ORDER NCI. c7905 AWRRD HID 1=0R LERSE OF WHEEL. CORDER i On tl'~i~. the E3rd day of December, 2~~c ~-upon motion made by Commissioner^ Let z, seconded by Commissioner Haldwin, the Court unanimously approved by vote of 4-0-0, the lease for- the new wheel loader with Holt Texas Limited and a~.xtharizad the Cn~_inty J~_idge to sign the necessary dnr_uments after approval by the Co~_~nty Rttor^ney, an~i a~_ithor^i.ze i.ss~_ianr_e of a hand r_heck in 'the amo~_mt of ~1,Oe7.75, payable to Caterpillar Financial Services Corporation for the first month's payment on the lease. j %ll~ COMMISSIONERS' COURT AGENDA REQUEST PLEASE FURNISH ONE ORGINAL AND NINE COPIES OF THIS REQUEST AND DOCUMENTS TO BE REVIEWED BY THE COURT. MADE BY: Leonazd Odom Jr. OFFICE: Road & Bride MEETING DATE: December 23.2002 TIME PREFERRED: SUBJECT: (PLEASE BE SPECIFIC) Award Bid for Lease of New Wheel Loader, authorize Judge and Count~Attorney to sign same, and approve hand check for first payment. EXECUTIVE SESSION REQUESTED: (PLEASE STATE REASON) NAME OF PERSON ADDRESSING THE COURT: Leonazd Odom Jr. ESTIMATED LENGTH OF PRESENTATION: 5 minutes IF PERSONNEL MATTER -NAME OF EMPLOYEE: Time for submitting this request for Court to assure that the matter is posted in accordance with Title 5, Chapter SSI and 552, government Code, is a follows: Meeting scheduled for Mondays: 5:00 P.M. previous Tuesday THIS REQUEST RECEIVED BY: THIS REQUEST RECEIVED ON: All Agenda Requests will be screened by the County Judge's Office to determine if adequate information has been prepazed for the Court's formal consideration and action at time of Court Meetings. Your cooperation will be appreciated and contribute towards your request being addressed at the eazliest opportunity. See Agenda Request Rule Adopted by Commissioners' Court. Caterpillar Financial Services Corporation INVOICE KERB COUNTY, TEXAS 700 MAIN ST RM t03 KERRVILLE, TX 78028 Pnl;e Uv[¢ Ln nice\o. 1 tziwzouz LSAP-a39474-1 Oncriplimr Serial Uue Datc 1'urt.\u. \nwun[ II 924GZ 6YW011908 Upon Receipt. 1 $1,03795 Caterpillar Wheel Loader Sales and Use Tax $0.00 Document Fee $0.00 Filing Fee $0.00 Stamp Fee $O.W Other Fees $D 00 RETURN PAYMENT COPY AND CHECK FOR SPECIFIED PAYMENT(S) WITH SIGNED LEASE [X)CUMENTS. Your check will be cashed by Lessor upon receipt, but that act will not constitute acceptance by Lessor of the Lease or Schedule. If Lessor accepts and executes the Lease and/or Schedule, the proceeds of this check will be applied [o the specified rental payments. If Lessor does not accept the Lease or Schedule, Lessor will return an amount equal to this check. WITHOUT TAX EXEMPTION CERTIFICAT E, APPROPRIATE SALESN$E TAX W ILL BE CHARGED PLEASE PAY THIS AMOUNT $ $1,037.95 Im Dice \o. total Euclox•d LSAP-439474-1 $ KERB COUNTY, TEXAS 700 MAIN ST RM 103 KERRV[LLE, TX 78028 Remit To: Caterpillar Financial Services Corporation 2120 West End Avenue Nashville, TN 37203 CATERPILI=~R FINANCIAL SERVICES CORPORATION LONG-TERM RENTAL AGREEMENT Dated as of f.ESSEE: KF.RR COUNTY, TEXAS ADDRESS. 700 MAIN ST RM 103 KERRVILLE,TX 78028 LESSOR: CATERPILLAR FINANCIAL SERVICES CORPORATION ADDRESS. 2120 Wes[ End Avenue Nashville, TN 37203 Lcssvr. in rclmnce un Lessee's selection of the equipment desenbed below f'l tort" or "Uniq s)"), agrees to acgmre and lease the Units m Lessee, and Lessee agrees to (ease the Units from Lessor, sub)ecl to the terms and conditions below and on [he reverse vde. Description o(Unit(s) (I)New 924GZ Caterpillar Wheel Loader Rent to be paid: in advance (starts on Delivery Date)and every month thereafter. Seriel# Mon[hlvRent Purchase Price 6YW00908 $1.037.95 S4 L2h920 Lease Term: 60 Months Utilization Date: February 4, 2(llly Purchase Options: LX, Cat Value (Section 14) (~ Fair Market Value (Section IS) [_] none is applicable to this !.ease (check one! Location of Unit(s): 700 Main Street KERRVILLE, TX 78028, KERR Depreciation Period: Lessor shall be entitled to depreciation deduction for each unit based on a recovery period of 6 years. ADDITIONAL PROVISIONS: RIDERS: TERMS ANU C'ONUI"I"IONS OF LEASE 1. LEASE TERM: The Lease tens for each Unit shall start on rte Delivery Date (the date (a) Lessor executes this Lease, (b) Lessor takes title to the Unit, or (cl Lessee or its agent takes control or physical possession of the Unit, whichever is latest), provided the Delivery Date is on or before the utilization date stated above, and shall continue for the number of months stated above. If the Delivery Dale is not on or before the utihzat~on date, Lessee shall, at the option of Lessor, assume Lessor's obligations to purchase and puy for the Lmt Lessee