ORDER NO. ~ic7959
RpPFtOVAI_ OF RESOLUTION F'DR L_ERSE 6=~Uf1CHRSE RGREEMEN-F
AE'TWEEN I;F_RR CDUhJI'Y f-JND COhJS01_IDATEIJ FINRhJCIt-a I_
RESDURCE_'S, INC. RND RIJTHURIZE TtiE COUNTY SIJDGE TO SIGN
Dn this the lath day of October 1995, ~_ipon motion made 6y
Commissi.oner-~ t-lolekamp, seconded by Commissioner Oet-~ler-~, the
Co~_u^t unanimously approved by a vote of v-0-0, to approve the
resol~..~tiun i'or i_ease E=purchase agreement between I:err County
and Consolidated Fir~<~ncia). Resources, Inc. and a~-itharize the
Co~_inty .J~_~dge to sign said documents.
CONSOLIDATE-'D FINANCIAL RI;SOURCCS, INC.
PUBLIC FINANCIERS
P.O. BO%B02 ROUTE 4 BOX 2A P.U. BU% ]062 224 STAIE Si REE i~ SUIIE II
6 REE NVILLE, TE%A9 I5/00 McC0 M8, MISSISSIPPI 08848
9014`'4"4000 FAX 903-451-2120 fi01~249~0169 FAX 601-218.0116
Kerr County
700 Main Street
Kerrville, Texas 78028
RE: Municipal Lease-Purchase Agreement dated as of September 27, 1995 by and between lire
Kerr County and Consolidated Financial Resources, Inc. (the "Agreement").
Gentlemen:
Please be advised that Consolidated Financial Resources, Inc. has assigned all its right, title and
interest in the "Agreement", and in the equipment leased thereunder, and the right to receive
payments thereunder to Government Capital Corporation.
Payments, #1 - #5 due under the "Agreement" should be made to Government Capital Corporation
at the following address:
Government Capital Corporation
Crestwood Center
1200 Walnut Hill Lane #3400
Irving, Texas 75038
Please acknowledge your acceptance of the assignment and your agreement to make the payments
due under the "Agreement" by the signature of a duly authorized officer in the space provided.
Please return two (2) of these Notifications [o Consolidated Financial Resources, Inc. in the
enclosed pre-addressed envelope.
Sincerely,
~ ~n~
Sue Mimlitch
Contract Administrator
ACKNOWLEDGED AND ACCEPTED
KERR '~Y .G "
Name: R bert A. D son
Title: Kerr Countv Sudee
Date: November 6, 1995
COMMISSIONERS' COURT AGENDA REQUEST
PLEASE FURNISH ONE ORIGINAL AND FIVE COPIES OF THIS REQUEST AND DOCUMENTS
TO BE REVIEWED BY THE COURT.
MADE BY Robert A. Denson OFFICE County Judge
MEETING DATE: October 10, 1995 TIME PREFERRED:
SUBJECT. (PLEASE BE SPECIFIC)
Consider and discuss passing a resolution desiring to enter into a certain Lease-Purchase
Agreement between Kerr County and Consolidated Financial Resources Inc for the pumose of
financing Voting Equipment and authorize the County Jud e to sign resolution and contract
EXECUTIVE SESSION REQUESTED: (PLEASE STATE REASON)
ESTIMATED LENGTH OF PRESENTATION.
1F PERSONNEL MATTER -NAME OF EMPLOYEE:
NAME OF PERSON ADDRESSING="
Time for submitti
Chapter 551 and 5
Meeting scheduled f~
~;~~,d~~i~d
THIS REQUEST RECEIVED BY
THIS REQUEST RECEIVED ON
County Judge
are that the matter is posted in accordance with Title 5,
~ws
,,u P.M. previous Tuesday

All Agenda Requests will be screened by the County Judge's Office to determine if adequate information has
been prepared for the Court's formal consideration and action at time of Court Meetings. Your cooperation will
be appreciated and contribute towards you request being addressed at the earliest opportunity. See Agenda
Request Rules Adopted by Commissioners' Court.
CONSOLIDATED FINANCIAL RESOURCES, INC.
PUBLIC fINANCIERS
P.O. BO%962 ROUTE d BO%2A P.O. BO% 7062 220 STATE STREET, SUITE Al
G REENVILLE, TE%AS 75603 McGO MB, MISSISSIPPI 39606
90?650~COW FAX 90&d54-2320 fi01-2490769 FAX 601-2g9-0f i4
September 22, 1995
Ms. Pat Dye
Kerr County Clerk
700 Main Street
Kerrville, TX 78028
Dear Ms. Dye:
Please find enclosed duplicate originals of the contract for the financing of Voting Equipment for
Kerr County. Please have the contracts signed in the indicated places. An atto~ m_ ust issue an
o imon in a form similar to the one provided within the contract. -_
The County must pass aresolution-the wording for the resolution is also provided within the
contract.
The following items should be sent to Consolidated Financial Resources, Inc., once contracts have
been signed:
Both originals of the contract;
Signed UCC-1 Form; and,
Audits for years ended September 30, 1993 and September 30, 1994, unless
previously sent.
We will return to you a fully executed copy of the contract when all is completed.
We appreciate the opportunity of doing business with you and the County. If you have any
questions, please feel free to contact me.
Sincerely,
Sue Mimlitch
Contract Administrator
LEASE PURCHASE
KERR COUNTY
LESSEE: KERR COUNTY
7W Main Street
Kerrville, Texas 78028
LESSOR: CONSOLIDATED FINANCIAL RESOURCES, INC.
Route 4 Box 2A P. O. Box 962
Greenville, Texas 75402
MUNICIPAL LEASE-PURCHASE AGREEMENT
THIS MUNICIPAL LEASE-PURCHASE AGREEMENT (hereinafter referred to as "Agreement") is by and between
CONSOLIDATED FINANCIAL RESOURCES, INC., a Texas corporation (hereinafter referred to as "Lessor"), and KERB
COUNTY, a political subdivision or agency of the State of Texas (hereinafter refereed to as "Lessee").
WITNESSETH: In consideration of the mutual covenants and conditions hereinafter set forth, the parties hereto
agree as follows:
I. Term and Payments. Lessor hereby leases to Lessee and Lessee hereby leases from Lessor the
property described in Exhibit A hereto (hereinafter, with all replacement parts, substitutions, proceeds, increases, additions,
accessions, repairs and accessories incorporated therein or affixed thereto, referred to as the "Property") for [he amounts to be
paid in the sums (the "Lease Payments") and on [he dates ([he "Lease Payment Dales") se[ forth in Exhibit B hereto. The
obligation of the Lessee to make the Lease Payments called for in Exhibit B hereto shall be absolute and unconditional in all
events and shall no[ be subject [o any set-off, defense, counterclaim or recoupment for any reason. The term of the lease
hereunder shall commence on September 27, 1995, and shall continue until the end of the Lessee's current fiscal period and
thereafter for such additional fiscal periods as are necessary to complete the anticipated total lease term as set forth in Exhibit B,
unless earlier terminated as provided herein. Lessee will evidence its acceptance of the Property by executing and delivering to
Lessor a Certificate of Acceptance (hereinafter so called) in the form provided by Lessor.
