Page 267 - Solar Power in Building Design The Engineer's Complete Design Resource

PRINCIPAL TYPES OF MUNICIPAL LEASE 237

motors, central plants, emergency backup systems, energy management systems, and
structural building retrofits.
The leases can carry a purchase option at the end of the lease period for an
amount ranging from $1.00 to fair market value and frequently have options to
renew the lease at the end of the lease term for a lesser payment over the original
payment.

TAX-EXEMPT MUNICIPAL LEASE
A tax-exempt municipal lease is a special kind of financial instrument that essentially
allows government entities to acquire new equipment under extremely attractive terms
with streamlined documentation. The lease term is usually for less than 7 years. Some
of the most notable benefits are:

■ Lower rates than conventional loans or commercial leases.
■ Lease-to-own. There is no residual and no buyout.
■ Easier application, such as same-day approvals.
■ No “opinion of counsel” required for amounts under $100,000.
■ No underwriting costs associated with the lease.

ENTITIES THAT QUALIFY FOR A MUNICIPAL LEASE
Virtually any state, county, or city municipal government and its agencies, such as law
enforcement, public safety, fire, rescue, emergency medical services, water port
authorities, school districts, community colleges, state universities, hospitals, and
501 organizations qualify for municipal leases. Equipment that can be leased under a
municipal lease includes essential-use equipment and remediation equipment such as
vehicles, land, or buildings. Some specific examples are listed here:

■ Renewable energy systems
■ Cogeneration systems
■ Emergency backup systems
■ Microcomputers and mainframe computers
■ Police vehicles
■ Networks and communication equipment
■ Fire trucks
■ Emergency management service equipment
■ Rescue construction equipment such as aircraft helicopters
■ Training simulators
■ Asphalt paving equipment
■ Jail and court computer-aided design (CAD) software
■ All-terrain vehicles
■ Energy management and solid waste disposal equipment
■ Turf management and golf course maintenance equipment
■ School buses