We would like to sound like rocket scientists and make what we specialize in seem deeply mysterious and complicated. Truth is: Tax Exempt Municipal Leasing is a very mature, very understandable and rather highly regulated section of the leasing business. The KEY to municipal leasing is SERVICE.
Caught between the tax attorneys, the tax code and the Federal Open Market Committee manipulations of our monetary policy, there is very little room to offer you anything so unique in the way of a municipal lease that you cannot find it in a number of places. A few basis points separate the wining bids on most transactions in our country. The only differentiator in our business is SERVICE.
Municipal leases can only be offered to non-federal governmental entities such as cities, towns, school districts, counties, etc.
A professionally structured municipal lease will offer the municipality the lowest possible rate of interest available because the income to the investor in the lease will be income tax exempt.
Most often the lease will be a single investor, private placement lease with no extraneous costs of issuance and title to the asset will pass to the agency at the conclusion of the original lease terms.
Generally the lease will not require a vote of the people, as would be the case on
Most leases will require no additional collateral, will not impair other assets and not be a general obligation of the municipality.
Most leases will include a form of non-appropriation language. This allows the public agency to cancel the lease on an annual basis should funding for the lease payments not be appropriated for the coming fiscal year.