A Municipal lease is an affordable way to acquire either brand new or used equipment. Municipal leases are available to cities, states, counties, fire districts, water and sewer districts, public hospitals etc. The equipment coming under municipal leasing include ambulances, fire trucks, police vehicles, computers, water meters, heavy machinery and dump trucks.
Applying for a
municipal lease has got many advantages:
Much needed equipment can be obtained immediately.
The interest income on a municipal lease is tax-exempt to the lessor.
Government agencies can see the purchasing power of their current appropriations multiply by a factor of 4 or 5 times.
Municipal leases are flexible. Payments can be made monthly, quarterly, semi-annually or annually.
A municipal lease is easy to obtain. It is generally a year-to-year obligation. So elapsed time and expenses associated with issuing a certificate of indebtedness or bond is greatly reduced.
Termination for non-appropriation.
Municipal lease transactions are governed by the Internal Revenue Code.
Most municipal payment plans don't require any down payment or security deposit.
If the government has sufficient funds, it can buyout the lease anytime after the completion of the first fiscal year. There is no penalty for this.
If you are in search of an affordable, client friendly municipal lease, do consider talking to the Graphic Savings Group.
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