(14) Commitments and Contingent Liabilities At December 31, 2001; the future minimum lease payments for equipment and premises under-operating leases were as follows: $9.7 million in 2002, $8.9 million in 2003, $8.4 million in-2004, $7.7 million in 2005, $7.0 million in 2006 and a total of $105.5 million thereafter. BOk and Williams Companies, Inc. guaranteed 30 percent and 70 percent, respectively, of the $13 million debt; which matures May 15, 2007, and operating deficit of two parking facilities operated by the Tulsa Parking Authority. Total expenditures related to this guarantee were $441 thousand in 2001, $319 thousand in 2000, and $273 thousand ın.1999. In the ordinary course of business, BOK Financial and its subsidiaries are subject to legal actions and complaints. Management believes, based upon the opinion of counsel, that the actions and liability or loss, if any, resulting from the final outcomes of the proceedings will not be material in the aggregate. BOk is obligated under a long-term lease for its bank premises located in downtown Tulsa. The lease term, which began November 1, 1976, is for fifty-seven years with options to terminate in 2013 and 2023. Annual base rent is $3.3 million. BOk subleases portions of its space for‘annual rents of $406 thousand in years 2002 through 2003, $388 thousand for 2004, $384 thousand in 2005 and $213 thousand in 2006. Net rent expense on this lease was $2.9 million in 2001, $3.1 million in 2000, and $2.8 million in 1999. Total rent expense for BOK Financial was $11.8 million in 2001, $10.5 million in 2000, and $10.2 million in 1999. The Federal Reserve Bank requires member banks to maintain certain minimum average cash balances. These balances were approximately $262 million for 2001 and $231 million for 2000. (15) Financial Instruments with Off-Balance Sheet Risk The amount of collateral obtained, if deemed necessary, is based on management’s credit evaluation of the borrower. Standby letters of credit are conditional commitments issued to guarantee the performance of a customer to a third party. Since the credit risk involved in issuing standby letters of credit is essentially the same as that involved in extending loan commitments; BOK Financial uses the same credit policies in evaluating the creditworthiness of the customer. Additionally, BOK Financial uses the same evaluation process in obtaining collateral on standby letters of credit as it does for loan commitments: At December 31, 2001, outstanding standby letters of credit totaled $249 million. Commercial letters of credit are used to facilitate customer trade transactions with the drafts being drawn when the underlying transaction is consummated. At December 31, 2001, outstanding commercial letters of credit totaled $8 million. BOK Financial is.a party to financial instruments with off-balance-sheet risk in the normal course of business to meet the financing needs of its customers and to manage interest raté risk. Those financial instruments involve, to varying degrees, elements of credit risk in excess of the amount recognized in BOK Financial’s Consolidated Balance Sheets. Exposure to credit loss in the event of nonperformance by the other party to the financial instrument for commitments to extend credit and standby letters of credit is represented by the notional amount of those instruments. Commitments to extend credit are agreements to lend to a customer as long as there is no violation of any condition established in the contract. Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. At December 31, 2001, outstanding commitments totaled $2.5 billion. Since some of the commitments are expected to expire before being drawn upon, the total commitment amounts do not necessarily represent future cash requirements. BOK Financial uses the same credit policies in making commitments as it does loans. Preferred Stock (16) Shareholders’ Equity One billion shares of preferred stock with a par value of $0.00005 per share-are authorized. A single series of 250,000,000 shares designated as Series A Preferred Stock (“Series A Preferred Stock”) is currently issued and outstanding. The Series A Preferred Stock has no voting rights except as otherwise provided by Oklahoma corporate law and may be converted into one share of Common Stock for each 39 shares of Series A Preferred Stock at the option of the holder. Dividends are cumulative at an‘annual rate of ten percent of the $0.06 per share liquidation preference value when declared and are payable in cash. Aggregate liquidation preference is $15 million. During 2001, 2000 and 1999, 72,141 shares, 88,628 shares and 57,340 shares, respectively, of BOK Financial common stock were issued in payment of dividends on Ihe Series A Preferred Stock in lieu of cash by mutual agreement of BOK Financial and the holders of the Series A Preferred Stock. These shares were valued at $1.5 million-in 2001, 2000 and 1999, based on average market price, as defined, for a.65 business day period Common stock consists of 2.5 billion authorized shares with a $0.00006 par value. Holders of common shares are entitled to one’ vote per share at the election of the Board of Directors and on any question arising at-any shareholders’ meeting and to receive dividends when and as declared. No common stock dividends can be paid unless all accrued dividends on the Series A Preferred Stock have been paid. The present policy of BOK Financial is toretain earnings for capital and future growth, and management has no current plans to recommend payment of cash dividends on common stock. Additionally, regulations restrict the ability of national Common Stock 50