2. Pledge of Ad Valorem Taxes.
(a) Upon this Agreement taking effect the Lessee shall establish an interest and sinking fund ([he "I &
S Fund"), which shall be maintained by the Lessee as long as any Lease Payments are unpaid. The Lessee hereby pledges [he I &
S Fund for the exclusive purpose of securing the payment of the Lease Payments and shall apply the funds thereinto the payment
of Lease Payments as such payments come due.
(b) Each year in which Lease Payments come due, the Lessee shall levy an ad valorem tax, within the
limits prescribed by law, that is sufficient (together with any other funds lawfully available to the Lessee for the purpose) to pay
the Lease Payments coming due in such year. As Lessee receives collections of such ad valorem tax, it shall deposit such tax
collections into the I & S Fund. Lessee from time to time may deposit any other lawfully available funds into the I & S Fund.
(c) The 1 & S Fund shall be depleted at least once a year except for a carryover amount not to exceed
one twelfth (I/ 12) of the amount of the Lease Payments expected to come due in the following year.
3. Taxes. In addition to the Lease Payments to be made pursuant to Section 1 hereof, Lessee agrees to
indemnify and hold Lessor harmless from and against and to pay Lessor, as additional rent, on demand, an amount equal to all
license, assessments, sales, use, real or personal property, gross receipts or other taxes, levies, imposts, duties or charges, if any,
together with any penalties, fines or interest thereon imposed against or on Lessor, Lessee or the Property by any governmental
authority upon or with respect to the Property or the purchase, ownership, rental, possession, operation, return or sale of, or
receipt of payments for, [he Property, except any Federal or state income [axes, if any, payable by Lessor. Lessee may contest any
such taxes prior to payment provided such contest does no[ involve any risk of sale, forfeiture or loss of the Property or any
interest therein.
4. Lessee's Covenants and Representations. Lessee covenants and represents as follows:
(a) Lessee represents, and will provide an opinion of its counsel to the effect that, it has full power and
authority [o enter into this Agreement which has been duly authorized, executed, and delivered by Lessee and is a valid and
binding obligation of Lessee enforceable in accordance with its terms, and all requirements for execution, delivery and
performance of this Agreement have been, or will be, complied with in a timely manner;
Ib) All payments hereunder have been duly authorized and will be paid when due.
(c) There are no pending or threatened lawsuits or administrative or other proceedings contesting the
authority for, authorization or performance of, or expenditure of funds pursuant [o, this Agreement;
(d) Information supplied and statements made by Lessee in any financial statement or current budge[
prior to or contemporaneously with this Agreement are true and correct;
(e) Lessee has an immediate need for, and expects to make immediate use of, substantially all [he
Property, which need is not temporary or expected to diminish in the foreseeable future; specifically, Lessee will not give priority
or parity in [he appropriation of funds for [he acquisition or use of any additional property for purposes or functions similar to
those of the Property;
(f) There are no circumstances presently affecting the Lessee that could reasonably be expected to alter
its foreseeable need for the Property or adversely affect its ability or willingness to budget funds for the payment of sums due
hereunder.
5. Use and Licenses. Lessee shall pay and discharge all operating expenses and shall cause the
Property to be operated by competent persons only. Lessee shall use the Property only for its proper purposes and will no[ install,
MUNICIPAL LEASE-PURCHASE AGREEMENT PAGE 1
use, operate or maintain the Property improperly, carelessly, or in violation of any applicable law, ordinance, mle or regulation of
any governmental authority, or in a manner contrary to the nature of [he Property or the use contemplated by its manufacturer.
Lessee shall keep the Property at [he location stated on the Certificate of Acceptance executed by Lessee upon delivery of the
Property until Lessor in writing permits its removal, and the Property shall be used solely in the conduct of the Lessee's
operations. Lessee shall obtain, at its expense, all registrations, permits and licenses, if any, required by law for [he installation
and operation of the Property. Any license plates used on the Property shall be issued in the name of the Lessee. If a certificate of
title is issuable with respect to the Property, it shall be delivered to the Lessor showing the interest of the Lessor.
6. Maintenance. Lessor shall not be obligated to make any repairs or replacements. At its own expense,
Lessee shall service, repair and maintain the Property in as good condition, repair, appearance and working order as when
delivered to Lessee hereunder, ordinary wear and tear from proper use alone excepted, and shall replace any and all parts thereof
which may from time to time become worn out, lost, stolen, destroyed, or damaged beyond repair or rendered unfit for intended
use, for any reason whatsoever, all of which replacements shall be free and clear of all liens, encumbrances and claims of others
and shall become part of [he Property and subject to this Agreement. Lessor may, at its option, discharge such costs, expenses and
insurance premiums necessary for the repair, maintenance and preservation of the Property, and all sums so expended shall he
due from Lessee in addition to rental payments hereunder.
7. Alterations.
(a) Lessee may, at its own expense, install or place in or on, or attach or affix to, the Property such
equipment or accessories as may be necessary or convenient [o use [he Property for its intended purposes provided [hat such
equipment or accessories do not impair the value or utility of the Property. All such equipment and accessories shall be removed
by Lessee upon termination of this Agreement, provided that any resulting damage shall be repaired at Lessee's expense. Any
such equipment or accessories not removed shall become the property of Lessor.
(b) Without the written consent of Lessor, Lessee shall no[ make any other alterations, modifications or
improvements to the Property except as required or permitted hereunder. Any other alterations, modifications or improvements to
the Property shall immediately become part of the Property, subject to [he provisions hereof. Without the prior written consent of
Lessor, Lessee shall not affix or attach any of the Property to any real property. The Property shall remain personal property
regardless of whether it becomes affixed or attached [o real property or permanently rests upon any real property or any
improvement thereon.
S. Liens. Lessee shall not directly or indirectly create, incur, assume or suffer to exist any mortgage, security
interest, pledge, lien, charge, encumbrance or claim on or with respect to the Property, title thereto or any interest therein, except
the respective rights of Lessor and Lessee hereunder.
9. Damage to or Destruction of Property. Lessee shall bear the entire risk of loss, damage, theft, or
destmction of the Property from any and every cause whatsoever, and no loss, damage, destmction or other event shall release
Lessee from the obligation to pay the full amount of [he rental payments or from any other obligation under this Agreement. [n
the event of damage [n any item of the Property, Lessee will immediately place the same in good repair, with the proceeds of any
insurance recovery applied to [he cost of such repair. If Lessor determines that any item of Property is lost, stolen, destroyed or
damaged beyond repair, Lessee at the option of Lessee will either (a) replace [he same with like property in good repair or (h) on
the next Lease Payment Date, pay Lessor (i) all amounts then owed by Lessee to Lessor under this Agreement, including the
Lease Payment due on such date, and (ii) an amount equal to the applicable Option to Purchase Value set forth in Exhibit R.
]0. Insurance. Lessee shall either be self-insured with regard to the Property or shall purchase and
maintain insurance with regard to the Property. Lessee shall indicate on each Certificate of Acceptance executed in relation to this
Agreement its election [o be self-insured or company insured with regard to the Property listed on that Certificate of Acceptance.