shall execute and send Lessor's Delivery Supplement to Lessor promptly after delivery of a Unit. 2. RENT: Lessee shall pay to Lessor, at or such other location Lessor designates in writing, rent for each Umt as stated above starting (a) un its Delivery Date if the rent is to he paid in advance, or (b) one month (or other period as stated above) after its Delivery Date if the rent is m be paid in arrears. An amount equal to the first rent payment for each Unit must accompany this document when it is submitted to Lessor. If Lessor executes this document, the amount shall be the first rent payment. If Lessor does not execute this document, the amount shall be resumed to Lessee. If Lessor does no[ receive a rent payment on the date it is due, Lessee shall pay to Lessor, on demand, a late payment charge equal to five percent (5 0) of the rent payment not paid when due or the highest charge allowed by law, whichever is less. 3. NO ABATEMENT: Lessee shall not be entitled to abatement or reduction of rent nr setoff against rent for any reason whatsoever Except as otherwise provided, thi< Lease shall not terminate because of, nor shall the obligations of Lessor or Lessee be affected by, any defect in, damage to, destruction of, or Ions of possession nr use of a Umt. the atmchmem of any lien, security interest or other claim to a Uniq any interference with Lessee's use ofa Unit; Lessee's insolvency or the commencement o(any hankruptcy or similar pnseedmg by or against Lessee, ar any other cause whatsoever. 4. DISCLAIMER OF WARRANTIES: Lessee acknowledges and agrees [hat Lessor is not the manufacturer of the Unit(sl and that Lessee has selectrd each L nn based on Lessee's own judgment wnhout any reliance whatsoever on any statements or representations made by Lessor. AS BETWEEN LESSOR AKD LESSEE, THE UNIT(SI ARL PRUVIDPD ",4 IS" W'ITHUUI ANY WARRANTIES OF ANY KIND. LESSOR HEREBY EXPRESSLY DISCLAIMS a) ALL WARRANTIES OF MECHAVTABILIT}' bl ALL WARRANTIES OF FITNESS FOR A PARTICULAR PURPOSE, AND c) ALL WARRANTIES AGAMST MFRMGEMENT OR THE LIKE. Lessor assigns to Lessee ns mtercst in any of the manufacturer's warranties on the Unit(s). 5. POSSESSION, USE AND MAINTENANCE: Lessee shall not (a) use, operate, maintain or store a Unit improperly, carelessly, unsafely or in violation of any applicable tau ur regulation or far any puryose other than in the conduce of Lessee's business; (h) abandon a Um4 Ic) sublease a Unii, permit the use o(a Umt by anyone other than I essee, change ihv use of a Llnit from [hat specifed m the Application Survey/Usage Rider attached hereto or change the loeanon of a I;nit from that specified above, wuhout the prior written consent of Lessor, or (d) create or allow to exist any lien, claim, security interest or encumbrance on any of its rights hereunder or a Unit A Uml is and shall remain personal property regardless oC rts use or manner of attachment to realty Lessor and its agent shall have [he right (but not [he obligation) to inspect a Unit and maintenance records relating to it and observe its use. Lessee, at its expense, shall maintain each Unit in good operating order, repair and condition and shall perform maintenance at least as freyuently as stated in any applicable operator's guide, service manual, or lubrication and maintenance guide. lessee shall not alter any Unit or affix any accessory or equipment to it if doing so will impair its originally intended Cunction or use or reduce its value. Lessee shall not make any "non-reversible" addition (as defined for federal income tax purposes) to a Umt without the prior written consent of Lessor. Any alteration or addition to a Unit shall be the responsibility of and at the sole risk of Lessee. [fan Event of Default has occurred and is continuing. all parts, accessories and equipment affixed to a Unit shall become property of Lessor. SEE REVERSE SIDE FOR ADDITIONAL TERMS AND CONDITIONS Lessee: KERR COUNTY, TEXAS Lessor: CATERPILLAR FINANCIAL SERVICES CORPORATION ay ~~_~/~~ ~ Dy Name (PRINT) FYed IIPlIRPJCe Name (PRINT) Title ~~ COLII1~Jl>d~ Title Date DeoeDber 30, 2002 Date 6. T4YE5: Lo < shall promptly pay a mburse Lesmr far all fees and taxes of any nature mgeNer with any penalties, f res o additions m tax and interest thereon tall n( rFe fnreg^rng M1ergfler the "hnpOSlllOns°), IevlCd Up00 Le550r by ally la%106 3Ut110I11y Wllh rESpPCI 10 Of N COrIBe[h00 WIIh 2 Uflll ffOm (I1E tN1E It IS pUfChaSEd ny Le550r UIIBI 1I 19 rCRIrBCd f0 Le550L E%CIUdCd, IIOWCVEr, dR td%e51TCa5`Ifed by 6essor's rte iry. ~:¢ but net excluded err net ire me taxes which by Ne terms of Ne statute imposing the tax expressly