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Our team guides you through the process. Republic First National has years of experience in helping and assisting customers finance equipment, apparatus and buildings.

What is a municipal lease?

A municipal lease or lease-purchase agreement is an installment purchase, conditional sale or lease with an option to purchase for nominal value.  It may also be referred to as a municipal lease.

Who qualifies for municipal or tax exempt leasing?

A State or political subdivision qualifies for tax exempt leasing.  Political subdivisions include cities, towns, counties and other municipalities.  They may include other state entities such as school districts, special purpose districts (fire, parks, utility, water, etc.), hospitals agencies, authorities, boards and commissions.

Can a Volunteer Fire Department qualify for a tax exempt lease?

Yes, a VFD purchasing fire apparatus or building or remodeling a fire station qualifies for lower, tax exempt rates.  Equipment such as SCBAs, turnout gear, rescue tools and ambulances do not qualify for the same rate.

What is a non-appropriation clause?

A non-appropriation clause enables the Lessee to terminate the lease agreement at the end of the current appropriation period without further obligation or penalty.  This may be done only in cases where the Lessee was unable to obtain funding for future payment obligations on the lease.  Typically, the clause will contain a “best efforts” requirement whereby the Lessee must use its best efforts to obtain the necessary appropriation for the lease payments.  The non-appropriation clause enables the Lessee to account for the lease obligation as a current expense instead of debt.

What is the minimum you can finance?

Our minimum transaction is $10,000.

Who owns the vehicle or equipment under a municipal lease?

The Lessee owns the equipment under a municipal lease.  Vehicles are titled in the Lessee’s name with the Lessor listed as lienholder.  On equipment, a UCC is filed with the Lessor listed as the secured party.

What equipment can be purchased under a municipal lease?

  • Fire Apparatus
  • Ambulances
  • Police Cars
  •  School Buses
  • Sewer Trucks
  • Asphalt & Paving Equipment
  • Snow Plows
  • Construction Equipment
  • Parks and Recreation Equipment
  • Computers
  • Jail & Court Software
  • Radios
  • Copiers
  • And Much More!

 Can the municipal lease be paid off early?

Yes, the agreement can be prepaid at any time.  Each agreement includes a payment schedule reflecting principal, interest and the payoff amount after each payment has been paid.

Can I use municipal leasing for used vehicles or equipment?

Absolutely!  The term we can offer will be determined by the age of the vehicle or equipment.


2525 West State Road 114 • Rochester, IN 46975
Toll-Free: (800) 700-7878 • Phone: (574) 857-3500 • Fax: (800) 865-8517