Whether Lessee is self-insured or company insured, Lessee shall, for the term of this Agreement, at its own expense, provide
comprehensive liability insurance with respect to the Property, insuring against such risks, and such amounts as are customary for
lessees of property of a character similar to the Property. In addition, Lessee shall, for the term of this Agreement, at its own
expense, provide casualty insurance with respect to the Property, insuring against customary risks, coverage at all times not less
than the amount of the unpaid principal portion of the Lease Payments required to be made pursuant to Section 1 as of [he Ias[
preceding Payment Date specified in Exhibit R on which a Lease Payment was made. If insurance policies are provided with
respect to the Property, all insurance policies shall be with insurers authorized to do business in the State where the Property is
located and shall name both Lessor and Lessee as insureds as their respective interest may appear. Insurance proceeds from
casualty losses shall be payable solely to the Lessor, subject [o the provisions of Section 9. Lessee shall, upon request, deliver [o
Lessor evidence of the required coverages together with premium receipts, and each insurer shall agree to give Lessor written
notice of nonpayment of any premium due and ten (I O) days notice prior to cancellation or alteration of any such policy. Lessee
shall also carry and require any other person or entity working on, in or about the Property [o carry workmen's compensation
insurance covering employees on, in or about the Property. In the even[ Lessee fails, for any reason, to comply with the
reyuirements of this Section, Lessee shnll indemnify, save harmless and, at Lessee's sole expense, defend Lessor and its agents,
employees, officers and directors and the Property against all risk of Toss not covered by insurance.
1 L Indemnification. To the extent permitted by law, Lessee shall indemnify and save harmless Lessor and its
agents, employees, officers and directors from and, at Lessee's expense, defend Lessor and its agents, employees, officers and
MUNICIPAL LEASE-PURCHASE AGREEMENT PAGE 2
directors against all liability, obligations, losses, damages, penalties, claims, actions, costs and expenses (including but not
limited to reasonable attorneys' fees) of whatsoever kind or nature which in any way relate to or arise out of this Agreement or [he
ownership, rental, possession, operation, condition, sale or return of the Propeny. All amounts which become due from Lessee
under this Section 11 shall he credited with any amounts received by the Lessor from insurance provided by the Lessee and shalt
be payable by Lessee within thirty (30) days following demand therefor by Lessor and shall survive the termination or expiration
of this Agreement.
12. No Warranty. EXCEP'C FOR REPRESENTATIONS, WARRANTIES, AND SERVICE
AGREEMENTS RELATING TO THE PROPERTY MADE OR ENTERED INTO BY THE MANUFACTURERS OR
SUPPLIERS OF THE PROPERTY, ALL OF WHICH ARE HEREBY ASSIGNED TO LESSEE, LESSOR HAS MADE AND
MAKES NO REPRESENTATION OR WARRANTY, EXPRESS OR IMPLIED, AND ASSUMES NO OBLIGATION WITH
RESPECT TO THE TITLE, MERCHANTABILITY, CONDITION, QUALITY OR FITNESS OF THE PROPERTY
DESCRIBED IN EXHIBIT A FOR ANY PARTICULAR PURPOSE OR THE CONFORMITY OF THE PROPERTY TO
SPECIFICATIONS OR PURCHASE ORDER, ITS DESIGN, DELIVERY, INSTALLATION OR OPERATION. All such risks
shall be borne by Lessee without in any way excusing Lessee from its obligations under this Agreement, and Lessor shall not be
liable to Lessee for any damages on account of such risks. All claims or actions on any warranty so assigned shall be made or
prosecuted by Lessee, at its sole expense, upon prior written notice to Lessor. Lessor may, but shall have no obligation
whatsoever tq participate in such claim or action on such warranty, at Lessor's expense. Any recovery under such a warranty
shall be made payablejointly to Lessee and Lessor.
13. Option to Purchase. Provided Lessee has complied with the terms and conditions of this Agreement,
Lessee shall have the option to purchase not less than all of the Property which is then subject to this Agreement, "as is" at the
payment date, for the Option to Purchase Values set forth in Exhibit B by giving written notice to Lessor not less than sixty (60)
days prior ro [he date specified in Exhibit B for the exercise of such option; provided that upon Lessee's timely payment of all
Lease Payments specified in Exhibit B, Lessee shall be deemed to have properly exercised its option to purchase the Property and
shall be deemed [o have acquired all of Lessor's right, title and interest in and to the Property, free of any lien, encumbrance or
security interest except such liens, encumbrances or security interest as may be created, or permitted and not discharged, by
Lessee but without other warranties. Payment of the applicable Option [o Purchase Value shall occur on the applicable Lease
Payment Date specified in Exhibit B hereto, at which time Lessor shall, unless not required hereunder, deliver to Lessee a
quitclaim bill of sale transferring Lessor's interest in the Property to Lessee free from any lien, encumbrance or security interest
except such as may he created, or permitted and not discharged, by Lessee but without other warranties. Upon Lessee's actual or
constructive payment of the Option to Purchase Value and Lessor's actual or constructive delivery of a quitclaim bill of sale
covering the Property, this Agreement shall terminate except as to obligations or liabilities accruing hereunder prior to such
termination.
l4. Default and Lessor's Remedies.
(a) The occurcence of one or more of the following events shall constitute an Event of Default, whether
occurring voluntarily or involuntarily, by operation of law or pursuant to any order of any court or governmental agency:
(I) Lessee fails to make any payment hereunder when due or within ten (]0) days [hereafter,
(2) Lessee fails to comply with any other covenant, condition or agreement of Lessee
hereunder for a period of the (10) ten days after notice [hereof:
(3) Any representation or warranty made by Lessee hereunder shall be untrue in any material
respect as of the date made;
(4) Lessee makes, permits or suffers any unauthorized assignment, transfer or other
disposition of this Agreement or any interest herein, or any part of the Property or any interest therein; or
(5) Lessee becomes insolvent: or admits in writing its inability to pay its debts as they
mature; or applies for, consents to or acquiesces in the appointment of a tmstee, receiver or custodian for the Lessee or a
substantial part of its property; or, in the absence of such application, consent or acquiescence, a tmstee, receiver or custodian is
appointed for Lessee or a substantial part of its property and is not discharged within sixty (60) days; or any bankruptcy,
reorganization, debt arrangement, moratorium, or any proceeding under any bankruptcy or insolvency ]aw, or any dissolution or
liquidation proceeding is instituted by or against Lessee and, if instituted against Lessee, is consented to or acquiesced in by
Lessee or is no[ dismissed within sixty (60) days.