relieve Lessee or Lessnr Rom Ne paymem of any Impositions wFich Lesstt would otherwise be obllgamd to pay or reimburu eI(Lessor is not entitled to an equal deduction wiN respect to any Imposition which Lessee is requved to pay or reunburse hereunder and payment or relmbursemenl consluutes imm~u to LeSSOq then Lessee shall also Day to Lessor the alnoum of anv Impositions which Lessor is obhgeted m pay in rexpmt of (a) the pavmem m reimFmsement by Laeee and (m any paymem by Lessee made pursuant to this sentence. Lessee shall prepare and file, in a manner satisfactory to Lessor, any reports or remms which may be requved wiN respect to a Unit For purposes of this set4ivv, "Lessor" shall include any off listed group. within the meaning of Section 1504 of the Internal Revenue Cade of 1986, of which Lessor is a member for any year m which a consolidated or combined income tax remm rs fled Ibr the affilmmd group. 7. TAX INDEMNITY' Thls Lease is emend into o^ the basis that Lessor shall be entitled to (a) depreciation deductions with respell to a Unit, N accordance wiN Section I6Rlal of the Internal Revenue Code of 19tlb, as amended (the "Code"), based upon Ne applicable depreciation method and recovery period specifed in Sections IbR(bl and (c) of Ne Cade as identified by Lesser, and (h) for state income rax purposes, dedumm~s analogous to (al tall of the foregong hereinafter Ne "Tax Benefits"1. If Lessnr. for any reams nNn than Noze staled in (i) through (iv) below, shall lose or lose the right m claret nr. d Nere shall be disallowed, deferzed or rmapmraur'a evridement to Ne Tax BeneO[s is based solely upon Lessee's representations as to Ne proper classification ofa Umt as aforesaid. "Lessor" shall include any aRliated group (within the meaninK of Section 1504 of the Codd of which Lessor is a member far any year N which a consolidated or combined income [a%retum is filed for Ne aRliated group. 8. LOSS OR DAMAGE: Lessee shall bear Ne risk, of any Casualty Occurrence Itbe Unit is worn out, lost, stolen, destroyed, take by govemmen[al action oq N Lessor's opinion, ertcparaFly damagedl or other damage Rom Ne time it is purchased by Lessor until it is rammed to Lessor. Lessee shall give Lessor prompt notice of a Casualty Occurrence or other damage. 1(N Lessor's opinion, Ne damage is not a Casualty Occurtence, Lessee shall, at its expense, promptly restore [he Unit to Ne condition requved by Section 5. If a Casualty Occurtence, Lessee shall pay to Lessor on the Cvv rent paymem dam following the Casualty Occurtence (thirty (l0) days aRer the Casualty Occurrence i(Nere is no rem payment date remaining) all amounts Nen due under Nis Lease with respect to Ne Unit, plus a snm equal to the applicable Casualty Value o! the Unit as sbuwn in the applicable anached Exhibit. Upo^ making Nis paymenq Ne term of Nis Lease with respect to the Umt shall terminate and Lessor shall Fe entitled to possession of the I Init. Lessee shall be entitled to any recovery e(the Unit Rom insurance or otherwise to Ne extern it does not exceed the amoum of the Casualty Value paid by Lessee ^ WAIVER AM1'D 1NDEMNITh LESSEE HF,REBV AGREES TO RELEASE, DEFEND, INDEMNI F\' AND HOLD HARMLESS LESSOR, ITS DIRECTORS, CIFFICF RS, F.V1PL(ri'E ES. AGE. M1'TS AND ASSIGN'S FROM AND AGAINST ANY CLAIMS OF LESSEE OR THIRD PARTIES, N'CLUDING CLAIMS BASED UPON BREACH OF ('ONTRACT BREACH OF VV 4RRANTV. PERSONAL IM1'.IL'RV, PROPERTY DAMAGE, STRICT LIAR( LITV OR NEGLIGENCE, FOR ANV LOSS, DAMAGE OR INJI'RV CA OSF,O B\' OR REL.VTING TO THE DF.SIGY. M AN('FACTURE, SF,LECTION. DELIVERY, CONDITION, OPERATION, USE, O\l'NERSHIP, MAINTENANCE, ON REPAIR OF ANV UNIT FCR'1'H t: R, LF,SSEE AG RF.ES T(1 PE RESPOM1'SIRLE kbR ALL COSTS AND EXPENSES, INCLIIDINO REASONABLE ATTORNEYS' FEF,S. INCURRED B}' LESSOR OR ITS DIRECTORJ, OFFICERS, EMPIAk LES. ADEN IS AM1'D ASSIGNS IN DEFENDING SUCH CLAIMS OR IN ENFORCING THIS PROVISION. UNDER NO CONDITION OR CAUSE, OF ACTION SHALL LESSOR BE LIABLE FOR A;VV LOSS OF A('TLIAL OR ANTIC( PATER BUSINESS OR PROFITS OR ANV SPECIAL, INDIRECT OR COM1'SEQUENTIAL DAMAGES. I n. LYSfIRANCE: Lessee, at its expense, shall keep each Unit insured for the bereft of Lessor against all risks for not less Nan its Casualty Value and shall maintain comprehensive public lability insnance (including product and broad form conbactual liability) covering the Unit for not less Nan 81,000,000 combined coverage for bodily injury and property damage. All insurance shall be in a forts and with nmpanies as Lessor shall apprma shell specify Lessor and Lessee as named insureds, shall be primary, without Ne right of cono-ibution from any