State Of Georgia User Agency Vehicle Open End (Financial) Lease Agreement (Page 4 of 7) in pdf

All warranties made by any supplier, vendor and /or manufacturer of a Vehicle are hereby

assigned by Contractor to the User Agency for the applicable Term and User Agency’s only

remedy, if any is against the supplier, vendor or manufacturer of the Vehicle. However, in

the event of any manufacturer defects or unfitness of any Scheduled Vehicles, Contractor, in

good faith, agrees to work with manufacturers on a resolution.

11. RETURN OF THE VEHICLE. Upon the expiration or termination of this lease agreement and in

the event User Agency elects not to purchase the vehicle, then, User Agency shall be responsible for

ensuring the return of the vehicle to Contractor at User Agency’s expense within thirty (30) days of

the expiration or termination of the lease agreement. In the event the lease agreement is terminated

by User Agency for cause, Contractor shall provide for the removal of the vehicle from the User

Agency’s location within a reasonable period of time not to exceed thirty (30) days from the

termination of the lease agreement, which removal shall occur at Contractor’s expense.

12. LICENSE, TITLE AND OWNERSHIP. This lease agreement is a lease only and Contractor

will at all times remain the owner of the vehicle and User Agency will have no right, title or interest in

or to the vehicle except for the use of the vehicle as described in this lease agreement. This lease

agreement shall be treated as a true lease for federal and applicable state income tax purposes with

Contractor having all benefits of ownership. The vehicle shall be licensed in User Agency’s name.

In the event User Agency elects to purchase the vehicle, title shall be transferred to the User Agency.

13. RISK OF LOSS. User Agency shall be responsible for any damage to the vehicle caused by the

User Agency’s negligence. All other risk of loss shall be borne by the Contractor.

14. INSURANCE. User Agency agrees to purchase and maintain in force throughout the duration of the

lease agreement, insurance policies in at least the amounts listed below covering the vehicle, to be

written by an insurance company or companies satisfactory to Contractor, insuring User Agency and

Contractor against any damage, claim, suit, action or liability:

(i)

Automobile Liability: State of Georgia agencies are covered by the State Tort Claims

Policy, a self insured liability insurance program administered by the Department of

Administrative Services pursuant to O.C.G.A. 50-21-20 et seq., which provides coverage

limits in the amount of $1,000,000 per person and $3,000,000 per occurrence with no annual

aggregate subject only to the funds available in the Tort Claims Fund.

(ii) Commercial Physical Damage Insurance (Collision & Comprehensive: Actual cash value

of the applicable vehicle. Maximum deductible of $500 per occurrence.

User Agency agrees that any Commercial Physical Damage Insurance will by appropriate

endorsement or otherwise name Contractor as an additional insured and as a loss payee, as its

interests may appear. Further, any Commercial Physical Damage Insurance must provide the

following: (i) that the same may not be cancelled, changed or modified until after the insurer has

given to Contractor or its assigns at least a thirty (30) day prior written notice of such proposed

cancellation, change or modification, (ii) that no act or default of User Agency or any other person

shall affect the right of Contractor to recover under such policy or policies of insurance in the event

of any loss of or damage to the vehicle and (iii) that the coverage is "primary coverage" for the

protection of User Agency and Contractor notwithstanding any other coverage carried by User

Agency or Contractor protecting against similar risks. Original certificates evidencing such

coverage and naming Contractor as an additional insured and loss payee, shall be furnished to

Contractor prior to the Delivery Date, and annually thereafter and/or as reasonably requested by

Contractor from time to time.

User Agency, its drivers, servants and agents agree to cooperate

fully with Contractor and any insurance carriers in the investigation, defense and prosecution of all

claims or suits arising from the use or operation of the vehicle. If any claim is made or action

State Of Georgia User Agency Vehicle Open End (Financial) Lease Agreement Page 4

Related Articles

Related forms

Related Categories