(b) Upon the occurrence of any Event of Default specified herein, Lessor may at its sole discretion
exercise any or all of the following remedies:
(1) Enforce this Agreement by appropriate action to collect amounts due or to become due
hereunder, by acceleration or otherwise, or to cause Lessee to perform its other obligations hereunder in which event Lessee shall
be liable for all costs and expenses incurred by Lessor;
(2) Take possession of the Property, without demand or notice and without court order or any
process of law, and remove and relet the same for Lessee's account, in which event Lessee waives any and all damages resulting
therefrom and shall be liable for all costs and expenses incurred by Lessor in connection therewith and the difference, if any,
between the amounts to he paid pursuant to Section I hereof and the amounts received and to be received by Lessor in connection
with any such reletting;
MUNICIPAL LEASE-PURCHASE AGREEMENT PAGE 3
(3) Terminate this Agreement and repossess the Property, in which event Lessee shall be
liable for any amounts payable hereunder through the date of such termination and all costs and expenses incurred by Lessor in
wnnection therewith;
(4) Sell the Property or any portion thereof for Lessor's account at public or private sale, for
cash or credit, without demand on or notice to Lessee of Lessor's intention to do so, or relet the Property for a term and a rental
which may be equal to, greater than or less than the rental and term provided herein. If the proceeds from any such sale or rental
payments received under a new agreement made for the periods prior to the expiration of this Agreement are less than the sum oC
(i) the costs of such repossession, sale, relocation, storage, reconditioning, reletting and reinstallation (including but not limited to
reasonable attomeys' fees), (ii) the unpaid principal balance derived from Exhibit B as of the last preceding Lease Payment Dale
specified in Ezhibit B, and (iii) any past due amounts hereunder (plus interest on such unpaid principal balance a[ the mte
specified in Section 19 hereof, prorated [o the date of such sale), all of which shall be paid to Lessor, Lessor shall retain all such
proceeds and Lessee shall remain liable for any deficiency; or
(5) Pursue and exercise any other remedy available at law or in equity, in which event Lessee
shall be liable for any and all costs and expenses incurred by Lessor in connection therewith. "Costs and expenses", as [hat term is
used in this Section 14, shall mean, to the extent allowed by law: (i) reasonable attorneys' fees if this Agreement is referred for
collection to an attorney not a salaried employee of Lessor or the holder of this Agreement; (ii) court costs and disbursements
including such costs in the event of any action necessary to secure possession of the Property; and (iii) actual and reasonable out-
of-pocket expenses incurred in connection with any repossession or foreclosure, including costs of storing, reconditioning and
reselling the Property, subject to the standards of good faith and commercial reasonableness set by the applicable Uniform
Commercial Code. Lessee waives all rights under all exemption laws.
15. Termination. Unless Lessee has properly exercised its option to purchase pursuant to Section 13 hereof,
Lessee shall, upon the expiration of the term of this Agreement or any earlier termination hereof pursuant to Section ]4 hereof,
deliver the Property to Lessor unencumbered and in at least as good condition and repair as when delivered [o Lessee, ordinary
wear and tear resulting from proper use alone excepted, by loading the Property, at Lessee's sole expense, on such carrier, or
delivering the Property to such location, as Lessor shall provide or designate at or within a reasonable distance Gom the general
location of the Property. If Lessee fails to deliver the Property to Lessor, as provided in this Section 15, on or before the date of
termination of this Agreement, Lessee shall pay to Lessor upon demand, for the hold-over period, a portion of the total payment
for the applicable period as set forth in Exhibit B prorated from [he date of termination of [his Agreement to the date Lessee
either redelivers the Property to Lessor or Lessor repossesses the Property. Lessee hereby waives any right which it now has or
which may be acquired or confered upon i[ by any law or order of any court or other governmental authority to terminate this
Agreement or its obligations hereunder, except in accordance with the express provisions hereof.
16. Assignment. Without Lessor's prior written consent, Lessee will not either: (i) assign, transfer, pledge,
hypothecate, grant any security interest in or otherwise dispose of this Agreement or the Property or any interest in this
Agreement or the Property; or (ii) sublet or lend the Property or permit it to be used by anyone other than Lessee or Lessee's
employees- Lessor may assign its rights, title and interest in and to this Agreement, the Property and any other documents
executed with respect to this Agreement and/or grant or assign a security interest in this Agreement and the Property, in whole or
in part. Any such assignees shall have all of the rights of Lessor under this Agreement. Subject to the foregoing, this Agreement
inures to the benefit of and is binding upon the heirs, executors, administrators, successors and assigns of the parties hereto. No
assignment or reassignment of any of Lessor's rights, title or interest in this Agreement or the Property shall be effective with
regard to Lessee unless and until Lessee shall have received a copy of the document by which the assignment or reassignment is
made, disclosing the name and address of such assignee. No further action will be required by Lessor or by Lessee to evidence
the assignment, but Lessee will acknowledge receipt of such assignments in writing if so required. During the term of this
Agreement, Lessee shall keep a complete and accurate record of all such assignments in form necessary [o comply with [he
United States Internal Revenue Code of 1986, Section 149 (a), and the regulations, proposed or existing, from time to time
promulgated thereunder.
17. Personal Property. The Property is and shall at all times be and remain personal property.
18. Title. Upon acceptance of the Property by Lessee hereunder, Lessee shall have title to the Property
during the term of this Agreement; however, in the event of an Event of Default hereunder and for so long as such Event of
Default is continuing, title shall be revested immediately in and shall revert to Lessor free of any right, title or interest of Lessee
unless Lessor elects otherwise.
19. Lessor's Right to Perform for Lessee. If Lessee fails to make any payment or perform or
comply with any of its covenants or obligations hereunder, Lessor may, but shall not he required to, make such payment or
perform or comply with such covenants and obligations on behalf of Lessee, and the amount of any such payment and the
expenses (including but no[ limited to reasonable attorneys' fees) incured by Lessor in performing or complying with such
covenants and obligations, as the case may be, together with interest thereon a[ the highest lawful rate, shall be payable by Lessee
upon demand.
MUNICIPAL LEASE-PURCHASE AGREEMENT PAGE4
20. Interest on Default. If Lessee fails to pay any Lease Payment specified in Section 1 hereof within
ten (10) days after the due date thereof, Lessee shall pay to Lessor interest on such delinquent payment from the due date until
paid a[ the highest lawful rate.
2l. Notices. Any notices to be given or to be served upon any party hereto in connection with this Agreement
must be in writing and may be given by certified or registered mail, and shall be deemed to have been given and received forty-
eight (4S) hours after a registered or certified letter containing such notice, postage prepaid, is deposited in the United States mail,
and if given otherwise shall be deemed to have been given when delivered to and received by the party to whom i[ is addressed.
Such notice shall be given to the parties a[ their respective addresses designated on the signature page of this Agreement or at
such other address as either party may hereafter designate.
22. Security Interest As security for Lessee's covenants and obligations hereunder, Lessee hereby grants
to Lessor, and its successors, a security interest in the Property, all accessions thereto and proceeds therefrom, and, in addition m
Lessor's rights hereunder, all of the rights and benefits of a secured party under the Uniform Commercial Code as in effect from
time to time hereafter in the State in which the Property is located or any other State which may have jurisdiction over the
Property. Lessee agrees to execute, acknowledge and deliver to Lessor in recordable form upon request financing statements or
any other instruments with respect [o the Property or this Agreement considered necessary or desirable by Lessor to perfect and
continue the security interest granted herein in accordance with the laws of the applicable jurisdiction.
23. Tax Exemption. Lessee certifies that i[ does reasonably anticipate that not more than $10,000,000 of
"qualified tax-exempt obligations" (as that term is defined in Section 265 (b) 3 (D) of [he Internal Revenue Code of 1986 (the
"Code") will be issued by it and any subordinate entities during 1995.