ogler insurance tamed by Lessor, and shall provide Nat the innuance may not be canceled nr altered so es to effect the inmrcat o(Lessor without at least ten (101 dayf prior written notice to Lessor. All in wanes mooring loss or damage to a Unit shall name Lessor as loss psyce shall ml make adjustments with insurer exceFl with Lessor's Prior wrinen consent and hereby irtevocably appomL Lessor as>Lessee's attorney-N-(act to receive paymcm of and N endorse all checks. drafts and other documents and m take any ether actions necessary to pursue insurance clavns and recover payments if Lessee fails to do so. Lessee shall promptly notify Lessor of any occurrence which may become the basis ofa claim and shall provide Lessor with all requested pertinem data. Lessee shall promptly deliver to Lessor evidence of such insurance coverage. I. F,V F.NTS OF DF.F4ULT F.ach n( the fallowing constires an even of Jefeult ('Event of Defaulf9: lal Lessee fails sp make any payment when due; (b) any representation nr wartanty to Lessor which iz i erect or misleading, m) Lessee fails to observe or perfnrtn any covenant. agreement or wartanty made by Lessee and the failure continues far ten (101 days aRer wrinen notice m Lessee; Idl any default ours ~mAr. any ether agreemem benueen Lessee and Lessor or any aRliare of Lessor, le) Lessee or any guarantor of Nis leas eceses to do buainna, becomes insolvent, makes an assiRnniem fm Nc benefit of r.TCditors nr files any petition v action under any bankmptcy, reorganization, inmlvency err moratorium law, or any other law or laws far the relief oC nr relating m, debtors, (D filing of an involuntary petition under any hankrupmy nature against Lessee or any guarantor of Nis Leaze, or appointment of a receives trustee, custodian or similar official to Nke possessor of the properties of Lessee or any guarantor e(thrs Lesse, unless the petition nr appointment ceases to be in effect wiNN Nirty (301 days after filing or appointment, and (g) breach or repudiation ofa guaranty obtained by Lessnr in connection with this Lease. I1. REMEDIES: If av Event of Default occurs, Lessnr may (al proceed by court action to rnforee performance by Lessee of the covenants of Nis Lease or to recover damages for their breach or (bl by nonce m wriMg tv Lessee terminate Nis Lease, N which event all rights of Lessee to use a Uvit shall terminate, hu[ Lessee shall remain liable as provided herein and Lessnr may do any one or more of the (ollowinp. pl require Lusee m remm each Unit pursuant to Section 13; (ii) enter Ne premises where vny Unir may be and take possession of it wirhpur notice, Iiabiliry err legal prnwss: (iii) recover Rom Lessee Iwhaher or net Lessor takes possession of UniQ all amounts due or accmed on Ne date oetermination; (iv) recover az damages for loss of bargain and oat as a penalty a sum equal to the Casually Value ofa Unil; and 1~9 recover any other damages Ncurted by Lessor because of Ne breach of any covenant, representation or wartanty other Nan payment of rent. If an Event of Default occurs and Lessee returns 1lnit purmant In Section 1 Lessor shall undertake commercially reasonable efforts to sell or re-lease it and Ne proceeds of any sale or re-lease shall be applied in Ne following order: (a) to reimhurse Lessor for all expenses of retaking, holding, preparing for sak or re-lease and selling or re-leasing Ne Unit, including any taxes, charges, cosh, expenses and reasonable attorney's fees incurred by Lessor, (b) to pay Lessor all amounts which under the tames of this Lease ere due or have accmed as of the date of Lessor's receipt of the proceeds; and (c) to reimburse Lessee (or any sums previously paid to Lessor as damages for lass of hargain. Ann surplus shall he retained by Lessor to the extent pertnirted by law. Lessee shall promptly pay any defmiency to Lessor. Lessee acknowledges tltat sale of a Gent to a wholesaler. retailer or r lien cash nr credit a all mmmeraally reasonable. Lessee agrees to pay all charges, costs, expenses and reasonable annmev's fees incurted by Isssnr in enforcing Nis Lease. The remedies Provided to Lessnrsshall he nlnullanre andrshall he in addition m all other remedies existing at law or in equity. ((Lessee fails to perfoma any of its gbligetiens under this Lease. Lessor may perform the ohhgaunns, and the expenses incurred by Lessor as n result shell he payahle by Lessee upon demand. _ U. RF,TU RN OF UNIT: Upon expiration o(the term of this Lease nr If Lessor shall rightfully demand possession of a Unit, Lessee, al vs expense, shall promptly deliver possession of the Llml tc Lessor, properly Protected and m the