NIGP 94950: Principal on Other-Notes & Loans

NIGP 94950 Principal On Other Notes & Loans, an Item code, covers tax-exempt lease-purchase and vehicle financing agreements that state and local governments use to acquire fleet assets. The City of Kingman, Arizona recently solicited fixed-rate lease financing through an IFB for the acquisition of 30 vehicles and 2 heavy waste trucks, with eligible bidders limited to banks, credit unions, and FDIC-insured financial institutions authorized to conduct business in the relevant state. Work under this code involves structuring multi-year financing instruments with defined amortization schedules, escrow management, and compliance with municipal procurement and tax-exempt bond requirements.

The City of Kingman's 2025-IFB-041 solicitation, posted March 7, 2026 with bids due January 27, 2026, sought $2.5 million in financing split across a 10-year fixed-rate lease for $923,160.72 and a 5-year fixed-rate lease for $1,613,616.76, with loan closing anticipated for February 24, 2026. Bidders were required to provide sample loan and escrow agreements, proof of regulatory standing, comprehensive amortization schedules, references, and disclosure of all rates, fees, and money-market terms. Arizona municipalities represent the known geographic activity in recent opportunities; however, the scope of the code suggests broader state and local issuing-body participation where jurisdictions finance capital equipment purchases through tax-exempt lease structures.