Further, Lessee designates this issue as comprising a portion of the $10 million in aggregate issues to be designated as "qualified
[ax exempt obligations" eligible for the exception contained in Section 265 (b) 3 (D) of the Code allowing for an exception to [he
general mle of the Code which provides for a total disallowance of a deduction for interest expense allocable to the carrying of
tax exempt obligations.
24. Miscellaneous.
(a) Lessee shall, whenever requested, advise Lessor of the exact location and condition of the Property
and shall give the Lessor immediate notice of any attachment or otherjudicial process affecting the Property, and indemnify and
save Lessor harmless from any loss or damage caused thereby. Lessor may, for the purpose of inspection, at all reasonable times
enter upon any job, building or place where the Property and the books and records of [he Lessee with respect [hereto are located.
(b) Lessee agrees to equitably adjust [he payments payable under this Agreement if there is a
determination for any reason that the interest payable pursuant to [his Agreement (as incorporated within the schedule of
payments) is not excludable from income in accordance with the Intemal Revenue Code of 1986, as amended, such as to make
Lessor and its assigns whole.
(c) Time is of the essence. No covenant or obligations hereunder to be performed by Lessee may
be waived except by the written consent of Lessor, and a waiver of any such covenant or obligation or a forbearance to invoke
any remedy on any occasion shall not constitute or be treated as a waiver of such covenant or obligation as to any other occasion
and shall no[ preclude Lessor from invoking such remedy at any later time prior to the Lessee's cure of the condition giving rise
to such remedy. Lessor's rights hereunder are cumulative and not alternative.
(d) This Agreement shall be constmed in accordance with, and governed by, the laws of the State in
which the Property is located.
(e) This Agreement constitutes the entire agreement between the parties and shall not be modified,
waived, discharged, terminated, amended, altered or changed in any respect except by a written document signed by both Lessor
and Lessee.
(f) Any term or provision of this Agreement found to be prohibited by law or unenforceable shall be
ineffective to the extent of such prohibition or unenforceability without, to the extent reasonahly possible, invalidating the
remainder of this Agreement.
(g) The Lessor hereunder shall have the right at any time or times, by notice to Lessee, to designate or
appoint any person or entity to act as agent or [mstee for Lessor for any purposes hereunder.
(h) All transportation charges shnll be borne by Lessee. Lessee will immediately notify Lessor of any
change occurring in or to the Property, of a change in Lessee's address, or in any fact or circumstance warranted or represented by
Lessee to Lessor, or if any Event of Default occurs.
(i) Use of the neuter gender herein is for purposes of convenience only and shall be deemed to mean
and include the masculine or feminine gender whenever and wherever appropriate.
(j) The captions set forth herein are for convenience of reference only and shall not define or limit any
of the terms or provisions hereof.
MUNICIPAL LEASE-PURCHASE AGREEMENT PAGE5
(k) Except as otherwise provided herein, this Agreement shall be binding upon and inure to the benefit
of the Parties hereto and their respective heirs, executors, administrators, legal representatives, successors and assigns, where
permitted by [his Agreement.
IN WITNESS WHEREOF, the parties have executed this Agreement as of September 27, 1995.
LESSOR: CONSOLIDATED FINANCIAL RESOURCES,INC.
Route 4 Box 2A P O. Box 9(i2
Greenville, Texas 75402
BY
STATE OF TEXAS §
ry of
5 by
f / ~~ ~.~ f of
~~eas~ Goo /l °t
~. ~~~~.
~~~Eti ,S
LESSEE: KERR COUNTY
700 Mein Sveet
`' ~ ~ K, I e / , ^ tvv i 1, l e `, / yT 1,e x ~ a j ~ /y ~ 7 6 0 72 /}61,~y- ~ , ,
Robert ~on, C ty lodge
A"ITEST:
Patricia Dye, County Clerk
MUNICIPAL LEASE-PURCHASE AGREEMENT PAGE6
THE STATE OF TEXAS
COUNTY OFX
Before me, the undersi_ned authority, on this day personally appeared Robert A. Denson, County Judge, and Patricia Dye,
County Clerk of Kerr County, known to me to he the persons whose names are subscribed to [he foregoing instrument, and
acknowledged to me that they executed the same for the purposes and consideration therein expressed, in the capacity therein
stated and as- the act and deed of said puhlic entity.
Given under my hand and seal of office this X ~~ ~ day of X /~~}'d/~i .1995.
otary Publ¢ m and for the Sfate of Texas
My Commission Expires:
T~IiEA SO'JIL
NOTARY PUBLIC
State o~ Texas
~mm. ExP~ O1~G9-99
__....
(SEAL)
MUNICIPAL LEASE-PURCHASE AGREEMENT PAGE?
EXHIBIT A
KERR COUNTY
t.esst e:
OUANTTTY
1S
DESCRIPTION OF PROPERTY
DESCRIPTION
Voting Equipment
AIS 550 Op[ical Scan Ballot Tabulation System
w/ (2) Model 150 Scanners and Accumulation
Software
Sturdy Steel Table and Heavy Vinyl Dust Cover
Start-Up Kit
Okida[a Printers (log and report)
Ballo[ Boxes
PROPERTY LOCATION
Kerr County Courthouse
700 Main Street
Kerrville, Texas
EXHIBIT B
For: KERB COUNTY
Equipment Cost=	$38,900.00
Issuance Costs =	$225.00
Financed Amount =	$39,125.00
Payment =	$9,361.53
Interest=	6.290%
Compound Per/yr= 1
Number of Pmts/yr= 1
Total Numb of Pmts = 5
The above payments represent total deb[ service cost, including all issuance fees, and are based on even year amortization.
OPTION TO PURCHASE VALUE is the amount due after payment of the PAYMENT AMOUNT
Pmt	Payment	Payment	Principal	Interest	Principal	Principal	Interest	Option to
#	Due Date	Amount	Pa ment	Pa ment	Remainin	Paid to Date	Paid to Date	Purchase Value
1	1-Sep-96	$9,361	.53	$6,900.57	$2,460	.96	$32,224.43	$6,900.57	$2,460.	96	$33,195	.52
2	1-Sep-97	$9,361	.53	$7,334.61	$2,026	.92	$24,889.82	$14,235.18	$4,487.	88	$25,493.	76
3	1-Sep-98	$9,361	.53	$7,795.96	$1,565	.57	$17,093.86	$22,031.14	$6,053.	45	$17,406	.92
4	1-Sep-99	$9,361	.53	$8,286.33	$1,075	.20	$8,807.54	$30,317.46	$7,128.	65	$8,915	.74
5	1-Sep-00	$9,361	.53	$8,807.54	$553.	99	$0.00	$39,125.00	$7,682.	65	$1	.00
BY: ~~-.
Robe t A. Denso u Judge
ESSENTIAL USE LETTER
Consolidated Financial Resources, Inc.
P. O. Box 962
Greenville, Texas 75403
RE: Municipal Lease-Purchase Agreement dated as of September 27, 1995
Gentlemen:
This letter is being written with respect to [he use of the Property ([herein so called) to be leased [o the undersigned
under the above-referenced Lease-Purchase Agreement. The Property will be used by [he undersigned as Lessee for
the following Purposes:
(State how and for what purposes the Property will be used)
The undersigned hereby represents [ha[ [he use of [he Property is essential [o its proper, efficient and economic
operation.