condition required by Section 5, el the option of Lessoq (al m the premises of the nearest Caterpillar dealer selling equipment of the same type as the I'~mt. or (bl on hoard a tamer named by Lessnr and shipping it, Relght collect, to Ne destination designated by Lessor. ((the Unit is not m Ne mndinon inquired by Section 5. Lessee shall pay m Lesser, on demand, all costs and expenses incurted by Lessnr to bong the Unn into the required condnon. li. fAT VALUE OPTION: ((Cat value Option has lean checked. and if no Event of Default shell have nncurted and be continuing, Lessee may, by notice delivered to Lessnr not less Nov sixty (601 days prior m the end of the term n(the Lease, elect to purhase the L'nit at the eW of the term for the Purchase Price. Lessor and Lessee agree Ne Purchase Price is a reasonable estimam of Ne Fair Market Value of Ne Unit at the end o(the tame. t ipon receipt of the Purchase Price, plus any taxes due in connection with [he sale of the Cnit. Lessor shall deliver to Lessee, upon request, a bill of sale without wartamies exceFl that Ne Unn is free e(all encumbrances of anv person claiming through the Lessor. Lessee shall purchase Ne Unit "AS IS, WHERE IS, WITH ALL FAULTS." 1 S. F41R MARKET VALUE OPTION: If Fair Market Value lFMVI is checked: If nn Evem of Defanls shall Favr nrrnrted and be. cominuing, Lessee may, by notice delivered to Lessor not less than sex (bl nsonths Prior to the end of the ¢ma o(the least of a Gniq elect to purchase it AS IS, WHERE IS, WITH ALL FAULTS, for a purchase price equal so the then Fav Market Value of the Llnit Fav Market Value is the alnoum wh¢h would he obtained in an ami s length o-ansaction between en informed and willing buyer under no compulsion to buy (other than a used equipment dealer nr a buyer amensly in possessienl and an in/nosed and swilling seller under no compulsion to sell end, in the detemtinatinn thereof, costs ofremoval Rom Ne curzent location shall not be a deduction from such value. If Lessor and Lessee have not agreed anon the Pair Markel Value of the Unit (our (41 months poor to [he end of the term. Lessee shall either fa) rescind the election to purchase it, or (bl apply to Ne American Arbinatinn Assn< of sales and use taxes br the purchase of taxaHle term deseribed below or on the ettaettsd order or irnoica lortn: ~«: CATERPII,L,AR FINANCIAL SERVICES CORP[~RAT7nN ~~~~: 2120 West End Ave. ~Y.Staf• ~~: Nashville, 'ItV 37203-0( D~wption d ions b tare purduaad a en Us altadsd cedar a inwiaa: 924GZ Fhteel i~,ariar Purdtawr dairrs dib eswfptbt for the folbsirp naaon: Canty Govemrtent I uMwatand 1ha1 l wi be Wable for prynwa d setae a uw tasty wAkh map baoome due for talon b oomplp wih the provieone d es Ta: Code: LimMd Santa. Exeiae, and Uae Tax Act 1Atatieipal Sant and We Tax Ae~ Salty and Uw Taxw for Spatial Putpoae Taxing Audbrities; Courap SaMaand and !lace Tax Act: Covnlp tteaeh Serview Salty and Uw Twr TheTaxw MWh and Salary Code: Spedal Provisions taelaiiq b Hoapilal OYtricL. Etnarpafwy Setvicw Dhbiets. and Emergenry Sarvina Ditgritxs in oounbw sritlt a population d 125.000 a lew. 1 urrderstandfhaNtis a aimitdot7irua b pw an arangtian preReaa to the seearfortaratrts itarw real I know. r tfr errw dpun~raaa. wr7lee usadn a marrnaroMartriarr tAaf ergoraasedn dJis earfYron and, dspwrdag on the anroueddfai evaded. Ne ollanw may rarga hen a CWs C mbdernwbr b a AMany d Nte eenond degree. sqn nere~ A~istant t7omty Auditor ~ Dec. 30, 2002 NOTE Th's eendieae carrot be issued for tM purehaw, lease, or renal d a moor which. 7N1S CERTFlGTE DOES NOT REOUNiE A NUkIBEA TU BE VALD. Sate and Uw Tax 'Exernppn Humber' a 'Tax Exempt' Number do not •xisl Thi nrtllieae slrerrld f» tumished b era auppliar. Do not seerd the mmparad anfiote b Vre Comptroller d Public Aoooums. Form 8~3~-\7li Information Return for Small Tax-Exempt Governmental Bond Issues, Leases, and Installment Sales (Rev. November 20001 - Under Internal Revenue Code section 149(e) oepanmem or me 1,easvy Caution: If the issue rice o/ [he rssue is $700,000 or more, use Form 8038-G. miernai Revenue sew~ee P 1 Issuer's name oM6 No. 1s4s Ono Check box if Amended Return - ^ 2 Issuei s employer idenfificalion number 3 Number and street (or P.O. box if mail is no[ delivered to street address) Room/yt6t4C 700 Main 103 4 Ciry, fawn, or post office, state, and ZIP code s Report number Kerrville, `T'exas 78028 5 6 Name and title of offcer or legal representative whom the IRS may call for more information T Telephone number of olfcer w legal representative 8a Issue price of obligation(s) (see instructions) . - Ba 84 , 678.81 b Issue date (single issue) or