Each Lease Payment Constitutes Sample Clauses
The 'Each Lease Payment Constitutes' clause defines the legal nature and purpose of each payment made under a lease agreement. Typically, this clause clarifies that every payment made by the lessee is considered a separate and independent obligation, often specifying that payments are not refundable and are due regardless of circumstances such as equipment performance or disputes. For example, even if the leased equipment is temporarily unusable, the lessee must continue making scheduled payments. This clause ensures the lessor receives consistent payments and protects against interruptions in cash flow, thereby allocating financial risk and providing certainty in the contractual relationship.
Each Lease Payment Constitutes a Current Expense of the District
4.4.1 The District and Developer understand and intend that the obligation of the District to pay Lease Payments and other payments hereunder constitutes a current expense of the District and shall not in any way be construed to be a debt of the District in contravention of any applicable constitutional or statutory limitation or requirement concerning the creation of indebtedness by the District, nor shall anything contained herein constitute a pledge of the general tax revenues, funds or moneys of the District.
4.4.2 Lease Payments due hereunder shall be payable only from current funds which are budgeted and appropriated or otherwise made legally available for this purpose. This Facilities Lease shall not create an immediate indebtedness for any aggregate payments that may become due hereunder.
4.4.3 The District covenants to take all necessary actions to include the Lease Payments in each of its final approved annual budgets.
4.4.4 The District further covenants to make all necessary appropriations (including any supplemental appropriations) from any source of legally available funds of the District for the actual amount of Lease Payments that come due and payable during the period covered by each such budget. Developer acknowledges that the District has not pledged the full faith and credit of the District, State of California or any state agency or state department to the payment of Lease Payments or any other payments due hereunder. The covenants on the part of District contained in this Facilities Lease constitute duties imposed by law and it shall be the duty of each and every public official of the District to take such action and do such things as are required by law in the performance of the official duty of such officials to enable the District to carry out and perform the covenants and agreements in this Facilities Lease agreed to be carried out and performed by the District.
4.4.5 Developer cannot, under any circumstances, accelerate the District’s payments under the Facilities Lease.