g e n t s ; o r i n s u r r e c t i o n ,
r e b e l l i o n , r e v o l u t i o n , u s u r p e d . p o w e r , o r a c t i o n t a k e n b y g o v e r n m e n t a l a u t h o r i t y i n
h i n d e r i n g o r d e f e n d i n g a g a i n s t a n y o f t h e s e .
2 . W e w i l l n o t p a y f o r a l o s s o r d a m a g e c a u s e d b y o r r e s u l t i n g f r o m a n y o n e o f t h e
f o l l o w i n g : ( a ) D e l a y , l o s s o f u s e , l o s s o f m a r k e t , o r a n y o t h e r c o n s e q u e n t i a l l o s s . ( b )
U n e x p l a i n e d d i s a p p e a r a n c e ( e x c e p t p r o p e r t y i n t h e c u s t o d y o f c a r r i e r s f o r h i r e ) o r
s h o r t a g e f o u n d u p o n t a k i n g i n v e n t o r y . ( c ) W r o n g f u l c o n v e r s i o n o r o t h e r d i s h o n e s t
a c t s b y t h e c e r t i f i c a t e h o l d e r , c e r t i f i c a t e h o l d e r ' s e m p l o y e e s , o r a u t h o r i z e d
r e p r e s e n t a t i v e s ; a n y o n e e l s e w i t h a n i n t e r e s t i n t h e p r o p e r t y o r t h e i r e m p l o y e e s o r
a u t h o r i z e d r e p r e s e n t a t i v e s ; o r a n y o n e e l s e t o w h o m t h e p r o p e r t y i s e n t r u s t e d , e x c e p t
c a r r i e r s f o r h i r e . T h i s e x c l u s i o n a p p l i e s w h e t h e r o r n o t s u c h p e r s o n s a r e a c t i n g a l o n e
o r i n c o l l u s i o n w i t h o t h e r p e r s o n s o r s u c h a c t s o c c u r d u r i n g t h e h o u r s o f e m p l o y m e n t .
( d ) V o l u n t a r y p a r t i n g w i t h a n y p r o p e r t y b y t h e c e r t i f i c a t e h o l d e r , o r a n y o n e e l s e
e n t r u s t e d w i t h t h e p r o p e r t y i f i n d u c e d t o d o s o b y a n y f r a u d u l e n t s c h e m e , t r i c k , d e v i c e
o r f a l s e p r e t e n s e . ( e ) C o l l i s i o n , u p s e t o r o v e r t u r n o f c o v e r e d p r o p e r t y t o t h e e x t e n t o f
a n y l o s s o r d a m a g e t o t h e w h e e l s , r i m s , i n n e r t u b e s , t i r e s , o r r u b b e r t r a c k s o f c o v e r e d
p r o p e r t y . B u t , w e w i l l p a y f o r l o s s o r d a m a g e t o w h e e l s , r i m s , i n n e r t u b e s , t i r e s , o r
r u b b e r t r a c k s i f t h e s a m e a c c i d e n t c a u s e s o t h e r c o v e r e d l o s s o r d a m a g e t o t h e s a m e
p i e c e o f c o v e r e d p r o p e r t y .
3 . W e s h a l l n o t p a y f o r a l o s s o r d a m a g e c a u s e d b y o r r e s u l t i n g f r o m a n y o f t h e
f o l l o w i n g . B u t i f l o s s o r d a m a g e b y a c o v e r e d c a u s e o f l o s s r e s u l t s , w e w i l l p a y f o r
t h a t r e s u l t i n g l o s s o r d a m a g e : ( a ) F a u l t y m a t e r i a l o r f a u l t y w o r k m a n s h i p i n r e p a i r i n g ,
a d j u s t i n g , s e r v i c i n g o r m a i n t e n a n c e o p e r a t i o n s . ( b ) N o r m a l w e a r a n d t e a r , h i d d e n o r
l a t e n t d e f e c t , g r a d u a l d e t e r i o r a t i o n , d e p r e c i a t i o n , m e c h a n i c a l b r e a k d o w n , c o r r o s i o n ,
r u s t o r d a m p n e s s . ( c ) O v e r h e a t i n g o r f r e e z i n g o f a n y m e c h a n i c a l s y s t e m e x c e p t w h i l e
i n t h e c u s t o d y o f a c a r r i e r f o r h i r e .