calendar year (consolidated) (see instructions) - ___--___--__--._ 9 Amount of the reported obligation(s) on line Ba~, a Used to refund prior issue(s) - 9a b Representing a loan from the proceeds of another tax-exempt obligation (e.g., bond bank) 9b 10 If [he issuer has designated any issue under section 265(b)(3)(B)(i)(III) (small issuer exception), check this box . - ^ 11 If any obligation is in the form of a lease or installment sale, check this box . - 12 If the issuer has elected to pay a penalty in lieu of arbitrage rebate, check this box - ^ Under pe ales of perJury, I tledare that I have examinetl this return antl amompanying schetlules and statements, antl to the best of my knowledye Sign and b t ey are true, correct, and complete. Here , Dec. 30, 2002 FYed Henneke, County Judge Iss er's authonzetl r presentative Date / Type or print name antl title General Instructions Section references are to the Internal Revenue Code unless otherwise noted. Purpose of Form Form 8038-GC is used by the issuers of tax-exempt governmental obligations to provide the IRS with the information required by section 149(e) and to monitor the requirements of sections 141 through 150. Who Must File Issuers of [ax-exempt governmental obligations with issue prices of less than $100,000 must file Fwm 8038-GC. Issuers of a [ax-exempt governmental 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 [he option to file a separate Form 8038-GC for any [ax-exempt governmental obligation with an issue price of less than $100,000. An issuer of atax-ezemp[ bond used to finance construction expenditures must 61e a separate Form 8038-GC far each issue to give notice to the IRS that an election was made to pay a penalty in lieu of arbitrage rebate (see the line 12 mstructons). Filing a consolidated return. Far all tax-exempt governmental obligations with issue paces of less than E100,000 that are no[ reported on a separate Form 8038-GC, an issuer must file a consolidated information return including all such issues issued within [he 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 Form 8038-GC must be filed to give the IRS notice of [he election to pay a penalty in lieu of arbitrage rebate. When To File To file a separate return, file Form 8038-GC on or before [he 15th day of the Second calendar month after the close of [he calendar quarter in which [he issue is issued. To file a consolidated return, file Form 8038-GC on or before February 15th of the calendar year following [he year in which the issue is issued. Late filing. An issuer may be granted an extension of time to fie Form 8038-GC under Secnon 3 of Rev. Pros. 88-10, 1988-1 C.B. 635, if it is determined that [he failure [o fie on time is not due [o willful neglect Type or print al the top of the form, "This Statement Is Submitted in Accortlance with Rev. Pros. fib-10." Attach to [he Form 8038-GC a letter briefly stating why [he form was no[ submitted to the IRS on time. Also indicate whether the obligation in question is under examination by the IRS. Do no[ submit copies of any bond documents, leases, or installment sale documents. See Where To File below. Where To File File Form 8038-GC, and any attachments, with [he Intwnal Revenue Service Center, Ogden, UT 84201. Other Forms That May Be Required For rebating arbibage (Or paying a penalty in lieu of arbitrage rebate) to the Federal government, use Form 8038-T, Arbitrage Rebate and Penalty in Lleu of Arbitrage Rebate. For private activity bonds, use Form 8038, Information Return for Tax Exempt Private Activity Bond Issues. Rounding to Whole Dollars You may show [he money items on this return as whole-dollar amounts. To do so, drop any amount less than 50 cents and Increase any amount from so m ss cents to the next higher dollar. Definitions Obligations. This refers [o a single tax-ezemp[ governmental obligation if Form 8038-GC is used for separate reporting or to multiple tax-exempt governmental obligations if the form is used for consolidated reporting. lax-exempt obligation. This is a bond, installment purchase agreement, or financial lease, on which the interest is excluded from income antler section 103. Tax-exempt govemmen[al obligation. A tax-exempt obligation [hat is no[ a private activity bontl (see below) is atax-exempt governmental obligation. This includes a bond issued by a qualified volunteer fire department under section 150(e). Private activity bond. This includes an obligation issued as part of an issue m which. • More than 10% of [he proceeds are to De used for any private activity business use, and Cat. No. 641088 Form 8O3a-GC IRev. 11 2000) Form 8038-GC (Rev. 11-20001 • More than 10% of the payment of principal or mteres[ of [he issue is either (a) secured by an interest in property to be used For a private business use (or payments for such property) ar (b) to be derived from payments for property (or borrowed money) used for a private business use. I[ also includes a bond, the proceeds of which (a) are to be used to make or finance loans (other than loans described in section 141(c)(2)) to persons other than governmental units and (b) exceeds [he lesser of 6% of the proceeds or SS million. Issue. Generally, obligatlons are treated as part of the same issue only i( [hey are issuetl by the same issuer, on the same date, and as part of a single transaction, or a series o! related lransactlons. However, obligations issued dunng the same calentlar year (a) under a loan agreement under which amounts are to be advanced periodically (a "draw-down loan") or (b) with a term no[ exceetling 270 days, may be Veated as part of the same issued [he obligations are equally and ratably secured under a single indenture or ban agreement and are issued under a common financing anangement (e.g.. under the same official statement periodically updated to reflect changing factual circumstances). Also. for obligations issued under adraw-down loan [ha[ meets the requirements of the preceding sentence. obligations issued during different calendar years may be Vea[ed as part of the same issue if all of the amounts to be advanced under the draw-down loan are reasonably expected to be advanced within 3 years of the date of issue of the first obligation. Likewise, obligations (other than private activity hoods) issued under a single agreement that is in the farm of a lease or installment sale may be Vea[ed as part of the same issue if all of the property covered by that agreement is reasonably expected m be delivered within 3 years of [he date of issue of [he firs[ obligation. Arbitrage rebate. Generally, interest on a state or local bond is not taz exempt unless the issuer of the bond rebates [o [he United States arbitrage profits earned from investing proceeds of the bond in higher yielding nonpurpose investments. See section 148(tf. Construction issue. This is an issue of [ax-exempt bonds that meets both of the following conditions: 1. A[ leas[ 75% of the available consUUCtion proceeds of the issue are to be usetl (or construction expenditures with respect to property [o be owned by a governmental umt or a 501(c)(3) organ¢auon, and 2. All of [he bonds [hat are part of the issue are qualified 501(c)(3) bonds, bonds [ha[ are no[ 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 [hat may be owed [o the United Stales, the issuer of a construction issue may make an irrevocable election [o pay a penalty. The penalty is equal to 1'h% of the amount of construction proceeds that do not meet Certain spending requirements. See section 148(f)(4)(C) and [he Instructions far Form 8038-T. Specific Instructions In general, a Form 8038-GC must he completed on the basis of available information and reasonable expectations as of the date the issue is issued. However, forms that are filed on a consolidated basis may be completed on the basis of information readily available to the issuer at the close of [he calendar year to which [he form relates, supplemented by estimates made in goad faith. Part I-Reporting Authority Amended return. If [his is an amended Form 8038-GC, check the amended return box. Complete Part I antl only [hose lines of Form 8038-GC that are being amentled. Do not amend estimated amounts previously reported once the actual amounts are determined. (See the Part II instructions below.) Line 1. The issuer's name is the name of the entity isswng [he obligations, not the name of [he entity receiving [he benefit of the fnancing. In [he case of a lease or installment sale, [he issuer is the lessee or purchaser line 2. An issuer that does not have an employer identification number (EIN) shoultl apply for one on Form 55-4, Application for Employer Identification Number. This form may be obtained at Social Security Administration offices or by calling 1-800-TA%-FORM. If [he EIN has no[ been received by the tlue date For Form 8038-GC, write "Applied for' in the space for [he EIN. line 5. Alter the preprinted 5, enter two self designa[etl numbers. Number reports consecutively during any calendar year (e.g., 534, 535, etc.). Part II-Description of Obligations Line 8a. The issue price of obligations is generally determined under Regulations section 1.148-1(b). Thus, when issued for cash, [he issue price is the price at which a substantial amount