§ 69-636.5. Use and care of equipment and machinery - Liability of leasing county - Return.  


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  • A.  Any county leasing road machinery and equipment from the Department of Transportation shall use and care for said machinery and equipment in a careful and prudent manner and shall pay all operating and maintenance expenses including any and all repairs during the time said machinery or equipment is in its possession.

    B.  The leasing county assumes all risk and liability for and shall hold the Department of Transportation and its agents harmless from all damages to property and injuries and death to persons arising out of the use, possession or transportation of said road machinery or equipment.

    C.  When road machinery or equipment is returned to the Department of Transportation prior to the payment in full of the contract purchase price the county must notify the Department of Transportation and request an inspection and appraisal of any such unit of equipment or machinery.  At the appointed time of inspection of equipment or machinery being returned, a county commissioner, a Department representative and an independent appraiser will determine the fair market value of said equipment and machinery.

    Should the appraised value not meet or exceed the balance remaining on the contract for lease-purchase, the county shall be assessed the difference and shall not be permitted to participate in the County Road Machinery and Equipment Revolving Fund until such difference is paid in full.  The extent of the financial obligation by the county will be based on the appraisal of equipment and road machinery at the time of inspection.

    The county may elect to remedy any deficiencies noted at the inspection meeting and request a subsequent inspection and appraisal after the deficiencies are corrected.

    D.  All risk physical damage insurance shall be carried on all equipment and road machinery purchased through the County Road Machinery and Equipment Revolving Fund.  The Department is authorized to arrange such coverage and include the cost of premium in the lease-purchase contract.  The county is authorized to request such coverage through the Department or provide said coverage through a county insurance plan.

Added by Laws 1982, c. 286, § 6.  Amended by Laws 1993, c. 75, § 2, eff. Sept. 1, 1993.