4-Attachment D - Technical Specification Rider.pdf
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- Attached to
- Equipment Financing Bid State and local contract opportunity
- Solicitation number
- Solicitation081
- Issued by
- Minnesota
About this file
This is a Technical Specification Rider (Attachment D) for MAC's lease payment obligations related to an equipment lease purchase agreement. The document establishes that lease payments or rental payments are not subject to annual appropriation and constitute an absolute and unconditional obligation payable from Enterprise Revenues, providing important guidance for bidder pricing analysis.
The lease payments will be funded solely from MAC's Operating Fund consisting of Enterprise Revenues, which include income, fees, and revenue from MAC's operations, user fees, service-generated income, and other legally available revenues. These obligations are absolute and unconditional regardless of equipment failure, defects, malfunctions, accidents, or vendor performance issues. The Enterprise Revenues are subject to existing liens and pledges under Master Trust Indentures with Wells Fargo Bank dating from 1998 and 2000, as well as other future agreements MAC may enter into at its discretion. Notably, MAC's lease payment obligation would not constitute a current expense of MAC, which has implications for the organization's financial accounting and budgeting processes.
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Other files for this state and local contract opportunity
| File | Type | Posted |
|---|---|---|
| 1-Attachment A - Equipment List.pdf | ||
| 2-Attachment B - Bid Form.pdf | ||
| 3-Attachment C - Frequently Asked Questions.pdf | ||
| 5-Request for Bids - Equipment Financing.pdf |
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Text version
4850-4955-3706.1
Attachment D
TECHNICAL SPECIFICATION RIDER
MAC’s Lease Payment Obligation
Note: For the purpose of bidder pricing analysis, please note that Lease Payments or Rental Payments (depending upon the language used in the financing agreement) are not subject to annual appropriation and are an absolute and unconditional obligation payable from Enterprise Revenues as described below.
Lease Payments to be Paid from Legally Available Funds. MAC intends that the obligation of MAC to pay lease payments and all other amounts payable pursuant to the equipment lease purchase agreement shall be payable solely from funds on deposit in its Operating Fund constituting Enterprise Revenues (as defined below) that are legally available for that purpose; and shall not in any way be construed to be a debt of MAC in contravention of any applicable constitutional or statutory limitation or requirement concerning the creation of indebtedness by MAC, nor shall it constitute a pledge of such Enterprise Revenues, funds or moneys of MAC or the taxing power of the Lessee.
Except as provided in the paragraph above, the obligations of MAC to make lease payments and to perform and observe the other covenants and agreements contained in the equipment lease purchase agreement shall be absolute and unconditional in all events without abatement, diminution, deduction, setoff or defense, for any reason, including without limitation any failure of the equipment, any defects, malfunctions, breakdowns or infirmities in the equipment or any accident, condemnation or unforeseen circumstances, or failure of any vendor to deliver any equipment or otherwise perform any of its obligations.
“Enterprise Revenues” shall mean the income, fees, and revenue derived from the Lessee’s operations, user fees, income generated from the services the Lessee provides, and/or any other revenues, including but not limited to those that are lawfully appropriated and legally available whether or not derived from an appropriation process, and that are legally available to the Lessee for payment of the Lease Payments; subject, in all cases and without limitation, to any current or future, lien and/or pledge granted by Lessee pursuant to that certain Master Trust Indenture, dated as of June 1, 1998, as such has or will be amended and supplemented, by and between the Lessee and Wells Fargo Bank, National Association, as trustee, that certain Master Subordinate Trust Indenture, dated as of October 1, 2000, as such has or will be amended and supplemented, by and between the Lessee and Wells Fargo Bank, National Association, as trustee, and any other indentures, contracts, leases, loans or other agreements entered into by the Lessee (at its sole discretion).
MAC’s lease payment obligation would not constitute a current expense of MAC.
| Note: For the purpose of bidder pricing analysis, please note that Lease Payments or Rental Payments (depending upon the language used in the financing agreement) are not subject to annual appropriation and are an absolute and unconditional obligation... |
| Lease Payments to be Paid from Legally Available Funds. MAC intends that the obligation of MAC to pay lease payments and all other amounts payable pursuant to the equipment lease purchase agreement shall be payable solely from funds on deposit in its... |
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