THIS IS AN ADVERTISEMENT.
The leasing alternative. Peck Shaffer has been in the forefront of the development of lease financing as an alternative to conventional bond and note issues for governments, hospitals and other 501(c)(3) entities across the country. Peck Shaffer's experience extends far beyond equipment lease-purchase financings to include installment purchase and sale agreements, master leases, portfolio acquisitions, operating leases, certificates of participations (COPs) and leases for the acquisition of real estate, as well as the securitization of collateral.
Addressing the debt limitation concerns of governmental entities. Governmental leases typically require an annual appropriation from the applicable governing body. As fiscal appropriations, leases generally are not considered "debt" under state statutory or constitutional debt limit provisions.
Peck Shaffer has assisted many governments in using lease financing for capital projects including water/sewer improvements, energy conservation equipment, transportation, technology and a host of other purposes, without facing the debt limit considerations required for bond and note issues.
Matching asset life and repayment terms for hospitals and 501(c)(3) entities. The typical 5- to 7-year lease repayment term on an equipment lease can match the shorter useful life of assets such as CT Scanners, MRI machines, radiology equipment and other types of medical equipment, as well as certain renovations—as opposed to a long-term debt financing where equipment costs are often subsumed as part of long-term capital acquisitions. In instances where tax and accounting requirements permit, hospitals may even be able to use off-balance sheet lease financing.
Less administrative burden and lower interest rates. Leases are often made with a private purchaser (usually a bank, another type of financial institution or another sophisticated investor) and therefore, the governmental entity, hospital or other 501(c)(3) entity entering into the lease is exempt from the burden of compliance with full disclosure requirements of the Securities and Exchange Commission, including the preparation of an offering document. The approval of the lease by the private purchaser is based on the financial statements/creditworthiness of the 501(c)(3) entity or municipality and the essential nature of the items financed by the lease. In addition, many banks may provide a lower interest rate if the lease is "bank qualified," meaning that the issuer of the lease obligations will not issue more than $10,000,000 in tax-exempt obligations in the current calendar year.
The national reputation of our leasing practice. Our attorneys are frequently asked to serve as speakers at the national conferences of the Association of Governmental Leasing & Finance (AGL&F). Three partners have been selected to serve on the AGL&F Board. We are regular contributors to the 50 State Survey compiled by AGL&F.