Sample MOTOR VEHICLE USER AGREEMENT
This User Agreement is entered into this_________day of_____________, by and between, the
______________, hereinafter referred to as, _____, and
_______________, hereinafter referred to as the TRANSIT PROVIDER.
In consideration of the mutual covenants, promises and representations herein, the parties agree as
follows:
1. MOTOR VEHICLE User Agreement. _____ hereby provides to the TRANSIT PROVIDER the
following described motor vehicle with all accessories incorporated there or affixed thereto:
(Id#) Vehicle description VIN: vehicle id number user amount
2. TERM. The term of this User Agreement shall be for a period of one year commencing July 1, 2001
and ending June 30, 2002, subject however, to any prior termination as hereinafter provided.
3. RENT. The TRANSIT PROVIDER agrees to pay _____ Dollar Amount ($___.00) per year for each
vehicle, the said rental amount being due upon effective date of this User Agreement. Rent is payable
at the office of _____ located at __________________________________.
4. MAINTENANCE AND REPAIRS. The TRANSIT PROVIDER shall pay for and furnish all
maintenance and repairs to keep vehicles in good working order and condition. At the expiration or
termination of this Lease, the vehicles and all safety equipment in the vehicles will be returned to _____
in good condition, reasonable wear and tear excepted.
Any new transit vehicle leased to the TRANSIT PROVIDER may be equipped with; firstaid kit, fire
extinguisher, visual warning devices, bio-hazard kit, spare tire and wheel and may also be equipped
with; wheelchair securements, occupant restraints, two-way radio equipment. It is the responsibility of
the TRANSIT PROVIDER to replace these items as necessary throughout the period of the User
Agreement. Upon termination of the lease user agreement all of the said items will be in proper
working condition.
5. REGISTRATION, LICENSE, TAXES, INSPECTION, FEES, EXPENSES. The TRANSIT PROVIDER
shall pay all expenses incurred in the use and operation of the Vehicles, including but not limited to,
license, registration, and title fees, gasoline, oil, antifreeze, repairs, maintenance, tires, storage, fines,
inspections, assessments, sales or use taxes, if any, and all other taxes as may be imposed by law
from time to time arising from TRANSIT PROVIDER’S use and operation of the Vehicles. The
TRANSIT PROVIDER will reimburse and hold ________ harmless for any and all amounts ________
may pay in satisfaction, release or discharge thereof. The TRANSIT PROVIDER shall permit
________ and/or its designees to inspect the Vehicles at reasonable times, places and intervals. Each
motor vehicle listed in Section 1, shall bear Iowa Transit vehicle license plates and regional transit
system signage, prominently displayed on the right and left side of the vehicle.
6. USE AND OPERATION. The TRANSIT PROVIDER acknowledges receipt of Motor Vehicles, and
that the same is in condition satisfactory to TRANSIT PROVIDER’S purposes. Vehicles shall not be
altered, marked or additional equipment installed without the prior written consent of ________ in
which case the TRANSIT PROVIDER will bear the expense thereof as well as the restoration
expenses. The TRANSIT PROVIDER shall keep Vehicles free of all taxes, liens, and encumbrances
and any sum of money that may be paid by ________ in release or discharge thereof, including legal
costs, shall be paid on demand by .________. The TRANSIT PROVIDER shall not use or permit the
use of Vehicles in violation of any Federal, State, County or City laws, ordinances, rules or regulations,
or contrary to the provisions of the insurance policy coverage. The TRANSIT PROVIDER, by
acceptance of this User Agreement, agrees to abide by the terms hereof and to indemnify ________ for
any losses occurring as a result of such use in violation of said terms, laws, rules and ordinances.
7. INDEMNIFICATION AND INSURANCE. The TRANSIT PROVIDER agrees and will protect,
indemnify and hold harmless ________ and its assignees and agents from and against any and all
losses, damages, injuries, claims, demands and expenses occasioned by, or arising out of, the
condition, maintenance, use or operation of the Vehicles including any accident or other occurrence
causing or inflicting injury and/or damage to any person or property, happening or done, in, upon, or
about the User Agreement Vehicles, or due directly or indirectly to this Lease, or the condition,
maintenance, use or operation of the Vehicles by the TRANSIT PROVIDER or any person claiming
through or under the TRANSIT PROVIDER.
