Municipal Lease-Purchase

We offer a variety of custom financing packages to municipalities. Benefits of our Municipal Lease-Purchase packages include:

  • Flexible repayment terms structured to fit your operating budget.
  • Hybrid tax-exempt structure with features similar to both a loan and a lease.
  • Like a loan: customer has title to asset during term and gains free & clear ownership of asset at end of term.
  • Like a lease: financing is subject to annual renewal or termination.
  • Legally not a “debt” from a constitutional perspective, because no multi-year obligation is created.
  • Treated as a capital lease under GAAP.

Who is eligible?

  • States
  • Local government and political subdivisions including:
    • Cities and counties
    • Public school districts
    • State universities
    • Fire protection districts
    • Ambulance districts
    • Public utility districts
    • Various authorities
  • Native American tribal governments
  • 501(c)(3) organizations including:
    • Charitable, religious & educational entities
    • Not-for-profit hospitals
    • Private schools

 

Contact us to find out how this can benefit your organization.