Sincerely,
LESSEE: KERR COUNTY
BY: ~ , 1n~
NAME: Robert A. Denson
TITLE: County Judge
INCUMBENCY CERTIFICATE
I, Patricia Dye, do hereby certify [hat I am [he duly elected or appointed and acting County Clerk of the Kerr
County, a political subdivision or agency duly organized and existing under the laws of the Slate of Texas, that I
have custody of the records of such entity, and [hat, as of the date hereof, the individuals named below are the duly
elected or appointed officers of such entity holding the offices set forth opposite their respective names. I further
certify that (i) the signatures set opposite their respective names and titles are their [rue and authentic signatures and
(ii) such officers have the authority on behalf of such entity to enter into that certain Municipal Lease-Purchase
Agreement dated as of September 27, 1995, between such entity and Consolidated Financial Resources, Inc. as
Lessor.
NAME
TITLE
SIGNAT~~URE~ ~
X I>< ((~
Robert A. Denson County Judge
IN WITNESS WHEREOF, I have duly executed thisecertificate and affixed the seal of such entity hereto this
X ~ day of X ~~~iQCLP~} / 1995.
BY:
NAME: Patricia Dye
TITLE: County Clerk
(SEAL)
CERTIFICATE OF ACCEPTANCE
Municipal Lease-Purchase Agreement (the "Agreement")
By and between
CONSOLIDATED FINANCIAL RESOURCES, INC. (Lessor)
and
KERR COUNTY (Lessee)
Dated as of September 27, 1995
I ACCEPTANCE: In accordance with the Agreement, Lessee hereby certifies that all of the Property described heroin (i) has bcen
reccrved by Lessce, (ii) has been thoroughly examined and inspected to the complete satisfaction of Lessee, (iii) has been found by Lessee to be
in good operating order, repair and condition, (iv) has been found to be of [he siu, design, quality, type and manufacture specified by Lessee, (v)
has been Cound to be and is wholly suimble for Lessee's purpose, and (vi) is hereby unconditionally accepted by Lessee, in the condition received.
for all purposes of the Agreement.
?. PROPERTY:
3. USE: The primary use of [he Property is as follows:
4. PROPERTY LOCATION:
5. PAYMENTS: ]nvoicing shall be to the following address:
6. INSURANCE: Lessee certifies [ha[ property and liability insurance have been secured in accordance with the Agreement and such
coverage will be maintained in full force for the term of the Agreement Lessor will be designated loss payee until Lessee is notified,
in writing, [o substitute a new Ions payee.
~_ Company insured
_ Elect to self-insure in accordance with Section 10 of the Agreement
In accordance with Section 6 of [he Agreement Lessee agrees to, at its own expense, service, repair and maintain the Property for the
term of the Agreement as follows:
_ Maintenance cammct
~ Eled to self maintain
LESSEE: KE OUN ITY
BY `
Robe A. Densonn Judge
ACCEPTED thcX ~ // ~ day of /V /rA" 1995.
INSURANCE CERTIFICATE
Lessee certifies that property and liability insurance, if applicable, have been secured in accordance with the
Agreement and such coverage will he maintained in full force for the temt of the Agreement.
Lessor should be designated as loss payee until Lessee is notified, in writing, to substitute
a new loss payee.
Please provide the following insurance information:			
	
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Insurance Agent's Name:	y ~/ rYt !' /v
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Company Name:	X ~ l ~ i~ILt ~~	T~
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Company Address:	~
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Telephone Number:	X - ^'1 ~ ~i _' ~ ~~ l -	~~ ~~		

Policy Number:	
7~ (1 ~~/ /~~ ~ ~~~%	-7-
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LESSEE: KERR COUNTY
EY: X
NAME: Robert .Denson
TITLE: County Judge
RESOLUTION #X `f!
WHEREAS, comingent upon the approval of the Attorney of Kerr County (the "County"), the County desires to
enter into that certain Lease-Purchase Agreement, as authorized by the Public Property Finance Act (Subchapter A,
Chapter 271, Local Government Code), dated as of Sep[ember27, 1995 by and between [he County and
Consolidated Financial Resources, Inc. for the purpose of financing Voting Equipment The County desires to
designate this Agreement as a "qualifed tax exempt obligation" of the County for the purposes of Section 265 (b)
(3) of the Internal Revenue Code of 1986, as amended. The County desires to levy, as authorized by [he Public
Property Finance Act (Subchapter A, Chapter 271, Local Government Code), for each year in which "Lease
Payments" (as defined in the Lease-Purchase AgrcemenU come due, an ad valorem tax within the limits prescribed
by law that is sufficient (together with other funds lawfully available to the County and applied to the purpose) to
provide timely payment of the Lease Payments payable during such year. The County desires to designate
Robert A. Denson, County Judge, and Patricia Dye, County Clerk, as authorized signers of [he Agreement.
NOW THEREFORE, BE IT RESOLVED BY KERR COUNTY:
Section 1 • Tha[ the County will enter into a Lease Purchase Agreement as authorized by [he Public
Property Finance Ac[ (Subchapter A, Chapter 271, Local Government Code), with Consolidated Financial
Resources, Inc. for the purpose of £nancing Voting Equipment.
Section 2. That the Lease Purchase Agreement dated as of September 27, 1995, by and between the
County and Consolidated Financial Resources, Inc. is designated by the County as a "qualified tax exempt
obligation" for the purposes of Section 265(b)(3) of the Internal Revenue Code of 1986, as amended,
Section 3 That, for each year in which Lease Payments come due, there is hereby levied, as
authorized by the Public Property Finance Act (Subchapter A, Chapter 271, Local Government Code), an ad
valorem tax within the Limits prescribed by law that is suftcicnt (ioge[her with other funds lawfully available [o the
County and applied [o the purpose) to provide timely payment of the Lease Payments payable during such year.
Section 4. That [he County will designate Robert A. Denson, County judge, and Patricia Dye,
County Clerk, as authorized signers of the Lease Purchase Agreement dated as of September 27, 1995, by and
between the County and Consolidated Financial Resources, Inc. -~--- /
PASSED AND APPROVED by Kerr County on the X ~ ~ day of 'l l' i' 1y2'~7(~!, L~LS' ~-. , 1995.
SIGNATURE: 1C ~~ ~/ ~ •// H~ ^'~
NAME: 1~ R o~ e 0. 7 h` . ~e ~-t 5 0~
(name typed or printed)
TITLE: ~ Y`P a 0., C ~ ~ ~ ~ P
(title typed or printed
ATTEST:
SIGNATURE:~)~)' Gy-l ~ / -{
NAME: X P' >;{ 1 Dni l C~ l A- ~ /l P _
(n:vne typed or prink
TITLE: Jc_z~~ ,~, l'aunTu ~' /e,P~_ _
Aide typed or pri ed)
cP~F JA'
{~~' ~^
W ~ `K
/~ >
t' 80~y„
OFFICE OF THE COUNTY ATTORNEY
KERR COUNTY. TEXAS
COUNTY Couan~ousa,Smrs B20
700 EAST MAIN STRR6f
K HRRVIL LB, TuxAS 78028-5321
TuLtSPUONe (210) 8965338 FAx (210) 896-0504
DAVID D1. MOIll?Y, mm+n Amxxcx
September 25, 1995 ILSB D. BAl1~v, ASSLSTAM a~uwrv Ar'rawcx
HAROLO J. DANFORO, ASSLTTAM muarx A'nvxm~~'
Consolidated Financial Resources, Inc.
