Features and Benefits
- What are the financing benefits for municipalities?
- The benefits of financing through the MCIA include:
- Elimination of the 5% downpayment
- Financing not counted in statutory net debt
- CAP law limitations do not apply
- Flexible repayment schedules as 200% principal repayment rule is not required
- Ability to do a negotiated sale to take advantage of market opportunities
- Broad range of equipment can be financed including equipment which may not be eligible for financing as bonds
- Economies of scale for costs of issuance in pooled borrowings
- If County guarantees financing, the bonds will be rated “AAA” and therefore carry the lowest possible interest cost without additional costs
- One week turnaround through the capital equipment leasing program.
- What are the financing benefits for school districts?
- The benefits of financing through the MCIA include:
- Flexible repayment schedules as 200% principal repayment rule is not required
- Ability to do a negotiated sale to take advantage of market opportunities
- Broad range of equipment can be financed including equipment which may not be eligible for financing as bonds
- Economies of scale for costs of issuance in pooled borrowings
- If County guarantees financing, the bonds will be rated "AAA" and therefore carry the lowest possible interest cost without additional costs
- One week turnaround through the capital equipment leasing program.