When is comes to municipalities and state agencies, I've always been under the impression that if the equipment is leased they have to have a $1.00 purchase option.
Is that correct?
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Not in Oregon...
Not sure about NJ!
Not sure about NJ!
Art -
As a general rule, when leasing to Muni/State Agency/Poly Subs, the customer can choose the lease structure that best fits their needs - Tax Exempt Muni Lease,standard $1.00 out, FMV lease agreement, Rental Agreement, etc.
In New Jersey, tax exempt municipal leases and FMV are widely used. Based on my previous conversations with Muni leasing experts, leases cannot be longer than 5 years and all must include a fiscal funding/non-appropriation clause with the agreement. Technically each lease needs to include an Opinion of Counsel form, but many lease companies waive this form for smaller transactions.
Each state has their own rules and these rules do change occasionally, so make sure you check with your leasing partner for the applicable rules for your state.