P. O. Box 962
Greenville, Texas 75403
Re: Lease Purchase Agreement dated as of September 27, 1995
Dear Sirs:
I have acted as Counsel to Kerr County (the "Lessee" ) with
respect to that certain Lease Purchase Agreement (the "Agreement")
dated as of September 27, 1995, by and between Consolidated
Financial Resources, Inc., and the Lessee. I have reviewed the
Agreement and such other documents, records and certificates of
Lessee and appropriate public officials as I have deemed relevant,
and am of the opinion that:
1. the Lessee is a political subdivision or agency of the
State of Texas, with the requisite power and authority to
incur obligations, the interest on which is exempt from
taxation by virtue of Section 103 (a) of the Internal Revenue
Code of 1956;
2. the execution, delivery and performance by the Lessee of
the Agreement have been duly authorized by all necessary
action on the part of the Lessee; and
3. the Agreement constitutes a legal, valid and binding
obligation of the Lessee, enforceable in accordance with its
terms.
Sincerely,
.
David Motl
County Att rney
(TO BE RF.TYPF;D ON LF,T'PERHF.AD OP LESSEE.'S CUUNSEI,)
September 27, 1995 ~j ~ { ~~
~~SP Qv ~c
Re~~i7a~ Cn.~ ~~h~.f
Consolidated Financial Resources, Inc. /
P. O, Box 962 ~ ~~~ ~ /~~
Greenville, Texas 75403 pr-rjt ,$ C ~r Coq
RE: Municipal Lease-Purchase Agreement dated as of September 27, 1995
Gentlemen:
/~ i i~' Zt ~
I have acted as Counsel to Kerr County (the "Lessee") with respect to that certain Municipal Lease-
Purchase Agreement (the "Agreement") dated as of September 27, 1995, by and between Consolidated Financial
Resources, Inc. and [he Lessee. I have reviewed [he Agreement and such other documents, records end certificates of
Lessee and appropriate public officials as I have deemed relevant and am of the opinion that:
I. The Lessee is a political subdivision or agency of the State of Texas, with the requisite power and authority
to incur obligations, the interest on which is exempt from taxation by virtue of Section 103 (a) of the
Internal Revenue Code of 1986;
2. The execution, delivery and performance 6y the Lessee of dte Agreement have been duly authorized by all
necessary action on the part of the Lessee; and
3. The Agreement constitutes a legal, valid and binding obligation of the Lessee enforceable in accordance
with its terms.
Sincerely,
Fenn 8U38'GC I ~ Information Return for Small Tax-Exempt
Governmental Bond Issues, Leases, and Installment Sales OMB No. 1545-0720
(Rev. Mey 1995) ~ - Under Intemal Revenue Code section 149(e) - For calendar year ending 19 ..--- ,
nePedment of the Troeeury ..
INenvl Revenue seMCe (Use Forth 8038-G if the Issue price of the Issue is $100,000 or more.)
• Reporting Authority Check box if Amended Return - [
t Issuer's name 2 Wauera employer Idanaacatlon numbs
3 Number end street (or P.O. box Ii mall Is not delivered to street
4 Clty, town, or post ollice, stale, end ZIP code
5 Issue price of small tax-exempt governmental obligations reported on this form.
6 Check the box that most nearly approximates the weighted average maturity of the obligation(s):
a ^ Less than 5 years
b ~ From 5 to 10 years '
c ^ More than 10 years
7 Check the' box that most nearly approximates the weighted average Interest rate on the
obligation(s):
a ^ Less than 5% ~ ~ '
b ~ From 5% to ~10%
c ^ More than 10% ,
8 Total Issue price of the obligation(s) reported on line 5 that is/are: ,
a Obligation(s) issued in the form of a lease or installment sale ~.
b Obligation(s) designated by the Issuer under section 265(b)(3)(B)(i)(III)
c Obligation(s) issued to refund prior issues
d Loans made from the proceeds of another tax-exempt obligation
Please
Sign
Here
box if issuer has elected to pay a penalty in lieu of arbitrage rebate . L
Under penalties of penury, I declare that I have examined this return and accompanying schedules end statements, and to the best of my knowledg
and belief t~ hey era true, coned, and complete. i , ,

Paperwork Reduction Act Notice
We ask for the information on this form to
carry out the Intemal Revenue laws of the
United States. You are required to glue us the
Infortnatlon. We need It to ensure that you are
complying with these laws.
The time needed to complete and file this
form varies depending on Individual
circumstances. The estimated average time
Is:
Learning about the ~ -
law or the form 1 hr., 46 min.
Preparing the forth 2 hr., 50 min.
Copying, assembling, and
' sending the form to the IRS 16 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 Intemal Revenue Service,
Attention: Tax Forms Committee, PC:FP,
Washington, DC 20224. DO NOT send the
form to this address. Instead, see Where To
File on page 2.

General Instructions
Section references are to the Intemal
Revenue Code unless otherwise noted.
Purpose of Form
Form 8038-GC Is used by Issuers of
tax-exempt governmental obligetlons to
provide the IRS with the information required
by section t49(e) end to monitor the
requirements of sections 141 through 150.
Who Must File
Issuers of tax-exempt govemmental
obligetlons with Issue prices of less than
$100,000 must file Form 8038-GC.
Issuers of atax-exempt govemmental '
obligation with an issue price of $100,000 or
more must file Form 8038-G, Information
Return for Tax-Exempt Governmental
Obligations.
Filing a separate return.-Issuers have the
option to file a separate Fonn 8038-GC for
any tax-exempt govemmental obligation with
' Type or
an Issue price of less than $100,000. Each
such separate return should specify the
calendar year in which the Issue was Issued.
An Issuer of atax-exempt bond used to
finance construction expenditures must file a
separate Form 8038-GC for each Issue to
give notice to the IRS that an elactlon was
made to pay a penalty In Ileu of arbitrage
rebate (see line 9 Instructions).
Filing a consolidated return.-For all
tax-exempt govemmenlai obligations with
issue prices of less than $100,000 that are
not reported on a separate Form 8038-GC,
an Issuer must file a consolidated Information
return Including all such Issues Issued within
the calendar year.
Thus, an Issuer may file a separate Form
8038-GC for each of a number of small
Issues and report the remainder of small
Issues Issued during the calendar year on one
consolidated Form 8038-GC. However, a
separate Fonn 8038-GC must be Flied to give
the IRS notice of the elactlon to pay a penalty
in lieu of arbitrage rebate.
Cat. No. 647068 Form 8036-C'aG (Rev. 6-95;
ortn 8036-GC (Rev. 5-95)
Nhen To File
o the a separate return, file Form 8038-GC
nor before the 15th day of the second
alendar month after the close of the
alendar quarter in which the issue is issued.