D E D U C T I B L E
A P P R A I S A L
I f w e a n d t h e c e r t i f i c a t e h o l d e r , J D C , o r t h e c e r t i f i c a t e h o l d e r s J o h n D e e r e d e a l e r
d i s a g r e e o n t h e v a l u e o f t h e c o v e r e d p r o p e r t y o r t h e a m o u n t o f t h e l o s s o r d a m a g e , a n y
o f t h e l i s t e d p a r t i e s m a y m a k e a w r i t t e n d e m a n d f o r a n a p p r a i s a l . I n t h i s e v e n t , e a c h
p a r t y w i l l s e l e c t a c o m p e t e n t a n d i m p a r t i a l a p p r a i s e r . T h e a p p r a i s e r s w i l l t h e n s e l e c t
a n u m p i r e . I f t h e y c a n n o t a g r e e , a n y o f t h e l i s t e d p a r t i e s m a y r e q u e s t t h a t s e l e c t i o n b e
m a d e b y a j u d g e o f a c o u r t h a v i n g j u r i s d i c t i o n . T h e a p p r a i s e r s w i l l s t a t e s e p a r a t e l y t h e
v a l u e o f t h e p r o p e r t y a n d t h e a m o u n t o f t h e l o s s o r d a m a g e . I f t h e y f a i l t o a g r e e , t h e y
w i l l s u b m i t t h e i r d i f f e r e n c e s t o t h e u m p i r e . T h e d e c i s i o n o f t h e u m p i r e w i l l b e b i n d i n g
t o a l l p a r t i e s . E a c h p a r t y w i l l p a y i t s c h o s e n a p p r a i s e r a n d b e a r t h e o t h e r e x p e n s e s o f
t h e a p p r a i s a l a n d u m p i r e e q u a l l y . I f t h e r e i s a n a p p r a i s a l , w e w i l l s t i l l r e t a i n o u r r i g h t
t o d e n y t h e c l a i m .
D U T I E S I N T H E E V E N T O F L O S S O R D A M A G E
I n a d d i t i o n t o t h e d u t i e s o u t l i n e d i n t h e f r o n t o f t h i s c e r t i f i c a t e , i n t h e e v e n t o f l o s s o r
d a m a g e t o c o v e r e d p r o p e r t y , t h e c e r t i f i c a t e h o l d e r m u s t a l s o : ( a ) N o t i f y t h e p o l i c e i f a
l a w m a y h a v e b e e n b r o k e n ; ( b ) G i v e u s a d e s c r i p t i o n o f c o v e r e d p r o p e r t y i n v o l v e d a s
w e l l a s h o w , w h e n , a n d w h e r e t h e l o s s o r d a m a g e o c c u r r e d ; a n d ( c ) P e r m i t u s t o
i n s p e c t t h e p r o p e r t y a n d r e c o r d s p r o v i n g t h e l o s s o r d a m a g e . ( d ) S e n d u s , a s s o o n a s
p r a c t i c a b l e , a n y l e g a l p a p e r s o r n o t i c e s r e c e i v e d c o n c e r n i n g t h e l o s s o r d a m a g e ;
( e ) T a k e r e a s o n a b l e s t e p s t o p r o t e c t c o v e r e d p r o p e r t y f r o m f u r t h e r d a m a g e a n d i f
p o s s i b l e s e p a r a t e d a m a g e d p r o p e r t y a n d k e e p i n g o o d o r d e r f o r e x a m i n a t i o n ;
( f ) P e r m i t u s t o g i t e s t i o n " c e r t i f i c a t e h o l d e r u n d e r o a t h a b o u t t h e c l a i m , i n c l u d i n g
r e v i e w i n g c e r t i f i c a t e h o l d e r ' s b o o k s a n d r e c o r d s , a s m a y b e r e a s o n a b l y r e q u i r e d .
