Tax-Exempt Municipal Leasing Services

Over the many years I have visited with community banks discussing equipment leasing, nothing has created more excitement or been universally embraced as much as our tax-exempt municipal leasing option.

For background, a tax-exempt municipal lease is a means for a government entity or school to acquire critical-use assets, such as:

  • School buses
  • Emergency apparatuses
  • Street maintenance equipment
  • Snow removal trucks and graders

Not only are rates lower than commercial rates, but also there are no costly underwriting or legal expenses. With an ever-increasing demand on local budgets, municipal leases are gaining in popularity and growing in use. Rather than budgeting and purchasing expensive assets, municipalities only need to budget for the annual lease payment for any particular year.

For many banks, providing municipal leasing within their community is very rewarding. Credit profiles are usually excellent, large depository relationships are maintained, and there is a natural, almost innate, sense of gratification that comes from providing a service within your community.

For municipalities, being able to lease equipment locally is also very rewarding. In addition to supporting a local business, municipalities also benefit from personal, local service. It is not uncommon for bankers to know municipal leaders on a personal level. By an overwhelming margin, municipalities would prefer to do business locally.

Making It Happen

Through our leasing division, Bell Bank can partner with you to provide you the tools and technical expertise to handle all areas of pricing, documentation and servicing associated with these leases. We can work closely with your lender to construct and provide quotes for a municipality, and we can make sure the proper forms are executed correctly. Our expertise can ensure an easy and accurate completion of any transaction.

Your bank can generate significant fee income on any transaction, or you may have an opportunity to have all or part of the transaction participated back to you.

To further assist you and at no cost, we can develop and provide you with the marketing materials you need to communicate your leasing capability to the various municipalities and schools in your area.

We would love the opportunity to meet in your bank for an easy and short product overview and training discussion! Please contact me or your correspondent banking officer to get started. You’ll be up and running with tax-exempt leasing very soon.


Mike LaSalle

Mike LaSalle

SVP/Correspondent Bank Leasing Director

Direct: 952-905-5155

Deposit and loan products are offered through Bell Bank, Member FDIC. Investing and wealth management products are: Not FDIC Insured | No Bank Guarantee | May Lose Value | Not A Deposit | Not Insured by Any Federal Government Agency.