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<br /> ( f ¿Io <br /> - '. .- <br /> EXHIB IT D <br /> TO DELIVER:Y ORDER NO. One, DATED AS OF Aprl119, 1995 <br /> LEASE-PURCHASE AGREEMENT No. 1000040433, DATED AS OF April 19, 1995 <br /> STATEMENT OF ESSENTIAL USE/SOURCE OF FUNDS <br /> BETWEEN <br /> Banc One Leasing Corporation - Municipal Leasing Division <br /> AND <br /> City of San Marcos <br /> ~ <br /> The above-referenced contract is to provide fiDancing for the purchase of equipment rather than for the <br /> short-term rental of equipment. For this reason. periodic payment amounts are calculated to amortize the <br /> full cost of the equipment over the agreed payment term. Because we do not consider your repayment <br /> commitment to be a debt obligation. as that term would be defined by State constitution or regulations, <br /> the contract includes a non-appropriation clause and is subject to funds being encumbered for repayment <br /> on an annual or bi-annual basis. This non-appropriation clause provides some risk that the equipment will <br /> be returned during the life of the contract rather than being paid in full. <br /> As evidence of your intent to retain the equipment throughout the scheduled term, we need a description <br /> of your understanding of the essential governmental use intended for the equipment, together With an <br /> understanding of the sources from which payments will be made. To satisfy this requirement, please <br /> address the following points either by completing this form or sending a separate letter: <br /> 1. What is the specific use of this equipment? <br /> < <br /> What increased capabilities will it provide? <br /> 2. Why is the equipment essential to the operation of your organization? <br /> 3. Does the equipment replace existing equipment? <br /> If so, why is the replacement being made? <br /> 4. Why did you choose this specific equipment or system configuration? <br /> 5. What is your estimate of the useful life of the equipment to your operations? <br /> 6. What is the expected source of funds for payments due under the Agreement for the <br /> current fiscal and future fiscal years? <br /> SEE ATTACHED RESPONSES <br /> LESSEE: City of San Marcos <br /> By: ~^- / A j;Æ- Title: City Manaqer <br /> Lafry u) Gilley'J <br />