C e r t i f i c a t e h o l d e r ' s a n s w e r s m u s t b e s i g n e d .
C O N C E A L M E N T , M I S R E P R E S E N T A T I O N O R F R A U D
C o v e r a g e f o r t h e c e r t i f i c a t e h o l d e r u n d e r t h i s c e r t i f i c a t e i s v o i d i n t h e c a s e o f f r a u d o r
i f t h e c e r t i f i c a t e h o l d e r i n t e n t i o n a l l y c o n c e a l s o r m i s r e p r e s e n t s a m a t e r i a l f a c t a t a n y
t i m e c o n c e r n i n g t h e c o v e r a g e p r o v i d e d , c o v e r e d p r o p e r t y , c e r t i f i c a t e h o l d e r ' s i n t e r e s t
i n t h e c o v e r e d p r o p e r t y , o r a c l a i m p r e s e n t e d u n d e r t h i s c e r t i f i c a t e .
O T H E R I N S U R A N C E
I f t h e c e r t i f i c a t e h o l d e r h a s a n y o t h e r i n s u r a n c e c o v e r a g e f o r t h e p r o p e r t y c o v e r e d b y
t h i s c e r t i f i c a t e , t h i s c o v e r a g e w i l l a p p l y i n e x c e s s o f t h e o t h e r c o l l e c t i b l e i n s u r a n c e .
( D o e s n o t a p p l y t o I l l i n o i s C e r t i f i c a t e H o l d e r s ) _
L E G A L A C T I O N A G A I N S T U S
N o o n e m a y b r i n g a l e g a l a c t i o n a g a i n s t u s u n d e r t h i s p o l i c y u n l e s s " t h e r e " h a s b e e n f u l l
c o m p l i a n c e w i t h t h e t e r m s o f t h i s p o l i c y . T h e c e r t i f i c a t e h o l d e r m u s t b r i n g a n y l e g a l
a c t i o n w i t h i n o n e y e a r , o r t h e s h o r t e s t t i m e r e q u i r e d b y s t a t e l a w , f r o m t h e d a t e o f t h e
l o s s o r d a m a g e . F o r I l l i n o i s C e r t i f i c a t e H o l d e r s , t h e t i m e i n w h i c h s u i t m a y b e b r o u g h t
i s e x t e n d e d b y t h e n u m b e r o f d a y s b e t w e e n d a t e p r o o f o f l o s s i s f i l e d a n d t h e d a t e t h e
c l a i m i s d e n i e d i n w h o l e o r i n p a r t .
L O S S P A Y M E N T
W e w i l l p a y f o r o r m a k e g o o d a n y l o s s o r d a m a g e c o v e r e d u n d e r t h e p o l i c y w i t h i n 3 0
d a y s a f t e r ( a ) A g r e e m e n t h a s b e e n r e a c h e d o n t h e a m o u n t o f l o s s o r d a m a g e ; ( b ) T h e
e n t r y o f a f i n a l j u d g m e n t ; o r ( c ) T h e f i l i n g o f a n a p p r a i s a l a w a r d . W e w i l l n o t b e
l i a b l e f o r a n y p a r t o f a l o s s o r d a m a g e t h a t h a s b e e n p a i d o r i s m a d e g o o d b y o t h e r s .
