2 Comments

User's avatar
Gary McSherry's avatar

I have used this lease purchase arrangement to financing energy management programs for city an county schools in VA and what most folks don't know about the concept is that the county has to appropriate the funds for the lease payments annually because a Board cannot commit a future Board to debt. If a future Board votes not to fund the lease payments, the lender has no recourse because the loan to the leasing agent is not guaranteed by the County. The point is a future Board can cancel the funding any given year without recourse.

Bob's avatar

Instead of this opening…James City County wins another round… it should have read…taxpayers lose another round. IMHO

No posts

Ready for more?