Product Descriptions for Financing Inquiry

Tax-Exempt Lease-Purchase Financing - This form of financing is suitable for equipment acquisitions or capital projects that the municipality intends to own at the end of a financing term. It is generally structured with lease payments divided into principal and interest components (computed at tax-exempt interest rates), and the purchase price of the asset is amortized over the term of the financing.

Non-Tax-Exempt Lease-Purchase Financing - This form of financing is suitable for equipment acquisitions or capital projects that: (a) provide more than 10% of the benefit of use to a non-governmental entity; or (b) have 10% or more of the funds used to repay the lease obligation contributed by federal sources or a non-governmental entity. It is generally structured with lease payments divided into two components: principal and interest (computed at taxable interest rates), and the purchase price of the asset is amortized over the term of the financing.

Municipal Lease - This type of financing is structured as a finance lease which provides for the periodic use or rental of equipment over time. This type of lease enables a municipal entity to easily acquire the equipment at the end of the lease term, and is structured with the following end of the lease options: (a) replace equipment with the latest technology (and enter into a new lease); (b) purchase the equipment for $1.00; or (c) return the equipment to the Lessor.

Master Lease Financing Program - A master lease is a tool used to fund projects or acquire equipment as needed in the future with a document already in place. This financing tool is well suited for: (i) equipment that is to be continuously acquired over several periods, or (ii) a series of equipment purchases that can be conveniently, and cost-effectively acquired under one document.

Master Lease Refinancing Plan - A master lease refinancing plan is intended to take advantage of cost reductions in interest rates which may be realized on existing leases by entering into a new lease at current market interest rates; or to combine and restructure the timing or amounts of rental payments on an existing lease(s).