To file a consolidated return, file Form
J38-GC on or before February 15th of the
alendar year following the year In which the
sue is Issued.
ate filing.-An Issuer may be granted an
dension of time to file Form 8038-GC under
action 3 of Rev. Proc. 88-10, 1988-1 C.B.
35, ff it Is determined that the failure to file
n time Is not due to willful neglect. Send a
.te Form 8038-GC to: Internal Revenue
ervlce, Philadelphia Service Center,
tatistics of Income Unit, P:DA: Unit F-SOI,
hiladelphla, PA 19255, Stop f1335. Type or
riot at the top of the forth, "This Statement
. Submitted In Accordance with Rev. Proc.
8-10." Attach to the Form 8038-GC a letter
rietly stating why Form 8038-GC was not
abmitted to the IRS on time. Also indicate
hether the obligation in question is under
xamination by the IRS. Do not submit copies
r any bond documents, leases, or Installment
tie documents.
there To File
le Form 8038-GC with the Internal Revenue
ervlce Center,Philadelphia, PA 19255.
founding Off to Whole Dollars
ou may show the money items on this
:turn as whole-dollar amounts. To do so,
rop any amount less than 50 cents and
crease any amount from 50 cents through
3 cents to the next higher dollar.
lefinitions
Obligations refer to a single tax-exempt
ovemmental obligation if Form 8038-GC is
sad for separate reporting and refer to
~ultipls tax-exempt governmental obligations
the forth is used for consolidated reporting.
A "tax-exempt obligation" is not limited to
~e formal issuance of bonds. It also includes
~stallment purchase agreements and
nancial leases.
A "tax-exempt governmental obligation" is
tax-exempt obligation that is not a private
~tivity bond.
A °pdvate activiTy bond" Is generally an
aligation issued as part of an Issue of which
)more than 10% of the proceeds are to be
sad for any private business use, and
') more than 10% of the payment of
~incipal or Interest of the issue is either
'cured by an interest in property to be used
.r a private business use (or payments In
~spect of such property), or is to be derived
~m payments in respect of property (or
~rrowed money) used for a private business
;e. An obligation is also considered a private
~tivity bond if the amount of the proceeds to
a used to make or finance loans (other than
ens descdbed In section 141(c)(2)) to certain
arsons exceeds the smaller of 5% of the
oceeds, or $5 million. Report private activity
ands on Fonn 5038, Information Return for
etc-Exempt Private Activity Bond Issues.
"Issue.' In gene2l, obligations are treated
part of the same Issue only If they are
sued (1) by the same Issuer, (2) on the
une date, and (3) pursuant to a single
ansaction or to a sedes of related -
snsactions.
E,..,aptions-(a) Draw-down loans,
commercial paper, etc.-0bligatlons issued
during the same calendar year (1) pursuant to
a loan agreement under which amounts are
to be advanced periodically ("draw-down
loan"), or (2) 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 pursuant to a
common financing arrangement; e.g.,
pursuant to the same official statement that is
periodically updated to reflect changing
factual circumstances. In addition, for
obligations issued pursuant to a draw-down
loan that meals the requirements of the
preceding sentence, obligatlons issued during
different calendar years may be treated es
part of the same Issue If all the amounts to
be advanced pursuant to the draw-down loan
are reasonably expected to be advanced
within 3 years of the date of issue of the first
obligation.
(b) Leases and installment sales.-
Obligations other than private activity bonds
may be treated as part of the same issue if
(1) the obligations are issued pursuant to a
single agreement that is in the form of a lease
or installment sale and (2) 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(Q.
Construction Issue.-A construction issue is
an issue of tax-exempt bands if
(1) at least 75% of the available construction
proceeds of the issue are to be used for
construction expenditures with respect to
property that is to be owned by a
governmental unit or a 501(c)(3) organization,
and (2) all of the bonds that are part of the
issue are qualified 507(c)(3) bonds; bands
that are not private activity bonds; or private
activity bonds issued to finance property to
be owned by a governmental unit or a
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 1 %:°/9 of the amount of
construction proceeds that do not meet
certain spending requirements. See section
148(f)(4)(C).
Specific Instructions
In general.-A Form 8038-GC must be
completed on the basis of available
information and reasonable expectations as
of the date the issue is issued. Forms that are
filed on a consolidated basis, however, may
be completed on the basis of Information
readily available to the Issuer at the close of
the calendar year to which the form relates,
supplemented by estimates made In good
faith.
Part 1-Reporting Authority
Amended return.-If this is an amended
Form 8038-GC, check the amended return
box. Complete Part I and only those lines of
Form 8038-GC that are being amended. Do
Page 2
not a... _.1d estimated amounts previously
reported once the actual amounts are
determined. (Sea the Part II instructions
below.)
Line 1.-The Issuer's name Is the name of
the entity issuing the obligatlons, not the
name of the entity receiving the benefit of the
financing. In the case of a lease or Installment
sale, the Issuer Is the lessee or 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. This form
may be obtained from most IRS and Social
Security Administration offices. File Form
SS-4 according to the Instructions on that
lorm. If the EIN has not been received by the
due date for Form 8038-GC, write "Applied
for" In the space for the EIN.
Part II-Description of
Obligations
Line 5.-Small governmental obligatlons are
those with an issue price of less than
$100,000. If the obligatlons are reoffered to
the public by an Intermediary, the Issue price
Is the reoffering price (excluding accrued
interest).
If Form 8038-GC Is being filed for a~single
issue only, enter the Issue price of that Issue.
The issue price of an obllgatlon means the
principal amount due on the obllgatlon and
does not Include Interest paid or to be paid.
Therefore, line 5 should include only the
principal amount due on obligations. For
example, only the purchase price of an asset
acquired pursuant to a lease should be
included on line 5. A lease or Installment sale
Is treated as issued on the date Interest starts
to accrue.
Line 6.-The weighted average maturity Is
determined by multiplying the Issue price of
each obligation reported on this form by Its
maturity in years, adding the results for all the
obligations reported on this form, and then
dividing the total by the total Issue prices of
all the obligations. For a lease or Installment
sale, the maturity is the total number of years
the lease or Installment sale will be
outstanding.
Line 7.-The weighted average Interest rate is
the average Interest rate on all the obligatlons
reported on this form, weighted In proportion
to the Issue price and length of maturity of
each obligation.
Line 8.-Enter the total Issue price of the
obligations reported on line 5 that are .
described on lines Ba through Bd. More than
one line may apply to a particular obligation.
For example, report on line 8b and line 8c,
obligations Issued to refund prior Issues that
were designated by the Issuer under section
265(b)(3)(B) (i)(I I I).
Line 9.-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, Arbitrage Rebate end
Penalty In Lieu of Arbitrage Rebate, for each
6-month period after the date the bonds are
Issued. Do not make any payment of penalty
In lieu of rebate with this form. See Rev.
Proc. 92-22, 1992-1 C.B. 736, for rules
regarding the "election document"
ndnlnn n" mcv~md nnnnr '115. nov9inmxnt Println9 (xlice: 1995- 38]-0952m BB