The ________ agrees that it will at all times provide at a minimum and re-bill the TRANSIT PROVIDER
the expense to cover the vehicle(s) in the User Agreement:
Liability $1,000,000.00
Uninsured/Underinsured Motorist $1,000,000.00
Comprehensive Full Coverage $1,000.00 Deductible
Collision $1,000.00 Deductible
Medical Payments $1,000.00
Umbrella $4,000,000.00
The TRANSIT PROVIDER agrees that it shall at all times and at its own expense reimburse ________
for the premium and any deductibles.
The TRANSIT PROVIDER shall provide and pay for any other insurance or bond that may be required
by any governmental authority as a condition to, or in connection with, the TRANSIT PROVIDER’S use
of the Vehicles.
In the event Vehicles are involved in an accident, damaged, stolen or destroyed by fire, the TRANSIT
PROVIDER shall promptly notify ________, in writing, within 24 hours and will also comply with all
terms and condition entered in the insurance policies. The TRANSIT PROVIDER agrees to cooperate
with ________ , and the insurance companies in defending against any claims or actions resulting
from the TRANSIT PROVIDER’S operation or use of the Vehicles.
Vehicles shall not be used by any person or entity, in any manner or for any purpose that would cause
any insurance herein specified to be suspended, canceled, or rendered inapplicable.
8. DAMAGE TO VEHICLES. Should Vehicles or any part thereof be so damaged as to preclude usage
for the purpose intended and should the TRANSIT PROVIDER be indemnified therefor pursuant to any
insurance coverage required pursuant to paragraph 7 hereof in an amount not less than the full amount
of the insurance coverage provided by ________ , this User Agreement shall terminate. However,
should the TRANSIT PROVIDER be indemnified in an amount less than the full amount of the
insurance coverage provided by ________ , the TRANSIT PROVIDER will repair or replace Vehicles or
the damaged part thereof and the proceeds of the insurance recovery shall be applied to such repair or
replacement. Should vehicles or any part thereof be damaged by any cause for which ________
makes no insurance recovery and should Vehicles or the damaged part thereof be capable of repairs,
this User Agreement shall terminate and the TRANSIT PROVIDER shall immediately pay ________ the
reasonable value of Vehicles, regardless of rentals paid or accrued.
9. TITLE. The TRANSIT PROVIDER acknowledges that this is an agreement to use only and that the
TRANSIT PROVIDER does not in any way acquire title to Vehicles, under this agreement. Without the
prior written consent of ________ , the TRANSIT PROVIDER agrees not to do any act to encumber,
convert, pledge, sell, assign, rehire, lease, lend, conceal, abandon, give up possession of, or destroy
Vehicles.
10. WARRANTIES AND WAIVER. The TRANSIT PROVIDER uses Vehicles herein described in "as is"
condition and agrees that ________ had not made, and does not hereby make any representation,
warranty or covenant expressed or implied with respect to the condition, quality, durability, capability, or
suitability of Vehicles or against any patent or latent defects therein. The TRANSIT PROVIDER agrees
that ________ shall not be liable to the TRANSIT PROVIDER for any liability, claim, loss, damage or
expense of any kind or nature caused directly or indirectly by Vehicles or the inadequacy thereof for
any purpose, or for any deficiency or defect therein, or for the use or maintenance thereof, or for any
repairs, servicing, adjustments, or expenses thereto or for any loss of business or for any damage
whatsoever and howsoever caused.
11. ASSIGNMENT. Without the prior written consent of ________ or any assignee of ________, the
TRANSIT PROVIDER agrees not to sublet, mortgage, pledge, sell, assign or otherwise transfer or
dispose of this User Agreement. The TRANSIT PROVIDER acknowledges and understands that
________ may assign this User Agreement and that such assignee shall be entitled to all of the
benefits of this User Agreement in the place of ________. In connection therewith, the TRANSIT
PROVIDER agrees this User Agreement and Vehicles used there under will be subjected to any rights
and interest in and to said Vehicles under any contract ________ has with another regarding title or
interests in title; to accept the directions, demands or consents of such assignee in place of those of
________; to surrender Vehicles only to such assignee; to pay all rent hereunder as directed by such
assignee.