I f w e a r e c o v e r i n g t h e c e r t i f i c a t e h o l d e r ' s i n t e r e s t i n c o v e r e d p r o p e r t y , w e w i l l a d j u s t
t h e l o s s w i t h t h e c e r t i f i c a t e h o l d e r . W e w i l l p a y a n y c l a i m f o r l o s s o r d a m a g e , a t
J D C ' s o p t i o n , t o J D C , f o r t h e a c c o u n t o f a l l p a r t i e s w i t h a c o v e r e d i n t e r e s t i n c o v e r e d
W e w i l l n o t p a y f o r l o s s o r d a m a g e i n a n y o n e o c c u r r e n c e u n t i l t h e a m o u n t o f
t h e a d j u s t e d l o s s o r d a m a g e e x c e e d s t h e d e d u c t i b l e , b a s e d o n u s e a t t h e t i m e o f
l o s s , o f $ 5 0 0 f o r a g r i c u l t u r a l ( e x c e p t c o t t o n p i c k e r s ) a n d c o n s u m e r u s e o r $ 1 , 0 0 0
f o r c o m m e r c i a l o r i n d u s t r i a l u s e . F o r c o t t o n p i c k e r s w e w i l l d e d u c t $ 5 , 0 0 0
e x c e p t f o r l o s s o r d a m a g e f r o m f i r e w e w i l l d e d u c t t h e l a r g e r o f $ 5 , 0 0 0 o r 3 % o f
t h e p u r c h a s e p r i c e ( p r i o r t o t r a d e i n o r o t h e r a l l o w a n c e s ) . W e w i l l p a y t h e
a m o u n t o f t h e a d j u s t e d l o s s i n e x c e s s o f t h e d e d u c t i b l e u p t o t h e m a x i m u m
r e c o v e r y u n d e r t h e V a l u a t i o n s e c t i o n o f t h i s c e r t i f i c a t e .
V A L U A T I O N
T h e m o s t w e w i l l p a y f o r l o s s o r d a m a g e t o c o v e r e d p r o p e r t y , d e t e r m i n e d a t t h e
t i m e o f l o s s , w i l l b e t h e l e s s e r o f t h e f o l l o w i n g a m o u n t s : ( a ) T h e a c t u a l c a s h v a l u e
o f t h a t p r o p e r t y . A c t u a l c a s h v a l u e m e a n s t h e a m o u n t , a t t h e t i m e o f l o s s o r
d a m a g e , t h a t i t w o u l d c o s t t o r e p a i r o r r e p l a c e c o v e r e d p r o p e r t y w i t h m a t e r i a l o f
l i k e k i n d a n d q u a l i t y l e s s a l l o w a n c e f o r p h y s i c a l d e t e r i o r a t i o n a n d d e p r e c i a t i o n ,
i n c l u d i n g o b s o l e s c e n c e . ( b ) T h e c o s t o f r e a s o n a b l y r e s t o r i n g t h a t p r o p e r t y t o i t s
c o n d i t i o n i m m e d i a t e l y b e f o r e l o s s o r d a m a g e o r r e p l a c i n g t h e e q u i p m e n t w i t h
s u b s t a n t i a l l y i d e n t i c a l e q u i p m e n t . ( c ) T h e o r i g i n a l s e l l i n g o r l e a s e p r i c e o f
c o v e r e d p r o p e r t y o r t h e s t a t e d v a l u e o f e q u i p m e n t u s e d a s a d d i t i o n a l c o l l a t e r a l .
A n y o f t h e c e r t i f i c a t e h o l d e r ' s , J D C ' s , t h e c e r t i f i c a t e h o l d e r ' s J o h n D e e r e d e a l e r ' s o r
o u r a c t s i n r e c o v e r i n g , s a v i n g , a n d p r e s e r v i n g t h e c o v e r e d p r o p e r t y s h a l l b e
c o n s i d e r e d a s d o n e f o r t h e b e n e f i t o f a l l c o n c e r n e d a n d w i t h o u t p r e j u d i c e t o t h e
r i g h t s o f a n y p a r t y . A n y e x p e n s e s f o r s u c h a c t s s h a l l b e r e c o v e r a b l e u n d e r t h i s
p o l i c y p r o v i d e d s u c h c o s t s a r e r e a s o n a b l e a n d c u s t o m a r y .
p r o p e r t y , o r t o t h e c e r t i f i c a t e h o l d e r a n d t h e r e p a i r f a c i l i t y .
