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<br /> <br /> <br /> <br /> <br /> <br />TERM SHEET <br /> <br />DATE: October 9, 2024 <br /> <br />TYPE OF TRANSACTION: Lease-Purchase Agreement (the “Lease”) <br /> <br />LESSEE: City of Orono, Minnesota <br /> <br />LESSOR: Huntington Public Capital Corporation or related subsidiary <br /> <br />ESCROW AGENT: The Huntington National Bank (if needed). <br /> <br />FINANCED AMOUNT: $225,259 <br /> <br />USE OF PROCEEDS: To finance purchase of equipment for the fire department (the “Equipment”) <br /> <br />STRUCTURE/SECURITY: The Lease shall be payable from legally available revenues of the Lessee. Pursuant to <br />the Lease documentation, the Lessee shall hold title to the Equipment and grant Lessor a <br />continuing, first prior security interest in any and all right, title and interest of Lessee in <br />the Equipment and in all additions, attachments, accessions, and substitutions thereto. <br /> <br />TAX STATUS: Tax-Exempt, Bank Qualified <br /> <br />COMMENCEMENT DATE: TBD <br /> <br /> If escrow funding is required, the Financed Amount will be deposited with the Escrow <br />Agent on the Commencement Date for the benefit of the Lessee. As Equipment is <br />delivered to and accepted by the Lessee, disbursements will be made by the Escrow <br />Agent at the direction of the Lessee and with the written approval of Lessor <br /> <br />TERM: Either 5, 6, or 7 years <br /> <br />PAYMENT FREQUENCY: Semi-Annual in advance <br /> <br />INTEREST RATE: 5-Year: 4.31% <br /> 6-Year: 4.31% <br /> 7-Year: 4.33% <br /> <br />RATE ADJUSTMENT: If the funding of the Lease has not occurred by November 30, 2024, then the Interest <br />Rate and payment will be adjusted to maintain Lessor’s economics as of the date of <br />issuing this Term Sheet. <br /> <br />FEES: Documentation Fee: $250.00 <br /> Escrow Fee, if needed: $500.00 <br /> <br />PREPAYMENT OPTION: The Lease may be prepaid at any time (in whole, but not in part) at a price equal to the <br />then outstanding balance (“Balance”), plus accrued interest, plus a prepayment premium <br />calculated as follows: 3% of the Balance if paid in the first 12 months of the Lease Term; <br />2% of the Balance if paid in the second 12 months of the Lease Term; and 1% of the <br />Balance if paid after the second 12 months of the Lease Term. <br /> <br />INSURANCE: Lessee, at its own expense, will provide insurance naming Lessor as loss payee and <br />additional insured. <br /> <br />85