12. DEFAULT. In any of the following default events:
1) failure to pay any rent or sum herein provided when the same are due and payable and such
default continues for a period of ten (10) days after receipt of notice thereof of TRANSIT
PROVIDER;
2) Failure to comply with any terms or conditions hereof;
3) a proceeding in insolvency or receivership by or against the TRANSIT PROVIDER or its
property, or in the event lessee suspends business, makes an assignment for the benefit of
creditors, or if an attachment be levied or tax lien filed against the Vehicle, or
4) the TRANSIT PROVIDER fails for any reason to comply with the insurance requirements of the
User Agreement, then and in those events, or any of them, ________ may, at its option and without
prejudice to any other rights it may have:
a) take possession of Vehicles and for the purpose thereof may enter the premises on which
Vehicles are located and remove them without court order or other process of law(damages
occasioned by such taking being expressly waived by the TRANSIT PROVIDER), and
thereupon the TRANSIT PROVIDER’S right to possession and use of Vehicles shall terminate;
b) may(but need not) use Vehicles or any portion thereof for such period, rental, and to such
persons or entities as ________ shall elect and shall apply the net proceeds of any such renting
in payment of the rent and other obligations due from TRANSIT PROVIDER to ________
hereunder by acceleration or otherwise;
c) may(but need not) sell Vehicles or any part thereof at public or private sale without demand
or notice of intention to sell or of sale and shall apply the net proceeds of any such disposition
against the total obligations owed ________;
d) may deduct all costs and expenses in connection with such retaking, including insurance,
repairs, storage, renting or sale of Vehicles from the proceeds derived from such renting or sale;
e) terminate TRANSIT PROVIDER’S rights hereunder as to Vehicles;
f) accelerate rents for the lease term as provided in paragraph 2 and 3 hereof and recover the
same and all other damages as herein or by law provided by legal proceedings.
No right or remedy conferred upon or reserved to ________ by this User Agreement shall be exclusive
of any other right or remedy herein or by law provided; all rights and remedies conferred upon
________ by this User Agreement or by law shall be cumulative and in addition to every other right
and remedy to.
If it is necessary to employ the services of an attorney or incur expenses in enforcing this Lease, the
TRANSIT PROVIDER shall pay to ________ all such expenses and court costs, in addition to all sums
due ________, including reasonable attorney’s fees.
13. CONSTRUCTION. This User Agreement shall be construed and determined in accordance with
the laws of the State of Iowa. Any provision herein prohibited by law shall be ineffective to the extent of
such prohibition without invalidating the remaining provisions of the User Agreement. Words and
phrases herein, including any acknowledgment hereof, shall be construed as in the singular or plural
number, and as masculine, feminine or neuter gender according to the context.
14. TIME IS OF THE ESSENCE. Time is of the essence of this Lease. However, ________’s failure at
any time to require strict performance by the TRANSIT PROVIDER of any provisions herein shall not
waive or diminish ________’s right to thereafter demand strict compliance therewith or with other
provisions of this User Agreement and written waiver by ________ of any default hereunder shall not
constitute a waiver of any other default.
15. ENTIRE AGREEMENT. This User Agreement contains the whole agreement of the parties. None
of the covenants, provisions, terms or conditions of this User Agreement shall be in any manner
modified, waived, abandoned or amended except by a written instrument duly signed by the parties or
their assignee and delivered to ________ and the TRANSIT PROVIDER or their assignee.
16. BINDING. Each and every covenant and agreement herein contained shall extend to and be
binding upon the respective successors, heirs, administrators, executors and assigns of the parties
hereto except as may be modified in paragraph 11 or 18 hereof.
17. NOTICE. Notices as provided for in this User Agreement shall be given to the respective parties or
their assignees at their respective addresses designated herein unless there is notification of the
parties to the other, in writing, of a different address. Such notice shall be deemed to be given and
received when deposited in the United States mail, postage prepaid, addressed as herein designated.
18. INFORMATION TO BE FURNISHED BY TRANSIT PROVIDER TO ________. The TRANSIT
PROVIDER shall furnish the following information to ________ during the term of this User Agreement.
Such monthly information shall be submitted by the TRANSIT PROVIDER TO ________ by the 15 th day
of the month following the end of the previous month. Such quarterly information shall be submitted by
the TRANSIT PROVIDER to ________ by the 30 TH day of the first month following the end of the
quarter(October 30, January 30, April 30, July 30)
a. Passenger Count (monthly & quarterly report)
b. Passenger Type i.e. elderly, handicapped, general public (monthly & quarterly report)
c. Miles Driven (monthly & quarterly report)
d. Revenue Miles (monthly & quarterly report)
e. Revenue Hours of Service (monthly & quarterly report)
e. Gallons of Gasoline (monthly & quarterly report note: quarterly fuel report is due ________ on
the 15 th of the month following the end of the quarter)
f. Total Cost of Operation (for quarterly report)
g. Breakdown of revenues received for operation (for quarterly report)
IN WITNESS WHEREOF, the parties have duly executed this User Agreement on the day and year
first written above.
TRASNIT SYSTEM TRANSIT PROVIDER
By: ____________________ By:____________________
Date: __________________ Date:______________________
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