of the obligations are sold to [he public To determine [he issue price of an obligation issued for property, see sections 1273 and 1274 and the related regulations. Line 8b. for a single issue, enter the date of issue, generally [he date on which [he issuer physically exchanges the bonds that are part of the issue for the underwriter's (or other purchaser's) funds; for a lease or installment sale, enter the date interest starts ro accrue. For issues reportetl on a consolidated basis. enter [he calentlar year during which the obligatlons were issued. Lines 9a and 9b. For line 9a, enter the amount of [he proceeds [ha[ will be used to pay principal, interest, w call premium on any other issue of bonds, including proceeds that will be usetl to fund an escrow account for [his purpose. Both line 9a and 9b may apply to a particular obligation. For example, report on line 9a and 9b obligations used to refund prior issues which represent loans from [he proceeds of another [ax-exempt obligation. Line 11. Check this box if property other than cash is exchanged for the obligation, e.g., acquiring a police car, a fire truck, or telephone equipment through a series of monthly payments. (This type of obligation is sometimes refened to as a "municipal lease.") Also check this box if real property is tlirectly acquired in exchange for an obligation to make periodic payments or interest and principal. Do not check this box if the proceeds of [he obligation are received in the form of cash, even if the term "lease" is usetl in the title of [he issue. Line 12. Check [his box if [he issue is a construction issue and an irrevocable election [o pay a penalty In Ueu of arbitrage rebate has been made on or before the date the bonds were issued. The penalty is payable with a Form 8038-T for each 6-month period after the date the bonds are issued. Do not make any payment of penalty in lieu of rebate with Form 8038-GC. See Rev. Proc. 92-22, 1992-1 C.B. 736, (or rules regarding the "election document." Paperwork Reduction Act Notice We ask for the information on this Form to carry out the Internal Revenue laws of the United States. Vou are required to give us [he information. We need it to ensure that you are complying with these laws. you are not required to provide the information requested on a fwm [ha[ is subject to the Paperwork Reduction Act unless the form displays a valid OMB control number. Books or records relating to a form or its instructions must be retained as long as their contents may become material in [he adminisVation of any Internal Revenue law. Generally, tax returns and return information are confitlential, as required by section 6103. The time needed to complete and file [his form varies depending on individual circumstances. The estimated average Ume is: Learning about the law or the form 1 hr., 58 min. Preparing the form . 3 hr., 3 min. Copying, assembling, and sending the form to the IRS 16 min. If you have comments concerning [he accuracy of these time estimates w suggestions for making this form simpler, we would be happy [o hear from you. You can wn[e [o the Tax Forms Committee, Western Area Distribution Center, Rancho Cordova, CA 95743-OlXll. Do not send the form to [his address. Instead, see Where To File on page 1. Caterpillar Financial Services Corporation DIRECT PAY AUTHORIZATION CUSTOMER INFORMATION (Please print clearly) Company Name_ City__ , Phone Numbe BANKING IN Please attach a each month. State _ _ Zip Code ~RMATION vaided check for the bank **PLEASE ATT nt to be automatically debited D CHECK HERE** ADDITIONAL CONTRACTS [f you have additiona4 contracts with C erpillar Financial t t you wish to have the payment debited each month. please indicate by listing the contract tubers in the space pro ~ded below Additional contracts to be debited ch month: SIGNAI'UKES By signing below, I reque and authorize Caterpillar Financial Services Corpora ~c with debits made to my count and withdrawn by Cat Financial; provided my acce to pay the debit when esented. I agree that Ca[ Financial's rights relating to each personally signed a c eck. I agree that I will be liable to make payment promptly, if any de not p td, unless Cat Financial or its agents or affiliates is directly res }{ _ X to begin debiting my account, tt has sufficient collected funds rt wdl be [he same as if I had 1 mg any applicable late fees, nsib for the nonpayment. Sig~tur{' Date Signa[ure• *As it app rs a[ your bank. For a joint account, all depositors must sign if more than one s checks i ued against the account. F INTERNAL USE ONLY Contract No. Term Start Dale ISC or Lease Date required on