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Q: What if the City Commission or Council doesn't
appropriate funds for the next year's payment?
A: All governmental leases
contain a "non-appropriations" clause. This basically says that the
finance company agrees to allow the government agency to return the
equipment without further recourse or cost to that agency if the governing
body doesn't allocate the necessary funds.
Q: Is the "Full Faith and Credit" of the governing
agency affected by a municipal lease?
A: In most cases, NO!
This would be subject, of course, to any local charter or state statutes
to the contrary.
Q: Can we make annual payments to coincide with our
fiscal year revenue stream?
A: Yes - We can assist
you in structuring practically any payment system - monthly, quarterly,
yearly - whichever best suits the needs of the governing agency.
Q: Is a Voter approval needed as on a bond issue?
A: Generally no, but this
requirement can vary state to state.
Q: Will Leasing Equipment Affect Our Debt Limit?
A: A Government Lease
Purchase Plan is NOT considered debt because the agreement can be canceled
if future funds aren't available (non-appropriations clause). However,
this can vary - thus state statutes as well as the government agencies
charter should be researched to see that no conflict exists.
Q: What if we have a tight budget and need the lease
to keep scheduled payments as low as possible?
A: Many of the lease companies
we work with are willing to structure skip payments.
Q: Can payments be structured in such a way that the
equipment will e paid off at the end of the lease?
A: Yes - government leases
can be structured to provide a one dollar payoff at the end of the lease
if that is the wish of the city, county or township.
Q: Are there any other charges?
A: Generally yes - there
is usually a nominal fee charged to cover paperwork cost.
Q: Does Morbark do the financing?
A: No, Morbark works with
several finance companies. We will do everything possible to tailor
a finance package to meet your needs.
Q: Where can I get more information on bid specs?
A: Call your local Morbark
representative or call our in-house specialist.
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