We have helped communities all across America, large and small, to do more with less. Our exclusively awarded Sourcewell contract for financing allows us to provide funding solutions that satisfy bid requirements and streamline the procurement process. While many have utilized this powerful procurement tool, not everyone knows about or understands what a tax-exempt municipal lease (TEML) is. We hope these 5 short FAQs shed some light onto the topic for you and that you reach out to one of our account representatives for a quote on your next procurement project!
Every Agency is required to budget expenditures for the next fiscal year. In the event the Agency does not include the lease payments in the budget, the Agency can elect to return the equipment and cancel the lease.
NCL can defer a payment up to 12 months, allowing government agencies to make their first payment in their next fiscal year.
NCL designs leases based on the customer’s needs. Depending on the asset we have gone out as far 15 years.
1. Customer signs proposal and returns to NCL 2. NCL request credit package (credit application and financial statements) 3. NCL completes underwriting 4. NCL prepares documents and forwards to customer 5. NCL works directly with customer to finalize document signing 6. Upon receipt of originals, NCL will fund the transaction.
A Tax-Exempt Municipal Lease is very much like a loan with the exception of the non-appropriation clause. The Agency takes ownership from day one, and NCL is a secured party. There is no buyout or need to renew/return the equipment. The Agency owns the equipment free and clear upon NCL’s receipt of their final payment.
Still have questions? Give us at call at (320) 763-7600