C A N C E L L A T I O N
T h e c e r t i f i c a t e h o l d e r m a y c a n c e l t h e i r c e r t i f i c a t e b y m a i l i n g o r d e l i v e r i n g t o J D C a
w r i t t e n r e q u e s t t o c a n c e l t h e c e r t i f i c a t e . I f a p p r o v e d J D C w i l l n o t i f y u s . I f t h e
c e r t i f i c a t e i s c a n c e l l e d , a s s o o n a s p r a c t i c a b l e , w e w i l l s e n d J D C a n y p r o r a t a p r e m i u m
r e f u n d d u e f o r t h e a c c o u n t o f t h e c e r t i f i c a t e h o l d e r . C a n c e l l a t i o n w i l l b e e f f e c t i v e e v e n
i f w e h a v e n o t m a d e o r o f f e r e d a r e f u n d .
T R A N S F E R O F R I G H T S O F R E C O V E R Y A G A I N S T O T H E R S T O U S
I f a n y p e r s o n o r o r g a n i z a t i o n t o o r f o r w h o m w e m a k e p a y m e n t u n d e r t h i s i n s u r a n c e
h a s r i g h t s t o r e c o v e r d a m a g e s f r o m a n o t h e r , t h o s e r i g h t s a r e t r a n s f e r r e d t o u s t o t h e
e x t e n t o f o u r p a y m e n t . T h a t p e r s o n o r o r g a n i z a t i o n m u s t d o e v e r y t h i n g n e c e s s a r y t o
s e c u r e o u r r i g h t s a n d m u s t d o n o t h i n g a f t e r l o s s o r d a m a g e t o i m p a i r t h e m .
R E I N S T A T E M E N T O F L I M I T S A F T E R L O S S O R D A M A G E
T h i s c o v e r a g e w i l l n o t b e r e d u c e d b y t h e p a y m e n t o f a n y c l a i m e x c e p t f o r t o t a l l o s s t o
a p i e c e o f c o v e r e d p r o p e r t y , i n w h i c h e v e n t w e w i l l r e f u n d t h e u n e a r n e d p r e m i u m o n
t h a t i t e m t o J D C f o r t h e a c c o u n t o f a l l i n t e r e s t s . T o t a l l o s s a p p l i e s w h e n t h e c o s t t o
r e p a i r o r r e p l a c e p l u s a n y s a l v a g e v a l u e e x c e e d s t h e a c t u a l c a s h v a l u e , p u r c h a s e o r
l e a s e p r i c e , o r s t a t e d v a l u e o f c o v e r e d p r o p e r t y .
C O V E R A G E T E R R I T O R Y
C o v e r a g e o n l y a p p l i e s t o c o v e r e d p r o p e r t y w h e r e v e r l o c a t e d w i t h i n o r w h i l e i n t r a n s i t
b e t w e e n l o c a t i o n s i n t h e U n i t e d S t a t e s o f A m e r i c a o r t h e D o m i n i o n o f C a n a d a .
J D C 3 0 4 t ( 1 5 F E B 0 6 ) e 2 o f 2
JOHN DEERE
FINANCIAL.
March 01, 2013
CITY OF MCCALL
216 E PARK ST
MCCALL ID 83638
Customer Acct #: 030 - 0062318 - 000
Thank you-forchoosing John -Deere -Financial.
John Deere Financial
6400 NW 86Th St, PO Box 6600,
Johnston, IA 50131-6600
To protect your equipment against unforeseen circumstances, we are asking for your assistance in obtaining
adequate physical damage and liability insurance verification for your recently financed equipment.
Please have your insurance provider fax insurance verification to 888-543-6297 or email to
JDFlnsurance(cJohnDeere.com within 14 days of the date of this letter.
Equipment Description: Estimated Value:
New 310S JD Wheel Loader Backhoe SN: 1T0310SKJCE238754 $ 86,300.00
To ensure your equipment is protected, we will provide physical damage insurance coverage if verification has not
been received within 14 days. The premium for the insurance will be added to the financed account balance. The
terms and conditions of the contract will remain the same.
If you have any questions about the required coverage, please call us at 1-888-427-8713.
Sincerely,
Insurance Coordinator
John Deere Financial