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8. CAPITAL LEASES

The District has entered into various capital lease purchase agreements for the acquisition of certain equipment and vehicles, which are stated at acquisition cost and reported in capital assets.

A summary of the lease purchase agreements payable terms are presented as follows:

At June 30, 2021 the acquisition cost, depreciation, and net book value of leased-purchased equipment and vehicles related to the terms listed above are as follows:

Acquisition Accumulated Book

Asset Description Cost Depreciation Value

Buses

$ 27,321,850

$ 7,236,347

$ 20,085,503

Computer Equipment 23,285,455 12,489,374 10,796,081

Total

$ 50,607,305

$ 19,725,721

$ 30,881,584

Following are the future minimum lease payments and the present value of the minimum lease payments as of June 30, 2021:

The District uses Master Equipment Lease Purchase Agreements dated 2015 and 2016 (direct placement), to finance the purchase of vehicles and equipment. In the event of a default, the Lessor may terminate the Lease. The Lessor may also demand all appropriated (for the then current fiscal year) but unpaid rental payments. The Lessor may also request the District to convey any or all the equipment to the Lessor so the equipment can be sold or lease the equipment. The proceeds will be applied to the unpaid obligations.

For any fiscal year, the District may elect to non-appropriate the Lease Payments due under one or both of the Master Lease Agreements. In such event, the District must return all equipment leased under the respective Master Lease and pay any accrued but unpaid interest component of the Master Lease but there is no further obligation to pay principal components of the Master Lease and no acceleration.

As of June 30, 2021, the District has twenty-three direct borrowings with $27.9 million outstanding under the Master Equipment Lease Purchase Agreement.

Events of default related to Equipment Lease would be failure to pay within 10 days or failure to maintain insurance, failure to observe and perform any covenant, condition or agreement for a period of 30 days after written notice specifying such failure and requesting it be remedied. In addition, false statements or representation pursuant to the lease, any default occurs under any other agreement for borrowing money, lease financing, or otherwise receiving credit under which there is outstanding and aggregate amount in excess of $100,000 of the District's current indebtedness, appointment of a receiver, trustee, custodian or liquidator of all or a substantial part

of the assets of the District, filing of bankruptcy, consolidation, merger or otherwise combine with any other entity, or sell, lease or dispose of all or a substantial portion of assets.

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